Editor's Note:

The S&P 500 index managed its fifth gain in a row. That hasn't happened in a while. Gains today did not see much volume.

NUS hit our entry trigger today.

We want to exit both CAT and QCOM at the closing bell tomorrow.


Current Portfolio:


CALL Play Updates

Adobe Systems - ADBE - close: 64.30 change: +0.26

Stop Loss: 59.45
Target(s): to be determined
Current Option Gain/Loss: - 4.6%
Time Frame: 8 to 12 weeks
New Positions: see below

Comments:
04/21/14: ADBE delivered a quiet session on Monday. Traders bought the dip twice this morning near $63.60 but most of the session was a drift sideways. We would still consider new positions now or if you're feeling patient then wait for a pullback near $62.00-62.50 as an alternative entry point.

- Suggested Positions -

Long Jul $65 call (ADBE1419G65) entry $3.20

04/21/14 ADBE opened at $64.00

Entry on April 21 at $64.00
Average Daily Volume = 4.8 million
Listed on April 19, 2014


Caterpillar Inc. - CAT - close: 102.83 change: -0.10

Stop Loss: 101.40
Target(s): 109.00
Current Option Gain/Loss: -17.1%
Time Frame: exit PRIOR to earnings on April 24th
New Positions: see below

Comments:
04/21/14: CAT underperformed with a -0.18% loss. Shares dipped to $101.55 this morning before traders starting buying the dip. We are almost out of time. CAT is scheduled to report earnings on Thursday morning, April 24th, before the opening bell. We do not want to hold over the report. We will plan on exiting this trade tomorrow, Tuesday, at the closing bell. I am raising our stop loss to $101.40.

- Suggested Positions -

Long MAY $105 call (CAT1417E105) entry $1.52

04/21/14 new stop 101.40, prepare to exit tomorrow at the close
04/08/14 triggered @ 102.35

Entry on April 08 at $102.35
Average Daily Volume = 5.9 million
Listed on April 07, 2014


Devon Energy - DVN - close: 70.50 change: -0.20

Stop Loss: 68.75
Target(s): 74.75
Current Option Gain/Loss: -4.1%
Time Frame: exit PRIOR to earnings on May 7th
New Positions: see below

Comments:
04/21/14: DVN saw a little bit of profit taking today after closing at new 52-week highs last week. Traders did buy the dip near $70.00, which is a good sign. Readers can use today's move as an alternative entry point to buy calls.

We will plan on exiting prior to earnings on May 7th. FYI: The Point & Figure chart for DVN is bullish with a $95 target.

- Suggested Positions -

Long May $70 call (DVN1417E70) entry $1.94*

04/17/14 triggered @ 70.35
*option entry price is an estimate since the option did not trade at the time our play was opened.

Entry on April 17 at $70.35
Average Daily Volume = 3.7 million
Listed on April 16, 2014


EOG Resources - EOG - close: 103.53 change: +1.08

Stop Loss: 99.65
Target(s): 109.00
Current Option Gain/Loss: +22.6%
Time Frame: exit PRIOR to earnings on May 5th
New Positions: see below

Comments:
04/21/14: EOG continues to show relative strength and closed at new all-time highs. I am not suggesting new positions at current levels.

- Suggested Positions -

Long May $105 call (EOG1417E105) entry $1.90*

04/19/14 new stop @ 99.65
04/16/14 triggered @ 101.75
*option entry price is an estimate since the option did not trade at the time our play was opened.

Entry on April 16 at $101.75
Average Daily Volume = 2.9 million
Listed on April 15, 2014


Diamondback Energy, Inc. - FANG - close: 74.52 change: +1.18

Stop Loss: 69.45
Target(s): to be determined
Current Option Gain/Loss: +64.7%
Time Frame: exit PRIOR to earnings in May
New Positions: see below

Comments:
04/21/14: Traders bought the dip in FANG near $72.00 this morning and the stock rebounded to another new high. We will raise our stop loss to $69.45.

Earlier Comments:
The stock looks poised to break out past resistance near $70.00. If that happens FANG could see some short covering. The most recent data listed short interest at 37% of the small 32.5 million share float. That's plenty of fuel for a short squeeze. FYI: The Point & Figure chart for FANG is bullish with an $85 target.

- Suggested Positions -

Long May $75 call (FANG1417E75) entry $1.70*

04/21/14 new stop @ 69.45
04/19/14 new stop @ 68.75
04/16/14 triggered @ 71.25
*option entry price is an estimate since the option did not trade at the time our play was opened.

Entry on April 16 at $71.25
Average Daily Volume = 948 thousand
Listed on April 14, 2014


Gulfport Energy - GPOR - close: 74.09 change: -1.02

Stop Loss: 71.70
Target(s): 79.50
Current Option Gain/Loss: -23.3%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
04/21/14: I cautioned readers in the weekend newsletter that we might see a dip in GPOR. The profit taking today was deeper than expected with an intraday drop below the rising 10-dma. GPOR did manage to pare its losses. More conservative traders may want to raise their stop closer to today's low ($72.86).

- Suggested Positions -

Long May $75 call (GPOR1417E75) entry $3.85*

04/14/14 triggered @ 74.25

Entry on April 14 at $74.25
Average Daily Volume = 1.45 million
Listed on April 12, 2014


iShares Russell 2000 ETF - IWM - close: 113.45 change: +0.53

Stop Loss: 111.45
Target(s): to be determined
Current Option Gain/Loss: + 4.2%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
04/21/14: The late-morning pullback didn't last very long and the IWM ended the session up +0.4%. This is the fifth gain in a row for the IWM (and the S&P 500).

We are raising our stop loss to $111.45.

- Suggested Positions -

Long JUN $115 call (IWM1421F115) entry $2.37

04/21/14 new stop @ 111.45
04/16/14 triggered $ 112.15

Entry on April 16 at $112.15
Average Daily Volume = 55 million
Listed on April 15, 2014


Nu Skin Enterprises - NUS - close: 85.38 change: -1.04

Stop Loss: 79.75
Target(s): to be determined
Current Option Gain/Loss: - 1.3%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
04/21/14: It was a volatile day for NUS as investors reacted to news the company was resuming its normal operations in China. Previously the company had suspended all sales meetings and stopped "hiring" new sales people in China while it was being investigated by the Chinese government. NUS' stock gapped open higher near $88.50 but reversed around the $89 level and its exponential 200-dma. Shares retreated to $84.00 by midday.

We had a buy-the-dip entry trigger to buy calls at $84.50. If you're still looking for an entry point consider waiting for a move past $85.75.

Earlier Comments:
I anticipate the $100 level acting as round-number resistance for NUS. Currently the Point & Figure chart for NUS is bullish with a $102 target.

Earnings for NUS are expected in early May. No date has been set yet.

- Suggested Positions -

Long May $90 call (NUS1417E90) entry $3.04

04/21/14 triggered @ 84.50

Entry on April 21 at $84.50
Average Daily Volume = 1.8 million
Listed on April 19, 2014


QUALCOMM Inc. - QCOM - close: 80.93 change: -0.39

Stop Loss: 80.40
Target(s): to be determined
Current Option Gain/Loss: +23.5%
Time Frame: Exit PRIOR to earnings on April 23rd
New Positions: see below

Comments:
04/21/14: QCOM spiked to a new high this morning and then immediately reversed. Shares spent most of the day drifting sideways under the $81.00 level. The company is scheduled to report earnings on Wednesday, April 23rd, after the closing bell. We do not want to hold over the announcement. More conservative traders may want to exit immediately tomorrow morning. I am suggesting we exit QCOM positions tomorrow at the closing bell. I am raising our stop loss to $80.40.

- Suggested Positions -

Long MAY $80 call (QCOM1417E80) entry $1.87

04/21/14 prepare to exit tomorrow at the close. new stop @ 80.40
04/19/14 new stop @ 78.90
04/09/14 opened on Wednesday morning.

Entry on April 09 at $79.26
Average Daily Volume = 2.0 million
Listed on April 08, 2014




PUT Play Updates

Catamaran - Corp. - CTRX - close: 38.81 change: -0.28

Stop Loss: 40.65
Target(s): to be determined
Current Option Gain/Loss: + 0.0%
Time Frame: Exit PRIOR to earnings on May 1st
New Positions: see below

Comments:
04/21/14: As expected shares of CTRX continued to sink. Shares lost another -0.7% today. I don't see any changes from my weekend new play comments.

Earlier Comments:
CTRX is scheduled to earnings again on May 1st. We do not want to hold over the announcement. We're not setting at target to tonight but I would probably aim for the $35 region.

FYI: The Point & Figure chart for CTRX is bearish with a long-term $23 target.

- Suggested Positions -

Long May $40 PUT (CTRX1417Q40) entry $2.20

04/21/14 CTRX opened @ $39.06

Entry on April 21 at $39.06
Average Daily Volume = 3.3 million
Listed on April 19, 2014


Lumber Liquidators - LL - close: 87.30 chang6: +0.43

Stop Loss: 88.35
Target(s): to be determined
Current Option Gain/Loss: - 44.6%
Time Frame: exit PRIOR to earnings on April 30th
New Positions: see below

Comments:
04/21/14: LL spent Monday's session churning sideways but ended on an up note with a +0.49% gain. More conservative traders may want to just abandon ship now. I am not suggesting new positions.

Our stop loss is at $88.35. More aggressive traders may want to give LL more room to maneuver so consider using a stop loss above the 10-dma (88.55) or the $90.00 level instead.

Earlier Comments:
Readers may want to use small positions because there are already a lot of bears in this name. The most recent data listed short interest at 27% of the small 24.4 million share float. That could make any bounce a volatile one.

Plan on exiting prior to LL's earnings report on April 30th. We are not setting an exit target just yet. FYI: The Point & Figure chart for LL is bearish with a $72 target.

- Suggested Positions -

Long May $80 PUT (LL1417Q80) entry $3.25*

04/15/14 triggered @ 83.80
*option entry price is an estimate since the option did not trade at the time our play was opened.

Entry on April 15 at $83.80
Average Daily Volume = 761 thousand
Listed on April 14, 2014