Editor's Note:

Big cap blue chip indices like the S&P 500 and the Dow Industrials are nearing their recent highs. The oversold bounce in the NASDAQ and the Russell 2000 continues as well.

We closed CAT and QCOM ahead of their earnings report. LL hit our stop loss.


Current Portfolio:


CALL Play Updates

Adobe Systems - ADBE - close: 64.48 change: +0.18

Stop Loss: 59.45
Target(s): to be determined
Current Option Gain/Loss: - 3.1%
Time Frame: 8 to 12 weeks
New Positions: see below

Comments:
04/22/14: ADBE's bounce continues with shares up six days in a row. Yet most of today's action was sideways. Shares tagged their 30-dma intraday. I suspect ADBE will see a dip soon.

- 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


Devon Energy - DVN - close: 70.63 change: +0.13

Stop Loss: 68.75
Target(s): 74.75
Current Option Gain/Loss: -1.5%
Time Frame: exit PRIOR to earnings on May 7th
New Positions: see below

Comments:
04/22/14: DVN garnered some bullish analyst comments today and had its price target raised from $82 to $90. Traders bought the dip near support at $70.00 for the second day in a row. More conservative traders may want to adjust their stops closer to $70.00.

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: 102.34 change: -1.19

Stop Loss: 99.65
Target(s): 109.00
Current Option Gain/Loss: - 3.1%
Time Frame: exit PRIOR to earnings on May 5th
New Positions: see below

Comments:
04/22/14: EOG erased yesterday's gain with some profit taking today, down -1.1%. The $102 level might be short-term support but I would look for support closer to the $100.00 level. 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: 74.26 change: -0.26

Stop Loss: 69.45
Target(s): to be determined
Current Option Gain/Loss: +58.8%
Time Frame: exit PRIOR to earnings in May
New Positions: see below

Comments:
04/22/14: Shares of FANG gapped open higher this morning after the stock had its price target raised from $77 to $93 before the bell. Unfortunately FANG gave back all of its morning gains. This almost looks like a potential short-term top. If FANG sees more profit taking tomorrow I would watch for support near $72.00.

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: 73.30 change: -0.79

Stop Loss: 71.70
Target(s): 79.50
Current Option Gain/Loss: -37.6%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
04/22/14: As a group, energy stocks were seeing some profit taking today. Yet GPOR is now down three days in a row. If shares don't bounce from short-term support near $72.00 we're going to see it hit our stop loss at $71.70 soon.

- 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: 114.62 change: +1.17

Stop Loss: 112.45
Target(s): to be determined
Current Option Gain/Loss: +27.4%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
04/22/14: The IWM continues to push higher and is now up six days in a row. Today's rally stalled near the April 9th highs and its 100-dma. We are raising our stop loss to $112.45. More aggressive traders may want to keep their stop below $112.00 to give the IWM more room to maneuver since $112 looks like short-term support.

- Suggested Positions -

Long JUN $115 call (IWM1421F115) entry $2.37

04/22/14 new stop @ 112.45
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: 88.47 change: +3.09

Stop Loss: 79.75
Target(s): $96.50
Current Option Gain/Loss: +38.1%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
04/22/14: NUS bounced back toward yesterday's high and its exponential 200-dma. Shares outperformed the broader market with a +3.6% gain. We are setting a bullish exit target at $96.50.

Currently our stop is at $79.75 but more conservative traders may want to consider a stop loss closer to $84.00.

Earlier Comments:
Currently the Point & Figure chart for NUS is bullish with a $102 target.

- Suggested Positions -

Long May $90 call (NUS1417E90) entry $3.04

04/22/14 set bullish exit target at $96.50
04/21/14 triggered @ 84.50

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




PUT Play Updates

Catamaran - Corp. - CTRX - close: 39.27 change: +0.46

Stop Loss: 40.65
Target(s): to be determined
Current Option Gain/Loss: -15.9%
Time Frame: Exit PRIOR to earnings on May 1st
New Positions: see below

Comments:
04/22/14: CTRX decided to bounce and added +1.1%. Technically today's move is a bullish engulfing candlestick. Yet the overall pattern remains bearish and CTRX should find resistance at its 10-dma and the $40.00 level. Wait for a new failed rally near resistance as our next entry point.

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


Ralph Lauren Corp. - RL - close: 154.86 change: +0.94

Stop Loss: 156.60
Target(s): to be determined
Current Option Gain/Loss: Unopened
Time Frame: exit PRIOR to earnings on May 9th
New Positions: Yes, see below

Comments:
04/22/14: Shares of RL received some bullish analyst comments this morning and the stock spiked higher. It's worth noting the rally didn't get very far. RL failed to make it past $156.00. I don't see any changes from last night's new play description.

Earlier Comments:
I am suggesting readers use a trigger at $152.45 as our entry point to buy put options. If you are patient enough traders could aim for a drop toward $140. The Point & Figure chart is actually very bearish and forecasting at $112 target. We're not setting an exit target yet but plan on exiting positions prior to RL's next earnings report on May 9th.

Trigger @ 152.45

- Suggested Positions -

Buy the May $150 PUT (RL1417Q150)

Entry on April -- at $---.--
Average Daily Volume = 891 thousand
Listed on April 21, 2014



CLOSED BULLISH PLAYS

Caterpillar Inc. - CAT - close: 103.69 change: +1.05

Stop Loss: 101.40
Target(s): 109.00
Current Option Gain/Loss: +13.8%
Time Frame: exit PRIOR to earnings on April 24th
New Positions: see below

Comments:
04/22/14: CAT was kind enough to bounce for us right before we closed this trade. The plan was to exit today at the closing bell to avoid holding over earnings on April 24th. Shares did manage to breakout past short-term resistance near $103.50. We will definitely look at CAT again on Friday to see how it reacts following the earnings news.

- Suggested Positions -

MAY $105 call (CAT1417E105) entry $1.52 closed @ $1.73 (+13.8%)

04/22/14 planned exit at the close
04/21/14 new stop 101.40, prepare to exit tomorrow at the close
04/08/14 triggered @ 102.35

chart:

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


QUALCOMM Inc. - QCOM - close: 80.61 change: -0.32

Stop Loss: 80.40
Target(s): to be determined
Current Option Gain/Loss: +18.1%
Time Frame: Exit PRIOR to earnings on April 23rd
New Positions: see below

Comments:
04/22/14: Investors were in a wait and see mood ahead of QCOM's earnings tomorrow. Shares drifted lower, losing -0.39%. Our plan was to exit today at the close to avoid holding over the earnings announcement.

- Suggested Positions -

MAY $80 call (QCOM1417E80) entry $1.87 exit $2.21 (+18.1%)

04/22/14 planned exit at the close
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.

chart:

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


CLOSED BEARISH PLAYS

Lumber Liquidators - LL - close: 88.25 chang6: +0.95

Stop Loss: 88.35
Target(s): to be determined
Current Option Gain/Loss: - 52.3%
Time Frame: exit PRIOR to earnings on April 30th
New Positions: see below

Comments:
04/22/14: LL has not been cooperating. This morning saw shares shoot past their 10-dma and hit our stop loss at $88.35.

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.

- Suggested Positions -

May $80 PUT (LL1417Q80) entry $3.25* exit $1.55** (-52.3%)

04/22/14 stopped out
**option exit price is an estimate since the option did not trade at the time our play was closed.
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.

chart:

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