Editor's Note:

After a six-day rally in the U.S. market stocks produced a pullback today.


Current Portfolio:


CALL Play Updates

Adobe Systems - ADBE - close: 64.39 change: -0.09

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:
04/23/14: ADBE ended the session with a 9-cent loss. More importantly shares have been drifting sideways for about three days in a row. I am still expecting a dip back toward the $62.00 area.

- 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: 71.31 change: +0.68

Stop Loss: 68.75
Target(s): 74.75
Current Option Gain/Loss: +19.0%
Time Frame: exit PRIOR to earnings on May 7th
New Positions: see below

Comments:
04/23/14: After underperforming yesterday the energy stocks were some of the best performers today. DVN helped lead the charge with a +0.9% gain and a new 52-week high. 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: 105.08 change: +2.74

Stop Loss: 99.65
Target(s): 109.00
Current Option Gain/Loss: +63.1%
Time Frame: exit PRIOR to earnings on May 5th
New Positions: see below

Comments:
04/23/14: EOG is another energy stock that was outperforming the market today. Shares rallied from short-term support near $102 and added +2.6% today, setting a new all-time high. 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: 73.89 change: -0.37

Stop Loss: 69.45
Target(s): to be determined
Current Option Gain/Loss: +47.0%
Time Frame: exit PRIOR to earnings in May
New Positions: see below

Comments:
04/23/14: I cautioned readers yesterday that FANG looked a little vulnerable to a pullback. Shares only lost 37 cents today but they did underperform their peers in the energy industry. I would not be surprised to see a dip into the $70-72 zone.

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: 72.99 change: -0.31

Stop Loss: 71.70
Target(s): 79.50
Current Option Gain/Loss: -40.2%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
04/23/14: GPOR announced they had found a new CEO for the company. Meanwhile the stock garnered positive analyst comments and a new $78 price target. Yet shares spiked lower this morning. The stock bounced from short-term support near $72.00 but closed down -0.4%. I am not suggesting new positions at this time.

- 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: 113.90 change: -0.72

Stop Loss: 112.45
Target(s): to be determined
Current Option Gain/Loss: +14.7%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
04/23/14: After a six-day bounce the market's major indices finally produced a pullback. The IWM fell -0.6%. If there is any follow through tomorrow we could see IWM hit our new stop loss at $112.45.

- 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: 88.32 change: -0.15

Stop Loss: 79.75
Target(s): $96.50
Current Option Gain/Loss: +31.5%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
04/23/14: NUS recovered from its morning spike down to $86.80 but shares spent most of the session drifting sideways. The stock appears to be struggling with technical resistance at its 200-Ema.

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: 39.04 change: -0.23

Stop Loss: 40.65
Target(s): to be determined
Current Option Gain/Loss: -11.3%
Time Frame: Exit PRIOR to earnings on May 1st
New Positions: see below

Comments:
04/23/14: As expected the bounce in CTRX has failed at its simple 10-dma. Readers can use today's move as a new entry point for bearish positions.

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: 153.84 change: -1.02

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:
04/23/14: RL erased yesterday's gains and closed on their lows for the session. Shares could hit our suggested entry point soon. I don't see any changes from RL'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) current ask $3.50

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


Toyota Motor Corp. - TM - close: 108.15 change: -0.27

Stop Loss: 111.05
Target(s): 100.50
Current Option Gain/Loss: - 6.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
04/23/14: TM did not move much today but the trend was lower. Shares opened at $108.28 and look poised to breakdown below the $108 level soon. I do not see any changes from last night's new play description. I would still consider new bearish positions now. If you prefer to see more confirmation that the bounce is rolling over then consider waiting for a drop under $107.50.

Earlier Comments:
Our target is $100.50. However, we will plan to exit prior to TM's earnings report in May. The company has not set a date yet but we expect the announcement to be in the first half of May and will update our exit when they publish their earnings date. FYI: The Point & Figure chart for TM is bearish with a $90 target.

- Suggested Positions -

Long May $105 PUT (TM1417Q105) entry $1.11

04/23/14 TM opens at $108.28

Entry on April 23 at $108.28
Average Daily Volume = 602 thousand
Listed on April 22, 2014