Editor's Note:

The better than expected April jobs data failed to inspire the U.S. stock market. The major indices closed flat to down.

POT hit our entry trigger and RL hit our stop loss on Friday.

We want to exit our ADBE trade on Monday morning.


Current Portfolio:


CALL Play Updates

Adobe Systems - ADBE - close: 61.56 change: -1.03

Stop Loss: 59.45
Target(s): to be determined
Current Option Gain/Loss: -44.3%
Time Frame: 8 to 12 weeks
New Positions: see below

Comments:
05/03/14: We have been patient with ADBE but the stock is just not performing. Shares underperformed on Friday with a -1.6% decline versus a -0.08% drop in the NASDAQ and a -0.1% dip in the S&P 500. Furthermore Friday's move in ADBE looks like a new lower high and a bearish engulfing candlestick reversal pattern.

ADBE could still find support and bounce again near $60.00 but we are suggesting an immediate exit on Monday morning to close this trade.

- Suggested Positions -

Long Jul $65 call (ADBE1419G65) entry $3.20

05/03/14 prepare to exit on Monday morning
04/21/14 ADBE opened at $64.00

chart:

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


Diamondback Energy, Inc. - FANG - close: 73.77 change: +2.50

Stop Loss: 69.25
Target(s): to be determined
Current Option Gain/Loss: + 2.9%
Time Frame: exit PRIOR to earnings in May
New Positions: see below

Comments:
05/03/14: FANG displayed relative strength on Friday with a +3.5% gain and a close above its 10-dma. Unfortunately we are running out of time. FANG is scheduled to report earnings in May but we don't have a confirmed date yet. Most sources list May 7th as its announcement date. That would be this coming Wednesday. We might be closing this trade soon to avoid holding over the earnings announcement. I am not suggesting new positions.

Earlier Comments:
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*

04/25/14 adjust stop to $69.25
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.

chart:

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


Gilead Sciences - GILD - close: 77.71 change: -1.31

Stop Loss: 74.45
Target(s): to be determined (potentially $85.00)
Current Option Gain/Loss: +27.3%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
05/03/14: Uh-oh! The action in GILD on Friday looks bearish. The biotech tech industry struggled with selling and the IBB biotech ETF lost -1.48%. Shares of GILD underperformed with a -1.65% decline. Furthermore Friday's move in GILD looks like a potential failed rally under the $80 level and a bearish engulfing candlestick reversal pattern. I am not suggesting new positions at this time.

Earlier Comments:
If triggered our temporary target is $84.75. We'll re-evaluate our exit strategy as the trade progresses.

- Suggested Positions -

Long Jun $80 call (GILD1421F80) entry $2.12

05/01/14 new stop @ 74.45
04/30/14 triggered @ 77.00

chart:

Entry on April 30 at $77.00
Average Daily Volume = 23 million
Listed on April 29, 2014


Potasch Corp. of Saskatchewan - POT - close: 36.57 change: +0.32

Stop Loss: 34.45
Target(s): to be determined
Current Option Gain/Loss: + 1.1%
Time Frame: 3 to 4 months
New Positions: see below

Comments:
05/03/14: We have been waiting for POT to breakout to new relative highs and shares did so on Friday. The stock was showing some relative strength with a +0.88% gain. The push past its late March high was the move we were waiting for. Our trigger to buy calls was hit at $36.50.

Earlier Comments:
(some of my earlier comments) We're not setting an exit target just yet. We'll start with a stop at $34.45. FYI: rival potash producers Agrium (AGU) and Mosaic (MOS) both report earnings on May 6th. Their results and guidance could influence trading in POT.

- Suggested Positions -

Long Sept $35 call (POT1420i35) entry $2.65

05/02/14 triggered @ 36.50

chart:

Entry on May 02 at $36.50
Average Daily Volume = 5.0 million
Listed on April 26, 2014


Ventas, Inc. - VTR - close: 66.54 change: -0.10

Stop Loss: 64.75
Target(s): to be determined
Current Option Gain/Loss: -7.2%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/03/14: Friday proved to be a quiet session for VTR. Shares bounced near $66.00 on an early morning dip and spent most of the day drifting sideways in a narrow range. I would still consider new positions now at current levels.

- Suggested Positions -

Long Aug $65 call (VTR1416H65) entry $2.75

05/01/14 triggered @ 66.35

chart:

Entry on May 01 at $66.35
Average Daily Volume = 1.6 million
Listed on April 28, 2014




PUT Play Updates

ASML Holdings - ASML - close: 80.88 change: -0.47

Stop Loss: 82.05
Target(s): to be determined
Current Option Gain/Loss: Unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Comments:
05/03/14: ASML is still drifting lower and nearing its prior support at the $80.00 level. We are waiting on a breakdown to new relative lows. I don't see any changes from last Wednesday night's new play description on ASML.

Earlier Comments:
More aggressive traders could buy puts here. I am suggesting a trigger to buy puts at $79.85. That's just under the April 16th low of $79.94. I will point out that ASML might have some support near $75.00, which is near a long-term trend line of higher lows. However, the Point & Figure chart for ASML is bearish with a $67.00 target.

Trigger @ 79.85

- Suggested Positions -

Buy the Jun $80 (ASML1421F80)

chart:

Entry on April -- at $---.--
Average Daily Volume = 1.4 million
Listed on April 30, 2014


CLOSED BEARISH PLAYS

Ralph Lauren Corp. - RL - close: 155.00 change: +1.60

Stop Loss: 155.10
Target(s): to be determined
Current Option Gain/Loss: - 7.3%
Time Frame: exit PRIOR to earnings on May 9th
New Positions: see below

Comments:
05/03/14: RL shot higher on Friday morning and broke through its short-term trend of lower highs. Our stop loss was hit at $155.10.

- Suggested Positions -

May $150 PUT (RL1417Q150) entry $3.70 exit $3.43* (-7.3%)

05/02/14 stopped out
*option exit price is an estimate since the option did not trade at the time our play was closed.
05/01/14 new stop @ 155.10
04/26/14 new stop @ 156.15
04/24/14 triggered @ 152.45

chart:

Entry on April 24 at $152.45
Average Daily Volume = 891 thousand
Listed on April 21, 2014