Editor's Note:

The market's major indices delivered a decent bounce of Monday's early morning lows but the rebound is still struggling with resistance.

ADBE was closed this morning. BA was triggered.
We want to exit our FANG trade tomorrow at the close.


Current Portfolio:


CALL Play Updates

The Boeing Company - BA - close: 131.96 change: +2.02

Stop Loss: 128.40
Target(s): to be determined
Current Option Gain/Loss: - 1.4%
Time Frame: 6 to 9 weeks
New Positions: see below

Comments:
05/05/14: Shares of BA were upgraded this morning and given a new $165 price target. This helped push shares through resistance and hit our suggested entry point at $132.00.

- Suggested Positions -

Long Jul $135 Call (BA1419G135) entry $2.75

05/05/14 triggered at $132.00

Entry on May 05 at $132.00
Average Daily Volume = 3.7 million
Listed on May 03, 2014


Diamondback Energy, Inc. - FANG - close: 73.63 change: -0.14

Stop Loss: 69.25
Target(s): to be determined
Current Option Gain/Loss: - 5.8%
Time Frame: exit PRIOR to earnings in May
New Positions: see below

Comments:
05/05/14: There is a good chance that FANG is going to announce earnings on May 7th. It is not a confirmed earnings date but we do not want to risk holding over the report. Therefore we plan to exit this trade tomorrow, at the closing bell.

- Suggested Positions -

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

05/05/14 plan to exit tomorrow at the closing bell
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.

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


Gilead Sciences - GILD - close: 79.83 change: +2.12

Stop Loss: 74.45
Target(s): to be determined (potentially $85.00)
Current Option Gain/Loss: +58.0%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
05/05/14: Monday was a volatile day for biotech stocks. Both the IBB and GILD gapped open lower and both produced a big bounce off their early Monday lows. GILD rallied back to a +2.72% gain and looks poised to break out past the $80.00 mark soon.

More conservative traders may want to move their stop closer to $76.00.

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

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


Potasch Corp. of Saskatchewan - POT - close: 36.24 change: -0.33

Stop Loss: 34.45
Target(s): to be determined
Current Option Gain/Loss: - 8.3%
Time Frame: 3 to 4 months
New Positions: see below

Comments:
05/05/14: Traders bought the dip in POT near $36.00 on Monday. Shares pared their losses to -0.9%. The intraday bounce could be used as a new bullish entry point.

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

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


Ventas, Inc. - VTR - close: 66.98 change: +0.44

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:
05/05/14: Traders quickly bought the dip in VTR near $66.00 and the stock rallied to new relative highs. I don't see any changes from my prior comments.

- Suggested Positions -

Long Aug $65 call (VTR1416H65) entry $2.75

05/01/14 triggered @ 66.35

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: 80.25 change: -0.63

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:
05/05/14: ASML has continued to sink and now the stock sits on key support near the $80.00 level. Today's intraday low was $79.90. Our suggested entry point to buy puts is $79.85.

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) current ask $2.45

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


LinkedIn Corp. - LNKD - close: 150.91 change: + 3.18

Stop Loss: 158.25
Target(s): to be determined
Current Option Gain/Loss: -31.9%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
05/05/14: Shares of LNKD gapped down this morning as did much of the market. The stock also rebounded off its morning lows and followed the market higher. After such a big drop on Friday it's not too surprising to see a bit of a bounce today. We do not see any changes from the weekend newsletter's new play description. LNKD is a volatile stock. This is an aggressive, higher-risk trade.

Earlier Comments:
Traders should consider this an aggressive, higher-risk trade due to LNKD's volatility. The stock can see big swings. Many of its bounces within the current down trend are $20-$30 each. I suggest small positions to limit risk. The April 7th low was $158.06 and this area could be resistance. We will start with a stop loss at $158.25.

*small positions* - Suggested Positions -

Long Jun $140 PUT (LNKD1421R140) entry $7.05

05/05/14 trade opens. LNKD gapped down at $144.40
(the whole market gapped/spiked down at the open and then bounced)

Entry on May 05 at $144.40
Average Daily Volume = 3.8 million
Listed on May 03, 2014



CLOSED BULLISH PLAYS

Adobe Systems - ADBE - close: 61.44 change: -0.12

Stop Loss: 59.45
Target(s): to be determined
Current Option Gain/Loss: -50.0%
Time Frame: 8 to 12 weeks
New Positions: see below

Comments:
05/05/14: ADBE has not been performing very well. We decided in the weekend newsletter to close the trade this morning. The stock opened lower at $61.20.

- Suggested Positions -

Jul $65 call (ADBE1419G65) entry $3.20 exit $1.60* (-50.0%)

05/05/14 planned exit
*option exit price is an estimate since the option did not trade at the time our play was closed.
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