Editor's Note:

The market did not see any follow through higher on yesterday's intraday bounce. Instead the market reversed lower in a widespread decline.

FANG was closed ahead of earnings. PCRX and ASML hit our entry triggers.


Current Portfolio:


CALL Play Updates

The Boeing Company - BA - close: 130.83 change: -1.13

Stop Loss: 128.40
Target(s): to be determined
Current Option Gain/Loss: -16.3%
Time Frame: 6 to 9 weeks
New Positions: see below

Comments:
05/06/14: Thanks to the market's widespread losses today shares of BA gave back just over half of yesterday's rally. The stock is nearing what should be short-term support at the $130.00 level. I would wait for a dip to $130.00 or better yet a bounce from $130 before considering new bullish positions.

- 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


Gilead Sciences - GILD - close: 78.32 change: -1.51

Stop Loss: 74.45
Target(s): to be determined (potentially $85.00)
Current Option Gain/Loss: +23.1%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
05/06/14: Biotech stocks were not immune to the market's widespread decline today. The group actually underperformed and GILD lost -1.89% after failing near round-number resistance at $80.00 again.

More conservative traders may want to move their stop loss higher.

- 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


Pacira Pharmaceuticals - PCRX - close: 73.87 change: +0.71

Stop Loss: 69.95
Target(s): to be determined
Current Option Gain/Loss: - 22.8%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
05/06/14: PCRX gapped open higher this morning at $75.32. That was well above our suggested entry point at $74.25. The stock almost hit $77.00 before paring its gains.

I cautioned readers last night that this was an aggressive, higher-risk trade and PCRX was definitely volatile today with a 3 1/2 point drop from its intraday high.

Given the market's weakness today I would not be surprised to see PCRX retest the $73.00 level. Traders may want to wait for a bounce from that area before considering new bullish positions.

Earlier Comments:
If shares do breakout it could see a short squeeze. The most recent data listed short interest at 17% of the 33.6 million share float.

I do consider this a somewhat aggressive trade because the option spreads on PCRX are a bit wider than we like. The Point & Figure chart for PCRX is bullish with a $93 target.

- Suggested Positions -

Long Aug $80 call (PCRX1416H80) entry $7.00

05/06/14 triggered on gap higher at $75.32, suggested entry was $74.25

Entry on May 06 at $75.32
Average Daily Volume = 602 thousand
Listed on May 05, 2014


Potasch Corp. of Saskatchewan - POT - close: 36.21 change: -0.03

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:
05/06/14: POT briefly dipped below its 10-dma before paring its losses. I would hesitate to launch new positions given the broader market's weakness. More conservative investors may want to raise their stop loss.

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: 67.03 change: +0.05

Stop Loss: 64.75
Target(s): to be determined
Current Option Gain/Loss: +9.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/06/14: VTR is still showing some relative strength. The stock quickly recovered from its early morning lows and spent most of the day consolidating sideways near $67.00.

- 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: 79.90 change: -0.35

Stop Loss: 82.05
Target(s): to be determined
Current Option Gain/Loss: -7.6%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
05/06/14: ASML continues to sink and traded to new relative lows today. Our trigger to buy puts was hit at $79.85.

Earlier Comments:
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.

- Suggested Positions -

Long Jun $80 (ASML1421F80) entry $2.60*

05/06/14 triggered @ 79.85
*option entry price is an estimate since the option did not trade at the time our play was opened.

Entry on May 06 at $79.85
Average Daily Volume = 1.4 million
Listed on April 30, 2014


Fluor Corp. - FLR - close: 74.40 change: +0.12

Stop Loss: 75.55
Target(s): to be determined (possibly $67.00)
Current Option Gain/Loss: Unopened
Time Frame: 4 to 6 weeks
New Positions: Yes, see below

Comments:
05/06/14: FLR was bouncing from support this morning but the rebound ran out of steam. Shares settled back near support. FLR still looks poised for a breakdown. I do not see any changes from my prior comments.

Earlier Comments:
I am suggesting a trigger to buy puts at $73.25. We're not setting an exit target yet but I am tentatively aiming for the $67 area. The Point & Figure chart for FLR is bearish with a $64 target.

Trigger @ $73.25

- Suggested Positions -

Buy the Jun $72.50 PUT (FLR1421R72.5)

Entry on May -- at $---.--
Average Daily Volume = 1.2 million
Listed on May 05, 2014


LinkedIn Corp. - LNKD - close: 142.33 change: - 8.58

Stop Loss: 155.25
Target(s): to be determined
Current Option Gain/Loss: +12.0%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
05/06/14: Internet-related stocks were getting hammered today. LNKD did not see any follow through on yesterday's bounce. The stock reversed lower instead with a -5.6% decline. We are moving our stop loss down to $155.25.

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.

*small positions* - Suggested Positions -

Long Jun $140 PUT (LNKD1421R140) entry $7.05

05/06/14 new stop @ 155.25
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

Diamondback Energy, Inc. - FANG - close: 73.25 change: -0.39

Stop Loss: 69.25
Target(s): to be determined
Current Option Gain/Loss: -23.5%
Time Frame: exit PRIOR to earnings in May
New Positions: see below

Comments:
05/06/14: The plan was to close our FANG trade today at the closing bell to avoid earnings tomorrow.

- Suggested Positions -

May $75 call (FANG1417E75) entry $1.70* exit $1.30 (-23.5%)

05/06/14 planned exit
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.

chart:

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