Editor's Note:

Stocks can't decide what direction they're moving. After another early morning sell-off the market produced another intraday rebound.

OMC hit our entry trigger.


Current Portfolio:


CALL Play Updates

The Boeing Company - BA - close: 130.35 change: +0.25

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:
05/07/14: Shares of BA began trading ex-dividend this morning. The stock dipped down to $129.20 before bouncing back into the green. I move back above $130.85 would look like a new bullish entry point to buy calls.

- 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: 78.77 change: +0.45

Stop Loss: 74.45
Target(s): to be determined (potentially $85.00)
Current Option Gain/Loss: +30.1%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
05/07/14: GILD displayed some relative strength and outperformed both the NASDAQ and the biotech ETFs. The intraday low was $76.80 near the 10-dma. If this bounce continues we could see GILD breakout past $80.00 soon.

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: 74.65 change: +0.78

Stop Loss: 69.95
Target(s): to be determined
Current Option Gain/Loss: - 18.5%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
05/07/14: Shares of PCRX remain volatile with an almost 4 1/2 point range today. Traders bought the dip twice near $71.50 and more conservative traders may want to move their stops closer to this level.

Meanwhile in the news PCRX issued a press release stating they have submitted a supplemental New Drug Application with the U.S. FDA for a nerve block indication for its EXPAREL product.

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: 36.16 change: -0.05

Stop Loss: 34.45
Target(s): to be determined
Current Option Gain/Loss: -10.5%
Time Frame: 3 to 4 months
New Positions: see below

Comments:
05/07/14: POT is still holding up pretty well. Traders bought the dip near $35.80 for the second day in a row. 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: 67.88 change: +0.85

Stop Loss: 64.75
Target(s): to be determined
Current Option Gain/Loss: +27.2%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/07/14: VTR continues to show strength with a +1.26% gain today. More conservative traders may want to move their stop loss into the $65.75 area.

- 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: 80.46 change: +0.56

Stop Loss: 82.05
Target(s): to be determined
Current Option Gain/Loss: -13.4%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
05/07/14: I couldn't find the news that would account for the gap open higher in shares of ASML today. The stock traded up to $81.26 before fading lower. I would wait for a new breakdown below $80 before considering new positions.

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: 75.49 change: +1.09

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:
05/07/14: FLR bounced from support with a +1.4% gain. If shares don't break below support soon we'll probably remove FLR as a candidate.

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: 143.37 change: + 1.04

Stop Loss: 155.25
Target(s): to be determined
Current Option Gain/Loss: + 4.2%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
05/07/14: LNKD spiked down to $136.02 before bouncing today. That pushed its recent drop to -$25.00. I would not be surprised to see an oversold bounce back to the $148-150 zone.

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


Omnicom Group - OMC - close: 65.78 change: -0.34

Stop Loss: 67.55
Target(s): 60.50
Current Option Gain/Loss: - 7.5%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
05/07/14: Our new play on OMC is open. Shares continued to sink and hit our suggested entry point at $65.75. I would still consider new positions at current levels.

Earlier Comments:
Technically the stock has broken down through multiple layers of support. I am suggesting an exit target at $60.50. The Point & Figure chart for OMC is bearish with a $59 target.

- Suggested Positions -

Long Jul $65 PUT (OMC1419S65) entry $2.65

05/07/14 triggered @ 65.75

Entry on May 07 at $65.75
Average Daily Volume = 2.0 million
Listed on May 06, 2014