Editor's Note:

Early morning gains faded into the close. The market still can't decide what direction it wants to move. Both the NASDAQ and the Russell 2000 indices look bearish and poised for new relative lows.

MMM hit our bullish entry trigger.


Current Portfolio:


CALL Play Updates

The Boeing Company - BA - close: 130.57 change: +0.22

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:
05/08/14: BA did not see the same volatility the rest of the market did on Thursday. Shares merely drifted sideways and eked out another gain. I am concerned about the market's performance and would hesitate to launch new positions here.

- 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: 78.73 change: -0.04

Stop Loss: 74.45
Target(s): to be determined (potentially $85.00)
Current Option Gain/Loss: +24.0%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
05/08/14: GILD briefly traded above resistance near $80.00 before following the broader market lower this afternoon. I am not suggesting new positions at this time.

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


3M Company - MMM - close: 140.83 change: -0.31

Stop Loss: 138.45
Target(s): to be determined
Current Option Gain/Loss: -22.3%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
05/08/14: Our new play on MMM is open. The stock pushed to new all-time highs and hit our suggested entry point at $142.00. Unfortunately the market reversed midday and MMM followed it lower. Odds are good we could see MMM retest $140.00 or its 10-dma near $139.30.

Earlier Comments:
We're not setting an exit target yet but the Point & Figure chart for MMM is bullish with a $174 target.

- Suggested Positions -

Long Jun $140 call (MMM1421F140) entry $3.45*

05/08/14 triggered @ $142.00

Entry on May 08 at $142.00
Average Daily Volume = 2.65 million
Listed on May 07, 2014


Pacira Pharmaceuticals - PCRX - close: 75.56 change: +0.91

Stop Loss: 69.95
Target(s): to be determined
Current Option Gain/Loss: - 14.2%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
05/08/14: PCRX displayed some relative strength with a +1.2% gain. The volatility in PCRX continues with another big intraday range.

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: 36.26 change: +0.10

Stop Loss: 34.45
Target(s): to be determined
Current Option Gain/Loss: - 8.6%
Time Frame: 3 to 4 months
New Positions: see below

Comments:
05/08/14: Thursday ended up another quiet session for shares of POT. I don't see any changes from my prior comments. 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: 68.40 change: +0.52

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:
05/08/14: VTR ignored the market's afternoon weakness and delivered another gain. More conservative traders may want to consider taking profits as VTR near potential round-number resistance at $70.00.

- 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: 80.90 change: +0.44

Stop Loss: 82.05
Target(s): to be determined
Current Option Gain/Loss: -25.0%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
05/08/14: ASML traded above what should have been short-term resistance at $81.50 and its 10-dma this morning. Shares did pare their gains but I am not suggesting new positions with ASML above $80.00.

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: 75.28 change: -0.21

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:
05/08/14: FLR bounced up to technical resistance at its 50-dma and reversed lower. We are still on the sidelines waiting for a breakdown.

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: 145.07 change: + 1.70

Stop Loss: 155.25
Target(s): to be determined
Current Option Gain/Loss: - 7.0%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
05/08/14: The stock market's bounce this morning lifted shares of LNKD to short-term technical resistance at its 10-dma. Then the rally in LNKD faded as the market rolled over. More conservative traders may want to consider moving their stop closer to today's high (151.61).

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: 66.20 change: +0.42

Stop Loss: 67.55
Target(s): 60.50
Current Option Gain/Loss: -18.8%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
05/08/14: OMC saw a brief spike lower this morning and then immediately reversed higher to follow the market's bounce. Gains faded as the market rolled over. I would wait for a new drop under $65.75 before initiating new bearish positions.

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