Editor's Note:

The S&P 500 index, the Dow Jones Industrials, and the Dow Jones Transports all ended the day at new record closing highs.

UPS hit our entry trigger. FLR has been removed.
ASML and AYI hit our stop loss. We want to exit our LNKD tomorrow morning.


Current Portfolio:


CALL Play Updates

The Boeing Company - BA - close: 132.60 change: +1.50

Stop Loss: 128.40
Target(s): to be determined
Current Option Gain/Loss: + 4.0%
Time Frame: 6 to 9 weeks
New Positions: see below

Comments:
05/12/14: The broad-market rally helped lift BA to new multi-month highs. Shares added +1.1%. Readers could use today's bullish breakout as a new 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: 80.35 change: +0.59

Stop Loss: 75.75
Target(s): to be determined (potentially $85.00)
Current Option Gain/Loss: +43.8%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
05/12/14: Biotechs helped fuel the big bounce in the NASDAQ today. GILD actually underperformed its peers with only a +0.7% gain. However, today's rise in GILD is a bullish breakout past the $80.00 level.

- Suggested Positions -

Long Jun $80 call (GILD1421F80) entry $2.12

05/10/14 new stop @ 75.75
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


LyondellBasell Industries - LYB - close: 96.28 change: +0.83

Stop Loss: 92.45
Target(s): to be determined
Current Option Gain/Loss: + 0.0%
Time Frame: 6 to 9 weeks
New Positions: see below

Comments:
05/12/14: LYB's rally continues and shares hit new highs. Unfortunately the stock gapped open higher and our plan was to buy calls at the opening bell. LYB opened at $96.20. Nimble traders might want to consider waiting for a dip back toward $95.50, as LYB could fill the gap, as an alternative entry point.

Earlier Comments:
It is possible that the $100.00 level could be round-number resistance but we are aiming higher. The Point & Figure chart for LYB is bullish with a $110 target.

FYI: LYB will begin trading ex-dividend on May 12th. The quarterly dividend should be 70 cents.

- Suggested Positions -

Long Sep $100 call (LYB140920C100)* entry $2.55**

05/12/14 LYB gapped open higher at $96.20 (+75 cents)
**option entry price is an estimate since the option did not trade at the time our play was opened.
*I've provided the more standardized option symbol format.
symbol-year-month-day-call-strike

Entry on May 12 at $96.20
Average Daily Volume = 3.1 million
Listed on May 10, 2014


3M Company - MMM - close: 142.82 change: +1.48

Stop Loss: 138.45
Target(s): to be determined
Current Option Gain/Loss: + 7.2%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
05/12/14: A new all-time high in shares of MMM helped lift the Dow Industrials to a new all-time high. This stock has broken through short-term resistance near $142.00.

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: 77.31 change: +3.81

Stop Loss: 69.95
Target(s): to be determined
Current Option Gain/Loss: - 4.2%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
05/12/14: Biotechs were strong performers today and PCRX helped lead the group higher with a +5.1% gain. Readers may want to start raising their stop loss.

Earlier Comments:
If PCRX does breakout it could see a short squeeze. The most recent data listed short interest at 17% of the 33.6 million share float. This is 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: 36.32 change: +0.28

Stop Loss: 34.45
Target(s): to be determined
Current Option Gain/Loss: - 9.4%
Time Frame: 3 to 4 months
New Positions: see below

Comments:
05/12/14: POT is still quietly consolidating sideways. Shares did manage a +0.7% gain and they look poised to breakout past short-term resistance near $36.35.

- 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


United Parcel Service - UPS - close: 101.51 change: +1.75

Stop Loss: 97.75
Target(s): to be determined
Current Option Gain/Loss: + 30.8%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
05/12/14: Our new play on UPS is off to a strong start. The Dow Jones Transportation Average has broken out to a new all-time high. This may have helped UPS breakout past resistance near $100. Our plan was to buy calls in UPS at $100.25. Shares powered through this level and closed near its high for the day.

We're not setting an exit target yet but the Point & Figure chart for UPS is bullish with a $114 target.

- Suggested Positions -

Long Jul $100 call (UPS140719C100)* entry $1.98

05/12/14 triggered @ 100.25
*I've provided the more standardized option symbol format.
symbol-year-month-day-call-strike

Entry on May 12 at $100.25
Average Daily Volume = 2.9 million
Listed on May 10, 2014


Ventas, Inc. - VTR - close: 66.93 change: -0.83

Stop Loss: 65.75
Target(s): to be determined
Current Option Gain/Loss: + 5.4%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
05/12/14: VTR underperformed the market with a -1.2% decline. Shares are now down two days in a row and today's loss might be considered confirmation of Friday's bearish reversal move. Readers may want to abandon ship and exit now before our option position turns negative. I am not suggesting new positions at this time.

- Suggested Positions -

Long Aug $65 call (VTR1416H65) entry $2.75

05/12/14 readers may want to exit early right now
05/10/14 new stop @ 65.75
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

Discovery Communications - DISCA - close: 73.43 change: +0.37

Stop Loss: 75.05
Target(s): to be determined
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
05/12/14: DISCA did bounce today but shares underperformed the market. The path of least resistance still looks down. I do not see any changes from our weekend newsletter's new play description on DISCA.

Earlier Comments:
We are suggesting a trigger to buy puts at $72.25. If triggered we will start with a stop loss at $75.05. We're not setting a target yet but the Point & Figure chart for DISCA is bearish with a $59 target.

Trigger @ $72.25

- Suggested Positions -

Buy the Jul $70 PUT (DISCA140719P70)*
*I've provided the more standardized option symbol format.
symbol-year-month-day-put-strike

Entry on May -- at $---.--
Average Daily Volume = 1.63 million
Listed on May 10, 2014


LinkedIn Corp. - LNKD - close: 152.30 change: + 3.61

Stop Loss: 155.25
Target(s): to be determined
Current Option Gain/Loss: -46.8%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
05/12/14: The oversold bounce in LNKD continues. Today's widespread market rally certainly helped and shares of LNKD closed above their 10-dma for the first time in days. The overall trend for LNKD is still bearish but shares could see a bounce back toward $160 before hitting any resistance.

We are suggesting an immediate exit tomorrow morning. The current bid/ask spread for our put is $3.75/3.90.

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

05/12/14 prepare to exit tomorrow morning
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 BEARISH PLAYS

ASML Holdings - ASML - close: 82.16 change: +1.84

Stop Loss: 82.05
Target(s): to be determined
Current Option Gain/Loss: -46.1%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
05/12/14: Tech stocks, especially semiconductor stocks, were showing relative strength today. ASML bounced (+2.2%) and hit our stop loss at $82.05.

- Suggested Positions -

Jun $80 (ASML1421F80) entry $2.60* exit $1.40 (-46.1%)

05/12/14 stopped out
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.

chart:

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


Acuity Brands, Inc. - AYI - close: 122.35 change: +2.42

Stop Loss: 121.75
Target(s): 112.00
Current Option Gain/Loss: -33.9%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
05/12/14: The market's widespread strength helped fuel the bounce in AYI. Shares outperformed with a +2.0% gain. The stock hit our stop loss at $121.75.

- Suggested Positions -

Jun $115 PUT (AYI14R115) entry $2.80 exit $1.85* (-33.9%)

05/12/14 stopped out
*option exit price is an estimate since the option did not trade at the time our play was closed.
05/09/14 triggered on gap down at $118.51, suggested entry point $118.75

chart:

Entry on May 09 at $118.51
Average Daily Volume = 375 thousand
Listed on May 08, 2014


Fluor Corp. - FLR - close: 76.38 change: +1.28

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: see below

Comments:
05/12/14: FLR is not cooperating. Shares bounced again. The stock does still have a bearish trend of lower highs and the larger pattern is bearish but we're going to remove this stock from our play list. The plan was to buy puts at $73.25.

Trade did not open.

05/12/14 removed from the newsletter. suggested entry trigger was $73.25

chart:

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