Editor's Note:

The U.S. market struggled to see any significant follow through on yesterday's rally.

We closed the LNKD trade this morning.


Current Portfolio:


CALL Play Updates

The Boeing Company - BA - close: 133.45 change: -0.85

Stop Loss: 129.40
Target(s): to be determined
Current Option Gain/Loss: +12.7%
Time Frame: 6 to 9 weeks
New Positions: see below

Comments:
05/13/14: BA continues to show relative strength with another rally this morning. The stock closed up +0.6%. I am raising our stop loss to $129.40.

- Suggested Positions -

Long Jul $135 Call (BA1419G135) entry $2.75

05/13/14 new stop @ 129.40
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


Rockwell Collins Inc. - COL - close: 79.79 change: -0.11

Stop Loss: 77.45
Target(s): to be determined
Current Option Gain/Loss: Unopened
Time Frame: 6 to 9 weeks
New Positions: Yes, see below

Comments:
05/13/14: COL briefly traded above resistance at $80.00 but failed to hit our suggested entry point. The stock came close and traded to $80.24 before reversing lower. I don't see any changes from last night's new play description.

Earlier Comments:
I am suggesting a trigger to buy calls at $80.25. More conservative traders could wait for a move past $80.50 instead. There is potential resistance at its 2014 highs near $84.00 but we're aiming for the $90 region.

Trigger @ 80.25

- Suggested Positions -

Buy the Jul $80 call (COL140719C80)*
*I've provided the more standardized option symbol format.
symbol-year-month-day-call-strike

Entry on May -- at $---.--
Average Daily Volume = 711 thousand
Listed on May 12, 2014


Gilead Sciences - GILD - close: 80.30 change: -0.05

Stop Loss: 75.75
Target(s): to be determined (potentially $85.00)
Current Option Gain/Loss: +34.9%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
05/13/14: It was a quiet session for GILD. The stock continued yesterday afternoon's sideways churn and GILD hovered just above the $80.00 level.

More conservative traders may want to raise their stop loss again.

- 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: 95.99 change: -0.29

Stop Loss: 92.45
Target(s): to be determined
Current Option Gain/Loss: - 1.9%
Time Frame: 6 to 9 weeks
New Positions: see below

Comments:
05/13/14: LYB briefly traded to a new high before reversing. The stock only lost 29 cents but the move today is technically a bearish engulfing candlestick reversal pattern. I would not be surprised to see a pullback into the $94-95 zone.

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: - 4.3%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
05/13/14: We are seeing a familiar pattern in MMM today with an early spike higher that ran out of steam and reversed into minor losses. If this pullback continues we can watch for support near $140.

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: 76.25 change: -1.06

Stop Loss: 69.95
Target(s): to be determined
Current Option Gain/Loss: - 12.5%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
05/13/14: PCRX did not see any follow through on yesterday's rally. If the current trend holds up we can look for support near the 10-dma near $73.80. 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: 36.68 change: +0.36

Stop Loss: 34.45
Target(s): to be determined
Current Option Gain/Loss: - 1.5%
Time Frame: 3 to 4 months
New Positions: see below

Comments:
05/13/14: POT displayed some relative strength with a +0.99% gain and a close at new multi-month highs.

- 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: 102.51 change: +1.00

Stop Loss: 97.75
Target(s): to be determined
Current Option Gain/Loss: + 61.6%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
05/13/14: The rally in UPS continues with a +0.9% gain on Tuesday. The stock is nearing what could be short-term resistance near $103. If shares see a pullback we can look for support at the $100 mark.

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: 66.62 change: -0.31

Stop Loss: 65.75
Target(s): to be determined
Current Option Gain/Loss: -12.7%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
05/13/14: VTR is still sinking with its third loss in a row. Yet if you look at the intraday chart VTR bounced near its mid April peak, which is somewhat encouraging. 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: 72.80 change: -0.63

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:
05/13/14: The early morning bounce failed and DISCA sank to a -0.8% decline. The stock looks poised to break down to new relative lows. 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)* current ask $1.45
*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


CLOSED BEARISH PLAYS

LinkedIn Corp. - LNKD - close: 147.67 change: - 4.63

Stop Loss: 155.25
Target(s): to be determined
Current Option Gain/Loss: -48.7%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
05/13/14: Hmm... it looks like we may have been too cautious on our LNKD trade. There was no follow through on yesterday's breakout above the 10-dma. LNKD opened at $152.70 and then sank to a -3.0% decline. Our plan was to exit positions this morning. LNKD looks like it's headed back toward the $140 area.

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 -

Jun $140 PUT (LNKD1421R140) entry $7.05 exit $3.61 (-48.7%)

05/13/14 planned exit
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)

chart:

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