Editor's Note:

The NASDAQ and the small cap Russell 2000 led the market lower on Wednesday with widespread market declines.

Our bearish play on DISCA was triggered.


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: + 4.0%
Time Frame: 6 to 9 weeks
New Positions: see below

Comments:
05/14/14: BA was making headlines today with a $3.8 billion order for fifty 737 planes from a Chinese airline. The news didn't do much for BA's stock price, which seemed to fail at the $134 level and drift lower. If the major indices sink tomorrow we could see BA dip into the $130-132 zone.

- 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: 78.61 change: -1.18

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:
05/14/14: With today's widespread market weakness shares of COL retreated from resistance at the $80 level. If shares close under $78.00 we will likely remove COL as a bullish candidate.

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


EOG Resources - EOG - close: 103.90 change: -1.27

Stop Loss: 102.90
Target(s): to be determined
Current Option Gain/Loss: Unopened
Time Frame: 4 to 8 weeks
New Positions: Yes, see below

Comments:
05/14/14: EOG also followed the market lower today. Shares lost -1.2%. Technically today's move looks like a bearish engulfing candlestick reversal pattern.

We are on the sidelines and waiting for a move to $106.00.

Earlier Comments:
We are suggesting a trigger to buy calls at $106.00. More conservative traders may want to wait for a rise past the intraday high of $106.50 instead.

We are not setting an exit target yet but the Point & Figure chart for EOG is bullish with a $125 target.

Trigger @ $106.00

- Suggested Positions -

Buy the Jul $110 call (EOG140719C110)*

*I've provided the more standardized option symbol format.
symbol-year-month-day-call-strike

Entry on May -- at $---.--
Average Daily Volume = 4.4 million
Listed on May 13, 2014


Gilead Sciences - GILD - close: 80.97 change: +0.67

Stop Loss: 75.75
Target(s): to be determined (potentially $85.00)
Current Option Gain/Loss: +50.9%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
05/14/14: The NASDAQ composite was an underperformer today but biotech stocks were actually showing some relative strength. GILD added +0.8% after traders bought the dip near its 10-dma again.

More conservative traders may want to raise their stop loss.

- 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: 96.57 change: +0.58

Stop Loss: 92.45
Target(s): to be determined
Current Option Gain/Loss: + 5.8%
Time Frame: 6 to 9 weeks
New Positions: see below

Comments:
05/14/14: LYB eked out a gain today. Yet the rally stalled near yesterday's high just above $97.00. If the broader market continues to sink tomorrow 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: 141.60 change: -0.83

Stop Loss: 138.45
Target(s): to be determined
Current Option Gain/Loss: -21.4%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
05/14/14: MMM spent most of today's session consolidating sideways along the $142.00 level. Shares eventually broke this short-term support and closed near their lows for the day. If the market continues to sink we will probably see MMM retest the $140.00 level.

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: 74.17 change: -2.08

Stop Loss: 69.95
Target(s): to be determined
Current Option Gain/Loss: - 27.1%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
05/14/14: PCRX continues to see big intraday swings and today was volatile with a -2.7% decline. I am not suggesting new positions. Today's close below the 10-dma is short-term bearish. 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: 37.13 change: +0.45

Stop Loss: 34.45
Target(s): to be determined
Current Option Gain/Loss: + 9.8%
Time Frame: 3 to 4 months
New Positions: see below

Comments:
05/14/14: POT continues to show relative strength. The stock added +1.2% and closed at new highs for the year. After the closing bell POT declared a quarterly dividend of 35 cents per share payable on August 1st, 2014 to shareholders on record as of July 11th.

- 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: 102.04 change: -0.47

Stop Loss: 97.75
Target(s): to be determined
Current Option Gain/Loss: + 45.9%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
05/14/14: Shares of UPS shot lower this morning but traders bought the dip at $101.43. The stock spent the rest of the session drifting higher. More conservative investors may want to raise their stop loss.

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: 67.09 change: +0.47

Stop Loss: 65.75
Target(s): to be determined
Current Option Gain/Loss: + 7.2%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
05/14/14: VTR snapped a three-day losing streak with a +0.7% gain. I would stay cautious here since shares failed to close back above their simple 10-dma. 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: 72.34 change: -0.46

Stop Loss: 75.05
Target(s): to be determined
Current Option Gain/Loss: - 6.2%ed
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/14/14: Our DISCA trade is open. The stock fell to new 2014 lows and hit our suggested entry point at $72.25. DISCA did manage a bounce off its intraday lows but I would still consider new bearish positions at current levels.

Earlier Comments:
We're not setting a target yet but the Point & Figure chart for DISCA is bearish with a $59 target.

- Suggested Positions -

Long Jul $70 PUT (DISCA140719P70)* entry $1.60**

05/14/14 triggered @ 72.25
**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-put-strike

Entry on May 14 at $72.25
Average Daily Volume = 1.63 million
Listed on May 10, 2014