Editor's Note:

The stock market reversed sharply lower today. If there is any follow through lower tomorrow we could see several trades get stopped out.

COL and EOG have been removed. LL hit our entry trigger.


Current Portfolio:


CALL Play Updates

The Boeing Company - BA - close: 131.21 change: -1.78

Stop Loss: 129.40
Target(s): to be determined
Current Option Gain/Loss: -20.7%
Time Frame: 6 to 9 weeks
New Positions: see below

Comments:
05/15/14: I cautioned readers yesterday that BA would sink toward $130 if the market continued to dip. The stock fell to $130.56 intraday before starting to bounce this afternoon. If both BA and the S&P 500 bounce tomorrow then we can use it as a new entry point.

- 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


Gilead Sciences - GILD - close: 80.10 change: -0.87

Stop Loss: 77.90
Target(s): to be determined (potentially $85.00)
Current Option Gain/Loss: +28.7%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
05/15/14: GILD gave up -1% today but shares managed to hold support near $80 and its 10-dma, which has been support the last couple of weeks. I am concerned that if the market accelerates lower then GILD will be a target for profit taking and could drop toward the next level of support at $75.00. More conservative traders may want to abandon ship right now and lock in potential gains. I am raising our stop loss to $77.90.

- Suggested Positions -

Long Jun $80 call (GILD1421F80) entry $2.12

05/15/14 new stop @ 77.90, readers may want to exit now to lock in potential gains.
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: 95.24 change: -1.33

Stop Loss: 93.75
Target(s): to be determined
Current Option Gain/Loss: -13.7%
Time Frame: 6 to 9 weeks
New Positions: see below

Comments:
05/15/14: LYB pierced short-term support near $95 and its 10-dma today before paring losses to -1.3%. Today's intraday low was $94.29. We are raising our stop loss to $93.75. I am not suggesting new positions at this time.

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**

05/15/14 new stop @ 93.75
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: 140.98 change: -0.62

Stop Loss: 139.49
Target(s): to be determined
Current Option Gain/Loss: -32.4%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
05/15/14: MMM held up reasonably well. I have been warning readers that MMM would likely test support near $140. Shares dipped to $140.02 before bouncing today. If both MMM and the S&P 500 open positive tomorrow then investors could launch new bullish positions on the rebound. Otherwise, if the market continues to sink, MMM will likely follow lower.

The simple 20-dma has risen to $139.61. I am raising our stop loss to $139.49.

- Suggested Positions -

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

05/15/14 new stop @ 139.49
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: 75.21 change: +1.04

Stop Loss: 69.95
Target(s): to be determined
Current Option Gain/Loss: - 22.8%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
05/15/14: The stomach-churning volatility in PCRX continues with another day of big moves this time both directions. PCRX dipped to its 20-dma and bounced back into positive territory. More conservative traders may want to raise their stop toward today's intraday low (71.14).

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: 36.77 change: -0.36

Stop Loss: 34.90
Target(s): to be determined
Current Option Gain/Loss: - 0.0%
Time Frame: 3 to 4 months
New Positions: see below

Comments:
05/15/14: POT was not immune to the market's broad-based sell-off today. Yet shares bounced exactly where they should have near the early May highs.

Tonight we're moving our stop loss to $34.90. More conservative traders may want to move their stop loss higher.

- Suggested Positions -

Long Sept $35 call (POT1420i35) entry $2.65

05/15/14 new stop @ 34.90
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: 100.46 change: -0.91

Stop Loss: 97.75
Target(s): to be determined
Current Option Gain/Loss: + 21.2%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
05/15/14: The profit taking in UPS continued on Thursday and shares are nearing what should be new support at the $100.00 level. More conservative traders may want to consider a stop loss closer to $100. Meanwhile a bounce from the $100.00 mark could be used as a new bullish entry point.

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: 67.43 change: +0.34

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:
05/15/14: VTR did a pretty good job of ignoring the market's weakness today. Traders bought the intraday dip and the stock bounced back into positive territory. VTR currently looks poised to breakout past short-term resistance near $67.50.

- 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

Athenahealth, Inc. - ATHN - close: 114.20 change: -2.63

Stop Loss: 124.05
Target(s): to be determined
Current Option Gain/Loss: Jun$100put - 7.3% & Sep100put: - 2.8%
Time Frame: 4 to 12 weeks
New Positions: see below

Comments:
05/15/14: The down trend in ATHN shares continued. The stock gapped lower at $115.66 and eventually closed with a -2.2% loss. I do not see any changes from our Wednesday night new play description.

I would keep position size small to limit your risk.

*small positions* - Suggested Positions -

Long Jun $100 PUT (ATHN140621P100) entry $2.05**

- or -

Long Sep $100 PUT (ATHN140920P100) entry $6.90**

05/15/14 trade opened on gap down at $115.66
**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 15 at $115.66
Average Daily Volume = 1.5 million
Listed on May 14, 2014


Discovery Communications - DISCA - close: 72.70 change: +0.36

Stop Loss: 75.05
Target(s): to be determined
Current Option Gain/Loss: -15.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/15/14: DISCA dipped to a new low and then reversed higher. Shares closed with a +0.49% gain, outperforming the major indices. Investors might want to wait for a new failed rally near its 10-dma (currently near 74.00) before initiating new bearish positions.

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


Lumber Liquidators - LL - close: 81.42 change: -0.09

Stop Loss: 84.05
Target(s): to be determined
Current Option Gain/Loss: -15.5%
Time Frame: 6 to 9 weeks
New Positions: see below

Comments:
05/15/14: LL spiked lower this morning but traders bought the dip near its April 30th lows. Our trade was triggered at $79.75. If you chose the more conservative entry point of $78.75 then you would not have been triggered.

LL's intraday bounce on a day the market was so weak is frustrating. Traders may want to wait for a new relative low under $79.00 before initiating new bearish positions.

Earlier Comments:
I do consider a more aggressive trade because of LL's short interest. The most recent data listed short interest at 25% of the small 24.3 million share float, which raises the risk of a short squeeze. I am not setting a target yet but I've got a mental target of $72.00. This lines up with the P&F chart, which is bearish and forecasting at $72 target and it also lines up with the June 2013 low near $71.60.

*small positions* - Suggested Positions -

Long Aug $75 PUT (LL140816P75) entry $4.50**

05/15/14 triggered @ 79.75
**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 15 at $79.75
Average Daily Volume = 888 thousand
Listed on May 14, 2014



CLOSED BULLISH PLAYS

Rockwell Collins Inc. - COL - close: 77.52 change: -1.09

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

Comments:
05/15/14: COL continues to retreat from resistance near $80. Today's drop also broke through some short-term support. We are removing COL from the newsletter.

Trade did not open.

05/15/14 removed from the newsletter. suggested entry trigger was $80.25

chart:

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


EOG Resources - EOG - close: 102.74 change: -1.16

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

Comments:
05/15/14: With the wider market rolling over shares of EOG are pulling back from record highs. Our trade has not opened yet and with today's confirmation of yesterday's short-term reversal we're going to remove EOG from the newsletter. I would keep this stock on your watch list. A close above $106.00 could be used as a bullish entry point.

Trade did not open.

05/15/14 removed from the newsletter. suggested entry trigger was $106.

chart:

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