Editor's Note:

The major U.S. indices managed to end the week on an up note.


Current Portfolio:


CALL Play Updates

The Boeing Company - BA - close: 130.81 change: -0.40

Stop Loss: 129.40
Target(s): to be determined
Current Option Gain/Loss: -27.6%
Time Frame: 6 to 9 weeks
New Positions: see below

Comments:
05/17/14: BA found support near $130 again. The area is bolstered by its 20-dma and 100-dma. Traders bought the dip at $130.03.

If both BA and the S&P 500 index open positive on Monday I suggest launching new bullish positions here.

- Suggested Positions -

Long Jul $135 Call (BA1419G135) entry $2.75

05/13/14 new stop @ 129.40
05/05/14 triggered at $132.00

chart:

Entry on May 05 at $132.00
Average Daily Volume = 3.7 million
Listed on May 03, 2014


Gilead Sciences - GILD - close: 80.80 change: +0.70

Stop Loss: 77.90
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:
05/17/14: GILD slipped to a new low for the week and pierced short-term support at its 10-dma before bouncing back. The stock ended Friday with a +0.8% gain, outpacing the major indices. I do not see any changes from my Thursday comments.

Readers may want to lock in gains now or consider raising your stop loss higher. I am not suggesting new positions.

- 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

chart:

Entry on April 30 at $77.00
Average Daily Volume = 23 million
Listed on April 29, 2014


LyondellBasell Industries - LYB - close: 96.14 change: +0.90

Stop Loss: 93.75
Target(s): to be determined
Current Option Gain/Loss: - 1.9%
Time Frame: 6 to 9 weeks
New Positions: see below

Comments:
05/17/14: LYB added +0.9% on Friday and ended the week just shy of a new all-time high. The stock appears to have short-term resistance near the $97.00 level. 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

chart:

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


3M Company - MMM - close: 141.13 change: +0.15

Stop Loss: 139.49
Target(s): to be determined
Current Option Gain/Loss: -31.5%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
05/17/14: MMM tested support near $140.00 again before bouncing on Friday. I found its rebound anemic and somewhat troubling. Traders may want to wait for a rise past $141.50 or $142.00 before considering new bullish positions. The larger trend is still very bullish.

- Suggested Positions -

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

05/15/14 new stop @ 139.49
05/08/14 triggered @ $142.00

chart:

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


Pacira Pharmaceuticals - PCRX - close: 75.11 change: -0.10

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:
05/17/14: The normally very volatile PCRX turned in a more quiet session on Friday. Shares churned near the $75.00 level, likely due to it being an option expiration Friday. I am not suggesting new positions at this time.

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

chart:

Entry on May 06 at $75.32
Average Daily Volume = 602 thousand
Listed on May 05, 2014


Potasch Corp. of Saskatchewan - POT - close: 36.95 change: +0.18

Stop Loss: 34.90
Target(s): to be determined
Current Option Gain/Loss: + 3.7%
Time Frame: 3 to 4 months
New Positions: see below

Comments:
05/17/14: Shares of POT hit new highs for 2014 last week. The intraday chart shows a bullish trend of higher lows. I would be tempted to launch new bullish positions here.

- Suggested Positions -

Long Sept $35 call (POT1420i35) entry $2.65

05/15/14 new stop @ 34.90
05/02/14 triggered @ 36.50

chart:

Entry on May 02 at $36.50
Average Daily Volume = 5.0 million
Listed on April 26, 2014


United Parcel Service - UPS - close: 101.33 change: +0.87

Stop Loss: 97.75
Target(s): to be determined
Current Option Gain/Loss: + 44.4%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
05/17/14: UPS saw some profit taking midweek but traders bought the dip on Friday. The transportation average is poised to hit new all-time highs soon. Traders could use Friday's bounce in UPS as a new entry point for bullish positions.

More conservative traders may want to raise their stop loss but I would keep it below $100.

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

chart:

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


Ventas, Inc. - VTR - close: 68.22 change: +0.79

Stop Loss: 65.75
Target(s): to be determined
Current Option Gain/Loss: +20.0%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
05/17/14: Thanks to Friday's +1.1% gain shares of VTR have almost erased their recent profit taking. VTR looks like it could challenge potential resistance at $70.00 soon.

- 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

chart:

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: 113.55 change: -0.65

Stop Loss: 124.05
Target(s): to be determined
Current Option Gain/Loss: Jun$100put - 2.5% & Sep100put: - 0.0%
Time Frame: 4 to 12 weeks
New Positions: see below

Comments:
05/17/14: ATHN seemed to find some support near $111.65 on Friday. Shares still underperformed the major indices with a -0.5% decline. I am not suggesting new positions at the moment.

Earlier Comments:
The plan was to keep our position size small to limit our 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

chart:

Entry on May 15 at $115.66
Average Daily Volume = 1.5 million
Listed on May 14, 2014


Discovery Communications - DISCA - close: 73.72 change: +1.02

Stop Loss: 75.05
Target(s): to be determined
Current Option Gain/Loss: -34.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/17/14: DISCA hit new multi-month lows last week. Yet shares started to bounce on Thursday. The oversold bounce accelerated on Friday with a +1.4% gain. DISCA is testing short-term technical resistance at its 10-dma. The stock should find additional resistance at the $75.00 mark. Our stop loss is at $75.05. That might be too close. More aggressive traders may want to widen their stop placement. I am not suggesting new bearish positions at the moment.

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

chart:

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


Chart Industries - GTLS - close: 72.50 change: +0.04

Stop Loss: 75.55
Target(s): to be determined
Current Option Gain/Loss: - 17.7%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
05/17/14: GTLS rebounded on Friday afternoon but just barely made it back into positive territory by the closing bell. The overall trend remains bearish. I do not see any changes from our Thursday night new play description. I would still consider new positions here.

More conservative traders could wait for a drop under $71.00 as an alternative entry point.

FYI: The Point & Figure chart for GTLS is currently bullish but a drop below $71.00 would produce a new triple-bottom breakdown sell signal.

- Suggested Positions -

Long Jun $70 PUT (GTLS140621P70) entry $2.25

05/16/14 trade begins. GTLS opened at $72.34
*I've provided the more standardized option symbol format.
symbol-year-month-day-put-strike

chart:

Entry on May 16 at $72.34
Average Daily Volume = 652 thousand
Listed on May 15, 2014


Lumber Liquidators - LL - close: 82.96 change: +1.54

Stop Loss: 84.05
Target(s): to be determined
Current Option Gain/Loss: -24.4%
Time Frame: 6 to 9 weeks
New Positions: see below

Comments:
05/17/14: It looks like we should have waited for LL to trade below its late April low before initiating bearish positions. The stock's bounce continued on Friday with a +1.89% gain. Shares are nearing what should be short-term technical resistance at the 10-dma soon. I am not suggesting new positions at this time.

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. The P&F chart is bearish and forecasting at $72 target.

*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

chart:

Entry on May 15 at $79.75
Average Daily Volume = 888 thousand
Listed on May 14, 2014


NetSuite Inc. - N - close: 73.74 change: +1.96

Stop Loss: 73.15
Target(s): 60.50
Current Option Gain/Loss: Unopened
Time Frame: 4 to 6 weeks
New Positions: Yes, see below

Comments:
05/17/14: The market's rebound on Friday allowed N to surge from support near $70.00 with a +2.7% gain. The larger trend is still bearish. Nimble traders might want to consider bearish positions on a failed rally near its 20-dma (currently near $76.75). Officially we're suggesting a trigger to buy puts at $69.25. If triggered our target is $60.50. FYI: The Point & Figure chart for N is bearish with a $56 target.

Trigger @ 69.25

- Suggested Positions -

Buy the Jun $70 PUT (N140621P70)

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

chart:

Entry on May -- at $---.--
Average Daily Volume = 1.1 million
Listed on May 15, 2014