Option Investor
Newsletter

Daily Newsletter, Wednesday, 6/24/2015

Table of Contents

  1. Market Wrap
  2. New Option Plays
  3. In Play Updates and Reviews

Market Wrap

And Greece...

by Thomas Hughes

Click here to email Thomas Hughes
Greece deal hopes fade in the wake of comments the latest effort to reach a deal does not meet approval.

Introduction

Greece, the Greek saga has been drawn out once again as the latest 11th hour attempt to reach an agreement with creditors appears to be falling apart. The latest word is that the Monday proposal, offered by Greece on Monday and first received with open arms by the creditors, is not enough. This news comes from sources close to the negotiations and sent the market ducking for cover. The report came too late to affect stocks in Asia which rallied, led by the Nikkei's march to a new 18 year high. The effect was felt worse in Europe where indices fell nearly -1% before finding support.

Market Statistics

Futures trading was in the red from the start of today's early pre-opening session. The indices were all indicated to open lower but the losses were marginal. News, other than Greece, had little affect on early trading which held fairly steady into the opening bell. The indices opened as expected posting mild losses near -0.10% within the first hour.

By 11:30 the indices had managed to move lower, led by the transports -1.35% decline, but on average posting losses in the range of -0.25%. Declines continued into the mid-afternoon, amplified by Carl Icahn's comments about the market being overheated, at which time the indices were down by roughly -0.75%. Selling pressure persisted throughout the day and left the indices near their lows at the close of the day.

Economic Calendar

The Economy

Two bits of economic data today, mortgage applications and the final revision to 1st quarter GDP. Mortgage applications rose by 1.6%, posting a strong gain from last week's decline of -5.5%. The jump was driven by a recent dip in mortgage rates which drove a rise in new buyers and refinances. This, along with better than expected existing and new home sales, points to increased activity and expansion in the housing sector.


GDP, 1st quarter GDP was revised higher, in line with expectations, to -0.2%. This is up a half percent from the previous estimate of -0.7%. The current estimate is based on more complete import/export data which shows that exports decreased less and imports increased more than previously thought. Along with this is an slightly larger increase in Personal Income Expenditures.

The Oil Index

The tug of war over oil prices wages on. Prices got a lift in early trading on the expectation we would see another decline in US stockpiles. Aiding the early lift were signs the US rig count decline has hit bottom, the latest report shows ND rigs holding steady at 77, the third week of stable levels since hitting the low of 76. The early pop, which took WTI over $61, reversed when supplies were reported to have fallen more than expected. This news, otherwise bullish, was tempered by an unexpectedly large rise, double expectations, of gasoline which only served to shift supply, not diminish them. WTI fell by more than -1.25% to trade near $60.

The Oil Index continues to show sign of a potentially strong trend following movement. Today the index traded to the upside, wrestling with near term resistance along the short term moving average. Price action continues to be supported by the indicators which are consistent with a trend following entry. A break above the moving average and the 38.2% retracement level which is just above the EMA would be bullish and carries a target near 1,400 in the near term. Oil prices will continue to have day to day impact on the index but so long as they remain at levels conducive to fulfilling forward earnings outlook should provide long term support.


The Gold Index

Gold prices fell about -0.30% as the market waits on Greece and digested GDP data. The data reveals the economy did not decline as much as expected in the 1st quarter, confirming outlook for economic expansion and the eventuality of rising inflation. It also confirmed expectations for an FOMC rate hike this year. Gold prices are now trading near $1173 and at a three week low. This level has been providing support for 3 months, I see no reason for that to end now.

The gold miners traded up in today's action creating a small bodied white candle just above my support line. Support appears to be forming near $18.50 and is supported by the indicators. MACD momentum remains bearish but the peaks are divergent from price action in the near and short term. Stochastic %K is moving lower and below %D, consistent with a test of support, but %D is on the rise and has crossed above the lower signal line. The sector remains range bound but looks good for a possible rise to the upper end, near $20 or $21, provided gold prices do not fall below support levels near $1170.


In The News, Story Stocks and Earnings

Lennar Corp reported earnings before the bell. The builder of residential homes reported a beat on both the top and bottom lines, posting EPS of $0.79 on revenue of $2.4 billion. Expectations had earnings in the range of $0.65 on revenue of only $2.4 billion. The best news is an 18% rise in new orders and comments from execs expecting "strong future sales". The one bad note was a slight drop in margins due to rising land costs but that was overlooked in favor of strong sales expectations. Shares of the stock rose more than 8% in the pre-market session, opened with a large gap and proceeded to fall from there throughout the day. Selling pressure did not completely overcome buyers leaving the stock up by 4.5%.


The XHB Home Builders Spyder moved up to set a new 8+ year high, a high not seen since the housing bubble pre-2008 financial crisis. Today's action opened with gap driven on momentum from Lennar and others such as KB Homes who reported a 57% increase in back-log and future orders last week. Early action was bullish, pushing prices higher after making a small gap at the open. Late day selling reversed the early rally, resulting in a black candle but leaving the ETF with a small gain for the day. The indicators are bullish but may be indicating a near term peak, MACD retreated with today's action and stochastic is at the upper signal line with near term %K moving lower.


Monsanto, the global farming technology behemoth, reported better than expected earnings this morning. EPS of $2.39 was far ahead of consensus estimates near $2.05 but came on lighter than expected revenue. The company went on to affirm guidance near the low end of the previously stated range, in line with consensus estimates, but did not provide investors with much hope. Shares of the stock tanked on the news, falling nearly 5%, to trade just above the 12 month low.


Bed, Bath&Beyond reported after the bell. Expectations for EPS of $0.94 were barely missed, actual EPS is $0.93, on revenue in line with expectations. Comp store sales are running just over 2% and within the range projected by management for the year. This is up from a 0.4% comp store increase for the same quarter last year and reflect a negative impact from dollar conversion. Shares of the stock fell -2% in after hours trading following a day of trading right around the moving average.


The Indices

The market began a slow decline this morning that slowly extended itself throughout the day. Although selling lasted throughout the day there was none of the feel of imminent doom or panic selling. Today's losses were led by the Dow Jones Transportation Average which posted a decline more than double the next biggest loser. Today's action carried the transports down by -1.86% and back to the bottom of the recent 10% correction. This move is confirming resistance at the short term moving average but did not break long term support. The indicators are still consistent with a bullish entry in line with the underlying trend so today's drop looks more like an entry point that it does the precursor to decline. Support is at 8,250, resistance is at 8,500.


The Dow Jones Industrial Average made the next largest decline, -0.96%, a full point less than the transports. Today's move broke below the short term moving average and may indicate a near term peak but the underlying trend remains bullish. Declining momentum may lead to a further pullback in the near term with possible target near 17,750 and the bottom of the 5 month tradindig range. Greece may influence trading within the range but data and earnings will be the determining factor long term. The index may remain range bound until earnings season starts, about 2.5 weeks away, unless data changes outlook or Greece defaults/deals with its creditors.


The NASDAQ Composite fell -0.73% and could be returning to the moving average. The index flirted with a new high today, the fifth time since breaking out last week, and may have gotten ahead of the broader market. The indicators remain bullish so any pullback would be buying opportunity. Current support target is the 30 day moving average near the 5,050 level and then just below that near 5,025 and the previous all time closing high.


The S&P 500 fell -0.74% in a move confirming resistance and halted by support. Today's action confirms the underside of the broken up trend line as resistance, strength as yet undetermined. It also helps confirm the break above the moving average and support along the moving average, consistent with the trend following signal indicated by MACD and stochastic. This signal is a trend following entry with target near 2,150. Support target is the short term moving average, near 2,106.


Today's action was all Greece, and maybe a little Carl Icahn. Aside from headline fears over Greece the data is good, not strong and not weak but leading to growth, the earnings are better than expected and outlook to the end of the year remains positive. In the short term 2nd quarter earnings have us in a holding pattern, in the long term growth outlook has us in a bull market. In the near term Greece, its creditors, the bail-out deal and media glam have the market's attention. Near term news is going to keep the market churning until negative headlines are gone, so long as the economic trends and earnings expectations are positive I remain a bull.

Until then, remember the trend!

Thomas Hughes


New Option Plays

Headline Risk Is Growing

by James Brown

Click here to email James Brown

Editor's Note:

The situation with Greece is quickly running out of time for a solution.

The Eurogroup meeting of finance ministers failed to reach any sort of resolution today. Greece's creditors rejected the country's debt restructuring proposal. The finance ministers will meet again on Thursday. The country only has six days left to get a deal done before it likely defaults on its 1.5 billion euro debt payment to the IMF on June 30th (next Tuesday).

The stock market faces potential headline risk as this stalemate continues. We are not adding any new trades tonight.

Here's a list of stocks that caught my interest as potential trading ideas. Some of these stocks may need to see a break past key support or resistance:

Bearish ideas: UTX, RTN, WYNN, HP, ETN, SNDK, QCOM, PSA, SPG, IYT, HSY, TCO,
(not listed are utility stocks, nearly all of the utilities look like bearish candidates).

Bullish ideas: GD, PLCE, STMP,




In Play Updates and Reviews

Lack Of Greek Progress Weighs On Stocks

by James Brown

Click here to email James Brown

Editor's Note:

The stalemate continues between Greece and its European creditors. The lack of progress is starting to spook investors again. Greece only has six days left until its June 30th IMF debt payment deadline.

The major U.S. indices all experienced widespread profit taking.

UHS hit our stop loss.


Current Portfolio:


CALL Play Updates

Aetna Inc. - AET - close: 127.51 change: -0.69

Stop Loss: 119.85
Target(s): To Be Determined
Current Option Gain/Loss: +78.6%
Average Daily Volume = 2.0 million
Entry on June 15 at $118.75
Listed on June 10, 2015
Time Frame: 8 to 12 weeks
New Positions: see below

Comments:
06/24/15: AET saw some profit taking this morning but shares found support near $126.00 this afternoon. A new broker price target of $159 didn't do much to help the stock. AET did see a noticeable rally late in the day and looks poised to bounce tomorrow morning.

Readers may want to raise their stop closer to the $125.00 level. No new positions at this time.

Trade Description: June 10, 2015:
Healthcare was big business before Obamacare. Now it's even bigger. AET is the third largest health insurer in the U.S. They added over 950,000 clients thanks to the Affordable Care Act. Naturally it doesn't hurt the healthcare business when the ACA forces you to buy health insurance or pay a tax penalty. Big insurers like AET are also benefitting from an expanding Medicaid program.

If you are not familiar with AET the company describes itself this way: "Aetna is one of the nation's leading diversified health care benefits companies, serving an estimated 46 million people with information and resources to help them make better informed decisions about their health care. Aetna offers a broad range of traditional, voluntary and consumer-directed health insurance products and related services, including medical, pharmacy, dental, behavioral health, group life and disability plans, and medical management capabilities, Medicaid health care management services, workers' compensation administrative services and health information technology products and services. Aetna's customers include employer groups, individuals, college students, part-time and hourly workers, health plans, health care providers, governmental units, government-sponsored plans, labor groups and expatriates."

Earnings have been steadily improving for AET. They have a habit of beating estimates. Management has raised their guidance the last three quarters in a row. AET's most recent report was April 28th. The company reported its 2015 Q1 earnings were up +17% from a year ago. Analysts were expecting a profit of $1.94 per share on revenues of $15.5 billion. AET delivered $2.39 per share. Revenues were up +8% to $15.09 billion. The number of medical enrollment members rose +4% to 23.7 million.

AET's management raised their 2015 guidance for the second time in a row. They now expect fiscal 2015 earnings in the $7.20-7.40 range compared to analysts' estimates at $7.17. The stock has been steadily rising thanks to its bullish outlook.

The big insurance stocks surged in late May on M&A rumors. Then on May 29th Humana (HUM) announced they were putting the company up for sale. HUM surged +20% on that one session. AET, Cigna (CI), and Anthem (ANTM) have all been rumored as potential suitors for HUM. Lately Wall Street has been rewarding the acquirer's stock with a rally on any merger news. AET could rally if they turn out to be the buyer.

Shares of AET just recently saw a $5.00 correction from $120 to $115 and bounced. This rebound looks like a potential entry point. Today's intraday high was $118.53. We are suggesting a trigger to buy calls at $118.75.

- Suggested Positions -

Long OCT $125 CALL (AET151016C125) entry $4.34

06/20/15 WSJ reporting that AET has made a bid for HUM 06/16/15 new stop @ 119.85
06/15/15 triggered @ $118.75 thanks to M&A speculation
Option Format: symbol-year-month-day-call-strike


Cracker Barrel Old Country Store - CBRL - close: 146.42 change: -1.50

Stop Loss: 144.75
Target(s): To Be Determined
Current Option Gain/Loss: Unopened
Average Daily Volume = 332 thousand
Entry on June -- at $---.--
Listed on June 20, 2015
Time Frame: Plan on exiting prior to August 5th
New Positions: Yes, see below

Comments:
06/24/15: The market's widespread weakness today pushed CBRL toward short-term technical support at its 10-dma. Shares settled with a -1.0% decline. We are on the sidelines and waiting for a breakout past $150.

Trade Description:
It's summertime and that means vacations and road trips for a lot of Americans. That's good news for a company like CBRL because most of their 634 restaurants are located along major highways.

CBRL is in the services sector. According to the company, "Cracker Barrel Old Country Store, Inc. provides a friendly home-away-from-home in its old country stores and restaurants. Guests are cared for like family while relaxing and enjoying real home-style food and shopping that’s surprisingly unique, genuinely fun and reminiscent of America's country heritage…all at a fair price. Cracker Barrel Old Country Store, Inc. (CBRL) was established in 1969 in Lebanon, Tenn. and operates 634 company-owned locations in 42 states."

Wall Street loves earnings growth and CBRL continues to deliver. Back in February the company beat earnings and revenue estimates and raised their 2015 guidance. Their most recent report was June 2nd. CBRL reported their fiscal third quarter. Analysts were expecting a profit of $1.37 per share on revenues of $680 million. CBRL beat estimates with a profit of $1.49 per share. This is a +21% rise from a year ago and marks the fifth quarter in a row of double-digit earnings growth. Revenues also beat estimates with a +6.3% rise to $683.7 million. CBRL said their comparable store sales were up +5.2%. Their comparable retail store sales were up +4.5%.

Management raised their normal quarterly dividend +10% to $1.10. They also announced a special one-time dividend of $3.00 per share. Both are payable on August 5th, 2015 to shareholders on record as of July 17th. CBRL offered a bullish outlook for both their fourth quarter and 2015. Management raised their 2015 earnings guidance from $6.40-6.50 to $6.60-6.70 per share. Wall Street was only expecting $6.55.

Technically the stock looks bullish. Shares have been consolidating their post-earnings gains the last couple of weeks but traders are buying the dip. Today CBRL is poised for a breakout past short-term resistance near $148.50. If the stock does breakout it could see some short covering. The latest data listed short interest at 17% of its small 18.9 million share float. Meanwhile the point & figure chart is very bullish and forecasting a long-term target at $231.00.

Tonight we are suggesting a trigger to buy calls at $150.25. More aggressive traders may want to jump in early on a rally past $148.75.

Trigger @ $150.25

- Suggested Positions -

Buy the SEP $155 CALL (CBRL150918C155)

Entry disclaimer: To avoid an unfavorable entry point, we will not launch a new play if the stock gaps open more than $1.00 past our suggested entry point.

Option Format: symbol-year-month-day-call-strike


Tableau Software, Inc. - DATA - close: 119.68 change: -2.48

Stop Loss: 116.75
Target(s): To Be Determined
Current Option Gain/Loss: -8.4%
Average Daily Volume = 1.0 million
Entry on May 28 at $115.25
Listed on May 27, 2015
Time Frame: Exit prior to July option expiration
New Positions: see below

Comments:
06/24/15: Ouch! DATA underperformed the broader market today with a -2.0% decline and a breakdown under what could have been short-term support at $120.00. After a multi-week rally higher the stock is probably due for a dip but this move should make us cautious. More conservative traders may want to raise their stop loss. No new positions at this time.

Trade Description: May 27, 2015:
The market for analyzing big business data is growing fast. DATA is leading the charge. According to the company, "Tableau Software (NYSE: DATA) helps people see and understand data. Tableau helps anyone quickly analyze, visualize and share information. More than 26,000 customer accounts get rapid results with Tableau in the office and on-the-go. And tens of thousands of people use Tableau Public to share data in their blogs and websites."

The last few earnings reports have been very impressive. DATA released their Q3 results on November 5, 2014. Results were 12 cents above estimates with revenues up +71% to $104.5 million, also above estimates.

Their Q4 results came out in early February. Analysts were expecting a profit of $0.11 a share on revenues of $122.58 million. DATA delivered $0.42 a share with revenues up +75% to $142.9 million. In the fourth quarter they added 2,600 new customers. They closed 304 transactions worth more than $100,000, a +70% improvement from a year ago.

Christian Chabot, Chief Executive Officer of Tableau. "In 2014, we experienced the strongest demand we've seen in our history, as the move to agile analytics grows faster than ever."

DATA reported their 2015 Q1 results on May 7th. Analysts were looking for a loss of $0.03 per share on revenues of $115.29 million. The company blew away these numbers with a profit of $0.08 per share (11 cents above estimates). The pattern of big revenue growth continued with Q1 revenues up +74.4% to $130.1 million. They added 2,600 new customers putting their total above 29,000. The number of deals above $100,000 hit 249 in the first quarter.

Management provided bullish guidance with estimates for Q2 revenues in the $135-140 million range. That's above Wall Street's estimate of $130.9 million. They also upped their fiscal year 2015 earnings picture and see $600-615 million, which is better than analysts' estimates of $587 million.

Shares of DATA surged on its results and optimistic guidance. Since then traders have been buying the dips pretty quickly. Today's display of relative strength (+1.99%) is also a new all-time closing high for DATA. It's also worth noting that DATA has been talked about as a potential takeover target.

The $115.00 level looks like short-term resistance. We will use a trigger at $115.25 as our entry point to buy calls.

- Suggested Positions -

Long JUL $120 CALL (DATA150717C120) entry $3.82

06/18/15 new stop @ 116.75
06/10/15 new stop @ 111.75
05/28/15 triggered @ $115.25
Option Format: symbol-year-month-day-call-strike


The Walt Disney Co. - DIS - close: 113.77 change: -0.64

Stop Loss: 108.75
Target(s): To Be Determined
Current Option Gain/Loss: +11.3%
Average Daily Volume = 5.7 million
Entry on June 18 at $112.25
Listed on June 17, 2015
Time Frame: Exit PRIOR to earnings in August
New Positions: see below

Comments:
06/24/15: DIS was not immune to the market's widespread profit taking. However, the major indices were down -0.7% while DIS only fell -0.5%.

After the closing bell DIS announced they were raising their dividend by 15% and that they would start paying dividends twice a year. The new semi-annual dividend is $0.66 per share. Previously DIS only paid a dividend once a year.

Broken resistance near $112.00 should be new support.

Trade Description: June 17, 2015:
Disney is an American icon. The company is over 90 years old. They have grown into a massive content generating giant. Today DIS runs five business segments. Their media networks include broadcast, cable, radio, publishing, and digital businesses headlined by their Disney/ABC television group and ESPN Inc. DIS' parks and resort business includes Disneyland, Disneyworld, plus theme parks in Tokyo, Paris, Hong Kong, Shanghai, and a cruise line.

The company's products division licenses the company's horde of names, characters, and intellectual property to a wide range of products. They've also jumped into the online world with their Disney Interactive division. Last but not least is the Walt Disney Studios segment. Disney started making movies 90 years ago. Today their studio business includes Disney animation, Pixar Animation, Disneynature, Disney Studios Motion Pictures, Disney music group, Touchstone Pictures, and Marvel Studios.

Their movie business has been a money maker over the years with huge hits like the Pirates of the Caribbean franchise, Tangled, Wreck-it Ralph. In 2013 they released the animated film "Frozen", which has turned into the largest grossing animated movie of all time. Pixar has a stable of successful movies that have grossed almost $9 billion. DIS is also mining gold in Marvel Entertainment's library of over 8,000 characters of comic book history. Marvel had two big hits in 2014 Captain America: Winter Soldier and Guardians of the Galaxy. Their 2015 Avengers: Age of Ultron was also a big winner at the box office grossing more than $1.3 billion worldwide. Of course not every Disney movie crushes it. Their recent Tomorrowland was a big disappointment and they could lose more than $100 million on the film.

Back in 2012 Disney purchased Lucasfilm and all the Star Wars properties from George Lucas for $4 billion. The company is busy filming the next three episodes of the Star Wars franchise. The next Star Wars film it titled "The Force Awakens." It will be episode seven in the franchise. The movie doesn't hit theaters until December 2015 but analysts are already predicting that "The Force Awakens" will generate $1.2 billion at the global box office.

DIS management loves movie franchises because they can fuel years of sequels, park rides, and merchandise. The approach seems to be working. Revenues and net income have hit all-time highs for five consecutive quarters. Their 2015 Q1 results saw earnings per share up +23% to $1.27. Their Q2 results saw earnings grow +14% to $1.23 per share. Their domestic theme parks showed a strong surge in both attendance and in customer spending. Analysts are forecasting DIS earnings to grow +17% this year.

The stock surged to new all-time highs back in early May after its Q2 earnings report. Shares have since spent the last six weeks digesting gains in a sideways consolidation that has ignored much of the broader market's volatility. More recently DIS has started to rebound and is now at the top of its trading range. A breakout here could signal the next leg higher.

The point & figure chart is bullish and forecasting at long-term target of $154.00. I personally suspect that DIS could rally toward $120-125 before its next earnings report in August. Credit Suisse recently upped their price target to $130. Tonight we are suggesting a trigger at $112.25 to buy calls.

- Suggested Positions -

Long AUG $115 CALL (DIS150821C115) entry $2.30

06/18/15 triggered @ $112.25
Option Format: symbol-year-month-day-call-strike


Demandware, Inc. - DWRE - close: 71.25 change: -1.03

Stop Loss: 67.75
Target(s): To Be Determined
Current Option Gain/Loss: -16.7%
Average Daily Volume = 417 thousand
Entry on June 22 at $72.35
Listed on June 20, 2015
Time Frame: 6 to 8 weeks, exit prior to earnings in August
New Positions: see below

Comments:
06/24/15: DWRE doubled the market's losses today. The NASDAQ fell -0.73% while DWRE declined -1.42%. Broken resistance near $70.00 should offer some support. More conservative traders may want to raise their stop. No new positions at this time.

Trade Description: June 20, 2015:
2015 is shaping up to be a lot better than 2014 for DWRE investors. The stock delivered a rocky performance last year and spent much of it churning sideways in a huge consolidation pattern (see the weekly chart below). The stock's momentum has turned bullish this year thanks in part to consistently strong revenue growth. The NASDAQ is up +8.0% year to date. DWRE is currently up +23.9%.

DWRE is in the technology sector. According to the company, "Demandware, the category defining leader of enterprise cloud commerce solutions, empowers the world's leading retailers to continuously innovate in our complex, consumer-driven world. Demandware's open cloud platform provides unique benefits including seamless innovation, the LINK ecosystem of integrated best-of-breed partners, and community insight to optimize customer experiences. These advantages enable Demandware customers to lead their markets and grow faster."

With the exception of its Q4 report on February 19th DWRE has beaten Wall Street's earnings estimates on both the top and bottom line the last four quarters in a row. Revenue growth has been +55.6%, +55.9%, +43.4%, and +54.3% for the last four quarters. The only miss was DWRE's bottom line number for the fourth quarter where it missed by a penny.

DWRE's most recent results were May 7th. The company said their Q2 profit was $0.16 per share. That is a big improvement from a ($0.05) loss a year ago and it was 27 cents better than the ($0.11) loss analysts were expecting. Revenues were $50.27 million compared to estimates for $49.5 million. DWRE said their live customers were up +30% from a year ago to 279. The number of live sites surged 42% to 1,241.

Tim Adams, DWRE's CFO, commented on their quarterly results, "During the first quarter, we continued to invest in growth and innovation. We expanded our operations deeper into Europe and Asia. Our R&D team also made considerable progress on their key initiatives – extending our platform deeper into the store, delivering our intelligence solutions and enriching our core commerce capabilities. As we move through 2015, we remain focused on scaling our organization to support the fast pace of our growth."

Back in April Goldman Sachs added DWRE to their conviction buy list. Yet shares didn't start moving until June. A couple of weeks ago shares broke out from a three-month consolidation pattern. The current rally could be getting a boost from short covering. The most recent data listed short interest at 12% of the relatively small 33.48 million share float. Currently the point & figure chart is bullish and forecasting an $85 target. Tonight we're suggesting a trigger to buy calls at $72.35.

- Suggested Positions -

Long OCT $75 CALL (DWRE151016C75) entry $5.28

06/22/15 triggered @ $72.35
Option Format: symbol-year-month-day-call-strike


ManpowerGroup Inc. - MAN - close: 91.00 change: -0.60

Stop Loss: 89.65
Target(s): To Be Determined
Current Option Gain/Loss: -6.8%
Average Daily Volume = 697 thousand
Entry on June 18 at $90.25
Listed on June 16, 2015
Time Frame: Exit PRIOR to earnings in very late July
New Positions: see below

Comments:
06/24/15: MAN is down for a second day in a row after hitting multi-year highs on Monday. The $90.00 level might offer some short-term support. A dip (or bounce) near the $90 mark could be a new entry point to buy calls.

Trade Description: June 16, 2015:
The U.S. Q1 GDP growth estimate was a dismal -0.7%. Yet Q2 estimates have been rising the last few weeks. It looks like the U.S. will avoid a recession. The average estimate is above +2.0%. Most believe that if the Federal Reserve is going to raise rates they will only do so because they believe the economy is healthy enough and growing fast enough to endure higher rates. At the same time we are hearing improving economic data out of Europe thanks to the ECB's massive QE program. While growth in Europe is expected to be slow it is still growth and the ECB's QE program is set to last through September 2016.

One way to play improving economies in U.S. and Europe is the staffing industry. MAN is part of the services sector. According to the company, "ManpowerGroup (MAN) is the world's workforce expert, creating innovative workforce solutions for more than 65 years. As workforce experts, we connect more than 600,000 people to meaningful work across a wide range of skills and industries every day. Through our ManpowerGroup family of brands – Manpower®, Experis, Right Management and ManpowerGroup Solutions – we help more than 400,000 clients in 80 countries and territories address their critical talent needs, providing comprehensive solutions to resource, manage and develop talent."

Their most recent earnings report was April 21st. MAN announced their 2015 Q1 results were $0.83 per share. That was down -3.4% from a year ago but it was four cents better than analysts were expecting. Revenues were down -7.4% to $4.5 billion but this too was above expectations. The EPS and revenues declines were "significantly impacted" by the strong U.S. dollar. On a constant currency basis MAN's earnings were up +16% and revenues were up +7%.

Jonas Prising, ManpowerGroup CEO, said, "2015 is off to a strong start as we built on the progress we made last year delivering good results in the first quarter. It is encouraging to see the early signs of more broad based improvement in Europe, setting the stage for what we believe could be a slow but sustained labor market recovery in that region. The strong start to the year gives us confidence that we are on the right track and that our focus on permanent recruitment and our market leading solutions offerings continues to pay off. We are well placed to seize further opportunities as economic trends improve."

MAN has recently upped their semiannual dividend +63% from $0.49 to $0.80 per share. They're also making acquisitions. The company recently purchased the Australian and Singapore divisions of Greythorn, a professional services and recruiting firm. They just announced they were buying the 7S Group in Germany for 136.5 million euros.

Most of Wall Street is bullish on MAN. The last few months have seen a parade of upgraded price targets. Some of the new analyst price targets are: $89, $94, $95, $98, $99, and $103. Currently the point & figure chart is only forecasting a $94.00 target I suspect that if shares of MAN can breakout past $90.00 the stock is headed for $100.00.

Technically shares have been consolidating sideways beneath resistance near $87.00-88.00 for more than two months. The rally last week and this week looks like a bullish breakout past this level. The $87.00 region has been resistance going back to late 2013 so a breakout here could be significant. Tonight we're suggesting a trigger to buy calls at $90.25.

- Suggested Positions -

Long SEP $95 CALL (MAN150918C95) entry $2.20

06/23/15 new stop @ 89.65
06/18/15 triggered @ $90.25
Option Format: symbol-year-month-day-call-strike


Sirona Dental Systems - SIRO - close: 100.79 change: -0.95

Stop Loss: 99.65
Target(s): To Be Determined
Current Option Gain/Loss: -34.5%
Average Daily Volume = 316 thousand
Entry on June 15 at $101.05
Listed on June 11, 2015
Time Frame: 8 to 12 weeks
New Positions: see below

Comments:
06/24/15: We're halfway through the week and SIRO is poised to break its six-week up trend. Shares lost -0.9% today. The nearest support should be the $100.00 level. Nimble traders could buy calls on a bounce from the $100.00 mark.

Trade Description: June 11, 2015:
Revenue growth in SIRO's business has been disappointing due to foreign currency headwinds thanks to the strong dollar. Yet investors seem to be ignoring this issue. Shares of SIRO have outperformed the broader market with a +15.3% gain this year.

SIRO is in the healthcare sector. They sell dental equipment. According to the company, "Sirona, the dental technology leader, has served dealers and dentists worldwide for more than 130 years. Sirona develops, manufactures, and markets a complete line of dental products, including CAD/CAM restoration systems (CEREC), digital intra-oral, panoramic and 3D imaging systems, dental treatment centers and handpieces."

The last couple of earnings reports for SIRO have only been mediocre. The company has been meeting analysts estimates on the bottom line (earnings). Unfortunately revenues have been seeing declines in U.S. dollar terms. On a local currency basis their sales have grown. One positive that helps the bullish picture for SIRO is margin growth. The company has seen margin growth improve the last two quarters in a row.

Shares of SIRO spiked down on May 8th, its most recent earnings report, but traders immediately bought the dip at technical support on its 50-dma. The stock seems to be stair stepping higher with a rally, then a week or two of consolidation that breaks out into another rally. Shares just broke through major round-number resistance at the $100.00 mark today. Tonight we are suggesting a trigger to buy calls at $101.05. Volume on SIRO's stock and its options is a little light. I would start this trade with small positions to limit risk.

*small positions to limit risk* - Suggested Positions -

Long SEP $105 CALL (SIRO150918C105) entry $2.90

06/23/15 new stop @ 99.65
06/15/15 triggered @ $101.05
Option Format: symbol-year-month-day-call-strike


Skyworks Solutions Inc. - SWKS - close: 108.40 change: -1.88

Stop Loss: 107.85
Target(s): To Be Determined
Current Option Gain/Loss: +14.3%
Average Daily Volume = 4.0 million
Entry on June 10 at $103.44
Listed on June 09, 2015
Time Frame: 8 to 12 weeks
New Positions: see below

Comments:
06/24/15: Bullish analyst comments on SWKS today did not stop shares from slipping -1.7%. SWKS found support near $108.00 intraday. If there is any follow through lower we could see the stock hit our new stop loss at $107.85.

More aggressive traders may want to give SWKS more room on their stop loss since the $107.00 level looks like stronger support.

Trade Description: June 9, 2015:
SWKS seems to be everywhere. They make semiconductor chips for just about every industry including aerospace, automotive, consumer electronics, wearables, and the Internet of Things. They have been called the leading wireless semiconductor company. They're probably best known for being a component supplier to Apple (AAPL) for the company's iPhones.

The stock has soared from its October 2014 lows near $45 a share to over $100 today (a +126% move). SWKS is up +39.7% year to date versus a +5.5% gain in the NASDAQ composite and a +3.6% gain in the SOX semiconductor index.

If you're not familiar with SWKS they're in the technology sector. According to the company website, "Skyworks Solutions, Inc. is an innovator of high performance analog semiconductors. Leveraging core technologies, Skyworks supports automotive, broadband, wireless infrastructure, energy management, GPS, industrial, medical, military, wireless networking, smartphone and tablet applications. The Company's portfolio includes amplifiers, attenuators, circulators, demodulators, detectors, diodes, directional couplers, front-end modules, hybrids, infrastructure RF subsystems, isolators, lighting and display solutions, mixers, modulators, optocouplers, optoisolators, phase shifters, PLLs/synthesizers/VCOs, power dividers/combiners, power management devices, receivers, switches and technical ceramics. Headquartered in Woburn, Mass., Skyworks is worldwide with engineering, manufacturing, sales and service facilities throughout Asia, Europe and North America."

The company is really cashing in on some major global trends including smart phones and smart(er) cars. Data suggests that over 90% of mobile phone users are still using 2G and 3G phones. That means SWKS should benefit as they upgrade to 4G phones. Meanwhile SWKS is also poised to benefit from the surging trend of interconnectivity in automobiles. One forecast estimates that 75% of automobiles in 2020 (about 70 million vehicles) will have Internet-connectivity. Today that number is only around 10 million cars.

The company's earnings growth has been phenomenal. They have beaten Wall Street's earnings and revenues estimates the last four quarters in a row. They have also raised their guidance the last four quarters in a row. Their 2014 Q4 report saw revenues up +50%. Their 2015 Q1 reported revenues were up +59% while earnings were up +88%. SWKS' Q2 report on April 30th delivered earnings growth of +85% on revenue growth of +58%.

Several analysts upgraded their price target on SWKS following the April results. Analysts are expecting strong year-over-year growth for the next several quarters. One reason is the Apple iPhone upgrade cycle. There are about 450 million iPhones in circulation. Thus far only about 20% have upgraded to the iPhone 6 or 6+. That leaves a lot more iPhone sales to come.

A fast-growing company like SWKS can be a buyout target. There have been rumors that QCOM is a potential suitor.

Shares of SWKS have seen an intraday correction from $111.60 on June 1st to $98.07 today. That's a -11% pullback and traders pounced on SWKS when it started to bounce. The $100 region and the 50-dma coincide with the bullish trend of higher lows. We want to hop on board the SWKS train if shares continue to rebound. Tonight we are suggesting a trigger to buy calls at $103.25. I should warn you that SWKS can be a volatile stock. You may want to consider this a higher-risk trade. We'll start this trade with a stop loss under today's low (just below $98.07).

- Suggested Positions -

Long AUG $110 CALL (SWKS150821C110) entry $4.90

06/23/15 new stop @ 107.85
06/10/15 triggered on gap open at $103.44, suggested entry was $103.25.
Option Format: symbol-year-month-day-call-strike


Under Armour, Inc. - UA - close: 84.34 change: -1.05

Stop Loss: 81.75
Target(s): To Be Determined
Current Option Gain/Loss: Unopened
Average Daily Volume = 2.0 million
Entry on June -- at $---.--
Listed on June 23, 2015
Time Frame: Exit prior to August expiration
New Positions: Yes, see below

Comments:
06/24/15: UA retreated toward the $84.00 level and eventually closed with a -1.2% decline. Currently our suggested entry point $86.05. Keep in mind that larger rival Nike (NKE) reports earnings tomorrow night. Their results could generate volatility in UA on Friday morning.

Trade Description:
UA is in the consumer goods sector. They make shoes and athletic wear. According to the company, "Under Armour (UA), the originator of performance footwear, apparel and equipment, revolutionized how athletes across the world dress. Designed to make all athletes better, the brand's innovative products are sold worldwide to athletes at all levels. The Under Armour Connected Fitnessplatform powers the world's largest digital health and fitness community through a suite of applications: UA Record, MapMyFitness, Endomondo and MyFitnessPal."

The athletic shoe and athletic apparel business is very competitive. Nike (NKE) has dominated the space for years. UA is about 10% the size of NKE but it is actively fighting for market share and recently overtook Adidas as the second biggest athletic wear brand inside the United States. Nike had sales of $27.8 billion in 2014. UA is a fraction of that with 2014 sales of $3.08 billion but UA grew +32%.

UA has been firing on all cylinders with its earnings results. Most of last year saw the company not only beating Wall Street's estimates but also raising guidance.

UA reported their 2014 Q4 results on February 4th. The company reported a profit of $0.40 a share with revenues climbing +31% to $895 million, which was above estimates for $849 million. UA's CEO Kevin Plank, in a recent interview, said his company will grow at 20%-plus in 2015. The company's current estimates are $3.76 billion in sales for the year.

There was a steady stream of analysts raising their price targets on UA after its February earnings report. Many of these new price targets were in the low $90s ($91-94).

The company's most recent earnings report was April 21st when UA announced Q1 results. After raising guidance back in February the company reported earnings of $0.05 per share, which was in-line with Wall Street's new estimates. Revenues were up +25.4% to $804.9 million, which beat expectations. UA management raised their outlook again. They expect 2015 operating income to improve +13-to-15%. UA expects 2015 revenues to rise +23% to $3.78 billion.

The stock has rallied sharply into its earnings report and shares suffered some post-earnings depression with a -$12.00 drop (-13.6%) in the following two weeks. The price target upgrades continued but UA spent most of May consolidating sideways inside a narrow range. Finally on June 5th shares of UA broke out past multiple layers of resistance on another upgrade. The stock was upgraded to a "buy" with a $91 price target.

UA spent about a week digesting its bullish breakout and then took off. The company recently announced a 2-for-1 stock split. However, instead of a normal split the company is creating a new Class C stock which will have no voting rights.

Why a new class of shares? That's because the company's founder and current CEO Kevin Plank does not want to lose control. This way he can maintain control by keeping his voting shares while still selling the new Class C shares. Just in case you were curious, Class A UA stock has one vote per share. Class B stock has ten votes per share, which Plank owns the majority of.

This stock "split" will be disbursed as a dividend. There's no word yet on the new ticker symbol for the class C shares. There is a special meeting of UA shareholders on August 26, 2015 to approve the necessary changes so they can proceed with this stock split. Google did a similar stock split back in 2014 so the founders could maintain control. Both GOOG's and UA's decision has rankled some shareholders. However, normally stock splits tend to be viewed as a bullish move since stocks don't split if they're not rising. Stocks that split tend to outperform the broader market.

Tonight we are suggesting a trigger to buy calls at $86.05. More conservative traders may want to consider waiting for a dip instead. The nearest support is $82.00. We'll start with a stop loss at $81.75.

FYI: Traders should note that larger rival Nike (NKE) will report earnings on June 25th, after the closing bell. NKE has been doing well and I expect a bullish report but if NKE misses or warns it could definitely influence trading in UA's stock.

Trigger @ $86.05

- Suggested Positions -

Buy the AUG $90 CALL (UA150821C90)

Entry disclaimer: To avoid an unfavorable entry point, we will not launch a new play if the stock gaps open more than $1.00 past our suggested entry point.

Option Format: symbol-year-month-day-call-strike


Zebra Tech. - ZBRA - close: 115.43 change: -2.49

Stop Loss: 113.85
Target(s): To Be Determined
Current Option Gain/Loss: -26.3%
Average Daily Volume = 475 thousand
Entry on June 10 at $113.54
Listed on June 06, 2015
Time Frame: 8 to 12 weeks
New Positions: see below

Comments:
06/24/15: ZBRA spent the first half of Wednesday consolidating sideways. Shares eventually succumbed to the market's downdraft and shares accelerated toward $115. ZBRA underperformed the market with a -2.1% decline.

Currently our stop is at $113.85. More conservative traders may want to move their stop closer to $115.00 instead. We're keeping our stop under technical support at the 20-dma for now.

Trade Description: June 6, 2015:
Traditionally known for bar code scanning and RFID technology, ZBRA has changed. They have grown into a company that management says puts them right in the middle of three major tech trends: the Internet of Things, mobility, and cloud computing. Today the company has thousands of customers in more than 100 countries, including more than 95 percent of all Fortune 500 companies.

ZBRA is in the industrial goods sector. In April 2014 they announced a $3.45 billion deal to buy the Motorola Solutions enterprise unit. According to the company, "Zebra Technologies is a global leader in enterprise asset intelligence, designing and marketing specialty printers, mobile computing, data capture, radio frequency identification products and real-time locating systems. Incorporated in 1969, the company has over 7,000 employees worldwide and provides visibility into valued assets, transactions and people The company's extensive portfolio of marking and printing technologies, including RFID and real-time location solutions, illuminates mission-critical information to help customers take smarter business actions."

The company has been consistently delivering on the earnings front. ZBRA has reported seven quarters in a row of double-digit earnings growth. The numbers have boomed since the addition of the enterprise unit in October last year.

Looking at the last few quarterly reports ZBRA has been beating Wall Street estimates on both the top and bottom line . Their most recent report was May 13th where ZBRA announced its 2015 Q1 results of $1.39 per share. That was a +53% improvement from the prior year and 28 cents above estimates. Revenues surged +210% to $893 million, which was above estimates. That was thanks to $561 million in sales from the Motorola solutions business. Even ZBRA's legacy business saw a +15% improvement in sales.

Anders Gustafsson, ZBRA's CEO, commented on his company's report, saying, "We started the year with strong, positive momentum, as business activity remained high specifically in North America and Europe. Our partners and customers are responding enthusiastically to our greatly expanded portfolio of solutions and capabilities, and our enhanced focus on giving them improved visibility into their assets, transactions and people for better enterprise asset intelligence. During the quarter we also made material progress on achieving our cost-synergy targets, pursuing growth initiatives and integrating Zebra with the Enterprise business acquired from Motorola Solutions in October. The favorable business trends are continuing into the second quarter, as Zebra is well positioned to benefit over the long term from the convergence of technology trends in the Internet of Things, mobility and cloud computing."

ZBRA guided in-line with analysts' estimates. Wall Street expects full year 2015 earnings growth of +50% and +24% growth in 2016. This bullish earnings picture has fueled big gains for ZBRA's stock price. The S&P 500 is up +1.6% year to date versus the NASDAQ composite's +6.6% gain. Currently ZBRA is up +47% this year. The stock has almost doubled from its October 2014 lows near $60.

ZBRA produced huge gains after its earnings report in May. After consolidating several days near $110 the stock broke out again on June 2nd. We like how traders bought the dip on Friday morning and expect ZBRA to hit new highs soon. Tonight we are suggesting a trigger to buy calls at $115.15.

- Suggested Positions -

Long AUG $120 CALL (ZBRA150821C120) entry $4.00

06/23/15 new stop @ 113.85
06/16/15 new stop @ 111.85
06/10/15 triggered @ $113.54 (intraday gap higher)
06/09/15 Entry strategy adjustment: Move the entry trigger from $115.15 to $113.25. Adjust the stop loss from $110.85 to $109.85
Option Format: symbol-year-month-day-call-strike




PUT Play Updates

Southwest Airlines Co. - LUV - close: 34.35 change: -0.23

Stop Loss: 35.45
Target(s): To Be Determined
Current Option Gain/Loss: -25.1%
Average Daily Volume = 7.9 million
Entry on June 16 at $33.85
Listed on June 15, 2015
Time Frame: Exit prior to earnings in late July
New Positions: see below

Comments:
06/24/15: Airline stocks, including LUV, faded lower on Wednesday. I am still urging caution here. LUV started to bounce once the stock filled the gap higher form Monday morning. This is potentially bullish.

No new positions at this time.

Trade Description: June 15, 2015:
Last year LUV was one of the best performing stocks in the S&P 500 with a +124% gain. Shares are not seeing a repeat this year. In fact the stock is down -19% year to date. Most of the major airline stocks have been suffering as investors fear overcapacity will kill profits.

LUV is in the services sector. They're part of the regional airline industry. According to the company, "In its 44th year of service, Dallas-based Southwest Airlines (LUV) continues to differentiate itself from other air carriers with exemplary Customer Service delivered by more than 46,000 Employees to more than 100 million Customers annually. Southwest operates more than 3,400 flights a day, serving 93 destinations across the United States and five additional countries."

There are plenty of bullish investors rooting for LUV. After years of belt tightening with high oil prices the airline industry finally found some discipline and profits boomed. LUV has been a great example and many consider it the "best-in-breed" among the major airliners. LUV's earnings have surged from $0.43 a share in 2011 to $1.64 per share in 2014.

The big drop in crude oil last year was a major boon for most of the airline companies. Fuel is a huge expense and while oil has bounced off its 2015 lows it is still a lot cheaper than last year's prices. So why are airline stocks getting crushed? The biggest worry is the industry will build into much capacity (over supply) and this will lead to price wars, which could slash profitability.

On May 20th airline stocks were crushed, shares of LUV included, after the American Airlines CEO said they would aggressively compete on price. This is after AAL had already warned that their margins would shrink in 2016 versus 2015. News that LUV was planning to boost capacity by +8% in 2015 also helped spark the plunge lower.

The sell-off in airline stocks has continued as more companies downgrade their outlook. United Airlines (UAL) recently reported that their capacity had outpaced traffic growth. Delta (DAL) warned that their Q2 revenues would decline. Even LUV warned that their May passenger revenue per available seat mile (PRASM) was down -6% from a year ago. They adjusted their 2015 Q2 PRASM estimate to be down -4% to -5% from a year ago.

In spite of all the negativity there are a ton of analysts who are still bullish on the group. If you do any research you'll see a lot of voices shouting that the airline stocks are a buy. You'll hear how the airlines will avoid the mistakes of the past. There are plenty of analysts suggesting the airlines are a buy because their valuations are so cheap. Even the International Air Transport Association (IATA) recently raised their 2015 global estimate on airline profits from $25 billion to 29.3 billion thanks to lower oil prices and record high load factors (near 80%).

On one hand the bullish view point on airline stocks is true. Traffic is still growing. Oil prices remain depressed compared to the last few years. Valuations do look cheap. Eventually this group will get so cheap that they will find a bottom. Unfortunately that could be another -10% to -20% from current levels.

Technically LUV is a sell. The stock produced a bearish double top with its peaks in January and March. It has sliced through multiple layers of support and broken the longer-term up trend. The $34.00 level looks like short-term support. We are suggesting a trigger to launch short-term bearish positions at $33.85. Earnings are coming up in late July and we'll likely exit before LUV reports.

- Suggested Positions -

Long SEP $33 PUT (LUV150918P33) entry $1.87

06/22/15 new stop @ $35.45
06/16/15 triggered @ $33.85
Option Format: symbol-year-month-day-call-strike


SM Energy Company - SM - close: 47.55 change: +0.25

Stop Loss: 48.75
Target(s): To Be Determined
Current Option Gain/Loss: -54.5%
Average Daily Volume = 1.6 million
Entry on June 19 at $44.49
Listed on June 13, 2015
Time Frame: 8 to 12 weeks
New Positions: see below

Comments:
06/24/15: The oversold bounce in the XLE and XOP energy ETFs seems to be rolling over. Unfortunately SM managed to outperform its peers and the broader market with a +0.5% gain. However it is worth noting that the intraday high in SM today (48.60) failed near its 20-dma.

No new positions at this time.

Trade Description: June 13, 2015:
SM has been around a long time. They were founded back in 1908. The company was formerly known as St. Mary Land & Exploration Company but they changed their name to SM Energy Company about five years ago.

SM is in the basic materials sector. According to the company, "SM Energy Company is an independent energy company engaged in the acquisition, exploration, development, and production of crude oil, natural gas, and natural gas liquids in onshore North America."

SM operates in the Rocky Mountain region including the Bakken and Three Forks formations. Further south, they drill in the Haynesville and Woodford shales of Texas and Oklahoma. SM also operates in the Permian region of Texas and New Mexico. Even further south SM drills in the South Texas area with the Eagle Ford shale formation.

Crude oil's plunge in late 2014 crushed the oil sector and shares of SM followed it lower. Yet SM appeared to be having trouble before the big drop in oil prices. The company has missed Wall Street's earnings estimates the last four quarters in a row.

The huge drop in oil sparked significant cutbacks across the oil and gas industry with most major exploration companies reducing their capital spending plans. When SM reported their Q4 earnings in February 2015 they missed the EPS number by five cents and revenues were down -6.4% from a year ago. Management also slashed their 2015 investment plans by -44% from $1.9 billion to $1.0 billion.

SM reported its 2015 Q1 numbers on May 5th. Analysts were expecting a profit of $0.29 per share on revenues of $543.1 million. SM delivered a profit of $0.21 as revenues plunged -42% to $365.9 million.

Citigroup issued a research report last month that suggested U.S. oil producers will still be able to profit with oil at depressed prices. Here's a quote from a Bloomberg article, "belt-tightening across the industry and more strategic drilling in prolific areas would deliver ample profits even at $50 crude. The improvement is driven by costs that are expected to fall by 20 to 30 percent and techniques that allow rigs to wring 30 percent more oil or natural gas from each well compared with a year ago." That definitely seems like ammunition for the bulls to be buying some of the oil producers. Yet the group continues to lag. They are facing some stiff headwinds.

Crude oil has produced a +25% bounce off its March 2015 lows. Yet the rally in oil has stalled the last few weeks with the commodity churning sideways. The recent OPEC meeting showed that the Middle East shows no signs of slowing down their production. The world is temporarily facing a small oil glut.

Meanwhile currencies could play an issue here. It is widely accepted that the long-term trend for the U.S. dollar is now higher. The Federal Reserve will eventually raise rates, either later this year or early next year. When they start raising rates it should boost the dollar. At the same time central banks around the world (like Japan and Europe) are in the middle of huge QE programs that will drive their currencies lower. Naturally this will lift the dollar even higher. A rising dollar pushes commodities lower.

Technically shares of SM have been very weak. The broke down from a bullish channel a couple of weeks ago. The stock has also sliced through some psychological support levels. The point & figure chart is currently forecasting at $40.00 target. You could argue that SM is already oversold. However, the path of least resistance is lower. Tonight we are suggesting a trigger to buy puts at $44.90 with a wide stop loss at $50.25 just in case SM does see a little oversold bounce.

- Suggested Positions -

Long AUG $40 PUT (SM150821P40) entry $1.65

06/23/15 new stop @ 48.75
06/19/15 triggered on gap down at $44.49, suggested entry was $44.90
Option Format: symbol-year-month-day-call-strike



CLOSED BULLISH PLAYS

Universal Health Services - UHS - close: 130.68 change: -3.69

Stop Loss: 131.45
Target(s): To Be Determined
Current Option Gain/Loss: -20.4%
Average Daily Volume = 697 thousand
Entry on June 19 at $132.75
Listed on June 18, 2015
Time Frame: 6 to 8 weeks, exit prior to Q2 earnings
New Positions: see below

Comments:
06/24/15: The market's widespread profit taking today seemed to hit UHS especially hard. Shares plunged -2.7% with a drop toward round-number support at $130.00. Our new stop loss was hit at $131.45.

- Suggested Positions -

OCT $140 CALL (UHS151016C140) entry $5.20 exit $4.14 (-20.4%)

06/24/15 stopped out
06/23/15 new stop @ 131.45
06/19/15 triggered @ $132.75
Option Format: symbol-year-month-day-call-strike

chart: