Editor's Note:

Last week produced a lot of new highs on our active trade list below. We also saw ABT, AMRN and PEP make the jump from our watch list to active trades. Unfortunately FDO was stopped out in reaction to its earnings report miss.


Closed Plays


FDO was stopped out.


Play Updates


Abbott Labs - ABT - close: 64.47

Comments:
06/30/12 update: Many of the drug and biotech names soared on Friday as if there was a delayed reaction to the Supreme Court's decision on Obamacare. Shares of ABT had been churning under resistance near $63.00. We wanted to wait for ABT to close over $63.50 and then buy calls the next day. Well ABT rallied +2.4% on Friday to close above our trigger. We'll enter positions on Monday morning at the open. Patient traders may want to wait for a dip back toward $63.00 since broken resistance tends to become new support. There is a good chance ABT will see a dip back into the $63.50-63.00 zone.

Earlier Comments:
Before we continue I want to warn you that trading the drug makers or biotech stocks has an industry-specific danger. You never know when an FDA approval might get denied or delayed. Or some clinical trial data might disappoint. Headlines like these can send a stock gapping down. On the other hand positive news could send it soaring.

- Suggested Positions -
JUL 02, 2012 - entry price on ABT @ --.--, option @ -.--
symbol: ABT1319A65 2013 JAN $65 call - current bid/ask $ 1.93/ 2.00

- or -

JUL 02, 2012 - entry price on ABT @ --.--, option @ -.--
symbol: ABT1418A65 2014 JAN $65 call - current bid/ask $ 4.05/ 4.30

06/29/12 ABT closed @ 64.47. Plan was to wait for a close over $63.50 and buy calls the next day. We will open positions on Monday, July 2nd.

Chart of ABT:

Current Target:$74.00
Current Stop loss: 59.40
Play Entered on: 07/02/12
Originally listed on the Watch List: 06/23/12


Allergan Inc. - AGN - close: 92.57

Comments:
06/30/12 update: AGN saw some volatility on Thursday thanks to the Supreme Court news but shares recovered on Friday with a +2.8% gain. The stock is back above potential resistance at $92 and its 50-dma and 100-dma. Shares have yet to break the current intermediate trend of lower highs. I am not suggesting new positions at this time.

Earlier Comments:
Option spreads are wide for these LEAPS. We want to keep our position size pretty small to limit our risk.

- Suggested Positions -
OCT 17, 2011 - entry price on AGN @ 85.46, option @ 5.10
symbol: AGN1319A100 2013 JAN $100 call - current bid/ask $ 2.45/ 3.00

05/02/12 AGN missed earnings estimates by a penny, guided lower
04/28/12 Exit strategy adjustment! We are not selling half at $99.00. Instead we'll aim for $109.00 to exit positions. See tonight's note for details on alternative exits
03/31/12 adjusted exit strategy. Sell half at $99.00 and sell the remainder at $109.00
03/10/12 new stop loss at $84.50
02/02/12 earnings in-line but guided lower for 2012
01/28/12 earnings are due on Feb. 2nd. Readers might want to raise their stop or consider some sort of hedge prior to the report.
12/24/11 new stop loss @ 81.60
12/10/11 spreads on our 2013 calls are getting wider!
11/19/11 Taking an aggressive stance on our stop loss and moving it down to $77.45
10/22/11 Earnings are coming up. Readers might want to consider raising their stop loss. We are keeping ours at $79.45.

Current Target:$109.00
Current Stop loss: 84.50
Play Entered on: 10/17/11
Originally listed on the Watch List: 09/24/11


American Intl. Group - AIG - close: 32.09

Comments:
06/30/12 update: Friday was a big day for AIG. The stock has been sinking under a short-term trend of lower highs. Traders bought the dip at support near $30.00. Friday saw a +4.0% gain and a bullish breakout. Investors could use a close over $32.50 as a new bullish entry point but keep positions small. Financials could still see a volatile summer.

Our plan was to keep our initial position size small to limit our risk.

- Suggested Positions - (small positions @ first)
May 18, 2012 - entry price on AIG @ 28.25, option @ 3.40
symbol: AIG1319A30 2013 JAN $30 call - current bid/ask $ 4.70/ 4.80

- or -

May 18, 2012 - entry price on AIG @ 28.25, option @ 4.20
symbol: AIG1418A35 2014 JAN $35 call - current bid/ask $ 5.20/ 5.40

06/16/12 new stop loss @ 26.95
05/18/12 triggered at $28.25
05/05/12 The U.S. government is planning to sell 164 million shares at $30.50 and AIG will probably gap down on this news.
Move the trigger down to $28.25, and move the stop loss to $25.75.
04/28/12 adjust buy-the-dip trigger to $30.00 and stop to $27.40

Current Target:$ 39.00
Current Stop loss: 26.95
Play Entered on: 05/18/12
Originally listed on the Watch List: 04/07/12


Amarin Corp. - AMRN - close: 14.46

Comments:
06/30/12 update: AMRN has graduated from the watch list to an active trade. The plan was to wait for a close over $13.25 and then buy calls the next day. AMRN has been flirting with resistance in the $13.00-13.25 zone for days. It finally closed at $13.39 on June 25th. We opened positions the next day when AMRN opened at $13.52. Then on Wednesday the stock gapped higher.

The big move higher on Wednesday appears to be a reaction to potentially good news on AMRN's attempt to patent its AMR101 drug. AMR101 is a fish-oil prescription designed to treat patients with unhealthy levels of triglycerides. The company doesn't have the patent yet but signs seem to be improving that they'll get it, which will provide years of patent protection for this treatment.

On a short-term basis there is a good chance AMRN will try and fill the gap. That means readers could wait for a dip back toward the $13.50-13.00 zone as a bullish entry point to buy calls.

Earlier Comments:
There has been some speculation that AMRN is a takeover target, which has fueled some of the sharp rallies higher. Currently the Point & Figure chart is bullish with a $15.00 target. Our long-term target is $17.50.

FYI: We want to keep our position size small. AMRN can be a volatile stock. There are 2014 options available but the spreads are too wide.

- Suggested Positions - (small positions)
Jun 26, 2012 - entry price on AMRN @ 13.52, option @ 3.36
symbol:AMRN1319A15 2013 JAN $15 call - current bid/ask $ 2.90/ 3.40

06/26/12 trade opened: option @ 3.36
06/25/12 closed over our trigger (13.25) AMRN closed @ 13.39
06/23/12 adjust entry. wait for AMRN to close over $13.25 (instead of $13.00)

Chart of AMRN:

Current Target:$ 17.50
Current Stop loss: 11.40
Play Entered on: 06/26/12
Originally listed on the Watch List: 06/09/12


Apache Corp. - APA - close: 87.89

Comments:
06/30/12 update: Whew! APA gave us a scare on Monday with a dip toward support at $80.00 but support held. Shares are now up four days in a row with a big bounce toward resistance at $88.00. The stock has managed to breakout past technical resistance at its 50-dma along the way.

Crude oil acts like it may have found a bottom but we can't be sure yet. Friday's big rally in oil was partially due to the big drop in the U.S. dollar.

I remain bullish on APA. Readers can choose to wait for a close over the $88.00 level or wait for a dip back to what should be short-term support near $85.00 as a new entry point to buy calls.

- Suggested Positions -
Jun 18, 2012 - entry price on APA @ 87.10, option @ 3.45
symbol: APA1319A100 2013 JAN $100 call - current bid/ask $ 3.00/ 3.15

- or -

Jun 18, 2012 - entry price on APA @ 87.10, option @ 6.43
symbol: APA1418A100 2014 JAN $110 call - current bid/ask $ 5.55/ 5.85

Current Target: $109.00
Current Stop loss: 79.75
Play Entered on: 06/18/12
Originally listed in the New Plays 06/16/12


Bank of America - BAC - close: 8.18

Comments:
06/30/12 update: BAC spent most of the week hovering above support near $7.50. Friday's widespread market rally produced a +5.6% gain for this banking stock. Shares are now testing resistance near $8.20 and its 100-dma and 300-dma. The four-week trend looks bullish but I would hesitate to launch positions. BAC is scheduled to report earnings around July 18th. Investors may want to wait and see how the market reacts to their earnings report first before considering new positions.

Earlier Comments:
Currently we do not have a specific exit target. The plan has been to exit in the $12.00-15.00 zone.

- Suggested Positions -

AUG 29, 2011 - entry price on BAC @ 8.10, option @ 1.50
symbol: BAC1319A10 2013 JAN $10 call - current bid/ask $ 0.43/ 0.45
(No stop loss on this position)

(2nd Position, bought the dip at $5.15)

NOV 23, 2011 - entry price on BAC @ 5.15, option @ 0.35
symbol: BAC1319A10 2013 JAN $10 call - current bid/ask $ 0.43/ 0.45
(no stop loss on this position)

05/19/12 BAC has pulled back to the 61.8% retracement
03/17/12 BAC has broken out from its multi-week trading range. Broken resistance near $8.30 should be new support.
01/28/12 financials seem a bit overbought here.
01/21/12 2012 Jan. $10 calls have expired (-100%)
01/14/12 earnings are due out on Jan. 19th
01/07/12 BAC broke out past its 50-dma and the $6.00 this past week
12/17/11 expect BAC to retest the $5.10-5.00 zone.
11/23/11 BAC hits new trigger @ 5.15 to buy calls.
11/19/11 New trigger to buy calls @ $5.15 (see 2nd position)
10/03/11 Sept. 26th position stopped out at $5.75.
2012 Jan. $7.50 call @ 0.48 (-27.2%)
2013 Jan. $10 call @ 0.74 (-26%)
10/01 raising our stop loss on the Sep. 26th position to $5.75
09/24 adding 2nd position, stop loss at $5.40
09/03 no stop loss on this trade at this time.

Current Target: $12.00-to-$15.00
Current Stop loss: see details above
Play Entered on: 08/29/11
Originally listed in the New Plays 08/27/11


Bristol Meyers Squibb - BMY - close: 35.95

Comments:
06/30/12 update: Drug stocks outperformed on Friday and BMY delivered a strong, one-day rally (+2.4%) to close at new multi-year highs. I would not chase it here. Please note I'm adjusting our exit target from $37.50 to $38.50.

- Suggested Positions -
SEP 19, 2011 - entry price on BMY @ 30.53, option @ 1.20
symbol: BMY1319A35 2013 JAN $35 call - current bid/ask $ 1.87/ 1.92

06/30/12 adjusted exit target to $38.50
06/23/12 there was no follow through on the bearish reversal. BMY has rallied toward its 2011/2012 highs.
06/16/12 BMY has created a bearish reversal under resistance
06/09/12 new stop loss @ 31.90
05/26/12 new stop loss @ 31.45
02/11/12 adjust stop loss to $30.90
01/03/12 planned exit, sell half, bid on 2013 Jan $35 call @ 2.58 (+115%)
12/31/11 new stop loss @ 31.45.
12/31/11 Prepare to lock in gains and sell half of our position on Tuesday morning (Jan 3rd, 2012). The 2013 Jan $35 call currently has a bid at $2.60 (a +116.6% gain).
(I have deleted previous 2011 comments on BMY, you can see them in older updates)

Current Target: $38.50
Current Stop loss: 31.90
Play Entered on: 09/19/11
Originally listed on the Watch List: 09/10/11


CH Robinson Worldwide - CHRW - close: 58.53

This is a bearish PUT option trade.

Comments:
06/30/12 update: The market-wide rally on Friday helped produce a +3.3% oversold bounce in CHRW. The larger trend remains bearish. A slowing economy and the potential for rising oil (fuel) prices should be a bearish combination. I am not suggesting new positions at this time.

Our multi-month target is a drop to $50.50. We want to keep our position size small to limit our risk.

- Suggested (small) Positions -
May 07, 2012 - entry price on CHRW @ 60.61, option @ 3.00
symbol:CHRW1319M55 2013 JAN $55 PUT - current bid/ask $ 2.90/ 3.10

06/02/12 new stop loss @ 62.25

Current Target: $50.50
Current Stop loss: 62.25
Play Entered on: 05/07/12
Originally listed in the New Plays 05/05/12


Colgate-Palmolive Co. - CL - close: 104.10

Comments:
06/30/12 update: CL continues to show relative strength. The stock has broken out past resistance near $102 and closed at new record, all-time highs. More conservative traders may want to take profits now. I am raising our stop loss up to $95.75.

I am not suggesting new positions at this time.

- Suggested Positions -
MAR 16, 2012 - entry price on CL @ 95.48, option @ 2.92
symbol: CL1319A100 2013 JAN $100 call - current bid/ask $6.80/7.00

- or -

MAR 16, 2012 - entry price on CL @ 95.48, option @ 5.57
symbol: CL1418A100 2014 JAN $100 call - current bid/ask $11.00/12.25

06/30/12 new stop loss @ 95.75
06/16/12 readers may want to take profits now. options @ +98%, +78%
06/09/12 new stop loss @ 92.45
06/02/12 correction continues. look for a dip toward $94
05/26/12 Still expecting a correction into the 96-94 zone.
05/19/12 CL looks poised to see a correction toward $96-94
05/05/12 new stop loss @ 91.75
04/26/12 CL reports earnings that are in-line with estimates.
03/31/12 CL is performing well but expect resistance at the $100 level and a possible pullback.

Current Target: $109.00
Current Stop loss: 92.45
Play Entered on: 03/16/12
Originally listed on the Watch List: 03/10/12


eBay Inc. - EBAY - close: 42.01

Comments:
06/30/12 update: EBAY posted a loss for the week but the bullish trend remains intact. Traders bought the dip at EBAY's rising 50-dma, which has been a consistent pattern over the last few months. The company should be poised to report earnings in a couple of weeks (near July 18th).

Earlier Comments:
We have previously closed our 2013 position. We still have the 2014 calls.

- Suggested Positions -
(previously closed 2013 position)
Mar 12, 2012 - entry price on EBAY @ 36.36, option @ 2.85
symbol: EBAY1319A40 2013 JAN $40 call - exit @ $4.80 (+68.4%)

- or -

Mar 12, 2012 - entry price on EBAY @ 36.36, option @ 5.11
symbol: EBAY1418A40 2014 JAN $40 call - current bid/ask $ 8.85/ 9.00

06/23/12 new stop loss @ 37.75
06/09/12 adjusted target to $46.50
05/14/12 closed 2013 Jan $40 calls with a bid at $4.80 (+68.4%)
05/12/12 exit the 2013 Jan $40 calls at the open on Monday. Currently the bid is $4.90
04/28/12 EBAY closed near its highs. Readers may want to take profits now. The bid on the 2013 call is at $5.10 (+78.9%), and the bid on the 2014 call is at $7.95 (+55.5%)
04/21/12 new stop loss at $34.90
04/18/12 EBAY reports better than expected earnings and provides stronger 2012 earnings guidance. The stock spikes higher.
04/07/12 EBAY could see a dip toward $34.00
03/31/12 action this past week looks short-term bearish. Look for a pullback

Current Target: $46.50
Current Stop loss: 37.75
Play Entered on: 03/12/12
Originally listed in the New Plays 03/10/12


Intel Corp. - INTC - close: 26.65

Comments:
06/30/12 update: It was a rocky week for INTC. Yet investors bought the dip at technical support near its rising 200-dma for the second time this month (June). Intel is trading in a wide pattern of higher lows and lower highs, which is neutral. I would expect shares to continue this sideways churn until its earnings report on July 17th. I am not suggesting new positions at this time.

- Suggested (small, half-sized) Positions -
Feb 21, 2011 - entry price on INTC @ 27.34, option @ 1.30
symbol: INTC1319A30 2013 JAN $30 call - current bid/ask $ 0.52/ 0.55

- or -

Feb 21, 2011 - entry price on INTC @ 27.34, option @ 2.11
symbol: INTC1418a30 2014 JAN $30 call - current bid/ask $ 1.68/ 1.76

06/23/12 looks like the oversold bounce may have reversed
06/02/12 INTC is testing support near $25 and its 200-dma again
05/23/12 INTC dipped to $24.92 intraday before rebounding
02/21/12 INTC opened at $27.34.
02/18/12 start with small positions to limit our exposure.

Current Target: $34.00
Current Stop loss: 24.75
Play Entered on: 02/21/12

Originally listed on the Watch List: 02/11/12


Coca-Cola Company - KO - close: 78.19

Comments:
06/30/12 update: Shares of KO have produced a very strong four-day bounce off its Monday lows. Friday's big rally is a bullish breakout past its May highs and leaves the stock at 14-year highs. On a short-term basis the stock is overbought and due for some profit taking.

We are upping the stop loss to $71.80. More conservative traders may want to consider a stop closer to $74 instead. I am not suggesting new positions at this time.

Earlier Comments:
We will plan to exit positions prior to KO's proposed 2-for-1 split scheduled for August.

- Suggested Positions (start with small positions) -
Mar 29, 2012 - entry price on KO @ 72.35, option @ 3.60
symbol: KO1418A75 2014 JAN $75 call - current bid/ask $ 6.85/ 7.00

06/30/12 new stop loss @ 71.80
05/14/12 sold half of our 2014 Jan $75 calls on Monday at the open
the bid opened at $6.20 (+72.2%)
05/12/12 prepare to sell half at the open on Monday morning to take some money off the table. Current bid is $6.55.
04/28/12 new stop loss @ 69.75
More conservative traders may want to take profits now, bid @ $5.90
04/25/12 KO's BoD has recommended a 2-for-1 split subject to shareholder approval in July. Split to occur in August.

Current Target: $87.00
Current Stop loss: 71.80
Play Entered on: 03/29/12
Originally listed on the Watch List: 03/17/12


Eli Lilly - LLY - close: 42.91

Comments:
06/30/12 update: Drug stocks were showing relative strength this past week. Friday's big rally in LLY (+1.9%) left the stock at new 3 1/2 year highs. We are raising our stop loss to $39.75 so it's just under the June low. I am not suggesting new positions at this time.

- Suggested (SMALL) Positions -
Jan 05, 2012 - entry price on LLY @ 39.50, option @ 1.19
symbol: LLY1319A45 2013 JAN $45 call - current bid/ask $ 1.69/ 1.77

- or -

Jan 05, 2012 - entry price on LLY @ 39.50, option @ 2.75
symbol: LLY1418A45 2014 JAN $45 call - current bid/ask $ 2.34/ 2.50

06/30/12 new stop loss @ 39.75
06/23/12 LLY is hitting new multi-year highs.
06/09/12 new stop loss @ 38.75
04/25/12 LLY beat earnings estimates by 12c and raised guidance
03/17/12 LLY's close over $40.00 looks like a new bullish entry point
01/28/12 new stop loss @ 37.75

Current Target: $44.75 & 48.00
Current Stop loss: 39.75
Play Entered on: 01/05/12

Originally listed on the Watch List: 12/17/11


Merck & Co - MRK - close: 41.75

Comments:
06/30/12 update: MRK is another great example of the strength in drug stocks. After testing $37 in early June the stock has gone almost straight up. This non-stop rally will pause and correct eventually. I am not suggesting new positions at this time. More conservative traders may want to start raising their stops.

If the market (and drug stocks) correct lower I would expect a likely pullback toward the $40 level. FYI: The Point & Figure chart has a long-term target of $60.00.

- Suggested Positions -
Jun 25, 2012 - entry price on MRK @ 39.91, option @ 3.14
symbol: MRK1418A40 2014 JAN $40 call - current bid/ask $ 4.00/ 4.10

06/25/12 MRK gap down at $39.91
06/22/12 MRK met our entry point requirement with a close over $40.00. Launch positions on Monday morning (conservative traders can wait for a dip to the 10-dma instead).

Current Target: $47.50
Current Stop loss: 37.75
Play Entered on: 06/25/12

Originally listed on the Watch List: 05/05/12


Microsoft - MSFT - close: 30.59

Comments:
06/30/12 update: MSFT underperformed the market's major indices for the week. It's worth noting that shares broke through some resistance with Friday's rally. Investors might want to wait for a close over $31.20 before considering new bullish positions. MSFT will report earnings on July 19th.

Cautious traders might want to raise their stop closer to $28.

- Suggested Positions -
Jun 01, 2012 - entry price on MSFT @ 28.50, option @ 1.69
symbol:MSFT1319A30 2013 JAN $30 call - current bid/ask $ 2.27/ 2.31

- or -

Jun 01, 2012 - entry price on MSFT @ 28.50, option @ 3.05
symbol:MSFT1418A30 2014 JAN $30 call - current bid/ask $ 3.85/ 3.95

06/18/12 MSFT announces the "surface" line of tablets
06/01/12 triggered at $28.50
05/19/12 adjust the trigger to $28.50, stop to $26.45
05/05/12 adjust the trigger to $29.00
04/28/12 adjust buy-the-dip trigger to $29.50, stop to $26.75

Current Target: $32.75 & 34.75
Current Stop loss: 26.45
Play Entered on: 06/01/12
Originally listed on the Watch List: 04/14/12


Motorola Solutions, Inc. - MSI - close: 48.11

Comments:
06/30/12 update: I am worried about MSI. The stock retested support near $46.50 and its 300-dma this past week. Yet the intermediate, two-month trend is still bearish. If the market can continue its current run higher then MSI has a chance to recover. If not then MSI will likely hit our stop loss at $45.75 soon.

I am not suggesting new positions at this time.

- Suggested Positions -
Feb 17, 2012 - entry price on MSI @ 49.35, option @ 2.27
symbol: MSI1319A55 2013 JAN $55 call - current bid/ask $ 0.91/ 1.00

02/18/12 new stop loss @ 45.75
02/17/12 trades opens on Friday morning at $49.35
02/16/12 MSI meets our requirement to open positions
02/04/12 if triggered, use a stop loss at $43.95
01/28/12 MSI underperformed as investors sold the stock following its earnings report. If MSI doesn't improve this week we'll drop it as a candidate.

Current Target: $64.50
Current Stop loss: 45.75
Play Entered on: 02/17/12
Originally listed on the Watch List: 12/10/11


Pepsico, Inc. - PEP - close: 70.66

Comments:
06/30/12 update: PEP is a watch list candidate that has graduated to our active trade list. The plan was to wait for shares to close over $70.25 and then buy calls the next day. Well the market's big rally on Friday finally pushed PEP past resistance at the $70.00 mark. Shares closed at $70.66. We will open positions on Monday morning with a stop loss at $65.75.

- Suggested Positions -
Jul 02, 2012 - entry price on PEP @ --.--, option @ -.--
symbol: PEP1418A75 2014 JAN $75 call - current bid/ask $ 2.73/ 2.85

07/02/12 launch positions at the open
06/29/12 PEP meets our entry requirement with a close above $70.25.

Chart of PEP:

Current Target: $79.00
Current Stop loss: 65.75
Play Entered on: 07/02/12
Originally listed on the Watch List: 05/26/12


Reynolds American Inc. - RAI - close: 44.87

Comments:
06/30/12 update: RAI is a defensive name that's been showing significant relative strength. The stock is up four days in a row and shares closed at new record highs. I would not chase it here. More conservative traders might want to adjust their stop loss closer to the $41 or $42 levels. I am not suggesting new positions at this time.

- Suggested Positions -
Nov 18, 2011 - entry price on RAI @ 40.02, option @ 2.00
symbol: RAI1319A42.5 2013 JAN $42.50 call - current bid/ask $ 3.20/ 3.40

06/16/12 RAI has broken out to new all-time highs. It could be time to look for new bullish positions. Consider the 2014 calls.
05/26/12 new stop loss @ 39.35
05/05/12 the oversold bounce is reversing. readers may want to exit lower
04/24/12 RAI reports earnings and misses. Shares spike lower!
03/10/12 another close over $42.50 could be used as a bullish entry point.
01/28/12 RAI and the rest of the tobacco stocks are underperforming. Readers might want to exit early now given RAI's relative weakness.

Current Target: $49.00
Current Stop loss: 39.35
Play Entered on: 11/18/11
Originally listed on the Watch List: 10/22/11


The TJX Companies - TJX - close: 42.93

Comments:
06/30/12 update: TJX displayed some volatility on Thursday with a temporary breakdown under technical support at the 50-dma. Shares have since recovered but they still posted a loss for the week. It almost looks like TJX has been building a bull-flag style consolidation pattern over the last two weeks.

Previously I suggested a dip to $42 as an entry point. At this point I would wait for a close over $43.75 before considering new positions.

- Suggested Positions -
Jun 20, 2012 - entry price on TJX @ 43.62, option @ 2.53
symbol: TJX1319A45 2013 JAN $45 call - current bid/ask $ 2.15/ 2.30

- or -

Jun 20, 2012 - entry price on TJX @ 43.62, option @ 5.10
symbol: TJX1418A45 2014 JAN $45 call - current bid/ask $ 4.50/ 4.80

06/20/12 trade opens
06/19/12 TJX closed above our entry requirement (above $43.25)

Current Target: $49.75
Current Stop loss: 39.75
Play Entered on: 06/20/12

Originally listed on the Watch List: 06/16/12


UnitedHealth Group - UNH - close: 58.50

Comments:
06/30/12 update: Investors aren't sure yet on how the Obama administration's Affordable Care Act and its massive amounts of new regulations will impact the health insurers like UNH. That's why UNH experienced so much volatility on Thursday. Looks like investors were more in a sell the news mood on Friday and the stock underperformed.

UNH currently has resistance near $60.50 and support near $55.00. More conservative traders may want to raise their stops closer to $55.

I am not suggesting new positions at this time.

- Suggested Positions -
Feb 15, 2012 - entry price on UNH @ 54.53, option @ 3.25
symbol: UNH1319A60 2013 JAN $60 call - current bid/ask $ 3.70/ 3.80

- or -

Feb 15, 2012 - entry price on UNH @ 54.53, option @ 5.00
symbol: UNH1418A60 2014 JAN $60 call - current bid/ask $ 7.00/ 7.30

06/28/12 The U.S. Supreme Court upheld Obamacare's new healthcare law. UNH experienced some sharp intraday volatility
06/09/12 Investors might want to consider buying short-term July puts to protect yourself from a negative reaction to the upcoming Court decision.
05/26/12 Don't forget - the Supreme Court ruling on Obamacare is in June
04/19/12 UNH reported earnings that beat estimates and raised guidance
03/31/12 new stop loss @ 52.75. Adjust exit to $64.00
03/24/12 action this past week has turned bearish. expecting a correction toward the $50 area.

Current Target: $64.00
Current Stop loss: 52.75
Play Entered on: 02/15/12

Originally listed on the Watch List: 02/11/12


Verizon Communications - VZ - close: 44.44

Comments:
06/30/12 update: VZ has broken out past resistance at the $44.00 level. Shares look poised to hit our exit target at $45.00 soon. The high on Friday was $44.77. We will raise our stop loss to $41.75. I am not suggesting new positions at this time.

- Suggested Positions -
Dec 23, 2011 - entry price on VZ @ 39.42, option @ 2.17
symbol: VZ1319A40 2013 JAN $40 call - current bid/ask $ 4.60/ 4.70

- or -

Dec 23, 2011 - entry price on VZ @ 39.42, option @ 2.87
symbol: VZ1418A40 2014 JAN $40 call - current bid/ask $ 5.55/ 5.65

06/30/12 new stop loss @ 41.75
06/16/12 readers may want to take profits now!
2013 jan $40 call is +93%, 2014 jan $40 call is +77%
06/09/12 new stop loss @ 39.75
05/12/12 new stop loss @ 37.75
04/05/12 VZ began trading ex-div for its upcoming April 30th dividend
03/10/12 VZ is starting to see some positive momentum higher
01/28/12 readers may want to consider an early exit immediately
01/24/12 VZ reported earnings and missed by a penny. Shares broke down on this news.

Current Target: $45.00
Current Stop loss: 41.75
Play Entered on: 12/23/11

Originally listed on the Watch List: 12/17/11


CLOSED Plays


Family Dollar Stores - FDO - close: 66.48

Comments:
06/30/12 update: Ouch! FDO really underperformed this past week. It was an odd week for retail stocks. They were not moving as a group. Some retail stocks were showing strength while others, like FDO, were breaking down.

FDO reported earnings on June 28th. They missed by a penny and guidance was a little light. The stock gapped open lower on Thursday morning at $65.28 and since our stop loss was $65.75 the play was closed immediately.

The long-term trend for FDO remains bullish but investors may want to wait for a dip or a bounce likely support at $60 before considering new positions.

- Suggested Position -
Jun 21, 2012 - entry price on FDO @ 70.25, option @ 3.00*
symbol: FDO1319A80 2013 JAN $80 call - exit $1.15 (-61.6%)

06/28/12 FDO reports earnings and misses by a penny.
Stock gaps open lower, under our stop loss.
06/21/12 triggered @ 70.25
*entry price on the 2013 $80 call at $3.00 is an estimate since the option did not trade at the time our trade was triggered.

Chart of FDO:

Current Target: $84.50
Current Stop loss: 65.75
Play Entered on: 06/21/12

Originally listed on the Watch List: 06/16/12