Editor's Note:

Four of our trades were closed or stopped out this week. Three of them with significant gains.


Closed Plays


The plan was to close our BBBY, DLTR, and MRVL trades on Monday, June 3rd.

KO was stopped out.



Play Updates


Bank of America - BAC - close: 13.38

Comments:
06/08/13: BAC posted a loss for the week but the decline was minor after traders bought the dip on Thursday near its mid-May low. I am a little bit concerned that if the current bounce rolls over in the $13.50-13.70 zone it will look like the right shoulder to a bearish head-and-shoulders pattern.

I am not suggesting new positions at this time.

- Suggested Positions -
MAR 18, 2013 - entry price on BAC @ 12.29, option @ 0.44
symbol: BAC1418a15 2014 JAN $15 call - current bid/ask $0.55/0.59

- or -

MAR 18, 2013 - entry price on BAC @ 12.29, option @ 1.13
symbol: BAC1517a15 2015 JAN $15 call - current bid/ask $1.42/1.45

05/04/13 BAC did not participate in the market's rally this past week. Investors should turn more defensive here.

Current Target:$ 18.00
Current Stop loss: 10.90
Play Entered on: 03/18/13

Originally listed on the Watch List: 03/09/13


Ford Motor Co. - F - close: 15.73

Comments:
06/08/13: It was a volatile week for shares of Ford. Traders bought the dip near support at $15.00 and its rising 20-dma on Thursday. It didn't hurt that Ford announced its American sales for the month of May rose +14% from a year ago.

The $16.00 level remains short-term resistance.

- Suggested Positions -
(closed the 2014 calls on May 20th, at the open)
APR 29, 2013 - entry price on F @ 13.73, option @ 0.60
symbol: F1418a15 2014 JAN $15 call - exit $1.18 (+96.6%)

- or -

APR 29, 2013 - entry price on F @ 13.73, option @ 1.22
symbol: F1517a15 2015 JAN $15 call - current bid/ask $ 2.38/2.42

06/01/13 investors may want to exit our 2015 calls now with a bid at $2.34 (+91.8%)
06/01/13 adjust long-term target to $17.75
05/20/13 closed the 2014 calls at the open. Option @ +96.6%
05/18/13 prepare to exit the 2014 calls on Monday, May 20th
05/18/13 new stop loss @ 13.40

Current Target:$ 17.75
Current Stop loss: 13.40
Play Entered on: 04/29/13
Originally listed on the Watch List: 04/20/13


Honeywell Intl. - HON - close: 79.08

Comments:
06/08/13: HON managed to eke out a small gain for the week thanks to a sharp, two-day rebound. Traders bought the dip near support around $76 and its rising 40-dma and 50-dma. HON was showing relative strength on Friday with a +1.8% gain.

Currently our stop loss is at $74.50. More conservative investors may want to adjust theirs closer to $76.00 instead.

Earlier Comments:
Let's keep our position size small to start.

- Suggested Positions -
(closed the 2014 calls on May 20th at the open)
MAY 07, 2013 - entry price on HON @ 76.20, option @ 2.68
symbol: HON1418a80 2014 JAN $80 call - exit $5.10 (+90.2%)

- or -

MAY 07, 2013 - entry price on HON @ 76.20, option @ 4.10
symbol: HON1517a85 2015 JAN $85 call - current bid/ask $ 5.75/5.95

05/20/13 closed the 2014 calls at the open. option @ +90.2%
05/18/13 prepare to exit 2014 Jan. calls immediately on Monday, May 20th
05/18/13 new stop loss @ 74.50
05/07/13 Our trade opens
05/06/13 HON meets our entry requirement with a close above $76.00

Current Target:$ 95.00
Current Stop loss: 74.50
Play Entered on: 05/07/13
Originally listed on the Watch List: 05/04/13


Intel Corp. - INTC - close: 24.59

Comments:
06/08/13: Wow! It was a very volatile week for shares of INTC. From Friday, May 31st's close of $24.28 to the intraday high on Tuesday ($25.98), INTC was up +7.0%. The move appeared to be sparked by an analyst upgrade for INTC. Unfortunately profit taking pulled INTC back down to fill the Monday morning gap.

Bears could argue we just saw a topping formation in INTC. I would be cautious here. More conservative investors may want to take profits now.

Please note that I am adjusting our exit strategy. We want to exit our 2014 calls when INTC hits $26.50. We will plan to exit our 2015 calls at $28.00.

- Suggested Positions -
APR 24, 2013 - entry price on INTC @ 23.28, option @ 0.89
symbol:INTC1418a25 2014 JAN $25 call - current bid/ask $ 1.44/1.47

- or -

APR 24, 2013 - entry price on INTC @ 23.28, option @ 1.74
symbol:INTC1517a25 2015 JAN $25 call - current bid/ask $ 2.32/2.38

06/08/13 adjust exit strategy:
plan to exit the 2014 calls when INTC hits $26.50
plan to exit the 2015 calls when INTC hits $28.00
05/18/13 The rally has stalled. INTC might correct lower soon
05/11/13 new stop loss @ 21.90

Current Target: $26.50 & $28.00 (see above)
Current Stop loss: 21.90
Play Entered on: 04/24/13
Originally listed on the Watch List: 04/20/13


Lowe's Companies - LOW - close: 41.60

Comments:
06/08/13: The stock market was weak on Tuesday and Wednesday. Shares of LOW followed the market lower on those two sessions. Unfortunately, it felt like LOW was underperforming with a steep sell-off from $42.36 to $39.60. Wednesday's close below $40.00, which should have been support, looked pretty ugly. Thankfully this stock bounced and was outperforming the market on Friday with a +2.2% gain. Given the rebound, LOW's long-term up trend of higher lows remains intact. I remain bullish. Yet short-term LOW should see resistance near $42.00 and near $43.50.

- Suggested Positions -
MAY 07, 2013 - entry price on LOW @ 40.87, option @ 1.57
symbol: LOW1418a45 2014 JAN $45 call - current bid/ask $ 1.73/1.76

- or -

MAY 07, 2013 - entry price on LOW @ 40.87, option @ 3.52
symbol: LOW1517a45 2015 JAN $45 call - current bid/ask $ 3.95/4.10

05/22/13 LOW reported earnings and missed estimates.
05/18/13 new stop loss @ 39.00, LOW could see a pullback after its earnings report
05/07/13 Our trade opens.
05/06/13 LOW meets our entry requirement with a close above $40.25

Current Target: $49.50
Current Stop loss: 39.00
Play Entered on: 05/07/13
Originally listed on the Watch List: 05/04/13


NetApp, Inc. - NTAP - close: 37.97

Comments:
06/08/13: NTAP managed to ignore most of the market's volatility. Shares quietly consolidated sideways in the $37-38 zone and now shares look poised to breakout past resistance near $38.25.

Earlier Comments:
FYI: NTAP's point & figure chart is bullish with a $58 target.

- Suggested *Small* Positions -
MAY 17, 2013 - entry price on NTAP @ 38.93, option @ 3.35
symbol: NTAP1418a40 2014 JAN $40 call - current bid/ask $2.62/2.66

- or -

MAY 17, 2013 - entry price on NTAP @ 38.93, option @ 5.20
symbol: NTAP1517a40 2015 JAN $40 call - current bid/ask $4.40/4.55

05/18/13 adjust stop loss to $34.90
05/17/13 trade opens on NTAP's gap open higher at $38.93
05/16/13 NTAP met our entry requirement with a close above $37.15

Current Target: $44.75
Current Stop loss: 34.90
Play Entered on: 05/17/13
Originally listed on the Watch List: 05/11/13


U.S. Oil (ETF) - USO - close: 34.16

Comments:
06/08/13: The price of oil is not cooperating with our bearish play. After two down weeks in a row the USO surged higher last week thanks to a falling U.S. dollar.

The USO has closed above technical resistance at its simple 300-dma. More conservative investors may want to exit immediately. Tonight I am adjusting our stop loss strategy. Instead of waiting for the USO to close above $34.50 I am adjusting our stop loss to $34.75 and we'll exit on an intraday trade at this level.

I am concerned that the USO is forming an inverse head-and-shoulders pattern. A breakout past the trend of lower highs would signal a rallied toward $37.50 or higher.

NOTE: Right now this is a put play with 2013 September puts.

Earlier Comments:
There is still a significant risk that Israel and Iran eventually start shooting at each other as Israel tries to stop Iran's nuclear weapons program. If that happens oil will definitely skyrocket higher.

This is a PUT play

- Suggested Positions -
APR 15, 2013 - entry price on USO @ 31.94, option @ 1.39
symbol: USO1321u30 2013 SEP $30 PUT - current bid/ask $ 0.42/ 0.43

06/08/13 adjust the stop loss strategy to $34.75, exit on an intraday trade at this level or higher
05/18/13 adjust stop loss strategy to: if we see the USO close above $34.50, then exit immediately the next day!

Current Target:$ 29.50
Current Stop loss: 34.75
Play Entered on: 04/15/13
Originally listed on the Watch List: 04/06/13


Wal-Mart Stores - WMT - close: 76.33

Comments:
06/08/13: Wal-Mart has nothing better to do with its money so it has announced another massive stock buyback. Shares are up on the week but I am worried this is just an oversold bounce. Most of the gains for last week came on Friday and Friday's +0.9% advance was a reaction to news that WMT will buy back another $15 billion worth of its own stock. This plan replaces the prior $15 billion stock buy back program that started in 2011.

I have been expecting WMT to bounce in the $74-75 zone and so far WMT is following the script. Yet the stock remains in a bearish trend of lower highs starting from the mid-May peak near $80.00.

- Suggested Positions -
(exited 2014 Jan. $75 calls on Monday, April 29th, 2013)
MAR 05, 2013 - entry price on WMT @ 73.47, option @ 3.10
symbol: WMT1418a75 2014 JAN $75 call - exit $6.05*(+95.1%)

- or -

MAR 05, 2013 - entry price on WMT @ 73.47, option @ 2.97
symbol: WMT1517a80 2015 JAN $80 call - current bid/ask $ 4.45/4.60

06/07/13 WMT announces another $15 billion stock buyback program
06/01/13 WMT has pulled back just as expected.
05/16/13 WMT reports earnings that miss estimates, miss revenues, and guides lower.
05/11/13 adjust exit target to $89.00.
04/29/13 planned exit for 2014 calls
*exit price is an estimate. The option did not trade when we closed this part of the play.
04/27/13 prepare to exit our 2014 calls immediately on Monday morning (04/29/13)
04/13/13 new stop loss @ 73.45
04/06/13 new stop loss @ 71.40
03/30/13 new stop loss @ 69.45

Current Target: $89.00
Current Stop loss: 73.45
Play Entered on: 03/05/13
Originally listed on the Watch List: 02/02/13


CLOSED Plays


Bed Bath & Beyond - BBBY - close: 69.36

Comments:
06/08/13: Last weekend we had decided to close our BBBY trade on Monday, June 3rd. BBBY saw a small gap higher on Monday at $68.70. Tuesday's session was ugly but BBBY has recovered. More aggressive traders may want to reconsider new bullish positions if BBBY can close above the $70.50 area.

- Suggested Positions -
MAR 21, 2013 - entry price on BBBY @ 63.06, option @ 5.20
symbol: BBBY1418a65 2014 JAN $65 call - exit $7.60 (+46.1%)

06/03/13 planned exit on Monday morning
06/01/13 prepare to exit immediately on Monday, June 3rd
05/18/13 BBBY could be poised for a painful pullback here.
05/11/13 new stop loss @ 64.65
05/04/13 new stop loss @ 63.75
04/13/13 new stop loss @ 62.25
03/30/13 Nimble traders could exit now (for a small profit) and re-enter positions on a pullback.
03/21/13 trade opens with BBBY opening at $63.06
03/20/13 BBBY meets our entry requirement (close over $62.50) with a close at $63.34

Chart of BBBY:

Current Target:$ 74.50
Current Stop loss: 64.65
Play Entered on: 03/21/13
Originally listed on the Watch List: 03/16/13


Dollar Tree, Inc. - DLTR - close: 49.69

Comments:
06/08/13: Two weeks ago DLTR was underperforming and shares had created a bearish reversal pattern on its weekly chart. We decided to close positions on Monday, June 3rd at the open. Shares of DLTR saw a gap open higher on Monday at $48.50. FYI: There was no follow through on DLTR's bearish reversal pattern.

- Suggested Positions -
FEB 28, 2013 - entry price on DLTR @ 45.25, option @ 4.76
symbol:DLTR1418a45 2014 JAN $45 call - exit $6.25 (+31.3%)

06/03/13 planned exit at the opening bell
06/01/13 prepare to exit immediately on Monday morning
05/18/13 Readers may want to take profits prior to the earnings report
04/13/13 new stop loss @ 44.75
03/30/13 new stop loss @ 43.45
More conservative investors might want to take profits as DLTR moves into the $49-50 zone.
03/16/13 new stop loss @ 41.40
02/28/13 trade opened following gap higher, above our trigger

Chart of DLTR:

Current Target: $53.50
Current Stop loss: 44.75
Play Entered on: 02/28/13
Originally listed on the Watch List: 02/23/13


The Coca-Cola Company - KO - close: 41.41

Comments:
06/08/13: Shares of KO have been volatile the last couple of weeks. The stock broke down below support near $40.00 on an intraday basis, Monday, June 3rd, and then rocked higher. Our stop loss was hit at $39.65. It was probably not a coincidence that the intraday low on Monday was $39.63.

We still closed this play in positive territory with the 2015 Jan. $40 call at $3.35 (+91.4%).

- Suggested Positions -
(closed 2014 calls on April 1st, 2013 at the open)
FEB 12, 2013 - entry price on KO @ 38.05, option @ 1.01
symbol: KO1418a40 2014 JAN $40 call - exit $1.97 (+95.0%)

- or -

FEB 12, 2013 - entry price on KO @ 38.05, option @ 1.75
symbol: KO1517a40 2015 JAN $40 call - exit $3.35 (+91.4%)

06/03/13 stopped out
05/25/13 adjust long-term target to $46.00
04/20/13 new stop loss @ 39.65, readers may want to take profits now.
04/01/13 exited 2014 calls at the open. Option @ $1.97 (+95.0%)
03/30/13 prepare to exit our 2014 Jan $40 calls on Monday, April 1st, 2013 at the opening bell to lock in gains. Current bid is $2.09.
03/30/13 new stop loss @ 38.25
03/23/13 new stop loss @ 37.65
Our 2014 calls have almost doubled and readers may want to take profits early right now

Chart of KO:

Current Target: $46.00
Current Stop loss: 39.65
Play Entered on: 02/12/13
Originally listed on the Watch List: 02/09/13


Marvell Technology - MRVL - close: 11.24

Comments:
06/08/13: Shares of MRVL have not been cooperating in the last couple of weeks. We decided last weekend to exit positions on Monday, June 3rd at the opening bell. MRVL opened Monday at $10.86.

- Suggested *Small* Positions -
MAY 13, 2013 - entry price on MRVL @ 11.25, option @ 0.78
symbol: MRVL1418a13 2014 JAN $13 call - exit @ $0.57 (-26.9%)

- or -

MAY 13, 2013 - entry price on MRVL @ 11.25, option @ 0.97
symbol: MRVL1517a15 2015 JAN $15 call - exit @ $0.75 (-22.6%)

06/03/13 planned exit this morning
06/01/13 MRVL is not cooperating. Prepare to exit immediately on Monday morning, June 3rd.

Chart of MRVL:

Current Target: $15.00
Current Stop loss: 10.25
Play Entered on: 05/13/13
Originally listed on the Watch List: 05/04/13