Editor's Note:

BEAV and C have joined the play list form our watch list.


Closed Plays


WMT was stopped out.



Play Updates


Bank of America - BAC - close: 12.69

Comments:
06/23/13: BAC lost about -3% for the week and most of that was in the last two days. Shares really underperformed on Friday with a sharp spike down from $13.00 to $12.40 before bouncing off its rising 100-dma. It's possible that a new story concerning capital requirements sparked the sell-off. Bloomberg ran an article about U.S. regulators mulling an idea to double the amount of minimum capital requirements for the nation's largest banks.

I am not convinced the correction in BAC is over and we could see shares fall into the $12.00-11.00 zone.

FYI: BAC is due to report earnings on July 17th.

- Suggested Positions -
MAR 18, 2013 - entry price on BAC @ 12.29, option @ 0.44
symbol: BAC1418a15 2014 JAN $15 call - current bid/ask $0.36/0.38

- or -

MAR 18, 2013 - entry price on BAC @ 12.29, option @ 1.13
symbol: BAC1517a15 2015 JAN $15 call - current bid/ask $1.16/1.19

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


B/E Aerospace Inc. - BEAV - close: 62.26

Comments:
06/23/13: BEAV is a watch list candidate that has graduated to our active play list. The plan was to wait for shares to close above $65.75 and then buy calls the next day. Thus we could be catching BEAV at new all-time highs. Shares complied and closed at $66.11 on June 18th. Our play opened the next day on June 19th at $66.09. Unfortunately later that afternoon the market sold off following Bernanke's press conference. The profit taking continued on Thursday.

Friday's performance was even more disappointing with a -2.7% decline and a close below technical support at its 50-dma. BEAV hasn't closed below this moving average in months. If the sell-off continues we will see BEAV hit our stop loss at $61.70 soon. More aggressive traders might want to consider moving their stop so it's below the 100-dma instead.

I am not suggesting new positions at this time.

- Suggested Positions -
JUN 19, 2013 - entry price on BEAV @ 66.09, option @ 3.50
symbol:BEAV1418a70 2014 JAN $70 call - current bid/ask $2.00/2.20

06/19/13 trade opens. BEAV opens at $66.09
06/18/13 BEAV meets our entry requirement (close above $65.75) with a close at $66.11

Chart of BEAV:

Current Target:$ 74.00
Current Stop loss: 61.70
Play Entered on: 06/19/13
Originally listed on the Watch List: 06/08/13


Citigroup, Inc. - C - close: 46.87

Comments:
06/23/13: The correction in Citigroup continued last week. Friday saw shares pierce its long-term up trend line of support and breakdown below its simple 100-dma. Yet traders bought the dip and shares pared their losses on Friday to close back above the 100-dma. Our buy-the-dip trigger was hit at $46.00.

I would still consider new positions now. However, the market's correction may not be over yet. Readers may want to wait and week and see how stocks perform before initiating new positions. We are adjusting our stop loss down to $41.60 so it's just below the simple 200-dma. More conservative investors may want to move the opposite direction and adjust their stop loss closer to Friday's low (45.51).

FYI: earnings are expected on July 15th.

- Suggested Positions -
JUN 21, 2013 - entry price on C @ 46.00, option @ 2.45
symbol: C1418a50 2014 JAN $50 call - current bid/ask $ 2.83/2.86

- or -

JUN 21, 2013 - entry price on C @ 46.00, option @ 3.65
symbol: C1517a55 2015 JAN $55 call - current bid/ask $ 4.00/4.05

06/23/13 adjust stop loss to $41.60
06/21/13 triggered on a dip at $46.00

Chart of C:

Current Target:$ 59.00
Current Stop loss: 41.60
Play Entered on: 06/21/13
Originally listed on the Watch List: 05/25/13


Ford Motor Co. - F - close: 15.00

Comments:
06/23/13: Ford is down two weeks in a row. Most of last week's loss was the Wednesday-Thursday market sell-off. Traders bought the dip on Friday just above Ford's 50-dma and shares managed to reverse into a gain. I remain longer-term bullish on Ford but I'm not suggesting new positions at this time. Nimble investors may want to consider buying calls on a dip near $14.25 as an alternative entry point.

- 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 $ 1.97/2.00

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: 78.25

Comments:
06/23/13: Believe it or not HON posted a gain for the week. It wasn't much, less than 10 cents. The stock rallied up toward its May highs and then reversed with the market's sell-off. Unfortunately this move has created what appears to be a bearish double top pattern. So now HON has a bearish top battling against the longer-term up trend of higher lows. A breakdown below its 50-dma or the $76.00 level could be a warning signal that shares will see a deeper correction. I am not suggesting new positions.

FYI: earnings are due on July 19th.

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 $ 5.35/5.55

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: 24.20

Comments:
06/23/13: Ouch! INTC lost less than 75 cents for the week but it's down almost double that from the Wednesday highs. Technically INTC's performance this past week has created a bearish engulfing candlestick reversal pattern on the weekly chart. I do expect shares to continue lower. We can look for support near $23.00.

FYI: INTC earnings are expected on July 17th.

Earlier Comments:
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 $ 1.28/1.29

- or -

APR 24, 2013 - entry price on INTC @ 23.28, option @ 1.74
symbol:INTC1517a25 2015 JAN $25 call - current bid/ask $ 2.17/2.22

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: 39.55

Comments:
06/23/13: The homebuilders and anything related to the real estate industry, like LOW, was hammered this week. Concerns that rising interest rates will kill the housing recovery helped fuel the sell-off. Shares of LOW broke down below their 50-dma and below the $40.00 mark. The stock is currently flirting with a breakdown below its 100-dma. If there is any follow through lower this week then we will see LOW hit our stop loss at $39.00. I am not suggesting new positions.

In other news LOW has offered $205 million in cash to buy Orchard Supply Hardware stores in California. Orchard Supply was a Sears spinoff and the company has filed for bankruptcy.

- Suggested Positions -
MAY 07, 2013 - entry price on LOW @ 40.87, option @ 1.57
symbol: LOW1418a45 2014 JAN $45 call - current bid/ask $ 0.99/1.02

- or -

MAY 07, 2013 - entry price on LOW @ 40.87, option @ 3.52
symbol: LOW1517a45 2015 JAN $45 call - current bid/ask $ 3.05/3.15

06/23/13 If there is any follow through lower we'll see LOW hit our stop
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:
06/23/13: NTAP rallied to a new 52-week high prior to the Fed meeting conclusion. The profit taking over the last three days is in danger of breaking the six-week up trend of higher lows. If the market deteriorates we can watch for support near $36.00. I am not suggesting new positions.

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 $2.57/2.62

- 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


CLOSED Plays


Wal-Mart Stores - WMT - close: 73.51

Comments:
06/23/13: The stock market's post-Bernanke sell-off hit shares of WMT pretty hard. The stock collapsed from $76.00 to $73.00 in less than two days. Shares broke down under support near $74.00 and its 200-dma. Our stop loss was hit at $73.45 on June 20th.

- 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 - exit $3.20 (+7.7%)

06/20/13 stopped out
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

Chart of WMT:

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