Editor's Note:

JPM has moved from our watch list to active trade.


Closed Plays


BEAV and LOW were stopped out on the market's spike lower on June 24th.



Play Updates


Bank of America - BAC - close: 12.86

Comments:
06/30/13: The financial sector, including BAC, saw a sharp drop two weeks ago. Investors bought the dip on Monday, June 24th. BAC followed the market higher with a three-day bounce but it's worth noting that the rebound has stalled right at resistance near $13.00 (essentially prior support). I suspect that we are about to see BAC retreat lower again and retest the $12.50-12.00 zone (or lower). Look for support near the 200-dma.

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 $0.39/0.40

- or -

MAR 18, 2013 - entry price on BAC @ 12.29, option @ 1.13
symbol: BAC1517a15 2015 JAN $15 call - current bid/ask $1.20/1.21

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


Citigroup, Inc. - C - close: 47.97

Comments:
06/30/13: The trading action in Citigroup looks a lot like the rest of the financial sector. Investors bought the dip on Monday, June 24th. Yet the rebound has stalled at resistance near prior support. That doesn't bode well and may suggest the correction is not over yet.

Currently we have a stop loss at $41.60 that's just below the simple 200-dma (near $42.00). That might be too wide for some investors and you may want to adjust your stop higher. A pullback to $42 would be a -20% correction from its late May highs near $53.00. I'm not saying that is where Citigroup is headed and hopefully shares find support near $45.00 again.

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 $ 3.20/3.30

- or -

JUN 21, 2013 - entry price on C @ 46.00, option @ 3.65
symbol: C1517a55 2015 JAN $55 call - current bid/ask $ 4.25/4.35

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

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: 15.47

Comments:
06/30/13: Ford had a pretty good week. Shares did pierce technical support at the 50-dma on Monday, June 24th but traders bought the dip. Shares rebounded from $14.30 to $15.70 by Thursday. That's almost a +10% bounce. I would not be surprised to see a dip back toward $15.00 again.

I am not suggesting new positions at this time.

- 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 $ 2.21/2.27

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: 79.34

Comments:
06/30/13: This past week saw HON rebound from the bottom of its trading range near $76.00 to the top of its trading range near $81.00. The longer-term trend is still up but shares are currently stuck churning sideways. On a short-term basis I would expect another dip back toward $76.00 again. 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 $ 5.80/6.00

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: 24.23

Comments:
06/30/13: Shares of INTC tagged a new relative low on Monday, June 24th but the stock rebounded from its 300-dma. For the week INTC is virtually unchanged. Even though Friday's session was a nice show of relative strength (+0.74%) I actually expect INTC to retreat lower toward the $23.00 area.

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 $ 1.20/1.22

- or -

APR 24, 2013 - entry price on INTC @ 23.28, option @ 1.74
symbol:INTC1517a25 2015 JAN $25 call - current bid/ask $ 2.12/2.18

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


JPMorgan Chase & Co. - JPM - close: 52.79

Comments:
06/30/13: JPM is a watch list candidate that has graduated to our active trade list. The plan was to buy calls on a dip near support at $50.00 with an entry trigger at $50.25. The market's spike lower on Monday, June 24th provided that entry point. JPM traded down to $50.11 on Monday before bouncing from support, triggering our play.

JPM has produced a nice bounce but shares still have a four-week trend line of lower highs. That might suggest the correction is not over yet. Thus if you missed our entry near $50.00 you may get another chance.

- Suggested Positions -
JUN 24, 2013 - entry price on JPM @ 50.25, option @ 1.60
symbol: JPM1418a55 2014 JAN $55 call - current bid/ask $ 2.26/2.30

- or -

JUN 24, 2013 - entry price on JPM @ 50.25, option @ 3.80
symbol: JPM1517a55 2015 JAN $55 call - current bid/ask $ 4.55/4.65

Chart of JPM:
Current Target: $64.00
Current Stop loss: 47.40
Play Entered on: 06/24/13
Originally listed on the Watch List: 05/25/13


NetApp, Inc. - NTAP - close: 37.78

Comments:
06/30/13: Last week NTAP delivered a relatively quiet performance. Shares churned sideways with a bounce off its 40-dma. It's worth noting the rebound stalled at its 10-dma. On a short-term basis I do expect NTAP to correct lower. Look for a drop toward the $36.00 level.

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 $2.31/2.39

- or -

MAY 17, 2013 - entry price on NTAP @ 38.93, option @ 5.20
symbol: NTAP1517a40 2015 JAN $40 call - current bid/ask $4.20/4.35

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


B/E Aerospace Inc. - BEAV - close: 63.08

Comments:
06/30/13: Shares of BEAV have been bouncing off technical support at its rising 50-dma for months. Yet Friday, June 21st saw the stock breakdown below this moving average. Monday, June 24th produced a follow-through decline and BEAV hit our stop loss at $61.70. Actually shares gapped down at $61.60. BEAV has bounced since then, finding support near the $60.50 level. Yet the rebound seems to have stalled at the 61.8% Fibonacci retracement level of the mid-June reversal/pullback. That may suggest the correction is not over yet.

- Suggested Positions -
JUN 19, 2013 - entry price on BEAV @ 66.09, option @ 3.50
symbol:BEAV1418a70 2014 JAN $70 call - exit $1.50 (-57.1%)

06/24/13 stopped out on gap down at $61.60
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


Lowe's Companies - LOW - close: 40.90

Comments:
06/30/13: The stock market's volatility two weeks ago and Monday, June 24th has thrown a wrench in our LOW trade. Shares broke down to a new relative low and fell below technical support at the 100-dma. Our stop loss was hit at $39.00 on the 24th. Unfortunately LOW poured salt on the wound by almost immediately bouncing.

- Suggested Positions -
MAY 07, 2013 - entry price on LOW @ 40.87, option @ 1.57
symbol: LOW1418a45 2014 JAN $45 call - exit $0.91 (-42.0%)

- or -

MAY 07, 2013 - entry price on LOW @ 40.87, option @ 3.52
symbol: LOW1517a45 2015 JAN $45 call - exit $2.90* (-17.6%)

06/24/13 stopped out
*option exit price is an estimate since the option did not trade at the time our play was closed.
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

Chart of LOW:

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