Editor's Note:

Almost all of our LEAPS candidates posted gains last week.
We are updating stop losses on BAC and F.


Closed Plays



None. No closed plays this week.




Play Updates


Bank of America - BAC - close: 13.06

Comments:
07/07/13: Financials were some of the market's best performers last week. BAC did lag behind its peers but it is up two weeks in a row. There appears to be some short-term resistance near the $13.10 level. Please note our new stop loss at $11.35.

I am not suggesting new positions at this time. 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 $0.37/0.38

- or -

MAR 18, 2013 - entry price on BAC @ 12.29, option @ 1.13
symbol: BAC1517a15 2015 JAN $15 call - current bid/ask $1.18/1.21

07/07/13 new stop loss @ 11.35
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: 11.35
Play Entered on: 03/18/13

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


Citigroup, Inc. - C - close: 48.53

Comments:
07/07/13: Citigroup added just over half a point for the week. Shares remain below technical resistance at its 20, 30, 40, and 50-dma. I would not be surprised to see Citigroup move sideways between here and its earnings report on Monday, July 15th. The company is due to report before the opening bell on the 15th. If you're feeling cautious you could buy some short-term puts on Friday in case Citigroup disappoints and the stock moves lower.

I am not suggesting new positions at this time. More conservative traders may want to raise their stop loss closer to the $45.00 level.

- Suggested Positions -
JUN 21, 2013 - entry price on C @ 46.00, option @ 2.45
symbol: C1418a50 2014 JAN $50 call - current bid/ask $ 3.30/3.35

- or -

JUN 21, 2013 - entry price on C @ 46.00, option @ 3.65
symbol: C1517a55 2015 JAN $55 call - current bid/ask $ 4.25/4.40

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: 16.70

Comments:
07/07/13: Ford displayed some relative strength last week with a +7.9% gain. U.S. auto sales have continued to come in strong this year. The first half of 2013 saw the industry's auto sales hit 7.8 million. That's the best performance since 2007. The annual pace is coming in at 15.5 million cars. Pick ups have helped lead the rebound. Ford said its June sales rose +14% year over year.

The stock has broken out past its late May, early June highs near $16.00. Ford ended the week at new two-year highs. On a short-term basis the stock looks overbought and due for some profit taking. Broken resistance at $16.00 could offer some short-term support.

I am raising the stop loss to $14.25.

- 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 $ 2.99/3.05

07/07/13 new stop loss @ 14.25
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: 14.25
Play Entered on: 04/29/13
Originally listed on the Watch List: 04/20/13


Honeywell Intl. - HON - close: 80.06

Comments:
07/07/13: Investors bought the dip in HON near its 50-dma on Wednesday morning. The stock is rebounding back toward the top of its trading range near $81.00. A close above the $81.00 level could be used as a new bullish entry point (but you'll want to use a tighter stop loss). Actually I would hesitate to launch new positions prior to HON's earnings report 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 $ 6.05/6.25

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: 24.06

Comments:
07/07/13: INTC posted a loss for the week. We've been expecting shares to correct lower but this past week saw INTC underperform the rest of the semiconductor sector. Monday, July 1st actually saw shares produce a bearish reversal pattern. Traders bought the dip on Wednesday but the short-term direction is unclear. INTC may continue to churn sideways until its earnings report 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 $ 1.05/1.07

- or -

APR 24, 2013 - entry price on INTC @ 23.28, option @ 1.74
symbol:INTC1517a25 2015 JAN $25 call - current bid/ask $ 1.97/2.03

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: 53.99

Comments:
07/07/13: Banking stocks were some of the market's best performers last week. JPM produced a bullish breakout past its 30-dma and past the four-week trend of lower highs. The trend is bullish. However, the stock could see some profit taking on Friday.

The company is due to report earnings on Friday, July 12th, before the opening bell. Wall Street expects a profit of $1.42 a share. I would be tempted to buy calls here but if JPM disappoints we could see the stock retesting support near $50.00 again. You may want to wait until Friday before considering new positions.

- Suggested Positions -
JUN 24, 2013 - entry price on JPM @ 50.25, option @ 1.60
symbol: JPM1418a55 2014 JAN $55 call - current bid/ask $ 2.83/2.87

- or -

JUN 24, 2013 - entry price on JPM @ 50.25, option @ 3.80
symbol: JPM1517a55 2015 JAN $55 call - current bid/ask $ 5.20/5.30

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: 38.77

Comments:
07/07/13: NTAP added about one dollar last week. Shares are once again testing resistance near $38.00 I also anticipate the mid-June high at $39.50 and the $40.00 level will act as short-term resistance. We're not suggesting new positions at this time.

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 $2.70/2.74

- or -

MAY 17, 2013 - entry price on NTAP @ 38.93, option @ 5.20
symbol: NTAP1517a40 2015 JAN $40 call - current bid/ask $4.65/4.75

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