Editor's Note:

We have added several new plays to the active play list.
CY, DIS, EMN, MNST, and PETM have all graduated from the watch list.

Please not that we want to exit our INTC trade immediately.
We also want to exit our 2014 calls on the Citigroup trade on Monday morning.


Closed Plays



None. No closed plays this week.




Play Updates


American Intl. Group - AIG - close: 46.88

Comments:
07/21/13: The financial sector continues to push higher. AIG's performance was a bit disappointing. The stock did end the week at new two-year highs but AIG has been struggling with resistance near $47.00.

Our trade opened on Monday morning (July 15th) but readers might want to wait for AIG to close above $47.25 before considering new positions. Or you could wait until after AIG reports earnings on August 1st and then evaluate a potential entry point based on any post-earnings move.

- Suggested Positions -
JUL 15, 2013 - entry price on AIG @ 46.99, option @ 2.50
symbol: AIG1418a50 2014 JAN $50 call - current bid/ask $2.13/2.18

- or -

JUL 15, 2013 - entry price on AIG @ 46.99, option @ 4.05
symbol: AIG1517a55 2015 JAN $55 call - current bid/ask $3.70/3.75

07/15/13 trade opens. AIG opens at $46.99
07/14/13 AIG came within a penny of hitting our new entry trigger (closing above $46.75). We are adding it as a new play tonight. Buy calls on Monday morning. Move the stop loss up to $42.40.
07/07/13 adjust entry strategy: wait for shares to close above $46.75 and then buy calls the next day. Stop loss at $41.40. Target 55.00.
06/16/13 adjust entry strategy: move the buy-the-dip trigger to $40.00, from 38.50. Move the stop loss to $36.35 from 34.75.

Current Target:$ 54.75
Current Stop loss: 42.40
Play Entered on: 07/15/13
Originally listed on the Watch List: 06/01/13


Bank of America - BAC - close: 14.75

Comments:
07/21/13: BAC delivered a very strong week, gaining almost one dollar. The company reported earnings on July 17th and beat estimates by 6 cents a share. Revenues also beat estimates at $22.95 billion for the quarter. The stock has surged to new two-year highs.

Please note that I am adjusting our exit strategy. We will plan to exit our 2014 Jan $15 calls when BAC hits $15.00. That could happen soon. Currently our 2014 calls have more than doubled. We will keep the exit target for the 2015 calls at $18.00 (on BAC). I am also raising our stop loss to $12.75.

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 $0.90/0.91

- or -

MAR 18, 2013 - entry price on BAC @ 12.29, option @ 1.13
symbol: BAC1517a15 2015 JAN $15 call - current bid/ask $1.82/1.84

07/20/13 new stop loss @ 12.75. Adjust the exit target for the 2014 calls to exit when BAC hits $15.00. Our exit for the 2015 calls is $18.00 on BAC
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: BAC @ 15.00 for 2014 calls. BAC @ $18 for 2015 call
Current Stop loss: 12.75
Play Entered on: 03/18/13

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


Citigroup, Inc. - C - close: 52.35

Comments:
07/21/13: Citigroup reported earnings on the 15th. Estimates were for $1.18 a share. C beat that with $1.25 a share. Revenues rose +11% from a year ago. More than one analyst firm raised their price target on C following the earnings results. The stock is headed for its 2013 May highs near $53.50, which could be resistance.

I am suggesting we go ahead and exit our 2014 Jan. $50 calls immediately on Monday morning to lock in gains. We will raise the stop loss to $45.75.

- Suggested Positions -
JUN 21, 2013 - entry price on C @ 46.00, option @ 2.45
symbol: C1418a50 2014 JAN $50 call - current bid/ask $ 5.00/5.10

- or -

JUN 21, 2013 - entry price on C @ 46.00, option @ 3.65
symbol: C1517a55 2015 JAN $55 call - current bid/ask $ 5.45/5.60

07/21/13 prepare to exit our 2014 calls on Monday morning (07/22/2013)
07/21/13 new stop loss @ 45.75
07/14/13 new stop loss @ 44.65
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: 45.75
Play Entered on: 06/21/13
Originally listed on the Watch List: 05/25/13


Cypres Semiconductor - CY - close: 12.57

Comments:
07/21/13: CY is a watch list candidate that has graduated to our active play list. The plan was to wait for shares to close above $12.10 and then buy calls the next day. Well CY reported earnings on July 18th that beat estimates by 7 cents. The company also beat revenue estimates. The market reacted by pushing CY sharply higher on Thursday. At Thursday's intraday high of $13.23 the stock would have been up +13.6% for the week. Shares did see some profit taking but still managed an +8% gain for the week.

Thursday's close at $12.46 met our entry point requirement. Thus our trade opened on Friday morning when shares gapped open at $12.50.

I am raising our stop loss from $10.90 to $11.35.

- Suggested Positions -
JUL 19, 2013 - entry price on CY @ 12.50, option @ 1.02*
symbol: CY1418a13 2014 JAN $13 call - current bid/ask $ 0.90/1.00

- or -

JUL 19, 2013 - entry price on CY @ 12.50, option @ 1.20*
symbol: CY1517a15 2015 JAN $15 call - current bid/ask $ 1.10/1.20

07/21/13 new stop loss @ 11.35
07/19/13 trade opened. CY opens at $12.50
*option entry price is an estimate since the option did not trade at the time our play was opened.
07/18/13 CY meets our entry requirement with a close above $12.10

Chart of CY:

Current Target: $14.75 for the 2014 calls, 16.00 for the 2015 calls
Current Stop loss: 11.35
Play Entered on: 06/21/13
Originally listed on the Watch List: 07/14/13


Walt Disney - DIS - close: 65.16

Comments:
07/21/13: DIS was a watch list candidate. The plan was to buy calls on a dip at $65.00. Shares hit our trigger on July 16th. If you missed the entry point DIS has provided another dip to $65.00 on Friday. Or more conservative traders might want to wait until after DIS reports earnings on August 6th and see how the market reacts to DIS' results first.

- Suggested Positions -
JUL 16, 2013 - entry price on DIS @ 65.00, option @ 1.82
symbol: DIS1418a70 2014 JAN $70 call - current bid/ask $ 1.68/1.71

- or -

JUL 16, 2013 - entry price on DIS @ 65.00, option @ 4.70
symbol: DIS1517a70 2015 JAN $70 call - current bid/ask $ 4.50/4.65

07/16/13 buy-the-dip trigger hit at $65.00
07/14/13 new entry strategy: adjust buy-the-dip trigger to $65.00
move the stop loss to $61.45. Move the target to $79.00
adjust the option strikes
07/07/13 adjust entry trigger from $57.00 to $58.00

Chart of DIS:

Current Target:$ 79.00
Current Stop loss: 61.45
Play Entered on: 07/16/13
Originally listed on the Watch List: 06/01/13


Eastman Chemical Co. - EMN - close: 75.71

Comments:
07/21/13: EMN is another watch list candidate that has graduated to our active play list. The stock has been consolidating sideways below resistance at the $75.00 level for several months. Our plan was to wait for shares to close above $75.25. EMN met that requirement on July 17th. Our trade opened the next day with EMN at $75.34. I would still consider new positions now at current levels. However, more conservative investors might want to wait and see how the market reacts to EMN's earnings report when they announce on July 29th.

Our long-term target for the 2014 call is $84. Our long-term target for the 2015 call is $95.00. FYI: The Point & Figure chart is bullish with a $91 target.

- Suggested Positions -
JUL 18, 2013 - entry price on EMN @ 75.34, option @ 3.60*
symbol: EMN1418a80 2014 JAN $80 call - current bid/ask $ 3.50/3.60

- or -

JUL 18, 2013 - entry price on EMN @ 75.34, option @ 4.90*
symbol: EMN1517a90 2015 JAN $90 call - current bid/ask $ 4.70/5.00

07/18/13 Trade opened. EMN opens at $75.34
*option entry price is an estimate since the option did not trade at the time our play was opened.
07/17/13 EMN meets our entry requirement with a close above $75.25

Chart of EMN:

Current Target: 2014 calls: target $84 on EMN. 2015 calls: target $95
Current Stop loss: 69.75
Play Entered on: 07/18/13
Originally listed on the Watch List: 07/14/13


Ford Motor Co. - F - close: 16.76

Comments:
07/21/13: Ford hit some profit taking on Tuesday. The stock managed to bounce from its Tuesday lows but its weekly performance could be signaling a short-term top. If you look at Ford's weekly chart the newest candlestick has created a bearish engulfing candle reversal pattern. Shares are probably due for a pullback so I'm not surprised. However, the stock might drift sideways until Ford's earnings report on July 24th. I am not suggesting new positions.

Currently our stop loss is below the June low but more conservative investors will want to seriously consider raising their stop prior to the earnings announcement.

- 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 $ 2.90/2.94

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: 83.57

Comments:
07/21/13: HON spent most of the week consolidating sideways as traders waited for the company's earnings announcement. HON reported on Friday morning and the company beat estimates by 7 cents. Management relatively bullish guidance for 2013. Shares saw an initial spike higher but gains faded on Friday. HON is still at a new all-time high. There should be short-term support near $82.00. I am not suggesting new positions at this time.

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

- 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 $ 7.10/7.35

07/14/13 new stop loss at $75.75
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: 75.75
Play Entered on: 05/07/13
Originally listed on the Watch List: 05/04/13


Intel Corp. - INTC - close: 23.04

Comments:
07/21/13: INTC has continued to underperform its peers in the SOX index. The company reported earnings July 17th that were in-line with estimates. Yet management lowered their guidance. Naturally investors were unhappy to hear that. INTC and MSFT are suffering from the slowdown in computer sales. Desktop and laptop sales are slowing sharply. A slowdown in PC sales isn't a surprise but the rate of the slowdown might faster than some had anticipated.

Given INTC's poor performance and management's warning I am suggesting we abandon ship and exit this trade immediately on Monday morning.

- Suggested Positions -
APR 24, 2013 - entry price on INTC @ 23.28, option @ 0.89
symbol:INTC1418a25 2014 JAN $25 call - current bid/ask $ 0.65/0.66

- or -

APR 24, 2013 - entry price on INTC @ 23.28, option @ 1.74
symbol:INTC1517a25 2015 JAN $25 call - current bid/ask $ 1.49/1.53

07/21/13 prepare to exit immediately on Monday morning
07/14/13 new stop loss @ 22.45. Consider exiting early prior to the earnings report
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: 22.45
Play Entered on: 04/24/13
Originally listed on the Watch List: 04/20/13


JPMorgan Chase & Co. - JPM - close: 56.16

Comments:
07/21/13: Strength in the financials continues to lift JPM. The stock rallied to a new multi-year high. The breakout above resistance at $56.00 should help eliminate worries of a bearish double top. I am raising our stop loss up to $49.65. More conservative investors might want to raise their stop closer to the simple 100-dma (currently near $51.00).

- Suggested Positions -
JUN 24, 2013 - entry price on JPM @ 50.25, option @ 1.60
symbol: JPM1418a55 2014 JAN $55 call - current bid/ask $ 3.60/3.65

- or -

JUN 24, 2013 - entry price on JPM @ 50.25, option @ 3.80
symbol: JPM1517a55 2015 JAN $55 call - current bid/ask $ 5.85/5.95

07/21/13 new stop loss @ 49.65
07/14/13 new stop loss @ 48.75
Current Target: $64.00
Current Stop loss: 49.65
Play Entered on: 06/24/13
Originally listed on the Watch List: 05/25/13


Macy's Inc. - M - close: 49.03

Comments:
07/21/13: Investors may want to re-evaluate our Macy's trade. The retail sector spent the week drifting sideways, albeit at new record highs. Yet shares of M underperformed its peers and the broader market with a four-day pullback. Traders did buy the dip near its 50-dma on Friday but the relative weakness is somewhat surprising. I couldn't discern any specific news to account for M's weakness although I'm sure the rising price of gasoline doesn't help any of the retailers.

Big picture the trend is still higher and we have a stop loss at $47.25. More conservative traders might want to raise their stop. I would hesitate to launch new positions here although a close back above $50.50 or $51.00 might change my mind.

Investors should note that M is scheduled to report earnings on August 14th.

Earlier Comments:
Our long-term target is $59.00. More aggressive investors may want to aim higher since the point & figure chart is forecasting a $76 target.

- Suggested Positions -
JUL 09, 2013 - entry price on M @ 50.50, option @ 1.85
symbol: M1418a55 2014 JAN $55 call - current bid/ask $ 1.11/1.15

- or -

JUL 09, 2013 - entry price on M @ 50.50, option @ 4.40
symbol: M1517a55 2015 JAN $55 call - current bid/ask $ 3.50/3.65

Current Target: $59.00
Current Stop loss: 47.25
Play Entered on: 07/09/13
Originally listed on the Watch List: 07/07/13


Monster Beverage Corp. - MNST - close: 63.39

Comments:
07/21/13: Bullish analyst comments on Wednesday helped push shares of MNST past resistance near the $62.50 level. MNST was a watch list candidate and the plan was to wait for shares to close above $63.00 and then buy calls the next day. MNST met that requirement on Thursday. Our traded opened on Friday with MNST at $63.40. I would still consider new positions now or you could wait for some confirmation and look for a rally past $64.00.

Earlier Comments:
I do consider this an aggressive, higher-risk trade because of the volatility and the risk that another headline regarding the safety of MNST's drinks could send shares lower. Therefore I am suggesting we keep our position size small to limit risk.

- Suggested Positions -
JUL 19, 2013 - entry price on MNST @ 63.40, option @ 3.95*
symbol:MNST1418a70 2014 JAN $70 call - current bid/ask $ 3.60/3.90

- or -

JUL 19, 2013 - entry price on MNST @ 63.40, option @ 8.70
symbol:MNST1517a70 2015 JAN $70 call - current bid/ask $ 8.60/8.60

07/19/13 Trade opened. MNST opens at $63.40
*option entry price is an estimate since the option did not trade at the time our play was opened.
07/18/13 MNST meets our entry requirement with a close above $63.00
07/17/13 MNST breaks out past resistance near $62.50

Chart of MNST:
Current Target: $74.00
Current Stop loss: 57.90
Play Entered on: 07/19/13
Originally listed on the Watch List: 07/07/13


NetApp, Inc. - NTAP - close: 41.33

Comments:
07/21/13: Shares of NTAP got a boost on Monday thanks to some bullish analyst comments. The rally continued the rest of the week. Shares have now broken out past significant resistance and closed at new 52-week highs. The stock is short-term overbought and likely due for some profit taking. We can look for new support in the $40.00-39.50 zone. If you're looking for an entry point I would consider waiting for a dip back towards $40.00.

Please note our new stop loss at $36.85.

FYI: NTAP is scheduled to report earnings on August 14th.

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 $3.75/3.85

- or -

MAY 17, 2013 - entry price on NTAP @ 38.93, option @ 5.20
symbol: NTAP1517a40 2015 JAN $40 call - current bid/ask $5.95/6.10

07/21/13 new stop loss @ 36.85
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: 36.85
Play Entered on: 05/17/13
Originally listed on the Watch List: 05/11/13


PetSmart, Inc. - PETM - close: 71.55

Comments:
07/21/13: We didn't have to wait very long for PETM to meet our entry requirements. The stock was a new watch list candidate. Our plan was to wait for shares to close above $72.50 then buy calls the next day. PETM closed at $72.51 on July 15th. Our traded opened the next morning with PETM at $72.70. Unfortunately that was near the high for the week and PETM has been pulling back since then. Shares did manage a bounce on Friday with traders buying the dip at its rising 10-dma. I do find the recent relative weakness somewhat worrisome. Investors may want to wait for a new close above $73.00 before considering new bullish positions.

FYI: The bullish price target on the P&F chart has risen from $85 to $88. PETM will likely report earnings in mid August.

NOTE: PETM will begin trading ex-dividend on July 31st. The quarterly cash dividend should be 16.5 cents.

- Suggested Positions -
JUL 16, 2013 - entry price on PETM @ 72.70, option @ 3.40
symbol:PETM1418a75 2014 JAN $75 call - current bid/ask $ 3.60/3.90

- or -

JUL 16, 2013 - entry price on PETM @ 72.70, option @ 5.15*
symbol:PETM1517a80 2015 JAN $80 call - current bid/ask $ 3.60/3.90

07/16/13 trade opened. PETM opens at $72.70
*option entry price is an estimate since the option did not trade at the time our play was opened.
07/15/13 PETM meets our entry requirements with a close above $72.50

Chart of PETM:

Current Target: Target for 2014 calls: PETM @ 79.00, 2015 target @ 84
Current Stop loss: 67.90
Play Entered on: 07/16/13
Originally listed on the Watch List: 07/14/13


Whole Foods Market - WFM - close: 55.93

Comments:
07/21/13: WFM broke out from a trading range and rallied to new highs in July. Yet the rally stalled this past week. Shares were slowly drifting lower. I warned readers last week that WFM would likely see some profit taking. Traders did buy the dip at the 10-dma on Friday but that doesn't mean the pullback is over. If you're looking for a new entry point investors might want to wait for a dip near $54.00.

FYI: WFM is due to report earnings on July 31st.

- Suggested Positions -
JUL 10, 2013 - entry price on WFM @ 54.53, option @ 2.10
symbol: WFM1418a60 2014 JAN $60 call - current bid/ask $ 2.47/2.53

- or -

JUL 10, 2013 - entry price on WFM @ 54.53, option @ 6.20
symbol: WFM1517a60 2015 JAN $60 call - current bid/ask $ 6.50/6.70

Current Target: $59.75 for the 2014 calls, $64.00 for the 2015 calls
Current Stop loss: 49.75
Play Entered on: 07/10/13
Originally listed on the Watch List: 07/07/13