Editor's Note:

We do have a few active trades that are reporting earnings this week. Do not be surprised to see some post-earnings volatility.


Closed Plays


INTC was closed on Monday, July 22nd as planned.

We also closed the 2014 call position for the Citigroup (C) trade.
Plus, shares of BAC hit our exit target ($15.00) for the 2014 call trade.



Play Updates


American Intl. Group - AIG - close: 46.54

Comments:
07/28/13: AIG had a rough couple of days on Tuesday and Wednesday last week but shares have started to recover. I would be tempted to buy this bounce but AIG is due to report earnings on August 1st. Investors may want to wait and see how the market reacts to AIG's results before considering new positions.

- Suggested Positions -
JUL 15, 2013 - entry price on AIG @ 46.99, option @ 2.50
symbol: AIG1418a50 2014 JAN $50 call - current bid/ask $2.04/2.08

- or -

JUL 15, 2013 - entry price on AIG @ 46.99, option @ 4.05
symbol: AIG1517a55 2015 JAN $55 call - current bid/ask $3.65/3.80

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: 14.73

Comments:
07/28/13: It was a quiet week for BAC. The stock struggled with round-number resistance at the $15.00 level. Traders bought the dip on Thursday near its 10-dma. Shares closed virtually unchanged for the week.

We did see shares hit our exit target at $15.00 for the 2014 Jan. $15.00 calls. That leaves just the 2015 calls and our exit target is $18.00 on BAC.

- Suggested Positions -
(exit target hit on 07/23/13 @ $15.00)
MAR 18, 2013 - entry price on BAC @ 12.29, option @ 0.44
symbol: BAC1418a15 2014 JAN $15 call - exit $1.04 (+136.3%)

- or -

MAR 18, 2013 - entry price on BAC @ 12.29, option @ 1.13
symbol: BAC1517a15 2015 JAN $15 call - current bid/ask $1.88/1.89

07/23/13 $15.00 exit target hit for the 2014 Jan. $15 calls.
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: 52.21

Comments:
07/28/13: We suspected that the May 2013 highs near $53.00 might be resistance for Citigroup. That's why we adjusted our plan to exit the 2014 calls on Monday, July 22nd, at the opening bell. The stock has since started to retreat for resistance near $53.00, which could form a potential bearish double top.

I am not suggesting new positions at this time.

- Suggested Positions -
(exited the 2014 calls on July 22nd, 2013 at the open)
JUN 21, 2013 - entry price on C @ 46.00, option @ 2.45
symbol: C1418a50 2014 JAN $50 call - exit $5.00 (+104.0%)

- or -

JUN 21, 2013 - entry price on C @ 46.00, option @ 3.65
symbol: C1517a55 2015 JAN $55 call - current bid/ask $ 5.50/5.60

07/22/13 scheduled exit for the 2014 Jan. $46 calls at the open.
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:
07/28/13: Believe it or not but after churning sideways in the $12.40-13.00 zone all week long shares of CY closed unchanged for the week at $12.57. If you're looking for a bullish entry point I would consider waiting for a dip back towards the $12.00 level.

- 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

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: 64.98

Comments:
07/28/13: Shares of DIS were little changed for the week after churning sideways in the $64-65 zone. If the stock market continues to cooperate I would expect DIS to pick up the pace and rally from current levels. Investors may want to wait for DIS to close above $65.50 before initiating new positions. However, it might pay off to just wait and see how the market reacts to DIS' earnings reports first before initiating positions. DIS is scheduled to announce earnings on August 6th.

- Suggested Positions -
JUL 16, 2013 - entry price on DIS @ 65.00, option @ 1.82
symbol: DIS1418a70 2014 JAN $70 call - current bid/ask $ 1.48/1.51

- or -

JUL 16, 2013 - entry price on DIS @ 65.00, option @ 4.70
symbol: DIS1517a70 2015 JAN $70 call - current bid/ask $ 4.35/4.45

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

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: 74.16

Comments:
07/28/13: EMN was looking pretty good about two weeks ago with the breakout past major resistance at the $75.00 level. Yet there has been no follow through. I blame EMN's up coming earnings report. Investors could be in a wait and see mood as the earnings announcement approaches. EMN is scheduled to report on July 29th, after the closing bell. We can expect EMN to move on July 30th.

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 $ 2.85/2.95

- or -

JUL 18, 2013 - entry price on EMN @ 75.34, option @ 4.90*
symbol: EMN1517a90 2015 JAN $90 call - current bid/ask $ 4.20/4.50

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

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: 17.02

Comments:
07/28/13: Automobile giant Ford tagged a new high this past week, trading above $17.50 for the first time in over two years. That move on Wednesday was a reaction to better than expected earnings. Ford beat estimates by eight cents and their quarterly revenue came in at $36 billion, which was better than expected.

Technically the gain this past week is positive since the prior week had painted a bearish reversal pattern on the weekly chart. Yet the gap move on Wednesday followed by the move down on Thursday also paints a bearish reversal type of pattern. I would be cautious here. Do not be surprised to see Ford correct lower toward $16.00 or its simple 50-dma.

- 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: 82.88

Comments:
07/28/13: HON spent the week consolidating sideways. Odds are good we will see shares dip into the $81-80 zone, which should be new support. If you are looking for a new entry point I would consider buying a dip or a bounce near the $80.00 level.

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 $ 6.75/6.95

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


JPMorgan Chase & Co. - JPM - close: 56.05

Comments:
07/28/13: Looking at JPM's stock price it was a quiet week. Shares have seen some minor profit taking, down a meager 11 cents. In the news JPM has been making headlines with the latest regarding its commodity trading unit. The company has built the biggest commodity trading business on Wall Street over the last few years. Yet growing government regulation and a legal battle with U.S. regulators over alleged manipulation in the California electricity markets has JPM exiting the commodity business. That means no more physical commodity trading including electricity, oil, and aluminum.

It does not help that there has been a parade of gold manipulation conspiracy theories making the rounds in recent months. The New York Times got on board this past week and speculated that maybe the big banks were not telling us the whole truth about their gold stores and that caused a big spike in gold prices. The conspiracy theory suggests that big banks like JPM own their own gold and they also store gold for other investors and institutions. The banks then make money by "loaning" out gold from their stockpile to other investors or buyers. The system works as long as there is not a run on gold with owners demanding the physical commodity. The rumor is that banks like JPM may have sold double or triple their actual inventory. Some of the conspiracy theories get complicated. The worry here is that why would JPM, the largest commodity trader on Wall Street, a company that made $1.5 billion in profits from their commodity trading last year, suddenly decide to exit the business. Is there another scandal to be uncovered? Since this has all been rumor there has not been any impact on JPM's stock price but the fact that JPM is leaving the commodity business is raising some eyebrows. It is conceivable that if another scandal does break it will send JPM shares lower.

JPM hasn't decided how it plans to exit commodity trading. They could sell their business, do a spinoff or something else. There will be no immediate impact on the bank or its commodity business. JPM claims they want to focus on more traditional banking business.

Overall I don't see any changes on our current LEAPS trade. I suspect we will see JPM dip toward its 50-dma near $54. Or if the market were to correct lower we could see JPM retreat to its rising 100-dma, which would be a great entry point for new call positions.

- Suggested Positions -
JUN 24, 2013 - entry price on JPM @ 50.25, option @ 1.60
symbol: JPM1418a55 2014 JAN $55 call - current bid/ask $ 3.50/3.55

- or -

JUN 24, 2013 - entry price on JPM @ 50.25, option @ 3.80
symbol: JPM1517a55 2015 JAN $55 call - current bid/ask $ 5.80/5.90

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


Kellogg Co. - K - close: 66.98

Comments:
07/28/13: Our new trade on Kellogg is off to a slow start thanks to the market churning sideways this past week. I would still consider new positions now but investors might be better off waiting until after earnings. K is scheduled to report earnings on August 1st, before the opening bell. You could wait to see how the market reacts to K's Q2 results before initiating positions.

Please note that K does not move very fast. We will definitely need some patience with this trade.

- Suggested Positions -
JUL 22, 2013 - entry price on K @ 67.21, option @ 2.10
symbol: K1517a75 2015 JAN $75 call - current bid/ask $ 1.80/2.00

07/22/13 trade will open.
07/19/13 K closed above $67.00, meeting our entry point requirement

Current Target:$ 74.75
Current Stop loss: 63.75
Play Entered on: 07/22/13
Originally listed on the Watch List: 06/16/13


Macy's Inc. - M - close: 48.17

Comments:
07/28/13: Our Macy's play is not looking very healthy. The stock peaked in mid July and has been drifting lower the last two and a half weeks. The breakdown below its simple 50-dma this past week is definitely a warning signal. If this trend continues then we'll likely see M hit our stop loss at $47.25 in the next few days. More conservative traders may want to abandon ship now. I am not suggesting new positions at this time.

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 $ 0.84/0.89

- or -

JUL 09, 2013 - entry price on M @ 50.50, option @ 4.40
symbol: M1517a55 2015 JAN $55 call - current bid/ask $ 3.10/3.25

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: 62.88

Comments:
07/28/13: After struggling with resistance near $65.00 for a couple of days shares reversed lower on Wednesday. MNST is now testing short-term support near $62.00. If the market pulls back again we could see MNST dip toward the $60.00 level and its rising 50-dma. I would be tempted to buy calls on a dip or a bounce near $60.00. However, investors will want to take note that MNST will likely report earnings in the next two weeks. So far there is no confirmed date. Cautious traders could wait until after we see how the market reacts to MNST's earnings results before initiating positions.

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 $ 3.20/3.50

- or -

JUL 19, 2013 - entry price on MNST @ 63.40, option @ 8.70
symbol:MNST1517a70 2015 JAN $70 call - current bid/ask $ 7.70/8.10

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
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: 41.35

Comments:
07/28/13: NTAP spent the week churning sideways. It looks like the $41.75 region has become new resistance for the stock. Investors may want to wait on launching new positions. I would not be surprised to see NTAP pullback into the $40.00-39.00 zone again. A bounce from the $39-40 area could be used as our next entry point. Keep in mind that 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 $5.95/6.15

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: 71.96

Comments:
07/28/13: PETM seemed to peak on July 15th and it looked like the stock might retrace back toward the $70.00 level. Yet this past week PETM found support near the $71 level. Shares have been consolidating sideways in the $71-72 zone and the stock is poised for a breakout. I would be tempted to buy calls on a move past $72.25 but a better entry point might be waiting for a close above the $73.00 mark.

FYI: 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 $ 2.65/2.80

- or -

JUL 16, 2013 - entry price on PETM @ 72.70, option @ 5.15*
symbol:PETM1517a80 2015 JAN $80 call - current bid/ask $ 4.10/4.60

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

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


Union Pacific Corp. - UNP - close: 159.40

Comments:
07/28/13: Warning! The railroad industry ETF took a dramatic turn lower this past week and shares of UNP followed (or led the way) it lower. Shares of UNP tagged a new all-time high on Monday, July 22nd and then quickly reversed with a multi-day decline. The stock has closed below the $160 level but traders did buy the dip near its rising 50-dma on Friday.

Technically the action last week has created a bearish engulfing candlestick reversal pattern on the weekly chart. Obviously that's not a healthy signal but it does need to see confirmation. Unfortunately, UNP's recent decline has also produced a new bearish crossover in the stock's MACD indicator on its daily chart. I hate to say there is a bearish divergence on the MACD indicator (a lower high) and the stock's price (recent higher high).

Currently our stop loss is at $153.00. More conservative traders might want to raise their stop loss. I am somewhat encouraged by the Friday rebound in the broader Dow Jones Transportation Average. If the transports as a sector can rally it should help buoy the railroads. Readers may want to hesitate before launching new positions in UNP.

Earlier Comments:
Our long-term target is $185.00 for the 2014 calls and $200 for the 2015 calls.

- Suggested Positions -
JUL 22, 2013 - entry price on UNP @ 163.80, option @ 3.10
symbol: UNP1418a180 2014 JAN $180 call - current bid/ask $ 1.69/1.78

- or -

JUL 22, 2013 - entry price on UNP @ 163.80, option @ 4.75
symbol: UNP1517a200 2015 JAN $200 call - current bid/ask $ 3.50/3.70

07/22/13 trade will open.
07/19/13 UNP closed above our trigger
07/14/13 adjust entry trigger to $162.00, adjust stop loss to $153.00

Current Target:
Exit 2014 calls when UNP hits $185.00, 2015 calls @ $200
Current Stop loss: 153.00
Play Entered on: 07/22/13
Originally listed on the Watch List: 06/08/13


Whole Foods Market - WFM - close: 55.97

Comments:
07/28/13: Investors remain in a buy-the-dip mood and traders bought the dip in WFM near is rising 20-dma. The stock's rebound on Thursday and Friday helped shares eke out a very minor gain for the week. WFM looks poised to keep pushing higher but I would hesitate to launch positions here. The company is scheduled to report earnings on July 31st. Investors may want to wait until after we see how the market reacts to WFM's results before putting new money to work. The stock could be volatile on August 1st as it reacts to the earnings news.

- Suggested Positions -
JUL 10, 2013 - entry price on WFM @ 54.53, option @ 2.10
symbol: WFM1418a60 2014 JAN $60 call - current bid/ask $ 2.38/2.44

- or -

JUL 10, 2013 - entry price on WFM @ 54.53, option @ 6.20
symbol: WFM1517a60 2015 JAN $60 call - current bid/ask $ 6.45/6.65

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


CLOSED Plays


Intel Corp. - INTC - close: 23.26

Comments:
07/28/13: Semiconductor titan INTC's stock has not been performing very well. The stock has been underperforming both its peers and the major indices for weeks. We decided last week to exit positions on Monday, July 22nd and cut our losses.

I would keep an eye on INTC. The stock has seen huge volume two days in a row. If we see INTC close back above $24.50 I might be tempted to buy calls again.

- Suggested Positions -
APR 24, 2013 - entry price on INTC @ 23.28, option @ 0.89
symbol:INTC1418a25 2014 JAN $25 call - exit $0.65 (-26.9%)

- or -

APR 24, 2013 - entry price on INTC @ 23.28, option @ 1.74
symbol:INTC1517a25 2015 JAN $25 call - exit $1.45 (-16.6%)

07/22/13 scheduled exit at the opening bell
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

Chart of INTC:

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