Editor's Note:

We are updating several stop losses tonight.


Closed Plays



None. No closed plays this week.




Play Updates


American Intl. Group - AIG - close: 48.33

Comments:
08/04/13: AIG reported earnings on Thursday night and beat estimates by a wide margin. The stock gapped open higher on Friday morning in reaction but shares pared their gains by the closing bell.

I am raising our stop loss up to $43.75.

- Suggested Positions -
JUL 15, 2013 - entry price on AIG @ 46.99, option @ 2.50
symbol: AIG1418a50 2014 JAN $50 call - current bid/ask $2.49/2.53

- or -

JUL 15, 2013 - entry price on AIG @ 46.99, option @ 4.05
symbol: AIG1517a55 2015 JAN $55 call - current bid/ask $4.00/4.15

08/04/13 new stop loss @ 43.75
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: 43.75
Play Entered on: 07/15/13
Originally listed on the Watch List: 06/01/13


Bank of America - BAC - close: 14.84

Comments:
08/04/13: News out last week may have held shares of BAC back. The company disclosed in its quarterly filing that the U.S. Justice Department and the S.E.C. might file civil charges against BAC for its involvement in the mortgage backed securities scandal that rocked the financial world during the 2008 financial crisis. Bigger picture, shares of BAC didn't really react that much to the news but shares are hovering just below round-number resistance at the $15.00 level.

- 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 $1.91/1.93

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: 53.00

Comments:
08/04/13: Citigroup bounced back toward its recent highs. Yet the stock remains below resistance in the $53.00-53.50 zone. A close above $54.00 would help alleviate concerns that C might be forming a bearish double top.

Please note our new stop loss at $47.75.

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 $ 5.70/5.85

08/04/13 new stop loss @ 47.75
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: 47.75
Play Entered on: 06/21/13
Originally listed on the Watch List: 05/25/13


Cypres Semiconductor - CY - close: 12.90

Comments:
08/04/13: CY found support at its rising 10-dma this past week. The stock's rebound pushed shares back toward its mid July highs. The stock is facing resistance near $13.15. Investors could use a close above $13.15 as a new bullish entry point.

- Suggested Positions -
JUL 19, 2013 - entry price on CY @ 12.50, option @ 1.02*
symbol: CY1418a13 2014 JAN $13 call - current bid/ask $ 1.05/1.10

- or -

JUL 19, 2013 - entry price on CY @ 12.50, option @ 1.20*
symbol: CY1517a15 2015 JAN $15 call - current bid/ask $ 1.20/1.35

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: 66.51

Comments:
08/04/13: DIS added about a point and a half for the week. The $64.00 level continued to hold as support so more conservative traders may want to raise their stop loss. DIS could see some volatility this week thanks to earnings. The company is due to report its Q2 earnings on August 6th, after the closing bell. Wall Street expects a profit of $1.01 a share.

- Suggested Positions -
JUL 16, 2013 - entry price on DIS @ 65.00, option @ 1.82
symbol: DIS1418a70 2014 JAN $70 call - current bid/ask $ 1.90/1.94

- or -

JUL 16, 2013 - entry price on DIS @ 65.00, option @ 4.70
symbol: DIS1517a70 2015 JAN $70 call - current bid/ask $ 4.95/5.10

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: 82.41

Comments:
08/04/13: EMN added more than eight dollars for the week. The company reported earnings on July 29th and beat expectations on both the top and bottom line. If that wasn't good enough management then raised their 2013 guidance. The stock soared to new all-time highs. More conservative investors with the 2014 calls might want to take profits now. I am raising our stop loss to $74.40.

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 $ 6.70/6.90

- or -

JUL 18, 2013 - entry price on EMN @ 75.34, option @ 4.90*
symbol: EMN1517a90 2015 JAN $90 call - current bid/ask $ 7.40/7.70

08/04/13 new stop loss @ 74.40
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: 74.40
Play Entered on: 07/18/13
Originally listed on the Watch List: 07/14/13


Ford Motor Co. - F - close: 17.50

Comments:
08/04/13: Rising monthly sales numbers helped fuel the rally in Ford last week. The company's F-series pick up trucks saw a +23% increase from a year ago. The stock set a new closing high for the year on Friday.

I am raising our stop loss to $14.85.

- 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 $ 3.50/3.55

08/04/13 new stop loss @ 14.85
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: 14.85
Play Entered on: 04/29/13
Originally listed on the Watch List: 04/20/13


Honeywell Intl. - HON - close: 84.68

Comments:
08/04/13: Bears probably find it surprising that shares of HON are not reacting to any news regarding the 787 emergency beacon issue. Last month there was a highly publicized fire in a Boeing 787 Dreamliner in London. It was discovered that the fire started with an emergency beacon made by HON. Since then there have been additional reports of airlines finding potential issues like damaged wiring to the beacons. The FAA is now requesting airlines with 787s to inspect or remove these beacons from the plane. Meanwhile shares of HON continue to climb. Granted we're only talking about one product and HON is a huge company manufacturer with several different businesses.

Technically HON does look bullish. The stock is poised to breakout past resistance near the $85.00 level soon. If you were looking for a new entry point or planning to add to positions then a close above $85.00 could be that entry.

We are raising the stop loss to $77.45.

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 $ 7.55/7.70

08/04/13 new stop loss @ 77.45
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: 77.45
Play Entered on: 05/07/13
Originally listed on the Watch List: 05/04/13


JPMorgan Chase & Co. - JPM - close: 56.49

Comments:
08/04/13: JPM has spent the last couple of weeks churning sideways inside the $55-57 zone. Currently the stock has rebounded back to the top of this range and looks poised for a breakout higher.

More conservative investors might want to raise their stop loss.

- Suggested Positions -
JUN 24, 2013 - entry price on JPM @ 50.25, option @ 1.60
symbol: JPM1418a55 2014 JAN $55 call - current bid/ask $ 3.60/3.70

- or -

JUN 24, 2013 - entry price on JPM @ 50.25, option @ 3.80
symbol: JPM1517a55 2015 JAN $55 call - current bid/ask $ 5.90/6.00

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: 65.23

Comments:
08/04/13: Shares of K stumbled lower through the week. The stock is down five days in a row. Earnings on August 1st were disappointing. The company beat the bottom line estimates by two cents but missed the revenue number. Guidance was in-line with prior estimates. Shares faded lower and pierced the 50-dma and 100-dma on Friday before paring its losses.

The long-term trend is still up but it looks like it's in jeopardy. Our stop loss is at $63.75 but more conservative investors may want to raise their stop closer to Friday's low (64.26).

I am not suggesting new positions at this time.

Earlier Comments:
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 $ 1.20/1.45

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: 49.46

Comments:
08/04/13: Shares of Macy's are starting to look healthier. The rebound this past week has lifted M back above its 50-dma. The bounce has kept the trend of higher lows alive. While the larger trend is up I would not be surprised to see M churn sideways for the next several days. The company is due 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 $ 1.05/1.10

- 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: 63.37

Comments:
08/04/13: Traders bought the dip last week near the $60 level. MNST looks poised to challenge the mid August highs near $65.00. The company's earnings results could be the catalyst that sends MNST to a new 52-week high or back down through support. MNST is scheduled to report on August 8th. Wall Street expects a profit of 63 cents a share.

More conservative investors may want to raise their stop closer to the $60.00 level.

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 $ 7.70/8.20

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: 41.24

Comments:
08/04/13: I found NTAP's performance last week to be disappointing. The market's major indices broke out to new highs but NTAP merely drifted sideways. The stock might be stuck moving sideways until its earnings report. NTAP is due to report on August 14th. Wall Street expects a profit of 49 cents a share.

Please note our new stop loss at $38.75

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 $3.55/3.65

- or -

MAY 17, 2013 - entry price on NTAP @ 38.93, option @ 5.20
symbol: NTAP1517a40 2015 JAN $40 call - current bid/ask $5.85/6.00

08/04/13 new stop loss @ 38.75
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: 38.75
Play Entered on: 05/17/13
Originally listed on the Watch List: 05/11/13


PetSmart, Inc. - PETM - close: 74.66

Comments:
08/04/13: Last week was bullish for shares of PETM. The stock rallied five days in a row and broke out past resistance to close at new all-time highs. Shares are arguably short-term overbought here. Look for support near $72.00. I am raising our stop loss to $68.90.

FYI: PETM will likely report earnings in mid August. No date yet.

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 $ 3.90/4.10

- or -

JUL 16, 2013 - entry price on PETM @ 72.70, option @ 5.15*
symbol:PETM1517a80 2015 JAN $80 call - current bid/ask $ 5.10/5.80

08/04/13 new stop loss @ 68.90
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

Current Target: Target for 2014 calls: PETM @ 79.00, 2015 target @ 84
Current Stop loss: 68.90
Play Entered on: 07/16/13
Originally listed on the Watch List: 07/14/13


Union Pacific Corp. - UNP - close: 163.37

Comments:
08/04/13: The transportation sector produced a strong move higher on Thursday. The Dow Jones Transportation Average has rallied to a new all-time high. Shares of UNP also rebounded and they are trading just below the highs near $165. Fortunately the technical picture for UNP has improved with last week's rebound. More conservative investors might want to adjust their stop loss closer to the $157 level.

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 $ 2.30/2.38

- or -

JUL 22, 2013 - entry price on UNP @ 163.80, option @ 4.75
symbol: UNP1517a200 2015 JAN $200 call - current bid/ask $ 4.15/4.35

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: 54.85

Comments:
08/04/13: WFM reported earnings on July 31st. The bottom line results beat estimates by a penny. Revenues were slight miss. Management's guidance was only in-line with estimates. The stock was volatile on Thursday morning following the results. WFM seems to be trading inside the $54-57 range. Investors could buy calls now given Friday's late-day bounce. More conservative investors may want to give WFM more time to let the post-earnings dust settle and then re-evaluate an entry next week.

- Suggested Positions -
JUL 10, 2013 - entry price on WFM @ 54.53, option @ 2.10
symbol: WFM1418a60 2014 JAN $60 call - current bid/ask $ 1.58/1.65

- or -

JUL 10, 2013 - entry price on WFM @ 54.53, option @ 6.20
symbol: WFM1517a60 2015 JAN $60 call - current bid/ask $ 5.55/5.75

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