Current Portfolio:


CALL Play Updates

Cisco Systems - CSCO - close 22.86 change -0.11 stop 22.20

Target(s): 23.65, 23.90, 24.20
Key Support/Resistance Areas: 23.65, 22.55
Current Gain/Loss: -1.2%
Time Frame: 1 to 2 weeks
New Positions: Yes

Comments:
CSCO hit our target to enter long positions at $22.85. We are playing for a bounce in the stock within the base it has built over the past month. This could be a quick trade and I suggest readers take profits if CSCO bounces as I anticipate. I've also listed another higher target at $23.90 which is near Monday's highs. If CSCO hits our target we should make about 60 cents on the option position for a +35% gain. If CSCO breaks out of the base it could rally to fill a gap which is up near our more aggressive 3rd target of $24.20 and below the stock's 200-day SMA. NOTE: I view this trade as potentially being quick once it is opened.

Current Position: August $22.00 CALL, entry was at $1.65

Entry on June xx
Earnings Date 8/5/10 (unconfirmed)
Average Daily Volume: 69 million
Listed on 6/16/10


Hanson Natural Corp - HANS - close 39.20 change -0.26 stop 38.25

Target(s): 40.20, 40.70, 42.40, 43.25
Key Support/Resistance Areas: 42.50, 41.00, 40.25, 39.30, 38.50
Current Gain/Loss: -6.8% Time Frame: 1 to 2 weeks
New Positions: Yes

Comments:
We are long HANS as of the open this morning. The stock sold off early but drifted higher the remainder of the day. HANS remains above it 20-day and 200-day SMA and is providing support for the stock. I've adjusted the targets slightly and have provided another target at $40.20 which is near the stock's 50-day SMA and $1 higher than the today's closing price. This will produce a winning trade and I suggest readers at least tighten stops at this level in case HANS can't break out of the ascending triangle. The overall strength of the bounce in the market will likely determine the fate of the break out. I'll leave my comments from the play release. HANS got hit hard during the flash crash but has since held up well, making a series of higher lows. The stock is forming an ascending triangle on the daily chart and has an unfilled gap from the flash crash all the way up near $42.40. In addition, the stock is above its 20-day and 200-day SMA but has recently pulled back from its 50-day SMA. I suggest readers play for a bounce here with the building momentum of the ascending triangle. I also believe the S&P 500 will bounce as it is approaching the its 20-day SMA which should help stronger stocks that have performed. We have a good reference point to place a tight protective stop just below the 200-day SMA at $38.25, which also below the primary upward trend line. Our primary targets are $40.70 and $42.40.

Current Position: August $40.00 CALLS, entry was at $2.20

Entry on June 23, 2010
Earnings Date 8/5/10 (unconfirmed)
Average Daily Volume: 1.1 million
Listed on 6/22/10


PUT Play Updates

Dollar Thrifty Auto Group - DTG - close 43.71 change +0.14 stop 45.90 *NEW*

Target(s): 43.15 (hit), 42.70, 41.65, 40.05, 39.35
Key Support/Resistance Areas: 45.50, 44.15, 43.50, 41.50, 39.00,
Current Gain/Loss: +6%
Time Frame: 1 week
New Positions: Yes

Comments:
Our first target $43.15 was hit today. Our options at the time were worth $2.25 which was almost a +40% gain on the position. The stock proceeded to bounce higher in the afternoon and evaporated all of those gains. Once our target was hit a protective stop could have been placed at $43.40 which was above the 10:30 30-minute bar (or the 10:45 15 minute bar). Placing a stop at this level would have stopped you out with a +21% gain, which was hit on the 12:00 bar (the option was worth $2.00). This is simply an example of protecting profits as positions move in the right direction. DTG hit a road block late in the day at $44.15 which is broken support from last week. I'm looking for the stock to move lower form here as it ever so close to breaking support and its trend line. The stock also remains below its 50-day and 20-day SMA's and DTG could bounce all the way up to these levels, where it would probably fail. However, if DTG breaks lower prior to bouncing I suggest readers begin to tighten stops and protect profits. $43.15 and $42.70 are still valid targets. $42.70 would fill a gap from 4/27 to 4/28.

Current Position: July $45.00 PUTS, entry was at $1.65

Entry on June 22, 2010
Earnings 8/19/2010 (unconfirmed)
Average Daily Volume: 9.1 million
Listed on June 19, 2010


CLOSED BEARISH PLAYS

NetApp, Inc. - NTAP - close 40.10 change +0.33 stop 41.05 *NEW*

Target(s): 39.70, 39.05, 37.00, 35.25
Key Support/Resistance Areas: 41.84, 40.00, 39.00, 36.50, 35.00
Current Gain/Loss: +69.23%
Time Frame: 1 week
New Positions: Closed

Comments:
We are flat NTAP per last nights updates for a +69.23% gain. This was a good countertrend trade from a double top formation on the 5 year weekly chart. This stock could have more downside but I urge readers who may still have positions to not let this turn into loser. The market is at a critical reflection point right now and if there is any meaningful bounce NTAP could print new highs. NOTE: I view this trade as potentially being quick.

Closed Position: July $41.00 PUTS at $2.20, entry was at $1.30

Annotated Chart:

Entry on June 21, 2010
Earnings 8/19/2010 (unconfirmed)
Average Daily Volume: 9.1 million
Listed on June 19, 2010