Editor's Note:

The U.S. market remains hostage to the situation in Europe. Plenty of stocks gapped open lower at the open as the dollar moved higher on euro weakness. EL and SSO were both stopped out. I'm suggesting an early exit on the FCX trade. Meanwhile UTX (call) and ROP (put) were both triggered.

-James

Current Portfolio:


CALL Play Updates

Apple Inc. - AAPL - close: 334.40 change: -0.82

Stop Loss: 317.00
Target(s): 339.00, 359.00
Current Option Gain/Loss: Unopened
Time Frame: 4 to 8 weeks
New Positions: Yes, see trigger

Comments:
05/23 update: AAPL gapped open lower this morning but shares bounced near the $330 level. The stock managed a large rebound off its lows but still closed in the red. If the market continues to sink we could see AAPL drop toward the $320 level. I am adding a buy-the-dip entry point to buy calls at $321.00 with a stop loss at $317, which is under the simple 200-dma. We'll remove the breakout trigger at $352.50.

Buy-the-Dip Trigger @ $321.00 <-- Updated

- Suggested Positions -

Buy the June $330 calls (AAPL1118F330)

- or -

Buy the July $330 calls (AAPL1116G330)

Entry on May xxth at $ xx.xx
Earnings Date 07/20/11 (unconfirmed)
Average Daily Volume = 16.6 million
Listed on May 2nd, 2011


Boeing Co - BA - close: 76.28 change: -1.24

Stop Loss: 71.45
Target(s): 79.75, 84.50
Current Option Gain/Loss: Unopened
Time Frame: 4 to 6 weeks
New Positions: Yes, see Trigger

Comments:
05/23 update: There were worries that BA would be forced to delay its new 787 model, expected "midyear 2011". This particular model is already 18 months behind schedule. Meanwhile the Dreamliner 787 is nearly three years behind schedule. Shares of BA gapped open lower but found support near $76 again. Please note that I am adjusting our buy-the-dip entry point from $75.00 to $74.00 and we'll move our stop loss to $71.45. If triggered our targets are $79.75 and $84.50. The Point & Figure chart for BA is bullish with an $87 target.

Trigger @ $74.00

- Suggested Positions -

Buy the June $80 call (BA1118F80) current ask $0.80

Entry on May xxth at $ xx.xx
Earnings Date 07/27/11 (unconfirmed)
Average Daily Volume = 4.8 million
Listed on May 17th, 2011


Express Scripts - ESRX - close: 59.53 change: -0.45

Stop Loss: 56.75
Target(s): 64.00, 68.50
Current Option Gain/Loss: -28.1% & -13.9%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
05/23 update: ESRX broke down under its simple 10-dma. Yet traders bought the dip twice near $59.00 today. I would hesitate to launch new positions. We might get a better entry point near $58 soon. Our targets are $64.00 and $68.50. FYI: The Point & Figure chart for ESRX is bullish with a $72 target.

- Suggested Positions -

Long the June $60 call (ESRX1118F60) Entry @ $1.53

- or -

Long the August $60 call (ESRX1120H60) Entry @ 3.15

Entry on May 10th at $59.21
Earnings Date 07/28/11 (unconfirmed)
Average Daily Volume = 4.6 million
Listed on May 9th, 2011


Forest Labs Inc. - FRX - close: 34.84 change: -0.53

Stop Loss: 33.25
Target(s): 39.00, 42.50
Current Option Gain/Loss: -53.8% & -28.5%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
05/23 update: FRX gapped open lower under $35 but traders bought the dip at its 10-dma. I have been suggesting that readers might want to wait for a dip into the $34.50-34.00 zone as a potential entry point. That could happen soon. At this point I'd focus on a decline near the $34.00 level or better yet wait for a bounce from $34 as our next entry point. Our target is the $39.00 level and the $42.50 mark.

- Suggested Positions -

Long the June $37 call (FRX1118F37) Entry @ $0.65

- or -

Long the August $37 call (FRX1120H37) Entry @ $1.40

Entry on May 20th at $35.29
Earnings Date 07/21/11 (unconfirmed)
Average Daily Volume = 3.2 million
Listed on May 19th, 2011


Goldman Sachs - GS - close: 135.84 change: +0.85

Stop Loss: 128.45
Target(s): 134.00, 137.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see trigger

Comments:
05/23 update: Hmm... the action in GS was interesting. The stock gapped open lower like many stocks did today. Yet GS quickly recovered and actually closed positive. This doesn't change our plan. The 2010 lows are near $130. I am suggesting we launch very small bullish positions on a dip at $130.25. This is a very aggressive, higher-risk trade.

Trigger @ 130.25 (very small positions)

- Suggested Positions -

buy the June $135 call (GS1118F135)

Entry on May xxth at $ xx.xx
Earnings Date 07/19/11 (unconfirmed)
Average Daily Volume = 6.5 million
Listed on May 21st, 2011


International Business Machines - IBM - close: 168.26 change: -1.90

Stop Loss: 165.90
Target(s): 174.75, 179.50
Current Option Gain/Loss: - 20.3%
Time Frame: 6 to 9 weeks
New Positions: see below

Comments:
05/23 update: IBM gapped open lower and eventually closed down -1.1%. If the market continues to sink this week we could see IBM hit our stop at $165.90 soon. I am not suggesting new positions at this time.

- Suggested Positions -

Long the June $170 calls (IBM1118F170) Entry @ $2.60

05/12 Adjusted first target to $174.75
05/10 New stop loss @ 165.90

Entry on May 5th at $167.50
Earnings Date 04/19/11
Average Daily Volume = 4.8 million
Listed on April 27th, 2011


Illumina Inc. - ILMN - close: 71.75 change: -1.11

Stop Loss: 69.90
Target(s): 79.50, 84.00
Current Option Gain/Loss: -67.2%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
05/23 update: ILMN is still correcting lower. Shares touched their 30-dma this morning before trimming its losses. The short-term trend is still down and I'm expecting a drop closer to $70.00. Wait for this dip or a bounce from the $70 area before considering new positions.

FYI: The most recent data listed short interest in ILMN at 22% of the 121 million-share float.

- Suggested Positions -

Long the June $75 call (ILMN1118F75) Entry @ $2.75

Entry on May 11th at $74.50
Earnings Date 07/27/11 (unconfirmed)
Average Daily Volume = 1.9 million
Listed on May 10th, 2011


Jos. A Bank Clothiers - JOSB - close: 55.01 change: +0.03

Stop Loss: 52.90
Target(s): 59.50
Current Option Gain/Loss: +22.8%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
05/23 update: JOSB managed to show a little bit of strength today. Shares quickly recovered from the morning spike lower to $53.62. While the gain today was very, very minor it's a move in the right direction. Unfortunately if the market continues to sink JOSB will likely follow. Readers may want to consider an early exit now. I am not suggesting new positions at this time.

FYI: The most recent data listed short interest in JOSB at more than 21% of the small 27.3 million-share float. The risk of a short squeeze is pretty high.

- Suggested Positions -

Long the June $55 calls (JOSB1118F55) entry @ $1.75

05/18 new stop loss @ 52.90
05/14 Exit the May calls. May $55 call @ 0.90 (+28.5%)
05/12 New stop loss at $51.75

Entry on April 26th at $52.75
Earnings Date 06/02/11 (unconfirmed)
Average Daily Volume = 510 thousand
Listed on April 25th, 2011


NetApp, Inc. - NTAP - close: 52.82 change: -0.88

Stop Loss: 51.75
Target(s): 58.00
Current Option Gain/Loss: -38.4%
Time Frame: about 3 weeks
New Positions: see below

Comments:
05/23 update: We have just two days left for this trade. Readers may want to exit early right now. Currently the plan is to exit on Wednesday at the close to avoid holding over the earnings report.

- Suggested Positions -

Long the June $55 calls (NTAP1118F55) Entry @ $1.90

05/19 Plan on exiting May 25th at the close
05/18 New stop loss @ 51.75

Entry on May 9th at $53.33
Earnings Date 05/25/11 (confirmed)
Average Daily Volume = 5.8 million
Listed on May 7th, 2011


Sherwin-Williams Company - SHW - close: 85.32 change: -0.47

Stop Loss: 83.95
Target(s): 92.25, 98.50
Current Option Gain/Loss: Unopened
Time Frame: 4 to 8 weeks
New Positions: Yes, see Trigger

Comments:
05/23 update: SHW is retreating further away from resistance near $87.00. If we see shares close under $84 and its 50-dma then we will drop this stock as a bullish candidate.

Currently we're waiting for a breakout higher. I'm suggesting a trigger at $87.00. If triggered our first target is $92.25. Our second, much more aggressive target is $98.50. I would not be surprised to see some resistance near the $90 and $95 levels. The Point & Figure chart for SHW is bullish with a $99 target. If the stock can rally past $87 it will produce yet another buy signal.

Trigger @ $87.00

- Suggested Positions -

buy the June $90 call (SHW1118F90) current ask $0.65

- or -

buy the Sept. $90 call (SHW1117I90) current ask $2.50

Entry on May xxth at $ xx.xx
Earnings Date 07/21/11 (unconfirmed)
Average Daily Volume = 1.1 million
Listed on May 14th, 2011


Tiffany & Co. - TIF - close: 68.27 change: -0.97

Stop Loss: 67.90
Target(s): 74.50
Current Option Gain/Loss: -47.9%
Time Frame: about five days
New Positions: see below

Comments:
05/23 update: The situation doesn't bode well for TIF. Shares have closed under their 20-dma. Now they rest near the $68.00 level of very short-term support. If the market continues lower we will likely get stopped out. More conservative traders will want to strongly consider an early exit right now. I am inching our stop loss up from $67.70 to $67.90. No new positions at this time. Remember, We want to exit ahead of the May 26th earnings report.

- Suggested Positions -

Long the June $72.50 call (TIF1118F72.5) Entry @ $1.48

05/23 new stop @ 67.90

Entry on May 19th at $70.45
Earnings Date 05/26/11 (unconfirmed)
Average Daily Volume = 1.49 million
Listed on May 18th, 2011


Union Pacific - UNP - close: 101.59 change: -0.40

Stop Loss: 98.95
Target(s): 109.00, 114.00
Current Option Gain/Loss: -43.2%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
05/23 update: UNP rebounded from its morning lows near $100 and trimmed its losses to just -0.4%. This is encouraging and I've been suggesting readers look for a bounce from the $100 area. The $104 level remains overhead resistance. If the market continues to sink there is a good chance that UNP will stop us out (probably on its way to the 100-dma).

- Suggested Positions -

Long the June $105 call (UNP1118F105) Entry @ $1.62

Entry on May 9th at $102.19
Earnings Date 07/21/11 (unconfirmed)
Average Daily Volume = 3.4 million
Listed on May 7th, 2011


United Technologies Corp. - UTX - close: 86.09 change: -1.41

Stop Loss: 83.49
Target(s): 89.50, 94.75
Current Option Gain/Loss: -35.0%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
05/23 update: Our bullish play on UTX has been triggered. The stock gapped open lower at $86.41 and spent the rest of the day consolidating sideways near support at the $86.00 level. Our trigger to buy calls was at $86.50 so the trade was opened this morning. Readers may want to wait for a dip closer to the $85.00 level and its 50-dma before initiating new positions. More conservative traders may want to use a stop closer to $85 instead of ours at $83.49.

- Suggested Positions -

Long the June $90 calls (UTX1118F90) Entry @ 0.40

chart:

Entry on May 23rd at $86.41
Earnings Date 04/20/11
Average Daily Volume = 3.7 million
Listed on April 27th, 2011


Wynn Resorts Ltd. - WYNN - close: 142.47 change: -2.51

Stop Loss: 146.40
Target(s): 159.75, 169.00
Current Option Gain/Loss: Unopened
Time Frame: 4 to 6 weeks
New Positions: Yes, see Trigger

Comments:
05/23 update: WYNN is testing support near $140 again. Once again traders are buying the dip near $140. Aggressive and nimble traders could buy calls now with a stop very close to the $140.00 mark. My concern is the stock market is poised for more declines and WYNN could break down below the $140 level soon. If we see a close under $140 we'll drop WYNN as a potential trade. Currently we have a breakout trigger to buy calls at $152.00.

Trigger @ $152.00

- Suggested Positions -

Buy the June $160 calls (WYNN1118F160) current ask $2.15

Entry on May xxth at $ xx.xx
Earnings Date 07/28/11 (unconfirmed)
Average Daily Volume = 2.1 million
Listed on May 11th, 2011


PUT Play Updates

Pioneer Natural Resources - PXD - close: 89.22 change: -1.72

Stop Loss: 96.15
Target(s): 85.25
Current Option Gain/Loss: + 9.0%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
05/23 update: PXD dipped near support at $88 this morning. The stock pared its losses but still closed down -1.8%. Shares look poised to break this support and plunge toward $85 soon. More aggressive traders could aim for a drop near the 200-dma instead.

Earlier Comments:
We want to keep our position size small to limit our risk because oil and oil stocks have been increasingly volatile lately. Our target is $85.25. FYI: The Point & Figure chart for PXD is bearish with a $72 target.

-Small Bearish-

Long the June $90 PUT (PXD1118R90) Entry @ $3.30

Entry on May 16th at $91.64
Earnings Date 07/27/11 (unconfirmed)
Average Daily Volume = 1.9 million
Listed on May 14th, 2011


Roper Industries - ROP - close: 82.07 change: -1.31

Stop Loss: 84.05
Target(s): 78.00, 75.50
Current Option Gain/Loss: -20.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/23 update: Our new trade on ROP is already open. The stock gapped open lower at $82.07, dipped to $81.50 intraday and closed back near support at $82 and its 100-dma. Our trigger to buy puts was hit at $81.75. I would still consider new positions now although there is a chance ROP will fill the gap with a bounce toward $83 before rolling over.

Our targets are $78.00 and $75.50. The $80 level might offer a little support so don't be surprised to see a bounce. I would keep our position size small to limit our risk. Currently the Point & Figure chart is bearish with a $75 target.

(small positions) Suggested Positions -

Long the June $80 PUT (ROP1118R80) Entry @ $1.20

Annotated Chart:

Entry on May 23rd at $81.75
Earnings Date 07/26/11 (unconfirmed)
Average Daily Volume = 570 thousand
Listed on May 21st, 2011


CLOSED BULLISH PLAYS

Estee Lauder Companies - EL - close: 98.31 change: -2.34

Stop Loss: 98.75
Target(s): 107.00, 109.95
Current Option Gain/Loss: -66.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/23 update: Monday was a rough day for shares of EL. The stock gapped open lower at $99.62 and quickly fell below short-term support near $99.00. Our stop loss was hit at $98.75.

- Suggested Positions -

June $105 call (EL1118F105) Entry @ $1.95, Exit 0.65 (-66.6%)

05/23 Stopped out @ 98.75, Option @ -66.6%

chart:

Entry on May 19th at $102.10
Earnings Date 08/11/11 (unconfirmed)
Average Daily Volume = 1.1 million
Listed on May 18th, 2011


Freeport McMoran - FCX - close: 47.42 change: -0.96

Stop Loss: 45.99
Target(s): 53.50
Current Option Gain/Loss: - 36.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/23 update: I am giving up on our aggressive FCX trade. Concerns over Europe sent the euro lower, which pushed the dollar higher. A rising dollar is normally bearish for commodities. Copper fell over -3% and yet gold managed a gain. I'm a little surprised that FCX did not see sharper declines today and there is a chance that the $46.00 level might hold as support. However, the trend for the dollar is higher and today marks a breakout from its recent sideways consolidation. Thus I'm suggesting we exit our FCX trade early! Earlier comments:
I consider this a very aggressive and higher-risk trade. We want to keep our position size very small.

- Very Small Positions -

June $50 call (FCX1118F50) Entry @ $1.52, Exit 0.96 (-36.8%)

05/23 Exit Early. FCX @ $47.42, Option @ -36.8%

chart:

Entry on May 19th at $48.72
Earnings Date 07/21/11 (unconfirmed)
Average Daily Volume = 21.8 million
Listed on May 18th, 2011


ProShares Ultra(long) S&P 500 - SSO - close: 52.71 change: -1.27

Stop Loss: 52.75
Target(s): 59.00
Current Option Gain/Loss: -78.7% and -52.5%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
05/23 update: Stocks gapped open lower on Monday. The SSO opened at $52.61. This is below our stop loss at $52.75 so the play was closed immediately. The SSO and S&P 500 now both sit on their simple 100-dma.

Small Positions Only - Suggested Positions -

Jun $56 call (SSO1118F56) Entry @ $1.60, Exit 0.34 (-78.7%)

- or -

Sep $60 call (SSO1117I60) Entry @ $2.00, exit 0.95 (-52.5%)

05/23 Gap down at the open. Stopped out. Options @ -78.7% & -52.5%

chart:

Entry on May 5th at $54.39
Earnings Date --/--/--
Average Daily Volume = 11.3 million
Listed on May 4th, 2011