Editor's Note:

Commodities saw a boost thanks to bullish comments from Goldman Sachs. Energy stocks also enjoyed a rebound on the same headline. We saw NTAP breakdown and hit our stop loss today. Meanwhile I am removing SHW as a candidate.

-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:
05/24 update: AAPL spent most of the day bouncing around the $332-334 range. Shares do have a short-term bearish trend of lower highs, which would suggest AAPL might breakdown under support near $330 soon.

We have a buy-the-dip entry point at $321.00 with a stop loss at $317, which is under the simple 200-dma.

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: 75.57 change: -0.71

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:
05/24 update: BA just reaffirmed their 2011 earnings estimates. Yet the news had little affect on the stock price. BA drifted lower and is nearing possible support near $75.00 and the 50-dma. Readers may want to consider bullish positions near $75. I am suggesting we wait for a dip at $74.00 instead since the market is still trending lower. 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: 59.28 change: -0.25

Stop Loss: 56.75
Target(s): 64.00, 68.50
Current Option Gain/Loss: -41.8% & -20.6%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
05/24 update: Tuesday was a quiet session for ESRX with the stock churning sideways. Shares do look poised to move lower. I am suggesting readers wait for a dip near $58.00 before considering new bullish positions. 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: 34.96 change: +0.12

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:
05/24 update: FRX popped higher at the open and then spent the rest of the day churning sideways in a 25-cent range. I don't see any changes from my prior comments. Readers may want to wait for a dip or a bounce near $34.00 before considering new bullish positions. 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: 136.34 change: +0.50

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:
05/24 update: GS made headlines with their bullish call on commodities this morning. Meanwhile their own stock price eked out another gain after traders bought the dip near $135.00 intraday. I don't see any changes from my prior comments. 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: 167.99 change: -0.27

Stop Loss: 165.90
Target(s): 174.75, 179.50
Current Option Gain/Loss: - 23.0%
Time Frame: 6 to 9 weeks
New Positions: see below

Comments:
05/24 update: The markets are seeing indecision by investors and that's evident in the lack of movement in IBM. Shares spent the day in a narrow range. There is no change from my prior comments. 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: 71.20 change: -0.55

Stop Loss: 69.90
Target(s): 79.50, 84.00
Current Option Gain/Loss: -76.3%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
05/24 update: ILMN is drifting closer toward the $70 level. Meanwhile volume is contracting as ILMN sinks lower. The low today was $70.61. I would be tempted to buy a dip in the $70.50-70.00 zone with our stop loss at $69.90 although readers may want to wait for a bounce before initiating 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: 54.90 change: -0.11

Stop Loss: 52.90
Target(s): 59.50
Current Option Gain/Loss: +14.2%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
05/24 update: JOSB is trying to bounce but it's not making any progress. If you look at an intraday chart it seems that JOSB might be forming a bearish head-and-shoulders pattern with the neckline at the $54.00 level. If this is true then a breakdown under $54 would lead to a drop toward $50. More conservative traders may want to raise their stops to the $53.50 area. 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


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

Stop Loss: 67.90
Target(s): 74.50
Current Option Gain/Loss: -35.8%
Time Frame: about five days
New Positions: see below

Comments:
05/24 update: TIF managed a bounce on Tuesday. Shares ended the session up +0.8% but off its best levels of the day. Tomorrow is our last day and we will plan on exiting positions Wednesday at the closing bell to avoid holding over earnings on Thursday morning.

- Suggested Positions -

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

05/24 Prepare to exit tomorrow at the closing bell.
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: 101.58 change: -0.01

Stop Loss: 98.95
Target(s): 109.00, 114.00
Current Option Gain/Loss: -51.8%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
05/24 update: Railroad stocks spent Tuesday drifting sideways. UNP was no exception. The very short-term trend of lower highs would suggest UNP will retest $100 again soon. The last few days have seen traders buying dips at the rising 40-dma. Nimble traders might want to consider buying another dip or bounce near the $100.00 mark. Of course if the market accelerates lower then UNP will probably keep on falling and stop us out.

- 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: 85.62 change: -0.47

Stop Loss: 83.49
Target(s): 89.50, 94.75
Current Option Gain/Loss: -57.5%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
05/24 update: Dow-component UTX is still slipping lower. Shares fell -0.5% to stop on technical support at its 50-dma. Further weakness from here will likely lead to a drop near $84 and its rising 100-dma. Readers may want to wait for a bounce from current levels before considering 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

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: 141.75 change: -0.72

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:
05/24 update: WYNN is still churning above support near $140. There is no change from my prior comments. 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.

FYI: If WYNN does decline I'd keep an eye on potential support near $130 and its 100-dma.

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: 90.73 change: +1.51

Stop Loss: 96.15
Target(s): 85.25
Current Option Gain/Loss: -19.6%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
05/24 update: Oil stocks got a boost today thanks to Goldman Sachs. The analyst firmed turned bullish on commodities again. Crude oil and the energy sector were some of the few bright spots in Tuesday's market. PXD's rally did stall near $92. More conservative traders might want to lower their stop loss. Currently ours is at $96.15. Volume was pretty strong on today's bounce. I am not suggesting new bearish positions at the moment.

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: 80.94 change: -1.13

Stop Loss: 84.05
Target(s): 78.00, 75.50
Current Option Gain/Loss: - 4.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/24 update: ROP slipped to a new multi-week low with today's -1.3% decline. The trend is down but I would not be surprised to see a bounce near the $80.00 mark. We can look for resistance at $82 and its 100-dma.

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

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

NetApp, Inc. - NTAP - close: 51.47 change: -1.35

Stop Loss: 51.75
Target(s): 58.00
Current Option Gain/Loss: -44.7%
Time Frame: about 3 weeks
New Positions: see below

Comments:
05/24 update: Tuesday proved to be an ugly day for NTAP. The stock underperformed the market with a -2.5% decline. Volume was slightly above average on the drop. Shares tried to bounce at their 200-dma but were rolling over late this afternoon. Our stop loss was hit at $51.75.

- Suggested Positions -

June $55 calls (NTAP1118F55) Entry @ $1.90, Exit $1.05 (-44.7%)

05/24 Stopped out @ 51.75. Option @ $1.05 (-44.7%) 05/19 Plan on exiting May 25th at the close
05/18 New stop loss @ 51.75

chart:

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: 83.68 change: -1.64

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

Comments:
05/24 update: SHW accelerated lower. The better than expected new home sales data this morning should have been a positive but SHW sold off anyway. The close under $85 and several of its key moving averages is bearish. I am removing SHW as a bullish candidate. Our trigger to open positions was never hit.

Trigger @ $87.00 <-- Never Hit


chart:

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