Editor's Note:

Many stocks hit new relative lows intraday only to pare their losses by the closing bell. Tomorrow (Friday) is a quadruple witching options and futures expiration Friday.

Looking at our play list we saw DE hit our trigger to buy puts.

-James

Current Portfolio:


CALL Play Updates

Apple Inc. - AAPL - close: 325.16 change: -1.59

Stop Loss: 317.45
Target(s): 337.50, 347.50
Current Option Gain/Loss: + 9.8%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
06/16 update: Ouch! What happened to AAPL today. The stock fell from approximately $328.50 in early morning to a low of almost $318 this afternoon. It was a generally quiet day until late afternoon when AAPL, for no apparent reason, sliced through support near $325.00, through its simple 200-dma and below additional price support at $320.00. This was the first time AAPL had crossed its simple 200-dma since April 2009. The move down under these support levels surely triggered a multitude of stop losses. Then just as quickly AAPL pared its losses with a bounce back to settle above $325 again. Sharp intraday moves on no news are certainly mysterious. Readers may want to hesitate on launching new positions. However, technically this bounce from its lows could be used as a new entry point to buy puts. Alternatively you could argue that the dip toward $318 is a new lower low, which merely confirms the bearish trend of lower lows and lower highs.

This has always been a very aggressive, higher-risk trade. I am inching up our stop loss to $318.25, just under today's low.

(SMALL POSITIONS)- Suggested Positions -

Long July $340 call (AAPL1116G340) entry @ $3.05

06/16 new stop loss @ 318.25

Entry on June 15th at $325.00
Earnings Date 07/19/11 (unconfirmed)
Average Daily Volume = 12.9 million
Listed on June 8th, 2011


Fossil Inc. - FOSL - close: 107.53 change: +1.13

Stop Loss: 99.39
Target(s): 109.75, 114.00
Current Option Gain/Loss: -13.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/16 update: FOSL managed to recoup a good portion of yesterday's losses. Traders are still buying dips near the $105 level of support. More conservative traders may want to raise their stop loss. I am not suggesting new positions at this time. Our final target is $114.00.

Earlier Comments:
We wanted to keep our position size small to limit our risk.

- Suggested (SMALL) Positions -

Long July $110 call (FOSL1116G110) Entry @ $3.00

06/14 1st target hit @ 109.75, July option @ 3.20 (+6.6%)
06/11 Exit June calls ASAP. Option @ 0.35 (-74.6%)

Entry on May 27th at $104.96
Earnings Date 08/09/11 (unconfirmed)
Average Daily Volume = 842 thousand
Listed on May 26th, 2011


Forest Labs Inc. - FRX - close: 38.53 change: -0.05

Stop Loss: 34.90
Target(s): 39.00, 42.50
Current Option Gain/Loss: + 92.8%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
06/16 update: FRX isn't moving much. Shares are likely drifting sideways due to investors waiting for options expiration to happen after Friday's close. FRX remains overbought and due for a correction. I'm expecting a dip toward $36.00 or even its 50-dma. If you don't want to endure that sort of pull back, which would significantly hurt our options then exit now! We do have August calls but we will not hold over the July earnings report. I am not suggesting new positions at this time.

- Suggested Positions -

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

06/13 1st target hit @ $39.00. August $37 call @ $2.85 (+103.5%)
06/11 New stop loss @ 34.90
06/10 Planned exit of June $37 call. exit $1.10 (+69.2%)
06/09 Prepare to exit the June calls on June 10th at the close
06/04 new stop loss @ 34.45
05/28 New stop loss @ 33.75

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: 136.09 change: +1.24

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:
06/16 update: GS isn't moving. The stock has been chopping sideways for almost three weeks. I am about ready to give up and look elsewhere. This has always been an aggressive trade and we're still waiting for a dip to what should be support near $130.

Earlier 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 July $135 call (GS1116G135)

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


Union Pacific - UNP - close: 98.79 change: -0.64

Stop Loss: n/a
Target(s): 109.00, 114.00
Current Option Gain/Loss: - 100%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
06/16 update: UNP continues to slowly drift lower. This particular trade has been dead for a few days now. We're just waiting for option expiration.

- Suggested Positions -

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

06/11 option has deteriorated. Removing the stop loss.

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


PUT Play Updates

Amazon.com Inc. - AMZN - close: 183.65 change: -2.33

Stop Loss: 192.55
Target(s): 180.25, 175.00
Current Option Gain/Loss: -27.3% & +17.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/16 update: We've got good news for the bears. AMZN has broke down from its $192-185 trading range. The intraday rebound off its afternoon lows did leave AMZN above its simple 100-dma but the close under $185.00 is bearish. I wouldn't expect a lot of movement tomorrow given it's an option expiration Friday. I am not suggesting new positions at this time.

NOTE: It was our plan to exit our June $185 puts today (Thursday) at the closing bell. The put closed with a bid at $2.10 (-27.3%).

Earlier Comments:
The plan was to keep our position size small. Our first target is $180.25. Our second target is $175.00 (or the simple 200-dma, whichever one AMZN hits first).

- small bearish positions -

June $185 PUT (AMZN1118R185) Entry @ $2.89, exit $2.10 (-27.3%)

- or -

Long July $180 PUT (AMZN1116S180) Entry @ $4.40

06/16 planned exit, June $185 put @ -27.3%
06/11 New stop loss @ 192.55
06/07 New stop loss @ 195.15.

Entry on June 6th at $188.01
Earnings Date 07/26/11 (unconfirmed)
Average Daily Volume = 4.5 million
Listed on June 4th, 2011


Abercrombie & Fitch Co. - ANF - close: 63.88 change: -1.50

Stop Loss: 72.05
Target(s): 65.50, 62.75(100-dma)
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/16 update: It looks like we may have missed our entry point. I am not suggesting new positions at this time. ANF has hit technical support at its 100-dma. There is a decent chance it will bounce. The plan was to launch bearish positions at $69.75. Our first target is $65.50. Our second target is the 100-dma but if this trade takes too long we may abandon the second target. Aggressive traders could aim for support near $60 but I'm concerned the 100-dma will act as support.

Trigger @ 69.75

- Suggested Positions -

buy the July $70 PUT (ANF1116S70)

Entry on June xxth at $ xx.xx
Earnings Date 08/17/11 (unconfirmed)
Average Daily Volume = 2.8 million
Listed on June 14th, 2011


Becton, Dickinson and Company - BDX - close: 84.88 change: -0.03

Stop Loss: 87.15
Target(s): 80.50
Current Option Gain/Loss: -20.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/16 update: There was no follow through on yesterday's sell-off. BDX is likely to churn sideways tomorrow as investors wait for option expiration to complete. I'll repeat my comments from yesterday. More conservative traders could wait for a little more confirmation and open positions at $84.45.

Our target is $80.50. We'll try and keep our target just above the 200-dma.

- Suggested (SMALL) Positions -

Long July $80 put (BDX1116S80) Entry @ $0.50

Entry on June 13th at $84.95
Earnings Date 07/28/11 (unconfirmed)
Average Daily Volume = 1.0 million
Listed on June 11th, 2011


Deere & Co - DE - close: 79.27 change: -0.94

Stop Loss: 82.75
Target(s): 75.25, 71.00
Current Option Gain/Loss: - 3.2%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/16 update: I am a little surprised. I really wasn't expecting DE to breakdown until Monday. Shares continued to show relative weakness and slipped to new six-month lows this afternoon. DE hit our trigger to buy puts at $79.25. I would still consider new positions now or you can wait for a failed rally in the $80-82 area. Our first target is $75.25. Our second, more aggressive target would be $71. FYI: The Point & Figure chart for DE is bearish with a $71 target.

- Suggested Positions -

Long July $75 PUT (DE1116S75) Entry @ $1.52

Entry on June 16th at $79.25
Earnings Date 08/17/11 (unconfirmed)
Average Daily Volume = 5.7 million
Listed on June 15th, 2011


Diamond Offshore Drilling, Inc. - DO - close: 66.94 change: +0.29

Stop Loss: 70.55
Target(s): 64.50, 62.50
Current Option Gain/Loss: +23.9%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
06/16 update: DO tagged a new relative low this morning at $65.63 but eventually pared its losses. Shares look a little bit oversold here. I wouldn't be surprised to see a bounce back toward the $69-70 area. I am not suggesting new positions at this time.

Earlier Comments:
Our targets are $64.50 and $62.50. FYI: Traders should note that the most recent data listed short interest at more than 14% of the float. That does raise the risk of a short squeeze should the stock suddenly find strength.

- Suggested Positions -

Long July $67.50 PUT (DO1116S67.5) entry @ $2.09

06/15 new stop loss @ 70.55
06/13 new stop loss @ 71.55

Entry on June 8th at $68.91
Earnings Date 07/21/11 (unconfirmed)
Average Daily Volume = 1.8 million
Listed on June 7th, 2011


General Dynamics Corp - GD - close: 71.28 change: +0.43

Stop Loss: 72.25
Target(s): 65.50
Current Option Gain/Loss: -36.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/16 update: Warning! Our put play is at risk here with GD's close above short-term resistance at $71.00. The early morning rally did fail near $72.00 but if the market is positive tomorrow we could see GD hit our stop loss at $72.25. I am not suggesting new positions at this time.

-Suggested Positions-

Long July $67.50 PUT (GD1116S67.5) Entry @ $1.25

Entry on June 10th at $69.75
Earnings Date 07/27/11 (unconfirmed)
Average Daily Volume = 2.3 million
Listed on June 9th, 2011


Nike Inc. - NKE - close: 80.29 change: -0.10

Stop Loss: 83.05
Target(s): 75.50
Current Option Gain/Loss: +36.0%
Time Frame: 2 to 3 weeks
New Positions: see below

Comments:
06/16 update: NKE dipped just enough to hit a new relative low and then it rebounded back into its trading range. I would not expect a lot of movement tomorrow with it being an options expiration Friday. I remain bearish but you can wait for a new failed rally under the 200-dma or a new relative low to launch positions.

Our target is $75.50 but we'll adjust the target as the trade progresses. NKE is due to report earnings on June 27th and we do not want to hold over the announcement.

- Suggested Positions -

Long July $80 PUT (NKE1116G80) Entry @ $2.00

06/11 New stop loss @ 83.05

Entry on June 7th at $81.75
Earnings Date 06/27/11 (confirmed)
Average Daily Volume = 2.3 million
Listed on June 6th, 2011


Transocean Ltd. - RIG - close: 61.75 change: -0.88

Stop Loss: 66.15
Target(s): 58.00, 55.25
Current Option Gain/Loss: +37.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/16 update: RIG continues to under perform and set a new relative low this afternoon. The stock is starting to look a little oversold again. I'm not suggesting new positions at this time.

More conservative traders may want to take profits early near $60.00 since the $60 level might be support but I'm setting our targets at $58.00 and $55.25.

We wanted to keep our position size small to limit our risk.

- Suggested (SMALL) Positions -

Long July $60 puts (RIG1116S60) Entry @ $1.32

Entry on June 13th at $63.32
Earnings Date 08/04/11 (unconfirmed)
Average Daily Volume = 4.3 million
Listed on June 11th, 2011


SanDisk Corp. - SNDK - close: 42.24 change: +0.06

Stop Loss: 46.25
Target(s): 40.50, 36.00
Current Option Gain/Loss: +56.3% & +39.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/16 update: SNDK is still churning sideways above short-term support near $42.00. There is no change from my prior comments. I would still consider new positions now or you could wait for a new relative low. The $40.00 level might offer some round-number support. More conservative traders might want to lower their stop closer to the $45.00 level.

Our targets are $40.50 and $36.00, given enough time. FYI: The P&F chart for SNDK is bearish with a $30 target.

- Suggested Positions -

Long July $42.00 PUT (SNDK1116S42) Entry @ $1.10

- or -

Long July $40.00 PUT (SNDK1116S40) Entry @ $0.69

06/08 New stop loss @ 46.25

Entry on June 6th at $44.31
Earnings Date 07/21/11 (unconfirmed)
Average Daily Volume = 5.8 million
Listed on June 4th, 2011


Stericycle Inc. - SRCL - close: 85.68 change: +1.29

Stop Loss: 88.05
Target(s): 84.00, 81.00
Current Option Gain/Loss: +16.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/16 update: Hmm... there was no follow through on yesterday's breakdown under support. SRCL managed a bounce back above $85.00 on decent volume. I suspect this is merely a reaction to options expiration this weekend. SRCL will probably close Friday near the $85.00 strike price. I am not suggesting new positions at this time.

- Suggested Positions - Long July $85 PUT (SRCL1116S85) Entry @ $1.50

06/15 adjusted 2nd target to $81.00.
06/11 new stop loss @ 88.05
06/08 Exit June $85 puts. Bid @ $1.00 (+100%)
06/04 new stop loss @ 90.05

Entry on May 31st at $88.78
Earnings Date 07/27/11 (unconfirmed)
Average Daily Volume = 502 thousand
Listed on May 28th, 2011


T.Rowe Price Associates - TROW - close: 56.79 change: +0.13

Stop Loss: 62.25
Target(s): 55.25
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see Trigger

Comments:
06/16 update: There is no change from my prior comments on TROW. We're still waiting for an entry point. Currently we want to buy puts on a bounce at $59.50. If triggered we'll use a stop loss at $62.25. Our target is $55.25. FYI: The Point & Figure chart for TROW is bullish with a $51 target.

Trigger @ 59.50

- Suggested Positions -

buy the July $60 PUT (TROW1116S60)

Entry on June xxth at $ xx.xx
Earnings Date 07/26/11 (unconfirmed)
Average Daily Volume = 2.0 million
Listed on June 13th, 2011


Whole Foods Market - WFM - close: 55.27 change: +1.29

Stop Loss: 58.15
Target(s): 55.10, 52.00
Current Option Gain/Loss: + 76.1%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
06/16 update: Be careful here. WFM is starting to bounce. A better than expected earnings report from grocery store chain Kroger (KR) helped fuel gains for the industry. WFM trailed its peers but the stock remains short-term oversold and due for a bigger correction higher. I wouldn't be surprised to see an oversold bounce back into the $57-58 area. I am not suggesting new positions at this time.

- Suggested Positions -

Long July $55 PUT (WFM1116S55) Entry @ $1.05

06/13 Exit June $60 puts. Bid @ $5.20 (+136.3%)
06/11 New stop loss @ 58.15.
06/11 Consider exiting our June puts early.
06/08 1st target hit @ 55.10. June $60 put @ 4.30 (+95.4%), July $55 put @ 1.92 (+82.8%)
06/06 new stop loss @ 60.15
06/04 new stop loss @ 60.65

Entry on June 2 at $58.70
Earnings Date 08/11/11 (unconfirmed)
Average Daily Volume = 1.6 million
Listed on June 1st, 2011