Editor's Note:

The market's best day since late April hit some stops in our put plays. We have been expecting the stock market to see a short-term bounce but some of the beaten down names experienced over-sized rebounds. AAPL, AMZN, and WFM were stopped out. Plus, our FOSL call play has hit our final target.

-James

Current Portfolio:


CALL Play Updates

Forest Labs Inc. - FRX - close: 40.15 change: +0.66

Stop Loss: 36.75
Target(s): 39.00, 42.50
Current Option Gain/Loss: +171.4%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
06/21 update: FRX extended its gains and closed above round-number resistance at $40.00. The stock continues to look overbought here but the $39-38 area should offer some support. I am raising our stop loss to $36.75. More conservative traders may want to use a stop closer to $38.00 instead or just take profits now. Currently our final target is $42.50 but I'm tempted to exit early near $42.00. I am not suggesting new positions at this time.

- Suggested Positions -

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

06/21 new stop loss @ 36.75
06/20 new stop loss @ 35.75
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


PUT Play Updates

Becton, Dickinson and Company - BDX - close: 86.53 change: +0.57

Stop Loss: 87.15
Target(s): 80.50
Current Option Gain/Loss: -80.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/21 update: Positive analyst comments helped fuel gains for BDX today. The stock has rallied to the top of its recent trading range and technical resistance at its 30 and 40-dma. More conservative traders may want to exit early right now. I am not suggesting new positions at this time. If there is any follow through higher we will likely get stopped out at $87.15.

- 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: 82.13 change: +2.07

Stop Loss: 82.75
Target(s): 75.25, 71.00
Current Option Gain/Loss: -67.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/21 update: Industrial names were some of the strongest performers today. DE added +2.5% and rival CAT gained +3.2%. The bounce in DE has stalled right near resistance in the $82.00 area but if there is any follow through higher we will likely get stopped out at $82.75. I am not suggesting new positions at this time.

- 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: 68.02 change: +1.29

Stop Loss: 70.55
Target(s): 64.50, 62.50
Current Option Gain/Loss: -25.3%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
06/21 update: DO is finally starting to see a little oversold bounce here. Shares added +1.9% and closed above their simple 10-dma. I have been suggesting that readers wait for a bounce or failed rally near resistance at $70 before launching new positions.

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


Transocean Ltd. - RIG - close: 61.89 change: +2.02

Stop Loss: 66.15
Target(s): 58.00, 55.25
Current Option Gain/Loss: - 6.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/21 update: We have been expecting an oversold bounce in RIG. Shares gained +3.3% and tagged short-term resistance at the 10-dma. If the rebound continues we can look for resistance near $65.00. I am not suggesting new positions at this time.

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

- Suggested (SMALL) Positions -

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

06/20 RIG has hit $60. Cautious traders may want to take profits now (option @ +68%). The newsletter's target is $58.00

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: 42.86 change: +1.07

Stop Loss: 45.05
Target(s): 40.50, 36.00
Current Option Gain/Loss: + 1.8% & - 18.8%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/21 update: SNDK has bounced back into its prior $42-44 trading range. More conservative traders may want to tighten stops closer to the $44 level. The sharp bounce back makes the breakdown late last week look like a possible bear trap. I am not suggesting new positions at this time.

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

06/18 new stop loss @ 45.05
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: 87.31 change: +0.46

Stop Loss: 88.05
Target(s): 84.00, 81.00
Current Option Gain/Loss: -40.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/21 update: Today looks a lot like yesterday for SRCL. Early morning weakness followed by a bounce near short-term support at $86.00. Yet the bounce is struggling to make it past $88 and the 100-dma. I am concerned. Many of the short-term and daily chart technical indicators are turning positive again. More conservative traders may want to abandon ship and exit early. If there is any follow through higher tomorrow there is a chance we'll get stopped out at $88.05. I am not suggesting new positions at this time.

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

06/21 Readers may want to exit early!
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: 58.73 change: +1.06

Stop Loss: 62.05
Target(s): 55.25
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see Trigger

Comments:
06/21 update: TROW is bouncing just as expected. Shares hit $59.24 at its best levels this afternoon. Our plan is to buy puts on a bounce but I'm moving our trigger point from $59.50 to $60.00 and we'll adjust the stop loss to $62.05. Our target is $55.25. FYI: The Point & Figure chart for TROW is bullish with a $51 target.

Trigger @ 60.00 -- adjusted trigger

- 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


Walter Energy, Inc. - WLT - close: 109.95 change: +4.36

Stop Loss: 115.50
Target(s): 100.50
Current Option Gain/Loss: Unopened
Time Frame: 4 to 6 weeks
New Positions: Yes, see TRIGGER

Comments:
06/21 update: So far so good. We were expecting a bounce in WLT. The rebound should stall at resistance near the 200-dma. I am suggesting a trigger to open bearish positions at $112.00. We'll use a stop loss at $115.50. WLT can be a volatile stock so we want to keep our position size small to limit our risk. If triggered at $112.00 our target is $100.50. We do not want to hold over the late July earnings report.

Trigger @ $112.00

- Suggested Positions -

Buy the July $105 PUT (WLT1116S105)

- or -

BUy the Sept. $100 PUT (WLT1117U100)

Entry on June xxth at $ xx.xx
Earnings Date 07/27/11 (unconfirmed)
Average Daily Volume = 2.0 million
Listed on June 18th, 2011


CLOSED BULLISH PLAYS

Fossil Inc. - FOSL - close: 113.80 change: +3.09

Stop Loss: 104.40
Target(s): 109.75, 114.00
Current Option Gain/Loss: + 100%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/21 update: Target achieved. The market's widespread rally on Tuesday was strong enough to push FOSL to $114.45 intraday. Our final target to exit was hit at $114.00. Readers may want to keep FOSL on their watch list and reconsider new bullish positions on a dip or a bounce near $110-109.

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, exit $6.00 (+100%)

06/21 Final Target hit @ $114.00, Option @ $6.00 (+100%)
06/20 new stop loss @ 104.40
06/18 Cautious traders may want to exit early now.
06/14 1st target hit @ 109.75, July option @ 3.20 (+6.6%)
06/11 Exit June calls ASAP. Option @ 0.35 (-74.6%)

chart:

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


CLOSED BEARISH PLAYS

Apple Inc. - AAPL - close: 325.30 change: +9.98

Stop Loss: 325.50
Target(s): 301.00
Current Option Gain/Loss: -64.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/21 update: We have just been whipsawed out of our AAPL put play. The stock plunged to almost $310 yesterday and today the market's widespread gains has fueled an intraday rally to $325.80. Our stop loss was set at $325.50 since the $320 level and the $325 level should have all acted as overhead resistance.

- Suggested Positions -

July $300 PUT (AAPL1116S300) Entry @ $4.40, exit $1.55 (-64.7%)

06/21 Stopped out @ 325.50

Chart:

Entry on June 20th at $317.36
Earnings Date 07/19/11 (unconfirmed)
Average Daily Volume = 13.7 million
Listed on June 18th, 2011


Amazon.com Inc. - AMZN - close: 194.23 change: +6.51

Stop Loss: 192.55
Target(s): 180.25, 175.00
Current Option Gain/Loss: -56.8%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/21 update: A big bounce in the NASDAQ helped fuel a strong +3.4% rebound in AMZN. Shares broke through resistance near $190, near $192 and at its 50-dma. Our stop loss was hit at $192.55.

Earlier Comments:
The plan was to keep our position size small.

- small bearish positions -

Long July $180 PUT (AMZN1116S180) Entry @ $4.40, Exit $1.90 (-56.8%)

06/21 Stopped out @ 192.55, Option @ $1.90 (-56.8%)
06/16 planned exit, June $185 put @ -27.3%
06/11 New stop loss @ 192.55
06/07 New stop loss @ 195.15.

chart:

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


Whole Foods Market - WFM - close: 60.41 change: +3.51

Stop Loss: 58.15
Target(s): 55.10, 52.00
Current Option Gain/Loss: - 52.3%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
06/21 update: WFM saw a huge bounce today (+6.1%) on what looks like short covering early this morning. Bullish comments from WFM's co-CEO and some bullish analyst comments sparked the short squeeze today. WFM surged past resistance at $60 and its 100-dma but stalled right on its 50-dma. Our stop loss was hit at $58.15 early this morning.

- Suggested Positions -

July $55 PUT (WFM1116S55) Entry @ $1.05, exit $0.50 (-52.3%)

06/21 Stopped out @ 58.15, option @ -52.3%
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

chart:

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