Editor's Note:

Once again the S&P 500 is bouncing from technical support near its rising 200-dma.

Looking at our play list the new SLB put has been triggered.

-James

Current Portfolio:


CALL Play Updates

Teradata Corp. - TDC - close: 57.93 change: +0.50

Stop Loss: 53.45
Target(s): 59.75, 64.00
Current Option Gain/Loss: Unopened
Time Frame: 4 to 6 weeks
New Positions: Yes, see trigger

Comments:
06/27 update: Stocks started the week on a strong note. TDC hovered near its highs around $58.00 on low volume. I am suggesting a trigger to buy calls on TDC at $56.50. If triggered we'll use a stop loss at $53.45. Our targets are $59.75 and given enough time $64.00. FYI: TDC's P&F chart has produced a new triple-top breakout buy signal with a $79 target.

NOTE: As an alternative entry point readers could wait for another dip close to the simple 50-dma instead.

Trigger @ $56.50

- Suggested Positions -

buy the July $55 call (TDC1116G55)

- or -

buy the Aug. $60 call (TDC1120H60)

Entry on June xx at $ xx.xx
Earnings Date 08/04/11 (unconfirmed)
Average Daily Volume = 1.8 million
Listed on June 25, 2011


PUT Play Updates

Becton, Dickinson and Company - BDX - close: 85.25 change: +0.41

Stop Loss: --.--
Target(s): 81.50
Current Option Gain/Loss: - 70.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/27 update: BDX didn't see a lot of action today. The bounce was about half that seen in the S&P 500. Shares failed to rally past Friday's or Thursday's high. Readers may want to launch new positions on a new relative low under $84.19.

- Suggested (SMALL) Positions -

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

06/22 The bid for our option has vanished. I am removing our stop loss on this trade.

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


Diamond Offshore Drilling, Inc. - DO - close: 67.49 change: -0.22

Stop Loss: 70.55
Target(s): 64.50, 62.50
Current Option Gain/Loss: -18.1% & -30.4%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
06/27 update: Oil service stocks were relative underperformers on Monday. DO more so than most. Shares lost -0.3%. The next hurdle for the bears is short-term support near $66.00.

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

- Second Position -

Long July $67.50 PUT (DO1116S67.5) Entry @ $2.46

06/22 failed rally at $70 is a new entry point. add 2nd position
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


Goldman Sachs - GS - close: 130.71 change: -0.20

Stop Loss: 135.25
Target(s): 121.00, 116.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see trigger

Comments:
06/27 update: Financial stocks were actually some of the best performers today. GS was not one of them. The stock continues to slip and shares briefly traded under key support near $130. The low was $129.80. There is no change from my weekend comments:

I do consider this an aggressive trade. GS can be a very volatile stock at times. I'm suggesting a trigger to buy puts at $129.00. If triggered our targets are $121.00 and $116.00. We do not want to hold over the mid July earnings report. FYI: The Point & Figure chart for GS is bearish with a $102 target.

Trigger @ $129.00

- Suggested Positions -

buy the July $125.00 PUT (GS1116S125)

- or -

buy the Aug. $125.00 PUT (GS1120T125)

Entry on June xx at $ xx.xx
Earnings Date 07/19/11 (unconfirmed)
Average Daily Volume = 6.0 million
Listed on June 25, 2011


Public Storage - PSA - close: 111.09 change: +0.36

Stop Loss: 113.55
Target(s): 107.50
Current Option Gain/Loss: -34.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/27 update: Aside from the gap open higher and the failed spike higher this morning shares of PSA spent the day moving sideways in a narrow range. Technically the spike higher this morning was enough to "fill the gap" from last week. Readers could launch new bearish positions now or wait for another failed rally closer to the $112.00 level.

Our target is $107.50. More aggressive traders could aim lower but that would require PSA to breakdown under its simple 200-dma (which is certainly possible, especially if the S&P 500 breaks down under 1260 or 1250.

- Suggested (SMALL) Positions -

Long July $110 PUT (PSA1116S110) Entry @ $2.50

Entry on June 23 at $110.08
Earnings Date 08/04/11 (unconfirmed)
Average Daily Volume = 765 thousand
Listed on June 22, 2011


Transocean Ltd. - RIG - close: 59.81 change: -1.76

Stop Loss: 66.15
Target(s): 58.00, 55.25
Current Option Gain/Loss: +18.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/27 update: RIG outperformed most of its peers today with a bounce off support near $60.00 and a +1.1% gain. The overall trend is still down. There is no change from my weekend comments. RIG is starting to look a little oversold here. 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

06/25 new stop loss @ 65.10
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


Schlumberger Ltd. - SLB - close: 80.64 change: -0.28

Stop Loss: 84.65
Target(s): 76.00, 71.00
Current Option Gain/Loss: -27.8% & - 9.5%
Time Frame: 4 to 5 weeks
New Positions: see below

Comments:
06/27 update: Warning! SLB broke down under support at $80.00, declined low enough to hit our trigger at $79.65, and then bounced back above $80.00 again. This could be a bear-trap move. Our play is open but I would wait for a new relative low under $79.50 before initiating new positions now. More nimble traders could look for a failed rally in the $82-83 zone as their entry point instead. Our targets are $76.00 and $71.00. We do not want to hold over the late July earnings report.

- Suggested Positions -

Long July $77.50 PUT (SLB1116S77.5) Entry @ $1.40

- or -

Long AUG. $75.00 PUT (SLB1120T75) Entry @ $2.10

Entry on June 27 at $79.65
Earnings Date 07/22/11 (unconfirmed)
Average Daily Volume = 7.5 million
Listed on June 25, 2011


SanDisk Corp. - SNDK - close: 40.36 change: +1.46

Stop Loss: 42.55
Target(s): 40.50, 36.50
Current Option Gain/Loss: +116.3% & + 82.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/27 update: SNDK produced an oversold bounce (+3.6%) that stalled near last week's lows. If you haven't taken any money off the table yet I would certainly do so now. SNDK should have some resistance in the $41-42 area. I would not launch new positions here.

- Suggested Positions -

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

- or -

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

06/25 new stop loss @ 42.55, final target 36.50
06/24 1st target hit @ 40.50, Options @ $2.65 (+140.9%) & $1.55 (+124.6%)
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


T.Rowe Price Associates - TROW - close: 57.68 change: +1.17

Stop Loss: 59.05
Target(s): 51.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see Trigger

Comments:
06/27 update: TROW is bouncing from support near $56.00. I don't see any changes from my previous comments. We're not looking for a breakdown under $56.00. I'm suggesting a trigger to launch bearish positions at $55.75. We want to keep our position size very small! This is an aggressive entry point. If triggered we'll use a stop loss at $59.05. Our target will be $51.00.

Trigger @ 55.75

- Suggested Positions -

buy the July $55 PUT (TROW1116S55)

06/25 new strategy. Trigger @ 55.75, stop @ 59.05, Target 51.00

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