Editor's Note:

The end of quarter window dressing continues as stocks rally toward the end of the month. GS bucked the trend and hit our trigger to buy puts. Meanwhile oil service stocks were some of the stronger performers today and SLB is on the verge of hitting our stop loss.

-James

Current Portfolio:


CALL Play Updates

Abercrombie & Fitch Co - ANF - close: 66.98 change: +1.74

Stop Loss: 63.45
Target(s): 69.50, 71.50
Current Option Gain/Loss: +27.3%
Time Frame: 2 to 3 weeks
New Positions: see below

Comments:
06/28 update: The end of June window dressing continues and ANF rallied +2.6%. Shares opened at $65.48 and surged higher but the rally started to lose steam. Volume was light as well. This remains a short-term, aggressive trade. Our first target is $69.50. I'm adding a secondary target at $71.50 but ANF would have to rally past resistance at $70.00 and the 50-dma to get there.

- Suggested (SMALL) Positions -

Long July $67.50 call (ANF1116G67.5) Entry @ $1.50

Entry on June 28 at $65.48
Earnings Date 08/17/11 (unconfirmed)
Average Daily Volume = 2.8 million
Listed on June 27, 2011


Teradata Corp. - TDC - close: 59.58 change: +1.65

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:
06/28 update: Hmm... I am starting to think we have missed the entry point in TDC. Shares soared another +2.8% and rallied toward resistance at $60.00. I don't want to chase it here but the stock could definitely keep going as fund managers look for winners to dress up their portfolio.

At the moment we have a buy-the-dip entry point to buy calls at $56.50. FYI: TDC's P&F chart has produced a new triple-top breakout buy signal with a $79 target.

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


Tiffany & Co. - TIF - close: 77.93 change: +1.55

Stop Loss: 73.25
Target(s): 79.75, 84.00
Current Option Gain/Loss: + 7.3% & - 1.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/28 update: TIF opened higher at $76.80 and rallied to a +2.0% gain. Shares are above recent resistance at $77.00 and set a new all-time closing high. Our targets are $79.75 for the July calls and $79.75 and $84.00 for the August calls.

- Suggested (SMALL) Positions -

Long July $77.50 call (TIF1116G77.5) entry @ $1.90

- or -

Long Aug. $80 call (TIF1120H80) entry @ $2.44

Entry on June 28 at $76.80
Earnings Date 08/26/11 (unconfirmed)
Average Daily Volume = 1.8 million
Listed on June 27, 2011


PUT Play Updates

Becton, Dickinson and Company - BDX - close: 86.11 change: +0.86

Stop Loss: --.--
Target(s): 81.50
Current Option Gain/Loss: - 90.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/28 update: BDX is bouncing back toward the top of its trading range. The stock should have resistance near $87.00 but if the market continues to rally at its current pace BDX could breakout. I am not suggesting new bearish positions at this time.

- 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: 68.10 change: +0.61

Stop Loss: 70.55
Target(s): 64.50, 62.50
Current Option Gain/Loss: -31.5% & -41.8%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
06/28 update: Oil service stocks were big performers today but DO continues to lag behind its peers. Shares spiked to $69.34 intraday and settled with a +0.9% gain versus a +3.7% gain for the OSX index. The $70.00 level should be resistance for DO but I'm not suggesting new bearish 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

- 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: 129.26 change: -1.45

Stop Loss: 135.25
Target(s): 121.00, 116.00
Current Option Gain/Loss: - 8.4% & - 5.9%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/28 update: Goldman Sachs continues to underperform the market and underperform the financials. The stock broke down under support at $130.00 and traded to $128.30 intraday. Our trigger to buy puts was hit at $129.00 and I would still consider new put positions now. GS should have short-term overhead resistance at $130, $132 and $134. We have a stop loss at $135.25.

I do consider this an aggressive trade. GS can be a very volatile stock at times. 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.

- Suggested Positions -

Long July $125.00 PUT (GS1116S125) entry @ 1.65

- or -

Long Aug. $125.00 PUT (GS1120T125) entry @ 4.20

chart:

Entry on June 28 at $129.00
Earnings Date 07/19/11 (unconfirmed)
Average Daily Volume = 6.0 million
Listed on June 25, 2011


Public Storage - PSA - close: 111.85 change: +0.76

Stop Loss: 113.55
Target(s): 107.50
Current Option Gain/Loss: -50.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/28 update: The stock market's widespread gains continues to fuel a bounce in PSA. Shares are now testing overhead resistance near $112.00 and its 100-dma. Technically this could be another entry point to buy puts but readers might want to wait for a reversal first.

Our target is $107.50.

- 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: 61.73 change: +1.21

Stop Loss: 65.10
Target(s): 58.00, 55.25
Current Option Gain/Loss: -18.9%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/28 update: I have been warning readers to expect an oversold bounce in RIG. Shares could easily rebound back toward the $64-65 area. More conservative traders may want to exit early. 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: -76.4% & -46.6%
Time Frame: 4 to 5 weeks
New Positions: see below

Comments:
06/28 update: We are getting whipsawed in SLB. I warned readers that yesterday's intraday breakdown and reversal higher looked like a bear trap. Today shares rocketed higher with a +4.6% surge toward resistance at its 50-dma. The high today was $84.61. Our stop loss is at $84.65. Odds are really good we're going to get stopped out tomorrow. Since the damage is already done we might as well hang on and see if shares actually hit our stop or will they see some profit taking tomorrow.

I am not suggesting new positions at this time. FYI: Volume was well above average today in spite of the market's low volume.

- 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: 40.77 change: +0.41

Stop Loss: 42.55
Target(s): 40.50, 36.50
Current Option Gain/Loss: + 89.0% & + 50.7%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/28 update: The bounce in SNDK continues but shares couldn't get past the $40.80 level. I am still expecting overhead 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: 58.53 change: +0.85

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:
06/28 update: There is no change from my prior comments on TROW. We're currently waiting for a breakdown under $56.00 with a trigger to launch positions at $55.75. We will keep an eye on overhead resistance at $60.00 and its 50 and 200-dma. A failed rally near this area might be an alternative entry point.

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