Editor's Note:

The U.S. market rallied for its third day in a row. A plunge in the bond market is helping fuel money flows into equities.

We had PSA and SLB both hit our stop loss today.

-James

Current Portfolio:


CALL Play Updates

Abercrombie & Fitch Co - ANF - close: 67.38 change: +0.40

Stop Loss: 63.45
Target(s): 69.50, 71.50
Current Option Gain/Loss: +21.3%
Time Frame: 2 to 3 weeks
New Positions: see below

Comments:
06/29 update: The U.S. market is up three days in a row and ANF is following suit. Yet the rebound in ANF has stalled at short-term resistance near $68.00. I am not suggesting new positions at this time. We have two targets at $69.50 and $71.50.

- 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


Cerner Corp. - CERN - close: 60.53 change: +0.13

Stop Loss: 57.45
Target(s): 64.75
Current Option Gain/Loss: -21.8% & -18.7%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/29 update: CERN did not see a lot of follow through on yesterday's rally. Shares opened at $60.76 and then drifted sideways. I'm not impressed. Readers may want to wait for another dip near $60.00 or the 40-dma before initiating positions.

There is some resistance in the $62.50 area but I'm setting our target at $64.75. We do not want to hold over the late July earnings report. Keep in mind that July options expire in less than three weeks.

- Suggested (small) Positions -

Long July $60 call (CERN1116G60) Entry @ $1.60

- or -

Long Aug. $62.50 call (CERN1120H62.5) Entry @ $1.60

Entry on June 29 at $60.76
Earnings Date 07/28/11 (unconfirmed)
Average Daily Volume = 624 thousand
Listed on June 28, 2011


Teradata Corp. - TDC - close: 59.32 change: -0.26

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:
06/29 update: As expected TDC ran into resistance at the $60.00 level. We're still waiting for a pull back. 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 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: 77.74 change: -0.19

Stop Loss: 73.25
Target(s): 79.75, 84.00
Current Option Gain/Loss: - 7.8% & -10.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/29 update: TIF struggled to participate in the stock market's rally today. Shares did tag a new intraday high but rolled over late this afternoon. This is worrisome. I would expect a dip toward the $76-75 area. Readers may want to wait for the dip before considering new positions. 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: 85.84 change: -0.27

Stop Loss: --.--
Target(s): 81.50
Current Option Gain/Loss: -100.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/29 update: BDX is still churning sideways under resistance at the top of its trading range in the $86.50-87.00 zone. 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: 69.41 change: +1.31

Stop Loss: 70.55
Target(s): 64.50, 62.50
Current Option Gain/Loss: -60.7% & -66.6%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
06/29 update: Oil service stocks continued to bounce as crude oil prices rallied. DO has rallied to round-number resistance at the $70.00 level. We have a stop loss at $70.55. More aggressive traders may want to widen their stop and raise theirs to $71.15 so it's above additional resistance at the 50-dma and the 200-dma instead.

The intermediate trend for DO is still down but short-term this sector looks poised to bounce again tomorrow and DO will likely hit our stop loss.

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: 132.53 change: +3.27

Stop Loss: 135.55
Target(s): 121.00, 116.00
Current Option Gain/Loss: -63.0% & -39.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/29 update: Financial stocks were some of the best market performers today and GS decided to join the party. Shares rallied immediately at the open and managed to push up through the $130 level and the $132 level of resistance. The next level is the $134.00 mark. Today's bounce certainly makes yesterday's breakdown look like a bear-trap type of move. If the banks rally again tomorrow we'll likely get stopped out. Please note that I'm inching up our stop loss to $135.55. The simple 30-dma has been resistance recently and it's at $135.25 so I want to give GS just a little bit more room. I am not suggesting new positions at this time.

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

06/29 new stop loss @ 135.55

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


Transocean Ltd. - RIG - close: 63.99 change: +2.26

Stop Loss: 65.10
Target(s): 58.00, 55.25
Current Option Gain/Loss: -68.9%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/29 update: We have been expecting RIG to see an oversold bounce (which was why I was suggesting cautious traders exit early). I warned readers to look for resistance in the $64-65 area. We have a stop at $65.10. Aggressive traders may want to widen their stop and place it higher, above the $66 or the 50-dma. 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

06/29 RIG is bouncing as expected.
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


SanDisk Corp. - SNDK - close: 40.49 change: -0.28

Stop Loss: 42.55
Target(s): 40.50, 36.50
Current Option Gain/Loss: + 91.8% & + 46.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/29 update: SNDK is still underperforming the market but that doesn't mean the oversold bounce is over. I am not suggesting new bearish positions at this time.

- 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: 59.28 change: +0.75

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:
06/29 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


CLOSED BEARISH PLAYS

Public Storage - PSA - close: 113.54 change: +1.69

Stop Loss: 113.55
Target(s): 107.50
Current Option Gain/Loss: -74.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/29 update: We have been stopped out of PSA. The rebound continues and shares powered past resistance at the 100-dma and the $113.00 level. The stock hit our stop loss at $113.55.

- Suggested (SMALL) Positions -

July $110 PUT (PSA1116S110) Entry @ $2.50, exit $0.65 (-74%)

06/29 stopped out @ 113.55, option @ -74%

chart:

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


Schlumberger Ltd. - SLB - close: 85.21 change: +0.86

Stop Loss: 84.65
Target(s): 76.00, 71.00
Current Option Gain/Loss: -80.7% & -57.1%
Time Frame: 4 to 5 weeks
New Positions: see below

Comments:
06/29 update: After yesterday's unexpected reversal higher I warned readers that SLB would probably hit our stop loss today. Shares actually gapped open higher at $84.82. Our stop loss was at $84.65 so the play was closed immediately.

- Suggested Positions -

July $77.50 PUT (SLB1116S77.5) Entry @ $1.40, exit 0.27 (-80.7%)

- or -

AUG. $75.00 PUT (SLB1120T75) Entry @ $2.10, exit 0.90 (-57.1%)

06/29 stopped out/gap open exit. options @ -80.7% & -57.1%

chart:

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