Editor's Note:

Our short-term trade on ANF has been closed. The stock surged higher and hit both our upside targets. Meanwhile TIF has hit our first target.

-James

Current Portfolio:


CALL Play Updates

Caterpillar - CAT - close: 108.43 change: -0.19

Stop Loss: 102.25
Target(s): 112.00
Current Option Gain/Loss: Unopened
Time Frame: Until the earnings report
New Positions: Yes, see trigger

Comments:
07/05 update: The market didn't move much on Tuesday and CAT churned sideways on either side of $108.00. We are waiting for a pullback. Broken resistance near its 50-dma and the 100-dma has converged near $105.00, which should now act as new support.

I am suggesting a buy-the-dip entry point to open small bullish positions at $105.50. If triggered we'll use a stop loss at $102.25. Our upside targets will be $109.75 and $112.00 but we'll plan on exiting ahead of the late July earnings report.

Trigger @ 105.50

- Suggested Positions -

Buy the Aug. $110 call (CAT11H110)

Entry on July xx at $ xx.xx
Earnings Date 07/22/11 (unconfirmed)
Average Daily Volume = 8.4 million
Listed on July 2, 2011


Cerner Corp. - CERN - close: 63.00 change: +0.46

Stop Loss: 58.75
Target(s): 64.75
Current Option Gain/Loss: +87.5% & +28.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
07/05 update: CERN continues to show relative strength. The stock added +0.7% and closed above its prior highs in May. This is a new all-time high for CERN. We have a target to exit at $64.75. More aggressive traders may want to aim higher.

More conservative traders may want to exit their July $60 calls right now to lock in a gain, especially with the market short-term overbought.

Earlier Comments:
We do not want to hold over the late July earnings report.

- Suggested (small) Positions -

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

- or -

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

07/02 New stop loss @ 58.75
07/02 Cautious traders may want to exit the July calls now for a gain

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


Joy Global - JOYG - close: 96.70 change: -0.44

Stop Loss: 89.90
Target(s): 99.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see trigger

Comments:
07/05 update: Copper and gold prices managed another gain in spite of a rise in the U.S. dollar today. Meanwhile JOYG dipped toward $95 before paring its losses. Nothing has changed from my prior comments. We are waiting for a pull back. JOYG remains short-term overbought here. I am suggesting we launch small bullish call positions on a dip at $92.75 with a stop loss at $89.90. Our upside target is $99.50. More conservative traders could wait for a dip closer to $92.00 instead as their entry point.

Aggressive traders could use July calls, which expire in about two weeks. I am suggesting the August calls.

Trigger @ $92.75 (Small Positions)

- Suggested Positions -

(Aggressive Traders Only - These Expire in 2 Weeks)
Buy the July $95 call (JOYG1116G95)

- or -

Buy the Aug $95 call (JOYG1120H95)

Entry on June xx at $ xx.xx
Earnings Date 08/31/11 (unconfirmed)
Average Daily Volume = 1.9 million
Listed on June 30, 2011


Norfolk Southern - NSC - close: 75.96 change: -0.97

Stop Loss: 71.99
Target(s): 79.75
Current Option Gain/Loss: Unopened
Time Frame: up until its earnings report.
New Positions: Yes, see trigger

Comments:
07/05 update: NSC saw some profit taking just as we expected. The low today was $75.77. I am suggesting a buy-the-dip entry point at $75.15. More conservative traders might want to wait for a dip closer to the $74.00 area instead. Our target is $79.75 but we do not want to hold over the late July earnings report.

Trigger @ $75.15

- Suggested Positions -

Buy the Aug. $75 call (NSC11H75)

Entry on July xx at $ xx.xx
Earnings Date 07/27/11 (unconfirmed)
Average Daily Volume = 2.3 million
Listed on July 2, 2011


Teradata Corp. - TDC - close: 61.58 change: +0.67

Stop Loss: 54.90
Target(s): 61.00, 64.00
Current Option Gain/Loss: Unopened
Time Frame: 4 to 6 weeks
New Positions: Yes, see trigger

Comments:
07/05 update: Some of the technology stocks were showing relative strength today. TDC continues to climb higher without us. I still do not want to chase it here but we will raise our buy-the-dip trigger from $57.55 to $58.50. I'm adjusting our upside targets to $62.00 and $64.50.

Trigger @ $58.50 - adjusted trigger

- Suggested Positions -

buy the Aug. $60 call (TDC1120H60)

07/05 new trigger @ 58.50, new targets 62.00 and 64.50
07/02 New trigger @ 57.55, new stop @ 54.90, new targets @ 61.00 & 64.00

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: 81.14 change: +1.74

Stop Loss: 74.85
Target(s): 79.75, 84.00
Current Option Gain/Loss: +47.3% & +45.4%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
07/05 update: Target achieved. TIF opened at $79.36 and quickly rallied past resistance at $80.00. Our first target was hit at $79.75. The plan was to exit our July calls at $79.75 and only sell part of our August calls. Our final target for the August calls remains at the $84.00 level.

TIF looks short-term overbought here. I would not open new positions yet. Broken resistance near $78.00 should offer some support as should the rising 30-dma.

- Suggested (SMALL) Positions -

July $77.50 call (TIF1116G77.5) entry @ $1.90, exit 2.80 (+47.3%)

- or -

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

07/05 Target hit @ 79.75, Exit July calls @ 2.80 (+47.3%), Sell half of our August $80 calls @ 2.50 (+2.4%)
07/02 new stop loss @ 74.85
07/02 Cautious traders may want to exit the July calls now with the bid at $2.57 (+35%)

chart:

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


CLOSED BULLISH PLAYS

Abercrombie & Fitch Co - ANF - close: 71.41 change: +2.69

Stop Loss: 64.85
Target(s): 69.50, 71.50
Current Option Gain/Loss: +190.0%
Time Frame: 2 to 3 weeks
New Positions: see below

Comments:
07/05 update: Wow! ANF displayed some impressive strength on Tuesday with a +3.9% gain versus a +0.5% rise in the RLX retail index and a -0.1% drop in the S&P 500. I didn't see any specific news behind today's rally but the breakout past its 50-dma and past the $70.00 level is very bullish.

Our first target to take profits was hit at $69.50 this morning and our secondary target to take profits was hit at $71.50 this afternoon. The play is closed. Readers may want to keep ANF on their watch list for a dip back to $70.00 as a potential entry point to try again.

- Suggested (SMALL) Positions -

July $67.50 call (ANF1116G67.5) Entry @ $1.50, exit $4.35 (+190.0%)

07/05 Targets hit. 1st target hit @ $69.50. option bid @ 2.50 (+66.6%). Final target hit @ $71.50, option bid @ $4.35 (+ 190.0%)

07/02 Cautious traders may want to take profits now. We only have 2 weeks left on July options. Current bid on our July $67.50 call is $2.29 (+52.6%).
07/02 new stop loss @ 64.85

chart:

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