Editor's Note:

Wednesday turned out to be another quiet summer day on Wall Street. Investors are not in a rush to launch new positions after last week's run up and ahead of Friday's jobs report.

-James

Current Portfolio:


CALL Play Updates

Caterpillar - CAT - close: 110.08 change: +1.65

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:
07/06 update: CAT continues to show relative strength with another +1.5% gain on Wednesday. Shares are testing round-number resistance at $110. I still would not chase it with the stock up sharply from $95 three weeks ago. Our plan has not changed.

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: 63.66 change: +0.66

Stop Loss: 58.75
Target(s): 64.75
Current Option Gain/Loss: +125.0% & +65.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
07/06 update: CERN is also showing relative strength. Shares gained another +1.0% with another new high. There is no change from my prior comments. 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: 96.72 change: +0.02

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:
07/06 update: JOYG, much like the market's major averages, is just drifting sideways and sitting on last week's hefty gains. The stock remains short-term overbought. There is no change from my prior comments.

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 - 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: 76.43 change: +0.47

Stop Loss: 71.75
Target(s): 79.75
Current Option Gain/Loss: Unopened
Time Frame: up until its earnings report.
New Positions: Yes, see trigger

Comments:
07/06 update: NSC rebounded from its morning lows near $75.75 and spent the rest of the day moving sideways. I am actually adjusting our entry point lower from $75.15 to $74.50. We'll inch the stop loss down to $71.75. 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)

07/06 adjusted entry trigger to $74.50 and stop to 71.75

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: 61.63 change: +0.05

Stop Loss: 54.90
Target(s): 62.00, 64.50
Current Option Gain/Loss: Unopened
Time Frame: 4 to 6 weeks
New Positions: Yes, see trigger

Comments:
07/06 update: Wednesday was a quiet day for TDC with shares consolidating sideways. There is no change from my prior comments. We do not want to chase it. I am suggesting bullish positions on a dip to $58.50.

Trigger @ $58.50

- 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: 81.43 change: +0.29

Stop Loss: 74.85
Target(s): 79.75, 84.00
Current Option Gain/Loss: -------- +51.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
07/06 update: The rally in TIF almost made it to $82.00 before paring its gains today. There is no change from my prior comments. TIF is short-term overbought and due for a pull back.

We have sold our July calls and we're setting on what is left of our August calls. Our final target for the August calls remains at the $84.00 level.

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 -

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%)

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


Toyota Motor Corp. - TM - close: 84.27 change: +0.67

Stop Loss: 79.40
Target(s): 85.75, 89.50
Current Option Gain/Loss: Unopened
Time Frame: 4 to 6 weeks
New Positions: Yes, see Trigger

Comments:
07/06 update: TM was showing some relative strength today with a +0.8% gain. The stock is at its May highs and is nearing potential resistance at $85.00.

We don't want to launch new positions right here. I am suggesting we buy calls on a dip at $82.00 with a stop loss at $79.40, under the simple 200-dma. Our target is $85.75 and $89.50. We'll plan on exiting ahead of the early August earnings report.

NOTE: Shares of TM traded here in the U.S. gap open (up or down) every day as the stock adjusts for trading back home in Japan. This can be a frustrating experience with the gaps every day. We may not get triggered at $82.00. The play could be opened on a gap down below this level.

Trigger @ $82.00

- Suggested Positions -

buy the Aug. $82.50 call (TM1120H82.5) current ask $3.05

- or -

buy the Aug. $85 call (TM1120H85) current ask $1.75

Entry on July xx at $ xx.xx
Earnings Date 08/01/11 (unconfirmed)
Average Daily Volume = 539 thousand
Listed on July 05, 2011


PUT Play Updates

Scotts Miracle Gro Co. - SMG - close: 50.56 change: +0.14

Stop Loss: 52.51
Target(s): 47.50, 45.50
Current Option Gain/Loss: - 8.3%
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
07/06 update: SMG produced a minor bounce from the $50 level but the larger trend remains bearish. I would still launch small bearish positions here at current levels. Our targets are $47.50 and $45.50.

- Suggested (small) Positions -

Long Aug. $50 PUT (SMG1120T50) Entry @ $1.80

Entry on July 6 at $50.20
Earnings Date 08/02/11 (confirmed)
Average Daily Volume = 991 thousand
Listed on July 5, 2011