Editor's Note:

The market saw a very sharp rebound following better than expected earnings news and words from President Obama that lawmakers were close to getting a deal done on the debt ceiling limit.

Our trades on POT and TDC have been opened. I'm listing new entry points on NUS and SBUX. I'm dropping BJRI for lack of movement.

-James

Current Portfolio:


CALL Play Updates

Agrium Inc. - AGU - close: 90.33 change: +2.25

Stop Loss: 86.90
Target(s): 94.00, 98.00
Current Option Gain/Loss: +14.8% & +22.3%
Time Frame: 4 to 5 weeks
New Positions: see below

Comments:
07/19 update: Tuesday proved to be a very bullish day for stocks. AGU gapped open higher at $89.43 and then rallied past resistance at $90.00. This is also a breakout past the stock's trendline of lower highs. I have been suggesting readers buy a breakout past $90.00 or past the $90.50 mark. While shares closed at $90.33 I would still launch new positions here.

I am raising our stop loss to $86.90.

- Suggested Positions -

Long AUG $90 call (AGU1120H90) Entry @ $2.70

- or -

Long AUG $95 call (AGU1120H95) Entry @ $0.94

07/19 Breakout past $90.00 is a new entry point.
07/19 new stop @ 86.90

Entry on July 11 at $88.54
Earnings Date 08/03/11 (unconfirmed)
Average Daily Volume = 1.7 million
Listed on July 9, 2011


Diamond Foods Inc. - DMND - close: 76.51 change: +2.01

Stop Loss: 73.60
Target(s): 79.50
Current Option Gain/Loss: + 8.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
07/19 update: DMND produced a strong bounce today (+2.7%) but failed to breakout over short-term resistance at its 10-dma. I'm still bullish on this stock but I would hesitate to launch positions right here. Please note our new stop loss at $73.60. FYI: The Point & Figure chart for DMND is bullish with a $90 target.

- Suggested (small) Positions -

Long AUG $75 call (DMND1120H75) Entry @ $2.25

07/19 new stop loss @ 73.60
07/15 triggered at $74.25
07/14 Adjusted entry point to $74.25 and stop to $72.75

Entry on July 15 at $74.25
Earnings Date 10/05/11 (unconfirmed)
Average Daily Volume = 237 thousand
Listed on July 11, 2011


Joy Global - JOYG - close: 98.52 change: +1.85

Stop Loss: 89.00
Target(s): 102.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see trigger

Comments:
07/19 update: JOYG saw a pop higher on Tuesday with a gap open at $97.76 and a surge toward its early July highs. Shares seem to have resistance in the $99.30-100.00 area. I don't want to launch positions just underneath resistance. We do need to adjust our entry point strategy as our buy-the-dip trigger at $91.00 is too low. Right now I am considering a buy-the-dip trigger near $96.00 with a stop under $94.00. Or we could wait for a close over round-number, psychological resistance at $100.00 instead. However, I am not adjusting our entry point just yet. JOYG's rival, FCX, is due to report earnings on Thursday morning. The results from FCX could have a significant impact on JOYG. I would keep positions small.

Trigger @ $91.00 (Small Positions)

- Suggested Positions - Buy the Aug $95 call (JOYG1120H95)

07/18 New trigger @ 91.00. Stop @ 89.00. Still thinking Aggressive traders may want to buy calls now with a stop in the $93.50 area
07/16 Aggressive traders may want to buy calls now instead
07/14 Adjusted strategy. New trigger @ 92.00, stop @ 89.75
07/11 relist this play with a trigger at $93.00 and stop @ 91.40

07/11 JOYG hit our trigger at $96.00 (actually $95.97) and then hit our stop at $94.75. The option opened at $2.32 (ask) and we were stopped out at $2.20 (bid) for a loss of -5.1% We were fortune this loss was not larger!

07/09 Adjusted trigger to $96.00, stop to $94.75, target to $102.00, and option strike to Aug. $100 call.

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


Nu Skin Enterprises - NUS - close: 40.45 change: +0.69

Stop Loss: 38.40
Target(s): 44.00
Current Option Gain/Loss: + 0.0%
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
07/19 update: NUS announced a +19% increase in its quarterly dividend this morning. That may have helped account for the stock's gap open higher. The stock remains short-term overbought with gains in five of the last six weeks. However, the close over resistance at $40.00 is bullish. I am suggesting new (small) positions now with the qualification that both the S&P 500 and NUS both open up tomorrow morning. I am raising our stop loss to $38.40. More conservative traders may want a stop closer to $39.00 instead.

Earlier Comments:
Our target is the $44.00 mark but we will plan to exit ahead of the early August earnings report. FYI: The Point & Figure chart for NUS is bullish with a $62 target. Investors should note that the most recent data did list short interest at 14.4% of the 53.4 million-share float. That does provide some fuel for a short squeeze.

- Suggested Positions -

buy the AUG $40 call (NUS1120H40)
07/19 buy calls tomorrow if NUS and S&P 500 are both up at the open.
07/19 new stop loss @ 38.40
07/18 Our play has not been opened yet. We're going to wait 24 hours and reconsider.

Entry on July 18 at $ xx.xx
Earnings Date 08/02/11 (confirmed)
Average Daily Volume = 700 thousand
Listed on July 16, 2011


Potash Corp. - POT - close: 60.51 change: +1.74

Stop Loss: 56.70
Target(s): 63.75, 68.00
Current Option Gain/Loss: + 6.6%
Time Frame: exit prior to July 28th
New Positions: see below

Comments:
07/19 update: POT saw big gains today. Unfortunately most of those gains were in the form of its gap open higher at $59.98. Last night the plan was to buy calls if both POT and the S&P 500 opened higher this morning. Those conditions were met but it is not the greatest entry point. Odds are POT will try and fill the gap. Readers may want to wait for a dip back to $59.00 and then consider launching new positions. More conservative traders may want a stop loss closer to $57.85.

Earlier Comments:
Our first target is $63.75. Our second, more aggressive target is $68.00. Keep in mind that we have less than two weeks. POT is due to report earnings on July 28th. We do not want to hold over the announcement. Thus the $68 target will probably not get hit. FYI: The Point & Figure chart for POT is bullish with a $76 target.

- Suggested Positions -

Long AUG $60 call (POT1120H60) entry @ $2.40
07/19 Play is opened. POT gapped open at $59.98
07/18 We are still unopened. Try again. Both POT and S&P 500 need to open higher on July 19th to buy calls.
07/18 new stop @ 56.70

Entry on July 19 at $59.98
Earnings Date 07/28/11 (confirmed)
Average Daily Volume = 7.4 million
Listed on July 16, 2011


Starbucks Corp. - SBUX - close: 40.32 change: +0.92

Stop Loss: 38.85
Target(s): 44.00
Current Option Gain/Loss: unopened
Time Frame: up to its earnings report in late July
New Positions: Yes, see below

Comments:
07/19 update: The market's strength was enough to push SBUX through resistance at $40.00. I have been suggesting that if we see SBUX close over resistance at $40.00 we'll buy it. We're going to follow through on that suggestion with a buy SBUX now entry point if both SBUX and the S&P 500 both open higher tomorrow morning. As an alternative nimble traders may want to try and buy a dip near $40.00 instead. Please note our new stop loss at $38.85. We do not want to hold positions over the late July earnings report.

- Suggested (Small) Positions -

buy the AUG $40.00 call (SBUX1120H40)

07/19 buy calls tomorrow if both SBUX and S&P 500 open positive
07/19 new stop loss @ 38.85
07/12 adjust trigger to $38.50
07/11 Our first attempt at a call play on SBUX did not pan out. Shares opened lower at $39.98 and then hit our relatively tight stop loss at $39.45. The option opened at $1.49 (ask) and we were stopped out at $1.22 (bid)for an -18% loss.
We are reloading this trade with a buy-the-dip trigger at $38.75.

Entry on July xx at $ xx.xx
Earnings Date 07/28/11 (unconfirmed)
Average Daily Volume = 6.8 million
Listed on July 9, 2011


Teradata Corp. - TDC - close: 59.31 change: +2.61

Stop Loss: 55.40
Target(s): 62.00
Current Option Gain/Loss: +16.1%
Time Frame: 2 to 3 weeks
New Positions: see below

Comments:
07/19 update: Our new play on TDC has been opened. The stock opened at $57.69 and then immediately surged toward short-term resistance near $60. The stock closed with a +4.6% gain. Volume was above average on the rally, which is a good sign. If you missed the entry point this morning you may want to look for a dip near $58.00 and launch positions there. I am adjusting our stop loss higher to $55.40, keeping it below technical support at the 50-dma. FYI: The Point & Figure chart for TDC is bullish with a $79 target.

- Suggested Positions -

Long AUG $60 call (TDC1120H60) Entry @ $1.55

07/19 new stop @ 55.40
07/19 Trade is open. TDC gaps up at $57.69.

Entry on July 19 at $57.69
Earnings Date 08/04/11 (confirmed)
Average Daily Volume = 1.5 million
Listed on July 18, 2011


PUT Play Updates

FactSet Research - FDS - close: 96.30 change: +2.36

Stop Loss: 100.25
Target(s): 90.50, 86.00
Current Option Gain/Loss: -55.7% & -39.5%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
07/19 update: We knew that an oversold bounce was a risk with our FDS put play. That's why we only wanted to use small positions. The stock should find resistance near $98.00 and its 200-dma at $98.50. More conservative traders might want to consider a lower stop loss than ours at $100.25. A failed rally near the $98.00-98.50 area would be a new bearish entry point.

Earlier Comments:
Our targets are $90.50 and $86.00 but the $90.00 level is support and FDS will probably see a bounce from this level. The Point & Figure chart for FDS is bearish with a $64 target.

- Suggested (SMALL) Positions -

Long AUG $95 PUT (FDS1120T95) Entry @ $3.50

- or -

Long SEP $90 PUT (FDS1117U90) Entry @ $2.40

Entry on July 18 at $94.48
Earnings Date 09/21/11 (unconfirmed)
Average Daily Volume = 363 thousand
Listed on July 16, 2011


CLOSED BULLISH PLAYS

BJ's Restaurants, Inc. - BJRI - close: 54.42 change: +0.03

Stop Loss: 53.15
Target(s): 59.50
Current Option Gain/Loss: -31.6%
Time Frame: about one week
New Positions: see below

Comments:
07/19 update: I am giving up on BJRI. The stock market just had one of its best days in months and BJRI barely budged. We want to exit immediately. The plan was to use small positions to limit our risk.

- Suggested (small) Positions -

Long AUG $55 call (BJRI1120H55) Entry @ $3.00, exit $2.05 (-31.6%)

07/19 Exit early.

chart:

Entry on July 14 at $55.77
Earnings Date 07/21/11 (confirmed)
Average Daily Volume = 245 thousand
Listed on July 13, 2011