Editor's Note:

The stock market churned sideways while investors waited on a deal for the debt ceiling talks and word from the latest EU bailout meetings.

The market's major indices did not move much but some of our trading candidates sure did. DMND and TDC both saw sharp declines but failed to break support. Our HP play is open but our SBUX did not get filled.

-James

Current Portfolio:


CALL Play Updates

Agrium Inc. - AGU - close: 90.71 change: +0.38

Stop Loss: 86.90
Target(s): 94.00, 98.00
Current Option Gain/Loss: +22.2% & +27.6%
Time Frame: 4 to 5 weeks
New Positions: see below

Comments:
07/20 update: AGU swooned a little bit this morning but traders bought the dip at $89.75. Volume was very light. I remain bullish on the stock with shares above resistance at $90.00.

- 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: 74.60 change: -1.91

Stop Loss: 73.60
Target(s): 79.50
Current Option Gain/Loss: -26.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
07/20 update: Ouch! What happened to DMND today? The stock spiked higher and then immediately reversed lower to eventually settle with a -2.49% loss. I could not find any company specific news to account for this weakness. My first thought is a competitor may have reported negative earnings but I couldn't find any headlines suggesting that may have happened. Shares of DMND still held at technical support at the 30-dma. The relative weakness makes me concerned but we can still buy calls on a bounce here. 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


Helmerich & Payne Inc. - HP - close: 71.19 change: -0.11

Stop Loss: 67.75
Target(s): 76.50
Current Option Gain/Loss: - 4.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
07/20 update: Our new trade in HP has been opened with both the stock and the S&P 500 opening higher today. HP did not see much follow through on yesterday's breakout but shares remain above prior resistance at $70.00. I would still consider new positions here. Nimble traders might want to try and buy a dip near the $70.00 level instead. Our target is $76.50. We do not want to hold over the July 29th earnings report. FYI: The Point & Figure chart for HP is bullish with a $90 target.

- Suggested Positions -

Long AUG $75 call (HP1120H75) Entry @ $1.25

Entry on July 20 at $71.49
Earnings Date 07/29/11 (confirmed)
Average Daily Volume = 1.3 million
Listed on July 19, 2011


Joy Global - JOYG - close: 97.09 change: -1.43

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:
07/20 update: Hmm... JOYG did produce a dip to $96.00 as I expected. Unfortunately the action today looks like a bearish engulfing candlestick pattern. I'm less inclined to buy this dip. We remain in search of the right entry point here. Our current entry point at $91.00 is too low. Let's wait and see if JOYG confirms the bearish reversal today or bounces.

FYI: JOYG's rival, FCX, is due to report earnings on Thursday morning. The results from FCX could have a significant impact on JOYG.

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


Mead Johnson Nutrition Co. - MJN - close: 68.95 change: -0.89

Stop Loss: 67.99
Target(s): 74.75
Current Option Gain/Loss: Unopened
Time Frame: up to July 27th.
New Positions: Yes, see below

Comments:
07/20 update: MJN produced a failed rally at resistance near $70.00 this morning. Shares retreated back tot he middle of its trading range near $69. Chart readers might notice that the MACD on the daily chart is nearing a new sell signal and producing a lower high. Yet I would still buy calls on a breakout above resistance. I'm suggesting a trigger at $70.25.

If triggered we'll start with a stop loss at $67.99 and a target at $74.75. More conservative traders may want to consider a stop closer to $69 instead. We do not want to hold over the July 28th earnings report. FYI: The Point & Figure chart for MJN is bullish with a $95 target.

Trigger @ 70.25

- Suggested Positions -

buy the AUG $70 call (MJN1120H70) current ask $1.81

Entry on July xx at $ xx.xx
Earnings Date 07/28/11 (confirmed)
Average Daily Volume = 1.1 million
Listed on July 19, 2011


Nu Skin Enterprises - NUS - close: 40.08 change: -0.37

Stop Loss: 38.40
Target(s): 44.00
Current Option Gain/Loss: - 9.5%
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
07/20 update: Our NUS trade has been opened. Both the stock and the S&P 500 opened higher. Unfortunately, NUS' spike higher this morning quickly faded. Shares lost -0.9% and ended the day hovering near round-number support/resistance at $40.00. Nimble traders may want to look for a dip or a bounce near the rising 10-dma before initiating new positions.

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 -

Long AUG $40 call (NUS1120H40) Entry @ $2.10
07/20 Entered at $40.80
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 20 at $40.80
Earnings Date 08/02/11 (confirmed)
Average Daily Volume = 700 thousand
Listed on July 16, 2011


Potash Corp. - POT - close: 60.69 change: +0.18

Stop Loss: 56.70
Target(s): 63.75, 68.00
Current Option Gain/Loss: + 8.7%
Time Frame: exit prior to July 28th
New Positions: see below

Comments:
07/20 update: POT spent the day churning sideways in a narrow range. I don't see any changes from my prior comments. Readers may want to wait for shares to fill the gap and dip toward $59.00 before initiating new bullish 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: 39.83 change: -0.49

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:
07/20 update: I am surprised. Our trade on SBUX is still not open. The S&P 500 opened higher but SBUX actually opened lower this morning. The managed a bounce off short-term technical support at its 20-dma. SBUX eventually closed with a -1.2% decline. If we see SBUX close over $40.00 again we'll try again. However, we're running out of time. We do not want to hold over the July 28th earnings report.

- Suggested (Small) Positions -

buy the AUG $40.00 call (SBUX1120H40)

07/20 Trade was not opened. Wait for a close over $40.00
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: 57.41 change: -1.90

Stop Loss: 55.40
Target(s): 62.00
Current Option Gain/Loss: -25.8%
Time Frame: 2 to 3 weeks
New Positions: see below

Comments:
07/20 update: It was an ugly day for TDC. Shares reversed hard this morning and closed down -3.2%. A potential catalyst for this relative weakness was a bearish article by Morningstar this morning discussing growing competition for TDC's business. The sell-off today is worrisome but TDC has not broken support yet. Readers could wait for another bounce from its 50-dma (near $56.40) to launch positions. 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: 95.02 change: -1.28

Stop Loss: 100.25
Target(s): 90.50, 86.00
Current Option Gain/Loss: -32.8% & -29.1%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
07/20 update: There was no follow through higher on yesterday's oversold bounce. That's good news for the bears. Although I would have rather seen a failed rally near resistance at $98 or the 200-dma. I'm not suggesting new positions at the moment.

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