Editor's Note:

Positive news on the EU's attempts to handle Greece and hopes that U.S. politicians are closer to a debt ceiling deal helped fuel gains. Q2 earnings announcements continue to come in better than expected and today's economic data was mostly better than expected.

I am suggesting a new entry point strategy on JOYG. Plus, SBUX is offering another entry point.

-James

Current Portfolio:


CALL Play Updates

Agrium Inc. - AGU - close: 91.82 change: +1.11

Stop Loss: 87.75
Target(s): 94.00, 98.00
Current Option Gain/Loss: +40.7% & +54.2%
Time Frame: 4 to 5 weeks
New Positions: see below

Comments:
07/21 update: AGU extended its gains with a +1.2% rally. The stock is nearing what might be resistance at its late April highs (around $92.50ish). I am not suggesting new positions at this time but another dip or a bounce near $90.00 could work as an entry point. We will raise our stop loss to $87.75.

- Suggested Positions -

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

- or -

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

07/21 New stop @ 87.75
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: 75.24 change: +0.64

Stop Loss: 73.60
Target(s): 79.50
Current Option Gain/Loss: -22.2%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
07/21 update: DMND produced a +0.8% gain but the rally stalled near $76.00 this morning. Shares still look vulnerable here. With the stock above technical resistance at the 30-dma I would be tempted to buy calls but this is becoming a higher-risk trade. More conservative traders may want to wait for DMND to break the short-term trend of lower highs. 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: 71.86 change: +0.67

Stop Loss: 67.75
Target(s): 76.50
Current Option Gain/Loss: +12.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
07/21 update: HP barely managed to outpace the rally in the OSX oil services index today. Shares did close at new highs. Readers may want to wait for a dip or a bounce near $70.00 again before initiating new positions. 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: 100.32 change: +3.23

Stop Loss: 96.45
Target(s): 104.50, 107.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Comments:
07/21 update: Another widespread rally, positive earnings from rival FCX, and a plunge in the dollar helped lift JOYG over resistance at the $100 level. You could argue that shares still have resistance in the $102-103 area. I see those highs as part of a trendline of lower highs that have been broken (see chart below). We've been looking for a new entry point. This is it. We'll launch call positions tomorrow morning if both JOYG and the S&P 500 are both positive at the open. We'll move our stop loss to $96.45.

I do consider this aggressive entry point and we should consider this a higher-risk trade. Thus we want to keep our position size small.

Open SMALL positions if JOYG and S&P 500 are positive at the open.

- Suggested Positions - Buy the Aug $100 call (JOYG1120H100)

07/21 New entry point. Buy calls, small positions only, if the stock and the S&P 500 are positive at the open.
07/21 New stop loss @ 96.45. New targets are $104.50 and $107.50
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.

chart:

Entry on July 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: 69.77 change: +0.82

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:
07/21 update: MJN produced a sharp rally this morning. Shares actually hit a new all-time high above $70.00 but shares did not hit our trigger to buy calls at $70.25. The stock struggled with resistance at $70.00 an could get past it the rest of the day. 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: 40.00 change: -0.08

Stop Loss: 38.40
Target(s): 44.00
Current Option Gain/Loss: -14.2%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
07/21 update: Uh-oh! NUS did not participate in the market's widespread rally today. Shares churned sideways on either side of $40.00 and actually posted a loss. That's not a good sign. I've been warning readers to expect a dip toward the 10-dma but it's worrisome if NUS is dipping while the market is climbing. I would hesitate to launch new positions here.

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: 60.71 change: +0.02

Stop Loss: 56.70
Target(s): 63.75, 68.00
Current Option Gain/Loss: + 7.5%
Time Frame: exit prior to July 28th
New Positions: see below

Comments:
07/21 update: Hmm... the lack of action in POT is also a concern. The U.S. markets were in rally mode today but POT could not breakout from this short-term, narrow trading range above $60.00. I am not suggesting new positions at this time. Nimble traders could look for a dip or a bounce near $59.00 as a potential entry point.

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: 40.38 change: +0.55

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:
07/21 update: Once again SBUX has closed over short-term, round-number resistance at $40.00. I am suggesting we buy calls now if SBUX and the S&P 500 are both positive tomorrow at the opening bell. Keep in mind this is going to be a short-term trade. SBUX is expected to report earnings next Thursday on July 28th but that date has not been confirmed yet. We do not want to hold over this report. That means, if we're triggered, we'll exit next Wednesday at the close or next Thursday at the closing bell to avoid holding over earnings.

- Suggested (Small) Positions -

buy the AUG $40.00 call (SBUX1120H40)

07/21 Try again. Buy calls tomorrow if SBUX and S&P 500 are positive at the open
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: 56.83 change: -0.58

Stop Loss: 55.40
Target(s): 62.00
Current Option Gain/Loss: -45.1%
Time Frame: 2 to 3 weeks
New Positions: see below

Comments:
07/21 update: TDC has been a big disappointment so far. Shares underperformed the market again. This time, today's -1.0% follows a bearish engulfing candlestick pattern. At the moment TDC is still holding above long-term technical support at the simple 50-dma. If this moving average had not been such a consistent level of support I would exit early now. More conservative traders may want to do just that and exit now. I am not suggesting new positions at this time. FYI: The Point & Figure chart for TDC is bullish with a $79 target.

- Suggested Positions -

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

07/21 TDC is underperforming. Cautious traders may want to exit
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: 96.32 change: +1.30

Stop Loss: 100.25
Target(s): 90.50, 86.00
Current Option Gain/Loss: -52.8% & -43.7%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
07/21 update: Today's bounce in FDS was just enough to erase yesterday's loss but the stock did not set a new relative high. Shares still have very significant resistance in the $98.00-99.00 area but I am not suggesting new bearish positions at this time.

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