Editor's Note:

Shares of Fluor Corp. (FLR) hit our bearish exit target today. Meanwhile, I am suggesting we wait on launching new put positions on the IWM. Plus, we want to take profits on our HUM trade at the open tomorrow.

Current Portfolio:


CALL Play Updates

Amgen Inc. - AMGN - close: 70.54 change: -0.44

Stop Loss: 69.40
Target(s): 74.90
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Comments:
05/17 update: Hmmm...I checked a couple of different quote services. Both listed the intraday high at $71.18 in AMGN. Yet if you look at an intraday chart shares appeared to open near $71.40. We're going to go with the official quote data, which means our AMGN trade is not open yet.

The plan has been to buy calls if AMGN trades at $71.25 or higher. I am going to move that trigger up to $71.50 instead. We'll move the stop loss up to $69.40.

Trigger @ $71.50 (small positions)

- Suggested Positions -

buy the Jun $70 call (AMGN1216F70)

05/17/12 adjusted trigger to $71.50.

Entry on May xx at $ xx.xx
Earnings Date 07/26/12 (unconfirmed)
Average Daily Volume = 3.9 million
Listed on May 08, 2012


Mead Johson Nutrition - MJN - close: 82.53 change: -1.73

Stop Loss: 82.25
Target(s): 89.25
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Comments:
05/17 update: MJN is not off to a good start. Shares succumbed to the market's widespread weakness and erased yesterday's gains with a -2.0% pullback today. If MJN closes under $82.00 we'll drop it as a bullish candidate. Currently I am suggesting a trigger to buy calls at $85.05. We'll use a stop loss at $82.25, just under Tuesday's low. Our target is $89.25.

Trigger @ 85.05

- Suggested Positions -

buy the Jun $85 call (MJN1216F85)

Entry on May xx at $ xx.xx
Earnings Date 07/26/12 (unconfirmed)
Average Daily Volume = 1.7 million
Listed on May 16, 2012


PUT Play Updates

Baidu, Inc. - BIDU - close: 117.40 change: -4.86

Stop Loss: 125.50
Target(s): 115.50
Current Option Gain/Loss:(May125P: +128.5%) & Jun120P: +145.7%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/17 update: After consolidating sideways the last few days BIDU broke down sharply today and fell to new relative lows. Today's close under potential support at $120 is definitely bearish. I am tweaking our exit target to $115.50. Cautious traders will want to take profits now (currently +145% on the June puts). Aggressive traders may want to aim lower. I am moving our stop loss down to $125.50.

- Suggested Positions -

-closed position-
May $125 put (BIDU1219Q125) Entry $2.10, exit $4.80 (+128.5%)

- or -

Long Jun $120 put (BIDU1216R120) Entry $2.95

05/17/12 new stop loss @ 125.50, adjust exit to $115.50
05/14/12 planned exit to sell our May $125 puts at the open this morning.
They opened with a bid at $4.80 (+128.5%)
05/12/12 new stop loss @ 130.25
Prepare to exit May $125 puts at the open on Monday, current bid $4.05
05/08/12 BIDU gapped open lower at $127.01

Entry on May 08 at $127.01
Earnings Date 07/25/12 (unconfirmed)
Average Daily Volume = 5.0 million
Listed on May 07, 2012


Fiserv, Inc. - FISV - close: 65.33 change: -0.63

Stop Loss: 68.25
Target(s): 63.50
Current Option Gain/Loss:(May$70p: +12.5%) & Jun65P: +61.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/17 update: FISV closed under technical support at its 100-dma today. Shares have yet to breakdown under the $65.00 level. I am not suggesting new positions at this time. I am lowering our stop loss down to $68.25.

- Suggested Positions -

- closed position -
May $70 put (FISV1219Q70) Entry $3.02 exit $3.40 (+12.5%)

- or -

Long Jun $65 put (FISV1216R65) Entry $0.90

05/17/12 new stop loss @ 68.25
05/15/12 closed May $70 puts at the open: bid @ 3.40 (+12.5%)
05/14/12 prepare to exit the May $70 puts at the open tomorrow
05/07/12 triggered on gap down at $67.26 (our trigger was 67.40)

Entry on May 07 at $67.26
Earnings Date 05/01/12
Average Daily Volume = 693 thousand
Listed on May 05, 2012


General Dynamic - GD - close: 63.72 change: -1.48

Stop Loss: 66.55
Target(s): 61.50
Current Option Gain/Loss: +56.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/17 update: We are finally starting to see some follow through lower on GD. Shares broke down under $65.00 and underperformed the market with a -2.2% decline. I am moving our stop loss down to $66.55.

FYI: The Point & Figure chart for GD is bearish with a $60 target.

- Suggested Positions -

Long Jun $65 PUT (GD1216R65) Entry $1.50

05/17/12 new stop loss @ 66.55
05/15/12 triggered @ 65.75

Entry on May 15 at $65.75
Earnings Date 07/25/12 (unconfirmed)
Average Daily Volume = 1.9 million
Listed on May 09, 2012


Humana Inc. - HUM - close: 75.68 change: -0.38

Stop Loss: 80.25
Target(s): 71.50
Current Option Gain/Loss: Jun80p: +70.0% Jun75P: +91.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/17 update: Change of plans!

I am suggesting an early exit in our HUM trade. We want to exit positions at the open tomorrow. The trend is down but HUM is short-term oversold here. I've been warning you that the $75 area could be support. I'd rather take profits now and we can look at new bearish positions again if the bounce fails near $80.

- Suggested Positions -

Long Jun $80 put (HUM1216R80) Entry $3.00

- or -

Long Jun $75 put (HUM1216R75) Entry $1.15

05/17/12 Prepare to exit positions at the open tomorrow
05/16/12 new stop loss @ 80.25

Entry on May 10 at $79.56
Earnings Date 07/30/12 (unconfirmed)
Average Daily Volume = 2.0 million
Listed on May 09, 2012


Informatica - INFA - close: 42.27 change: -0.13

Stop Loss: 45.25
Target(s): 40.25
Current Option Gain/Loss: +50.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/17 update: After yesterday's big drop shares of INFA tried to produce an oversold bounce but the rebound didn't get very far. I am not suggesting new positions at this time. FYI: The Point & Figure chart for INFA is bearish with a $39 target.

- Suggested Positions -

Long Jun $45 PUT (INFA1216R45) Entry $2.40

05/16/12 new stop loss @ 45.25
05/14/12 triggered at $44.50

Entry on May 14 at $44.50
Earnings Date 07/26/12 (unconfirmed)
Average Daily Volume = 1.3 million
Listed on May 10, 2012


iShares Russell 2000 ETF - IWM - close: 75.40 change: -1.76

Stop Loss: 80.05
Target(s): 72.00-70.00 zone
Current Option Gain/Loss: Unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Comments:
05/17 update: - Strategy change! -

We have been expecting a breakdown in the IWM but the plunge under $77 was a bit more dramatic than I expected. This ETF closed at $77.16 yesterday and then fell to technical support at its 200-dma today. Our prior strategy was to wait for IWM to close under $77.00 and then buy puts the next day, which would be tomorrow. However, I am suggesting we make some changes here.

I remain bearish on the IWM. The breakdown from its head-and-shoulders pattern is still forecasting much lower levels. Yet the market is oversold here and there is a good chance the IWM bounces tomorrow.

I want to wait on buying puts. Let's wait and see if the IWM does bounce tomorrow or not. Nimble traders could look for a failed rally near the $78.00 level as a new entry point since $78.00 should be new resistance. We will wait and see where the IWM closes on Friday and re-evaluate our entry point over the weekend.

Temporarily removing our entry point.

Just wait and watch tomorrow. We'll re-evaluate this weekend.

05/17/12 temporarily wait on buying puts. We will re-evaluate tomorrow.

Entry on May xx at $ xx.xx
Earnings Date --/--/--
Average Daily Volume = 53 million
Listed on May 12, 2012


Siemens AG - SI - close: 83.02 change: -1.20

Stop Loss: 87.75
Target(s): 80.25
Current Option Gain/Loss: +33.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/17 update: SI fell to another new 52-week low with a -1.4% decline today. More conservative traders might want to lower their stops. I am not suggesting new positions at this time. FYI: The Point & Figure chart for SI is bearish with a $74 target.

- Suggested (SMALL) Positions -

Long Jun $80 PUT (SI1216R80) Entry $1.35

05/16/12 SI gapped open higher at $84.94

Entry on May 16 at $84.94
Earnings Date --/--/--
Average Daily Volume = 832 thousand
Listed on May 15, 2012


Tiffany & Co. - TIF - close: 60.07 change: -2.08

Stop Loss: 64.25
Target(s): 59.00
Current Option Gain/Loss: +22.5%
Time Frame: exit prior to the May 24th earnings report
New Positions: see below

Comments:
05/17 update: TIF raised its dividend by 10% to 32 cents a share yet the news failed to life the stock price. TIF actually underperformed with a -3.3% plunge toward the $60.00 mark. It is possible that $60.00 is round-number support so readers may want to take profits right now.

I am not suggesting new positions at this time. Our exit target is $59.00. We do not want to hold over the May 24th earnings report.

- Suggested Positions -

Long Jun $60 put (TIF1216R60) Entry $2.35

05/17/12 TIF is testing $60 readers may want to take profits now
05/16/12 new stop loss @ 64.25
05/14/12 TIF gapped down at $61.67, under our trigger.

Entry on May 14 at $61.67
Earnings Date 05/24/12 (confirmed)
Average Daily Volume = 1.5 million
Listed on May 12, 2012


CLOSED BEARISH PLAYS

Fluor Corp. - FLR - close: 50.20 change: -1.12

Stop Loss: 55.05
Target(s): 50.25
Current Option Gain/Loss: +60.4%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/17 update: Target achieved.

FLR continues to sink and shares are down several days in a row. The stock closed near potential round-number support at $50.00. If FLR was going to see an oversold bounce this is a good spot to expect one. Shares hit our exit target at $50.25.

- Suggested Positions -

Long Jun $52.50 PUT (FLR1216R52.5) Entry $2.15 exit $3.45 (+60.4%)

05/17/12 target hit
05/15/12 new stop loss @ 55.05

chart:

Entry on May 14 at $53.05 (gap down)
Earnings Date 05/03/12
Average Daily Volume = 1.8 million
Listed on May 12, 2012