Editor's Note:

Uh-oh! There was no follow through on yesterday's oversold bounce. That doesn't bode well for the bulls.

Our CYMI call trade and IWM put trade were both triggered today. TIF was stopped out.

Current Portfolio:


CALL Play Updates

Cymer Inc. - CYMI - close: 53.41 change: +1.39

Stop Loss: 49.95
Target(s): 57.00
Current Option Gain/Loss: Jun55c: +00.0% & Aug55c: - 1.6%
Time Frame: 4 to 8 weeks
New Positions: Yes, see below

Comments:
05/22 update: CYMI was showing relative strength today with a +2.6% gain and a breakout to new multi-month highs. The stock hit our trigger to buy calls at $52.60. Our multi-week target is $57.00. FYI: The Point & Figure chart for CYMI is bullish with a long-term $80 target.

- Suggested Positions -

Long Jun $55 call (CYMI1216F55) Entry $0.90

- or -

Long Aug $55 call (CYMI1218H55) Entry $2.95

05/22/12 triggered at $52.60

Entry on May 22 at $52.60
Earnings Date 07/19/12 (unconfirmed)
Average Daily Volume = 476 thousand
Listed on May 21, 2012


PriceSmart Inc. - PSMT - close: 71.02 change: -0.45

Stop Loss: 68.99
Target(s): 76.00
Current Option Gain/Loss: -43.3%
Time Frame: 2 to 3 weeks
New Positions: see below

Comments:
05/22 update: Hmm... today's performance in PSMT was not a good sign if you're bullish. There was no follow through on yesterday's bounce off support near the 200-dma. At this point I would either wait for a new dip near yesterday's lows near $69.25 as an entry point or wait for a rally past $72.00 as an entry point.

- Suggested Positions -

Long Jun $75 call (PSMT1216F75) Entry $1.50

Entry on May 22 at $71.57
Earnings Date 07/05/12 (unconfirmed)
Average Daily Volume = 324 thousand
Listed on May 21, 2012


Verizon Communication - VZ - close: 41.39 change: +0.05

Stop Loss: 39.95
Target(s): 45.75
Current Option Gain/Loss: Jun$42c: -38.3% & Jul$43c: -45.4%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
05/22 update: It was a quiet day for VZ. The intraday rally did run out of steam and shares closed almost unchanged on the session. I would be cautious about launching new positions. Readers may want to wait for a bounce off the $41.00 level.

More conservative traders may want to use a stop closer to $40.50 instead. Keep in mind that VZ does not move super fast so we'll need to show some patience.

- Suggested Positions -

Long Jun $42 call (VZ1216F42) Entry $0.60

- or -

Long Jul $43 call (VZ1221G43) Entry $0.66

05/18/12 triggered on gap higher at $41.61 (trigger was 41.55)

Entry on May 18 at $41.61
Earnings Date 07/19/12 (unconfirmed)
Average Daily Volume = 13.8 million
Listed on May 17, 2012


PUT Play Updates

Fiserv, Inc. - FISV - close: 66.23 change: +0.25

Stop Loss: 67.25
Target(s): 63.50
Current Option Gain/Loss:(May$70p: +12.5%) & Jun65P: - 5.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/22 update: The rebound in FISV stalled late this morning near $66.65. The close above $66 and its 100-dma is arguably short-term bullish. If the market rallies tomorrow we could see FISV hit our stop loss at $67.25. I am not suggesting new positions at this time.

- Suggested Positions -

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

- or -

Long Jun $65 put (FISV1216R65) Entry $0.90

05/19/12 new stop loss @ 67.25
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: 64.47 change: -0.08

Stop Loss: 66.05
Target(s): 61.50
Current Option Gain/Loss: + 3.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/22 update: The bounce in GD stalled at resistance near $65.00 this morning. I would wait for a failed rally near $66.00 before considering new bearish positions.

- Suggested Positions -

Long Jun $65 PUT (GD1216R65) Entry $1.50

05/19/12 new stop loss @ 66.05
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


Informatica - INFA - close: 43.48 change: +0.80

Stop Loss: 45.25
Target(s): 40.25
Current Option Gain/Loss: + 8.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/22 update: As expected INFA is still bouncing. We are looking for shares to find resistance in the $44.00-45.00 area. I am not suggesting new positions just yet but a failed rally near $45 and its 200-dma could be used as a new entry point.

- Suggested Positions -

Long Jun $45 PUT (INFA1216R45) Entry $2.40

05/19/12 readers may want to take profits now
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: 75.99 change: -0.46

Stop Loss: 78.75
Target(s): 72.00-70.00 zone
Current Option Gain/Loss: + 0.0%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
05/22 update: Bingo! The bounce in the IWM ran out of steam just as expected. This ETF hit our trigger to buy puts at $76.75 this morning. I would still consider new positions now at current levels.

- Suggested Positions -

Long Jul $75 PUT (IWM1221S75) Entry $3.20
05/22/12 triggered at $76.75
05/19/12 adjusted strategy: buy puts on a bounce at $76.75, stop 78.75
05/17/12 temporarily wait on buying puts. We will re-evaluate tomorrow.

Entry on May 22 at $76.75
Earnings Date --/--/--
Average Daily Volume = 53 million
Listed on May 12, 2012


L-3 Communications - LLL - close: 68.33 change: +0.23

Stop Loss: 68.75
Target(s): 62.75
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Comments:
05/22 update: LLL is still trying to bounce but shares struggled midday in the $68.50-68.70 area. We are waiting on a breakdown. I am suggesting a trigger to buy puts at $66.75.

If triggered we will target $62.75. More aggressive traders could aim closer to the $60 area.

Trigger @ 66.75

- Suggested Positions -

buy the Jul $65 PUT (LLL1221S65)

Entry on May xx at $ xx.xx
Earnings Date 07/26/12 (unconfirmed)
Average Daily Volume = 856 thousand
Listed on May 19, 2012


Siemens AG - SI - close: 85.46 change: -0.06

Stop Loss: 87.75
Target(s): 80.25
Current Option Gain/Loss: -44.4%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/22 update: The early morning rally ran out of steam near $86.50 and SI closed near its lows for the session. The oversold bounce may not be over yet. 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


CLOSED BEARISH PLAYS

Tiffany & Co. - TIF - close: 61.44 change: +0.30

Stop Loss: 62.55
Target(s): 59.00
Current Option Gain/Loss: -23.4%
Time Frame: exit prior to the May 24th earnings report
New Positions: see below

Comments:
05/22 update: TIF did not want to cooperate with us. We were planning to exit today at the closing bell but the intraday spike higher this morning hit our stop loss at $62.55.

- Suggested Positions -

Jun $60 put (TIF1216R60) Entry $2.35 exit $1.80 (-23.4%)

05/22/12 stopped out at $62.55
05/21/12 new stop loss @ 62.55, exit tomorrow at the close
05/19/12 new stop loss @ 63.55, only 3 days left
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.

chart:

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