Editor's Note:

Markets remain focused on Greece but the U.S. markets managed an afternoon rebound higher. The oversold bounce may not be over yet.

PSMT was stopped out. LLL was triggered.

Current Portfolio:


CALL Play Updates

Cymer Inc. - CYMI - close: 53.43 change: +0.02

Stop Loss: 49.95
Target(s): 57.00
Current Option Gain/Loss: Jun55c: +11.1% & Aug55c: + 1.6%
Time Frame: 4 to 8 weeks
New Positions: Yes, see below

Comments:
05/23 update: The action in CYMI today mirrored the move in the major indices with a drop in the morning and a sharp rebound higher in the afternoon. For CYMI this allowed shares to retest the $52 area as short-term support. I am suggesting readers use this bounce as a new entry point for bullish positions.

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


Verizon Communication - VZ - close: 41.28 change: -0.11

Stop Loss: 39.95
Target(s): 45.75
Current Option Gain/Loss: Jun$42c: -43.3% & Jul$43c: -51.5%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
05/23 update: We have been expecting VZ to test the $41.00 area, which happened today. Readers can use this afternoon bounce as a new bullish entry point.

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

ITT Educational Services - ESI - close: 58.11 change: +0.01

Stop Loss: 61.35
Target(s): 51.50
Current Option Gain/Loss: + 0.0%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
05/23 update: Our new trade on ESI opened with shares gapping down at $57.71 this morning. The stock dipped under $57.00 before bouncing back to close almost unchanged on the session. Considering the market's widespread bounce this afternoon I would not be surprised to see ESI rebound back toward $60.00 and its 10-dma, both of which should be overhead resistance.

- Suggested Positions -

Long Jun $55 PUT (ESI1216R55) Entry $2.55

Entry on May 23 at $57.71
Earnings Date 07/19/12 (unconfirmed)
Average Daily Volume = 410 thousand
Listed on May 22, 2012


Fiserv, Inc. - FISV - close: 66.70 change: +0.47

Stop Loss: 68.55
Target(s): 63.50
Current Option Gain/Loss:(May$70p: +12.5%) & Jun65P: - 27.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/23 update: Heads up! I am raising the risk on this trade. FISV looks poised to bounce further and thus more conservative traders may want to exit immediately. I am expecting the $68.00 level and the 50-dma to still act as overhead resistance. A bounce near $68.00 or better yet a failed rally near $68.00 can be used as a new entry point. I am raising our risk by moving the stop loss to $68.55, just above the 50-dma.

- 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

05/23/12 Raising our RISK - new stop loss @ 68.55, above the 50-dma
More conservative traders will want to exit now instead.
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: 64.61 change: +0.14

Stop Loss: 66.25
Target(s): 61.50
Current Option Gain/Loss: + 3.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/23 update: The intraday rebound in GD looks like a short-term bullish double bottom. I am expecting a bounce back toward what should be resistance near $66.00 and its 200-dma. We will inch up our stop loss to $66.25 just to give GD a little bit more room to maneuver.

- Suggested Positions -

Long Jun $65 PUT (GD1216R65) Entry $1.50

05/23/12 tweaking our stop to $66.25
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: 43.72 change: +0.24

Stop Loss: 45.25
Target(s): 40.25
Current Option Gain/Loss: + 0.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/23 update: INFA is challenging short-term resistance near $44 and its 10-dma. If the market continues to bounce tomorrow (and I expect it will) then we could see INFA test resistance near $45.00 and its simple 200-dma near $44.85 soon. 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: 76.48 change: +0.49

Stop Loss: 78.75
Target(s): 72.00-70.00 zone
Current Option Gain/Loss: - 0.1%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
05/23 update: Hmm... it looks like the bulls have decided to put up a fight instead of rolling over and playing dead. Stocks rebounded intraday and the IWM erased yesterday's losses. We can expect the IWM to bounce back toward resistance near the $78.00 level. A failed rally closer to $78.00 can be used as a new entry point to buy puts.

- 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: 67.98 change: -0.35

Stop Loss: 68.75
Target(s): 62.75
Current Option Gain/Loss: -29.7%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/23 update: It's moves like the one in LLL today that might prompt you to use end of day closing prices to launch positions instead of intraday prices. Shares broke down to new relative lows and hit our trigger to buy puts at $66.75 only to reverse with the market this afternoon and surge back toward $68 and its 200-dma.

Our trade is open but I would wait for a new drop under $66.40 before considering new positions.

- Suggested Positions -

Long Jul $65 PUT (LLL1221S65) Entry $1.85

05/23/12 triggered at $66.75

Entry on May 23 at $66.75
Earnings Date 07/26/12 (unconfirmed)
Average Daily Volume = 856 thousand
Listed on May 19, 2012


Reliance Steel - RS - close: 49.25 change: +0.77

Stop Loss: 50.55
Target(s): 42.50
Current Option Gain/Loss: -40.8%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/23 update: The performance in RS today does not bode well for our bearish trade. Shares traded just under its recent low only to reverse higher and outperform the market with a +1.5% gain. This is probably short covering as bears panicked on the lack of follow through lower.

RS looks poised to test resistance near $50.00 soon. If the bounce is too strong it could hit our stop loss at $50.55. I am not suggesting new positions at this time. FYI: The Point & Figure chart for RS is bearish with a $38 target.

- Suggested Positions -

Long JUN $48 PUT (RS1216R48) Entry $2.45

Entry on May 23 at $47.79
Earnings Date 07/26/12 (unconfirmed)
Average Daily Volume = 534 thousand
Listed on May 22, 2012


Siemens AG - SI - close: 84.71 change: -0.75

Stop Loss: 87.75
Target(s): 80.25
Current Option Gain/Loss: -37.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/23 update: Worries over Greece hit the European markets hard. Yet SI found support near its recent lows and bounced with the S&P 500 this afternoon. I would not be surprised to see it bounce back toward the $86.00 area again. 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 BULLISH PLAYS

PriceSmart Inc. - PSMT - close: 69.36 change: -1.66

Stop Loss: 68.99
Target(s): 76.00
Current Option Gain/Loss: -66.6%
Time Frame: 2 to 3 weeks
New Positions: see below

Comments:
05/23 update: PSMT continues to disappoint. While most of the market was in rebound mode this afternoon shares of PSMT just kept on falling. The stock traded under technical support at its 200-dma and hit our stop loss at $68.99.

- Suggested Positions -

Jun $75 call (PSMT1216F75) Entry $1.50 exit $0.50 (-66.6%)

05/23/12 stopped out at $68.99

chart:

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