Current Portfolio:


CALL Play Updates

Bed Bath & Beyond Inc. - BBBY - close: 73.10 change: -0.82

Stop Loss: 71.45
Target(s): 79.00
Current Option Gain/Loss: Jun75c: - 0.0% & Jul75c: + 2.2%
Time Frame: Exit prior to earnings on June 20th
New Positions: see below

Comments:
05/30 update: BBBY gave up about half of yesterday's gains. Broken resistance in the $72.50-72.00 zone should be new support. Wait for a dip or a bounce in that area before considering new positions.

Our multi-week target is $79.00. FYI: The Point & Figure chart for BBBY is bullish with an $83 target.

Trigger @ 72.75

- Suggested Positions -

Long JUN $75 call (BBBY1216F75) Entry @ $1.03

- or -

Long JUL $75 call (BBBY1221G75) Entry $2.72

05/29/12 new stop loss @ 71.45
05/25/12 triggered at @72.75

Entry on May 25 at $72.75
Earnings Date 06/20/12 (unconfirmed)
Average Daily Volume = 2.6 million
Listed on May 24, 2012


Cymer Inc. - CYMI - close: 54.10 change: -0.94

Stop Loss: 52.50
Target(s): 57.00
Current Option Gain/Loss: Jun55c: +27.7% & Aug55c: + 8.4%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
05/30 update: CYMI gave back over half of yesterday's gains. Currently we have a stop loss at $52.50. More aggressive traders may want to put their stop under the simple 10-dma or under the $52.00 level to give CYMI a bit more room to maneuver. I am not suggesting new positions at this time.

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

05/29/12 new stop loss @ 52.50
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


Edwards Lifesciences - EW - close: 85.77 change: -1.76

Stop Loss: 85.75
Target(s): 89.50
Current Option Gain/Loss: Jun85c: - 7.8% & Jun$90c: -13.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/30 update: EW was holding short-term support near the $86.00 mark almost day long. Then in the last hour shares started to slip further and there was a sudden drop in the last few minutes. Right now odds look good that EW will hit our stop loss at $85.75 tomorrow morning.

FYI: The Point & Figure chart for EW is bullish with a $126 target.

- Suggested Positions -

Long Jun $85 call (EW1216F85) Entry $3.20

- or -

Long Jun $90 call (EW1216F90) Entry $1.15

05/29/12 new stop loss @ 85.75

Entry on May 24 at $85.21
Earnings Date 07/19/12 (unconfirmed)
Average Daily Volume = 1.1 million
Listed on May 23, 2012


Sourcefire, Inc. - FIRE - close: 55.72 change: -1.07

Stop Loss: 52.75
Target(s): 59.35
Current Option Gain/Loss: Jun55c: + 3.4% Jun60c: -23.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/30 update: FIRE gave back all of yesterday's gains and more with a -1.8% pullback. The stock spent most of the session churning on either side of the $56.00 level. More conservative traders may want to inch up their stops.

Earlier Comments:
FIRE could see some short covering. The most recent data listed short interest at 14% of the very small 28 million share float.

- Suggested Positions -

Long Jun $55 call (FIRE1216F55) Entry $2.90

- or -

Long Jun $60 call (FIRE1216F60) Entry $1.50

Entry on May 24 at $55.50
Earnings Date 08/01/12 (unconfirmed)
Average Daily Volume = 857 thousand
Listed on May 23, 2012


The Hain Celestial Group - HAIN - close: 56.24 change: -0.56

Stop Loss: 53.40
Target(s): 59.00
Current Option Gain/Loss: Jun55c: +10.0% Jul60c: + 8.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/30 update: Broken resistance near $56.00 acted as new short-term support today. Yet if the market accelerates lower tomorrow I would expect HAIN to drop toward $55.00 or possibly its 10-dma. I am not suggesting new positions at this time.

- Suggested Positions -

Long JUN $55 call (HAIN1216F55) Entry $2.00

- or -

Long JUL $60 call (HAIN1221G60) Entry $1.15*

05/29/12 new stop loss @ 53.40
*entry price is an estimate. looks like a possible bad tick at $5.00 on the morning of 05/25/12
05/25/12 trade opened on gap higher at $55.37, trigger was 55.25

Entry on May 25 at $55.37
Earnings Date 08/23/12 (unconfirmed)
Average Daily Volume = 742 thousand
Listed on May 24, 2012


SolarWinds, Inc. - SWI - close: 46.28 change: -1.84

Stop Loss: 45.75
Target(s): 52.50
Current Option Gain/Loss: Jun50c: -50.0% & Jul50c: -24.4%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/30 update: Ouch! After hitting a new historic high yesterday SWI underperformed today with a -3.8% plunge of profit taking. Prior resistance near $46.00 is holding up as new short-term support for now. If the market continues lower I would expect SWI to hit our stop loss at $45.75.

Earlier Comments:
We do need to keep a wary eye on the $50.00 level, which could be round-number resistance but I am setting our exit target at $52.50.

- Suggested Positions -

Long Jun $50 call (SWI1216F50) Entry $1.20

- or -

Long Jul $50 call (SWI1221G50) Entry $2.45

05/29/12 trade opened.

Entry on May 29 at $48.20
Earnings Date 08/02/12 (unconfirmed)
Average Daily Volume = 1.0 million
Listed on May 26, 2012


PUT Play Updates

Baxter Intl. - BAX - close: 51.36 change: -0.40

Stop Loss: 52.51
Target(s): 48.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Comments:
05/30 update: BAX gapped open lower and posted a loss today yet shares actually showed some relative strength. The stock lost -0.4% on the session versus a -1.4% drop in the S&P 500. Shares have not yet broken the $51.00 level.

I am suggesting a trigger to buy puts at $50.95. If triggered our target is $48.00.

Trigger @ 50.95

- Suggested Positions -

buy the Jun $50 PUT (BAX1216R50)

- or -

buy the Jul $50 PUT (BAX1221S50)

Entry on May xx at $ xx.xx
Earnings Date 07/19/12 (unconfirmed)
Average Daily Volume = 2.4 million
Listed on May 29, 2012


Cummins Inc. - CMI - close: 99.00 change: -2.06

Stop Loss: 102.55
Target(s): 92.50
Current Option Gain/Loss: + 3.2%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/30 update: Another five more cents and CMI would have completely erased yesterday's gain. The stock is back underneath the $100.00 mark, which is psychologically bearish. Readers can use today's decline as a new bearish entry point.

- Suggested Positions -

Long Jun $95 PUT (CMI1216R95) Entry $1.55

05/29/12 CMI gapped open higher at $100.67

Entry on May 29 at $100.67
Earnings Date 07/31/12 (unconfirmed)
Average Daily Volume = 2.7 million
Listed on May 26, 2012


General Dynamic - GD - close: 63.83 change: -0.52

Stop Loss: 64.55
Target(s): 61.50
Current Option Gain/Loss: +16.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/30 update: Hmm... the lack of movement in GD worries me. Shares did lose -0.8% today but the S&P 500 lost -1.4%. The overall trend for GD remains bearish and the stock has technical resistance at the simple 10-dma (near 64.10). We are going to lower our stop loss down to $64.55.

- Suggested Positions -

Long Jun $65 PUT (GD1216R65) Entry $1.50

05/30/12 new stop loss @ 64.55
05/29/12 new stop loss @ 65.25
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: 41.82 change: -1.43

Stop Loss: 44.25
Target(s): 40.25
Current Option Gain/Loss: +41.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/30 update: INFA underperformed with a -3.3% decline. The close under short-term support near $42.00 is also bearish. I am not suggesting new positions at this time.

- Suggested Positions -

Long Jun $45 PUT (INFA1216R45) Entry $2.40

05/29/12 new stop loss @ 44.25
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


L-3 Communications - LLL - close: 67.61 change: -0.29

Stop Loss: 68.75
Target(s): 62.75
Current Option Gain/Loss: -32.4%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/30 update: We are giving up on LLL. Shares refuse to breakdown past the $67.00 level. Someone keeps buying the dips in this area. I am suggesting we exit our LLL positions at the opening bell tomorrow.

- Suggested Positions -

Long Jul $65 PUT (LLL1221S65) Entry $1.85

05/30/12 prepare to exit at the open tomorrow.
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: 48.12 change: -1.27

Stop Loss: 50.55
Target(s): 42.50
Current Option Gain/Loss: -36.7%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/30 update: RS erased the majority of yesterday's big gains. Shares are flirting with a new breakdown under its simple 200-dma again. Readers could use a new decline under $47.00 as an entry point for new bearish positions.

- 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


CLOSED BULLISH PLAYS

Cliffs Natural Resources - CLF - close: 52.40 change: +2.12

Stop Loss: 50.75
Target(s): 57.25
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Comments:
05/30 update: The market's lack of follow through on the recent bounce and a downgrade for the coal sector today undermined the rebound in CLF. We are going to remove CLF as a bullish candidate. Shares did not hit our trigger to open positions.

Trigger @ 52.75 (small positions)

Trade did not open.

05/30/12 removed CLF from the newsletter. The market reversed sharply lower and resource names underperformed.
05/29/12 this is an aggressive trade. small positions only.

chart:

Entry on May xx at $ xx.xx
Earnings Date 07/25/12 (unconfirmed)
Average Daily Volume = 3.7 million
Listed on May 29, 2012