Editor's Note:

The U.S. markets saw their oversold bounce pick up a little speed today.

None of our new trades have been triggered. Nothing was stopped out. No changes to our stop losses tonight.

Current Portfolio:


CALL Play Updates

Costco Wholesale - COST - close: 86.77 change: +0.21

Stop Loss: 85.25
Target(s): 91.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Comments:
06/05 update: COST bounced off its morning lows but failed to breakout past the top of its recent range. Today's close above its simple 50-dma is a positive for the bulls. I am suggesting we buy calls when COST trades at $87.25. Our target is $91.50.

Trigger @ 87.25

- Suggested Positions -

buy the Jul $90 call (COST1221G90)

Entry on June xx at $ xx.xx
Earnings Date 10/03/12 (unconfirmed)
Average Daily Volume = 2.6 million
Listed on June 04, 2012


Monster Beverage - MNST - close: 72.83 change: -0.28

Stop Loss: 69.95
Target(s): 79.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Comments:
06/05 update: It was a quiet day for MNST. The stock spent a good portion of the day hovering near the $72.00 level. I don't see any changes from my prior comments.

Last week MNST traded up near $74.00. I am suggesting a trigger to buy calls at $74.25. If triggered our targets is $79.50. FYI: MNST's annual shareholder meeting is scheduled for June 8th (Friday).

Trigger @ 74.25

- Suggested Positions -

buy the Jul $80 call (MNST1221G80)

Entry on June xx at $ xx.xx
Earnings Date 08/02/12 (unconfirmed)
Average Daily Volume = 1.9 million
Listed on June 04, 2012


PUT Play Updates

Baxter Intl. - BAX - close: 50.23 change: +0.17

Stop Loss: 51.51
Target(s): 48.00
Current Option Gain/Loss: Jun$50p: + 7.5% & Jul50p: + 7.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/05 update: BAX spent Tuesday hovering on either side of support near $50.00. There is no change from my prior comments. If the stock was going to bounce this is a good spot for one to show up. For that reason readers may want to go ahead and take profits right now. I am not suggesting new positions at this time.

- Suggested Positions -

Long Jun $50 PUT (BAX1216R50) Entry $0.66

- or -

Long Jul $50 PUT (BAX1221S50) Entry $1.55

06/02/12 new stop loss @ 51.51
05/31/12 triggered at $50.95

Entry on May 31 at $50.95
Earnings Date 07/19/12 (unconfirmed)
Average Daily Volume = 2.4 million
Listed on May 29, 2012


Rockwell Collins Inc. - COL - close: 50.37 change: +1.28

Stop Loss: 50.55
Target(s): 45.50
Current Option Gain/Loss: -28.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/05 update: Ouch! I could not find any news to account for the sudden relative strength in shares of COL today. The defense indices were only up +0.3% to +0.4% and the S&P 500 only gained +0.5%. Yet COL surged +2.6% and closed above what should have been resistance at the $50.00 mark. The intraday high was $50.51 and our stop loss is at $50.55. If there is any follow through tomorrow our trade will get stopped out.

- Suggested Positions -

Long Jul $50 PUT (COL1221S50) Entry $2.10

06/05/12 COL displays relative strength. Stock looks poised to hit our stop loss at $50.55

Entry on June 04 at $49.50
Earnings Date 07/19/12 (unconfirmed)
Average Daily Volume = 1.1 million
Listed on June 02, 2012


E.I. du Pont de Nemours - DD - close: 47.34 change: +0.32

Stop Loss: 48.51
Target(s): 44.25
Current Option Gain/Loss: -21.9%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/05 update: A little bit of an oversold bounce in DD is not that surprising. Yesterday I suggested a bounce into the $47.50-48.00 zone as a new entry point. I will note that today's performance has technically created a bullish engulfing candlestick reversal pattern. $48.00 remains overhead resistance for now.

- Suggested Positions -

Long Jul $45 PUT (DD1221S45) Entry $1.32

Entry on June 04 at $47.19
Earnings Date 07/24/12 (unconfirmed)
Average Daily Volume = 5.0 million
Listed on June 02, 2012


Goldman Sachs Group - GS - close: 92.21 change: +1.21

Stop Loss: 94.25
Target(s): 88.50
Current Option Gain/Loss: Jun$90p: -16.6% & Jul90p: + 1.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/05 update: GS recouped a good chunk of yesterday's losses with a +1.3% bounce today. There is a good chance that GS will rebound back toward resistance near $95.00 but doing so will hit our stop loss at $94.25. More aggressive traders will want to adjust their stop so it's above $95 or the 10-dma.

Earlier Comments:
I do consider this an aggressive, higher-risk trade. GS can be a volatile stock. Plus, shares are nearing a potential trend line of support dating back to late 2008 (see weekly chart). FYI: The Point & Figure chart for GS is bearish with a $58 target.

- Suggested Positions - (Small Positions)

Long Jun $90 PUT (GS1216R90) Entry $1.80

- or -

Long Jul $90 PUT (GS1221S90) Entry $4.25

06/04/12 new stop loss 94.25
Readers may want to take profits near the $90.0 mark
05/31/12 triggered at $93.90

Entry on May 31 at $93.90
Earnings Date 07/17/12 (unconfirmed)
Average Daily Volume = 5.5 million
Listed on May 30, 2012


McDonald's Corp. - MCD - close: 87.08 change: +0.76

Stop Loss: 88.25
Target(s): 85.25
Current Option Gain/Loss: Jun$90p: - 6.2% & Jul87.50P: - 4.4%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/05 update: MCD is finally seeing an oversold bounce. The question is will shares move into the gap in the $88-89.25 area? We have a stop loss at $88.25. I would reconsider buying puts again on a failed rally in the $89-90 zone. More aggressive traders may want to just adjust their stop loss higher instead.

- Suggested Positions -

Long Jun $90 PUT (MCD1216R90) Entry $3.20

- or -

Long Jul $87.50 PUT (MCD1221S87.5) Entry $2.50

06/04/12 new stop loss @ 88.25
06/01/12 new stop loss @ 88.75
06/01/12 MCD gaps open lower at $87.47, affecting our entry price

Entry on June 01 at $87.47 (gap down)
Earnings Date 07/23/12 (unconfirmed)
Average Daily Volume = 6.1 million
Listed on May 31, 2012


Reliance Steel - RS - close: 46.25 change: +0.26

Stop Loss: 46.75
Target(s): 42.50
Current Option Gain/Loss: - 8.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/05 update: It was a relatively quiet day for RS with the stock churning on either side of the $46.00. If the bounce continues shares will likely hit our stop loss at $46.75. More aggressive traders will want to keep their stop above $47.00 since the $47.00 level should new short-term resistance.

- Suggested Positions -

Long JUN $48 PUT (RS1216R48) Entry $2.45

06/04/12 new stop loss @ 46.75
06/02/12 new stop loss @ 47.75

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