Editor's Note:

The market's oversold bounce is stalling at resistance. We did see a couple of trades get triggered today (ROST, COH).

Current Portfolio:


CALL Play Updates

Costco Wholesale - COST - close: 88.13 change: +0.35

Stop Loss: 86.25
Target(s): 91.50
Current Option Gain/Loss: + 8.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/07 update: COST continues to show relative strength. The stock is nearing potential resistance at its late April high near $89.00. Don't be surprised to see a pull back toward $87 again.

- Suggested Positions -

Long Jul $90 call (COST1221G90) Entry $1.10

06/06/12 new stop loss @ 86.25
06/06/12 triggered at $87.25

Entry on June 06 at $87.25
Earnings Date 10/03/12 (unconfirmed)
Average Daily Volume = 2.6 million
Listed on June 04, 2012


Monster Beverage - MNST - close: 74.50 change: +0.55

Stop Loss: 70.75
Target(s): 79.50
Current Option Gain/Loss: + 0.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/07 update: MNST is still churning sideways in the $73.50-75.00 zone but did managed to close up +0.7% today.

FYI: MNST's annual shareholder meeting is scheduled for June 8th (Friday).

- Suggested Positions -

Long Jul $80 call (MNST1221G80) Entry $1.70

06/06/12 new stop loss @ 70.75
06/06/12 triggered at $74.25

Entry on June 06 at $74.25
Earnings Date 08/02/12 (unconfirmed)
Average Daily Volume = 1.9 million
Listed on June 04, 2012


Ross Stores Inc. - ROST - close: 62.92 change: -0.84

Stop Loss: 62.45
Target(s): 68.50
Current Option Gain/Loss: -35.7%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
06/07 update: Hmm... it was not the best day for the retail sector, which closed down -0.3%. Unfortunately ROST lost -1.3% and to make matters worse the stock gapped open higher at $64.47 before immediately reversing lower. We had a trigger to buy calls at $64.05 so the trade was opened this morning. ROST's failure to hold the breakout over $64.00 is short-term bearish.

If this weakness continues we will probably see ROST hit our stop loss at $62.45 tomorrow. Nimble traders may want to keep an eye on the rising 50-dma as a dip or a bounce near the 50-dma could be used as a new bullish entry point.

- Suggested Positions -

Long Jul $65 call (ROST1221G65) Entry $2.10

06/07/12 triggered on gap higher at $64.47

Entry on June 07 at $64.47
Earnings Date 08/16/12 (unconfirmed)
Average Daily Volume = 2.3 million
Listed on June 06, 2012


PUT Play Updates

Baxter Intl. - BAX - close: 50.48 change: +0.12

Stop Loss: 51.51
Target(s): 48.00
Current Option Gain/Loss: Jun$50p: -50.0% & Jul50p: -19.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/07 update: BAX gapped open higher but the rally ran out of steam at short-term resistance near $51.00 and its simple 10-dma. Readers could use today's move as a new bearish entry point. More conservative traders might want to lower their stop toward today's high (51.02).

- 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


Coach Inc. - COH - close: 62.07 change: -0.77

Stop Loss: 64.05
Target(s): 58.50
Current Option Gain/Loss: + 0.0%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
06/07 update: COH displayed relative weakness this morning with a sharp spike lower. Yet traders bought the dip near round-number support at $60.00, which was something I mentioned could happen. Fortunately the bounce stalled at prior resistance. Our trade was opened at $62.25.

- Suggested Positions -

Long Jul $60 PUT (COH1221S60) Entry $2.20

06/07/12 triggered at $62.25

Entry on June 07 at $62.25
Earnings Date 07/31/12 (unconfirmed)
Average Daily Volume = 3.4 million
Listed on June 06, 2012


NASDAQ OMX Group - NDAQ - close: 22.11 change: -0.13

Stop Loss: 22.55
Target(s): 20.15
Current Option Gain/Loss: -29.4%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/07 update: Lack of follow through on yesterday's bullish breakout above $22 and its 10-dma is a good sign if you're bearish on the NDAQ. However, our trade remains in jeopardy here.

I am not suggesting new positions.

(SMALL Positions) - Suggested Positions -

Long July $21 PUT (NDAQ1221S21) Entry $0.85

Entry on June 06 at $21.95
Earnings Date 07/25/12 (unconfirmed)
Average Daily Volume = 3.8 million
Listed on June 05, 2012


Novartis AG - NVS - close: 52.18 change: -0.23

Stop Loss: 52.25
Target(s): 48.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Comments:
06/07 update: It looks like the bounce in NVS is stalling and starting to reverse at the top of its current trading range.

Currently I am suggesting a trigger to buy puts at $51.00 with a stop loss at $52.25. Our first target is $48.00. FYI: The Point & Figure chart for NVS is bearish with a $41 target.

Trigger @ 51.00

- Suggested Positions -

buy the Jul $50 PUT (NVS1221S50)

Entry on June xx at $ xx.xx
Earnings Date 07/19/12 (unconfirmed)
Average Daily Volume = 1.75 million
Listed on June 05, 2012