Editor's Note:

There was no follow through on yesterday's bearish reversal in stocks.

Current Portfolio:


CALL Play Updates

Costco Wholesale - COST - close: 88.50 change: +0.59

Stop Loss: 87.25
Target(s): 91.50
Current Option Gain/Loss: +19.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/12/12 update: COST dipped to $87.58 before bouncing. Shares failed to keep up with the S&P 500's +1.1% gain. Although on a positive note there was no follow through on yesterday's bearish reversal candlestick pattern. I am not suggesting new positions at this time.

- Suggested Positions -

Long Jul $90 call (COST1221G90) Entry $1.10

06/11/12 COST has produced a bearish reversal candlestick pattern
06/09/12 new stop loss @ 87.25
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


Dollar Tree, Inc. - DLTR - close: 105.73 change: -0.99

Stop Loss: 104.45
Target(s): 112.50
Current Option Gain/Loss: - 7.1%
Time Frame: exit prior to the stock split
New Positions: see below

Comments:
06/12/12 update: It was a choppy morning for DLTR but shares started consistently moving higher this afternoon. We are raising our stop loss to $104.45. I am not suggesting new positions at this time.

- Suggested Positions -

Long Jul $110 call (DLTR1221G110) Entry $2.37

06/12/12 new stop loss @ 104.45
06/11/12 trade opened with DLTR gapping higher at $107.42

Entry on June 11 at $107.42
Earnings Date 08/16/12 (unconfirmed)
Average Daily Volume = 1.3 million
Listed on June 09, 2012


Monster Beverage - MNST - close: 75.39 change: +0.60

Stop Loss: 73.25
Target(s): 79.50
Current Option Gain/Loss: + 11.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/12/12 update: MNST dipped to short-term support near $74.00 before bouncing this morning. The stock failed to keep up with the bounce in the major indices (which was +1.1%). I am not suggesting new positions at this time.

- Suggested Positions -

Long Jul $80 call (MNST1221G80) Entry $1.70

06/09/12 new stop loss @ 73.25
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: 65.04 change: +1.28

Stop Loss: 63.45
Target(s): 68.50
Current Option Gain/Loss: + 2.3%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
06/12/12 update: Be careful here. The move today looks bullish with a +2.0% gain, which outperformed the major indices. Yet today's move has created an "inside day" where it's inside yesterday's range. This can indicate a state of indecision by investors. Readers may want to wait for a new relative high over $65.40 before considering new positions.

Please note our new stop loss at $63.45.

- Suggested Positions -

Long Jul $65 call (ROST1221G65) Entry $2.10

06/12/12 new stop loss @ 63.45
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: 50.39 change: +0.30

Stop Loss: 51.51
Target(s): 48.00
Current Option Gain/Loss: Jun$50p: -68.1% & Jul50p: -19.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/12/12 update: BAX tagged a new relative low at $49.53 this morning before bouncing back into positive territory. The $51.00 level should be overhead resistance. More conservative traders may want to adjust their stop so it's closer to $51.00.

NOTE: We are running out of time on June options, which expire this week.

- 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


Celgene Corp. - CELG - close: 63.07 change: -0.63

Stop Loss: 65.55
Target(s): 60.50
Current Option Gain/Loss: +11.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/12/12 update: Our new CELG trade is off to a good start. Shares failed to participate in the market's broad-based rally today. Instead CELG dropped another -0.9%.

FYI: The Point & Figure chart for CELG is bearish with a $47 target.

- Suggested Positions -

Long Jul $62.50 PUT (CELG1221S62.5) Entry $2.03

Entry on June 12 at $63.88
Earnings Date 07/26/12 (unconfirmed)
Average Daily Volume = 2.9 million
Listed on June 11, 2012


NASDAQ OMX Group - NDAQ - close: 21.72 change: +0.28

Stop Loss: 22.55
Target(s): 20.15
Current Option Gain/Loss: -23.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/12/12 update: Hmm... I am urging caution here. On June 4th NDAQ found support and bounced at $21.25. This morning it found support there again and bounced. There should be resistance at the 20-dma near $22.15. I am expecting a bounce back toward $22.00. I am not suggesting new positions at this time.

(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


Netflix, Inc. - NFLX - close: 63.02 change: +0.02

Stop Loss: 67.25
Target(s): 60.25
Current Option Gain/Loss: - 3.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/12/12 update: I would not call a two-cent gain participation in today's market rally. While NFLX closed virtually unchanged it's still a minor victory for the bears. I am not suggesting new positions at this time.

Earlier Comments:
I am suggesting we keep our position size small because NFLX can be volatile at times and being short the stock is a popular position with short interest at 20% of the 54 million share float. Our first target is $60.25. More aggressive traders could aim a lot lower. The Point & Figure chart is suggesting a $48 target although I suspect the $50 level could be significant support.

(Small positions) - Suggested Positions -

Long Jul $60 PUT (NFLX1221S60) Entry $3.57

Entry on June 08 at $64.37
Earnings Date 07/23/12 (unconfirmed)
Average Daily Volume = 4.9 million
Listed on June 07, 2012


Oil States Intl. - OIS - close: 66.05 change: +1.20

Stop Loss: 68.55
Target(s): 61.50
Current Option Gain/Loss: -42.2%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/12/12 update: There was no follow through on yesterday's bearish reversal move in OIS. The overall trend is still bearish but there is a chance we could see OIS retest the 20-dma near $67.00 again.

- Suggested Positions -

Long Jul $60 PUT (OIS1221S60) Entry $2.25

Entry on June 08 at $66.04
Earnings Date 07/30/12 (unconfirmed)
Average Daily Volume = 720 thousand
Listed on June 07, 2012