Editor's Note:

Stocks managed a bounce on Friday but we saw a lot of "inside day" type of moves. These typically suggest indecision by traders.

We've removed SNA. WMT was stopped out.

Current Portfolio:


CALL Play Updates

Citrix Systems - CTXS - close: 80.14 change: +2.09

Stop Loss: 77.75
Target(s): 86.50
Current Option Gain/Loss: -45.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/23/12 update: After Thursday's market decline CTXS managed a decent bounce on Friday (+2.6%). Unfortunately, I would not put too much faith in it. Friday's move is an "inside day", which suggests indecision by traders. There is short-term support at $78.00 and the 50-dma but last week's move as a whole looks like a potential failed rally/bearish reversal pattern.

I am not suggesting new positions at this time.

- Suggested Positions -

Long Jul $82.50 call (CTXS1221G82.5) Entry $3.40

06/19/12 trade opened on gap higher at $81.40

chart:

Entry on June 19 at $81.40
Earnings Date 07/25/12 (unconfirmed)
Average Daily Volume = 2.0 million
Listed on June 18, 2012


U.S. Oil ETF - USO - close: 30.10 change: +0.65

Stop Loss: 28.49
Target(s): 33.00
Current Option Gain/Loss: Jul$30c: +22.3% & Aug30c: +17.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/23/12 update: Our new USO call trade is off to a pretty good start. The oil ETF gapped higher at $29.57 and rallied to a +2.1% gain on the day. However, I will point out that Friday's move is an "inside day", where it's inside the prior day's range. This suggests indecision by traders. This is an aggressive, higher-risk trade so I would still consider new positions now. More conservative traders may want to wait for the USO to close above short-term resistance at the $31.00 level before considering new positions.

Earlier Comments:
Make no mistake, this is an aggressive trade since we're trying to call a short-term bottom in oil prices here. The commodity could definitely see some strength as we get closer to the EU oil embargo against Iran, which is scheduled to start on July 1st.

- Suggested Positions -

Long Jul $30 call (USO1221G30) Entry $0.94

- or -

Long Aug $30 call (USO1218H30) Entry $1.36

chart:

Entry on June 22 at $29.57
Earnings Date --/--/--
Average Daily Volume = 8.6 million
Listed on June 21, 2012


Whole Foods Market, Inc. - WFM - close: 96.27 change: +2.10

Stop Loss: 93.25
Target(s): 95.00 & 98.50
Current Option Gain/Loss: Jul $92.50c: +45.4% & Aug $95c: +20.4%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/23/12 update: WFM managed to completely erase Thursday's decline with Friday's +2.2% gain. Yet technically Friday's move is just an "inside day" type of move, which suggest indecision by traders. WFM failed to close above Thursday's high. Essentially Thursday's bearish reversal pattern is still in play and has not been negated yet.

I am concerned that there is a growing chance that we'll get stopped out as WFM drops toward support in the $91-90 zone. I am not suggesting new positions at this time. Readers will want to seriously consider taking profits right now!

- Suggested Positions -

Long Jul $92.50 call (WFM1221G92.5) Entry $3.30

- or -

Long Aug $95 call (WFM1218H95) Entry $4.40

06/23/12 Readers will want to seriously consider taking profits and exiting right now
06/18/12 new stop loss @ 93.25
06/15/12 first target hit at $95.00, options values at:
Jul $92.50 call @ $4.50 (+36.3%)
Aug $95.00 call @ $5.05 (+14.7%)
06/15/12 triggered at $92.05

chart:

Entry on June 15 at $92.05
Earnings Date 07/25/12 (unconfirmed)
Average Daily Volume = 1.8 million
Listed on June 12, 2012


PUT Play Updates

Deckers Outdoor Corp. - DECK - close: 45.00 change: +0.29

Stop Loss: 50.05
Target(s): 42.00
Current Option Gain/Loss: Jul45p: +55.5% & Aug45P: +24.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/23/12 update: DECK's oversold bounce on Friday stalled at the $46.00 level. Shares eventually saw its bounce fade to just +0.6%. The trend is down but I'm not suggesting new positions at this time.

Earlier Comments:
This is an aggressive trade because so many investors are already short this stock. The most recent data listed short interest at 26% of the small 36.7 million share float. That does raise the risk of a short squeeze, although DECK hasn't seen a squeeze in a while. FYI: The Point & Figure chart for DECK is bearish with a $34 target.

- Suggested (SMALL) Positions -

Long Jul $45 PUT (DECK1221S45) Entry $1.35

- or -

Long Aug $45 PUT (DECK1218T45) Entry $2.90

chart:

Entry on June 21 at $47.31
Earnings Date 07/26/12 (unconfirmed)
Average Daily Volume = 1.45 million
Listed on June 20, 2012


CLOSED BULLISH PLAYS

Snap-on Inc. - SNA - close: 62.10 change: +0.15

Stop Loss: 61.95
Target(s): 69.00
Current Option Gain/Loss: Unopened
Time Frame: 6 to 9 weeks
New Positions: see below

Comments:
06/23/12 update: I am giving up on SNA as a short-term bullish candidate. The plan was to buy calls on a breakout higher but that hasn't happened yet.

Trigger @ 64.55

Trade did not open.

06/23/12 removed SNA. Trade did not open.

chart:

Entry on June xx at $ xx.xx
Earnings Date 07/19/12 (unconfirmed)
Average Daily Volume = 424 thousand
Listed on June 19, 2012


Wal-Mart Stores Inc. - WMT - close: 67.30 change: -0.40

Stop Loss: 67.40
Target(s): 72.00
Current Option Gain/Loss: Jul$70c: -56.5% & Aug$70c: -46.8%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/23/12 update: I cautioned readers on Thursday that WMT appeared to be reversing lower. The stock underperformed again on Friday and hit our stop loss at $67.40. The next level of support is the $66.00 area but I would not launch new positions there either. WMT will probably need to see a deeper correction before I would jump in again.

- Suggested Positions -

Jul $70 call (WMT1221G70) Entry $0.46, exit $0.20 (-56.5%)

- or -

Aug $70 call (WMT1218H70) Entry $0.94, exit $0.50 (-46.8%)

06/22/12 stopped out at $67.40
06/21/12 triggered @ 68.65

chart:

Entry on June 21 at $68.65
Earnings Date 08/16/12 (unconfirmed)
Average Daily Volume = 11.7 million
Listed on June 20, 2012