Editor's Note:

Investors remain cautious and stocks slipped early on today.

CTXS hit our stop loss. CMI was triggered.

Current Portfolio:


CALL Play Updates

iShares Biotech - IBB - close: 126.91 change: -1.94

Stop Loss: 124.90
Target(s): 134.85
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Comments:
06/25/12 update: There was no follow through on Friday's relative strength. The IBB gapped down and lost -1.5% by the closing bell. This ETF remains inside its $126-129 trading range.

I am suggesting a trigger to buy calls at $129.25. We'll use a stop loss at $124.90. Our multi-week target is $134.85. More aggressive traders could aim higher.

Note: Readers may want to keep their position size small (see chart).

Trigger @ 129.25

- Suggested Positions -

buy the Jul $130 call (IBB1221G130)

- or -

buy the Sep $135 call (IBB1222I135)

Entry on June xx at $ xx.xx
Earnings Date --/--/--
Average Daily Volume = 576 thousand
Listed on June 23, 2012


U.S. Oil ETF - USO - close: 29.80 change: -0.30

Stop Loss: 28.49
Target(s): 33.00
Current Option Gain/Loss: Jul$30c: + 1.0% & Aug30c: + 6.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/25/12 update: Iran is getting desperate as the July 1st oil embargo gets closer. The country was threatening to close the Straits of Hormuz, which would be disastrous for the world oil market and disastrous for Iran as the U.S. would not allow the straits to be closed for long. With this situation heating up in the Mideast I am surprised that oil was down today. The USO gapped open lower at $29.68 but pared its losses after hitting $29.30.

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

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: 95.56 change: -0.71

Stop Loss: 93.25
Target(s): 95.00 & 98.50
Current Option Gain/Loss: Jul $92.50c: +30.3% & Aug $95c: +12.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/25/12 update: WFM bounced off of short-term support near $94.00 midday. Unfortunately today's session looks like another "inside day" so traders remain indecisive here. Last's Thursday's bearish reversal pattern still looms over WFM. 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

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

Cummins Inc. - CMI - close: 89.82 change: -0.57

Stop Loss: 92.55
Target(s): 82.50
Current Option Gain/Loss: -19.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/25/12 update: Our new trade on CMI is open. Shares actually gapped open lower a $89.06. That was under our proposed trigger at $89.35. The stock bounced and spent the rest of the day churning sideways near $90.00.

Readers may want to wait for a new relative low under $88.93 (today's low) before initiating new positions. FYI: The Point & Figure chart for CMI is bearish with an $82 target.

- Suggested Positions -

Long Jul $87.50 PUT (CMI1221S87.5) Entry $2.80

06/25/12 triggered on the gap down at $89.06 (trigger was 89.35)

Entry on June 25 at $89.06
Earnings Date 07/31/12 (unconfirmed)
Average Daily Volume = 2.8 million
Listed on June 23, 2012


Deckers Outdoor Corp. - DECK - close: 44.36 change: -0.64

Stop Loss: 50.05
Target(s): 42.00
Current Option Gain/Loss: Jul45p: +77.7% & Aug45P: +34.4%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/25/12 update: DECK tagged another new low today with an intraday dip to $43.51. Readers may want to take profits now. 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

06/25/12 readers may want to take profits early now.

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

Citrix Systems - CTXS - close: 78.23 change: -1.91

Stop Loss: 77.75
Target(s): 86.50
Current Option Gain/Loss: -69.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/25/12 update: The market's declined again and CTXS reversed Friday's bounce. The stock saw an intraday dip toward its 30-dma and hit our stop loss at $77.75.

- Suggested Positions -

Jul $82.50 call (CTXS1221G82.5) Entry $3.40 exit $1.05 (-69.1%)

06/25/12 stopped out at $77.75
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