Editor's Note:

The market's major indices produced a bounce today but overall stocks really aren't moving that much. Investors could be waiting for the EU summit at the end of the week.

Current Portfolio:


CALL Play Updates

iShares Biotech - IBB - close: 128.07 change: +1.16

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:
06/26/12 update: IBB bounced +0.9% to outperform the NASDAQ and S&P 500 but it's still trading in the $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.

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: 29.81 change: +0.01

Stop Loss: 28.49
Target(s): 33.00
Current Option Gain/Loss: Jul$30c: - 9.5% & Aug30c: + 0.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/26/12 update: The USO continues to drift sideways near what should be support at its 2011 lows. At this point I'd wait for a rise past $30.25 before initiating 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

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: 96.91 change: +1.35

Stop Loss: 93.25
Target(s): 95.00 & 98.50
Current Option Gain/Loss: Jul $92.50c: +60.6% & Aug $95c: +32.9%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/26/12 update: WFM tagged another new record high late this afternoon. The stock looks poised to make a run towards $100. More aggressive traders may want to adjust their exit target higher. We're planning to exit at $98.50. I am not suggesting new positions at this time.

- 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: 89.65 change: -0.17

Stop Loss: 92.55
Target(s): 82.50
Current Option Gain/Loss: -21.4%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/26/12 update: CMI is not seeing a lot of movement either way. Shares are just drifting sideways under prior support and what should be new resistance at the $90.00 mark.

Readers may want to wait for a new relative low under $88.30 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: 44.20 change: -0.16

Stop Loss: 50.05
Target(s): 42.00
Current Option Gain/Loss: Jul45p: +74.0% & Aug45P: +34.4%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/26/12 update: Shares of DECK are not seeing much movement either. The stock drifted sideways in a narrow range.

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


Joy Global, Inc. - JOY - close: 51.91 change: -0.20

Stop Loss: 55.05
Target(s): 47.50
Current Option Gain/Loss: - 2.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/26/12 update: It's the same story here with JOY. Shares really didn't move that much. The larger trend is down. Readers might want to look for a new failed rally under short-term resistance at $54.00 before initiating positions.

We do want to keep our position size small because JOY can be a volatile stock at times. It is possible that the $50.00 level could act as round-number, psychological support but we are aiming for a drop to $47.50.

- Suggested *SMALL* Positions -

Long Jul $50 PUT (JOY1221S50) Entry $1.60

Entry on June 26 at $52.23
Earnings Date 08/29/12 (unconfirmed)
Average Daily Volume = 2.6 million
Listed on June 25, 2012