Editor's Note:

Stocks were initially weak as investors reacted to the Supreme Court's decision on Obamacare. Then, late in the day, stocks surged higher on hopes of a deal or improvement in the EU summit.

COST was triggered. IBB, WFM, and WTW were stopped out.

Current Portfolio:


CALL Play Updates

American Tower Corp. - AMT - close: 69.68 change: +0.05

Stop Loss: 67.40
Target(s): 74.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Comments:
06/28/12 update: AMT rallied off its morning lows but remains under resistance at the $70.00 level.

I am suggesting a trigger to buy calls at $70.25. We'll use a stop loss at $67.40. Our target is $74.50.

Trigger @ 70.25

- Suggested Positions -

Buy the Aug $70 call (AMT1218H70)

Entry on June xx at $ xx.xx
Earnings Date 08/02/12 (unconfirmed)
Average Daily Volume = 2.3 million
Listed on June 27, 2012


Costco Wholesale - COST - close: 92.92 change: +1.60

Stop Loss: 89.90
Target(s): 99.00
Current Option Gain/Loss: Jul$92.50c: + 9.9% & Aug95c: + 6.8%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/28/12 update: It was a volatile day for shares of COST. The stock initially moved lower with the market and dipped under support at $90.00. COST quickly recovered and surged past the $92 level. Our trigger to buy calls was hit at $92.50.

The plan was to keep our position size small. FYI: The Point & Figure chart for COST is bullish with a $116 target.

- Suggested *Small* Positions -

Long Jul $92.50 call (COST1221G92.5) entry $1.61

- or -

Long Aug $95 call (COST1218H95) entry $0.88

06/28/12 triggered @ 92.50

Entry on June 28 at $92.50
Earnings Date 10/11/12 (unconfirmed)
Average Daily Volume = 2.3 million
Listed on June 26, 2012


Boston Beer Co. - SAM - close: 117.96 change: -1.05

Stop Loss: 117.25
Target(s): 127.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Comments:
06/28/12 update: SAM saw a dip toward $115 and short-term support near its 10-dma but it didn't quite get there before paring its losses. There is no change from my prior comments.

The $120 level looks like round-number resistance. I am suggesting a trigger to buy calls at $120.25. If triggered we'll use a stop loss at $117.25. Our target is $127.50.

Trigger @ 120.25

- Suggested Positions -

buy the Aug $125 call (SAM1218H125)

Entry on June xx at $ xx.xx
Earnings Date 08/02/12 (unconfirmed)
Average Daily Volume = 117 million
Listed on June 27, 2012


U.S. Oil ETF - USO - close: 29.50 change: -0.70

Stop Loss: 28.49
Target(s): 33.00
Current Option Gain/Loss: Jul$30c: -27.6% & Aug30c: -13.9%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/28/12 update: The USO spiked down under recent support near $29.30 and it also traded below its 2011 low of $29.10 before bouncing near the $29.00 mark. I am not suggesting new positions at this time. Readers may want to wait for a close over the 10-dma 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

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


PUT Play Updates

Cummins Inc. - CMI - close: 92.26 change: +1.63

Stop Loss: 92.55
Target(s): 82.50
Current Option Gain/Loss: -55.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/28/12 update: The oversold bounce in CMI continues. Shares actually outperformed the market today with a +1.8% gain. If this continues CMI will hit our stop loss at $92.55 soon. More aggressive traders will want to consider adjusting their stop loss higher and give CMI more room to move before rolling over again inside the channel. CMI's bearish channel should put resistance near $94.00 or its 30-dma (95.35).

I am not suggesting new positions at this time.

- 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: 43.25 change: -1.03

Stop Loss: 50.05
Target(s): 42.00
Current Option Gain/Loss: Jul45p: +107.4% & Aug45P: +51.7%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/28/12 update: DECK continues to underperform and closed at new 52-week lows today.

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: 53.93 change: +2.02

Stop Loss: 55.05
Target(s): 47.50
Current Option Gain/Loss: -40.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/28/12 update: JOY is another industrial name (like CMI) that was outperforming the market today. The relative strength is a bit perplexing. Right now it's just an oversold bounce within the longer-term down trend. Yesterday I suggested readers look for a failed rally near $54.00 as a new bearish entry point. Well, JOY is at $54.00 now. We need to see the bounce reverse.

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


CLOSED BULLISH PLAYS

iShares Biotech - IBB - close: 126.55 change: -3.43

Stop Loss: 124.90
Target(s): 134.85
Current Option Gain/Loss:Jul$130c: -73.9% & Sep135c: -63.4%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/28/12 update: It was a volatile day for IBB thanks to market reaction to the Supreme Court's decision on Obamacare. Shares of the IBB initially fell to short-term support at $126 and it looked like it might hold there. Then later in the afternoon the stock dropped to the next support level at $125.00 and dipped under $125.00 just low enough to hit our stop loss before reversing higher as the market reversed higher late this afternoon.

Our trade is closed but the larger trend for IBB (up) is unchanged.

- Suggested Positions -

Jul $130 call (IBB1221G130) Entry $2.30 exit $0.60 (-73.9%)

- or -

Sep $135 call (IBB1222I135) Entry $2.60 exit $0.95 (-63.4%)

06/28/12 stopped out @ 124.90
06/27/12 triggered at $129.25

chart:

Entry on June 27 at $129.25
Earnings Date --/--/--
Average Daily Volume = 576 thousand
Listed on June 23, 2012


Whole Foods Market, Inc. - WFM - close: 93.72 change: -1.27

Stop Loss: 93.25
Target(s): 95.00 & 98.50
Current Option Gain/Loss: Jul $92.50c: -19.6% & Aug $95c: -11.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/28/12 update: WFM followed the market lower this morning. Unfortunately that meant a breakdown under support near $94.00. WFM hit our stop loss at $93.25 on the way down.

Our July calls went from +66% to -19%.

- Suggested Positions -

Jul $92.50 call (WFM1221G92.5) Entry $3.30 exit $2.65 (-19.6%)

- or -

Aug $95 call (WFM1218H95) Entry $4.40 exit $3.90 (-11.3%)

06/28/12 stopped out
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


CLOSED BEARISH PLAYS

Weight Watchers Intl - WTW - close: 49.54 change: -1.96

Stop Loss: 52.25
Target(s): 45.50, 42.00
Current Option Gain/Loss: Jul$50P -41.9% & Aug47.50P -30.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/28/12 update: WTW saw an intraday spike higher today. The initial move higher could have been a reaction to the Supreme Court's ruling on Obamacare. Corporate America could start focusing on solutions for obesity as a way to cut down their healthcare expenses. Does that mean they're going to start catering WTW meals to their employees? Or offer some sort of incentive for employees to diet? It's too early to tell but the chatter in WTW today was the impact of the court's ruling.

I do find it suspicious that WTW surged late morning with a rise from under $51.00 to over $52.50 and its 10-dma in less than five minutes only to see that rally reverse lower. Maybe it was just a midday short squeeze.

The larger trend for WTW is still down and I would keep an eye on for another bearish entry point!

Earlier Comments:
We do want to keep our position size small since the most recent data listed short interest at 10% of the very small 26.6 million share float.

- Suggested Positions -

Jul $50 PUT (WTW1221S50) Entry $1.55 exit $0.90 (-41.9%)

- or -

Aug $47.50 PUT (WTW1218T47.5) Entry $2.45 exit $1.70 (-30.6%)

06/28/12 stopped out at $52.25
06/27/12 triggered @ 49.75

chart:

Entry on June 27 at $49.75
Earnings Date 08/02/12 (unconfirmed)
Average Daily Volume = 667 thousand
Listed on June 26, 2012