Editor's Note:

The small cap stocks continue to perform well with the Russell 2000 up +1.1% today and breaking out past resistance near the 800 level and its 100-dma.

Overall it was a generally bullish day for our active trades.

Current Portfolio:


CALL Play Updates

American Tower Corp. - AMT - close: 71.50 change: +1.59

Stop Loss: 67.40
Target(s): 74.50
Current Option Gain/Loss: +32.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
07/02/12 update: AMT displayed relative strength on Monday with a +2.2% surge to new highs. The breakout past resistance at $70.00 is bullish. More conservative traders might want to start adjusting the stop loss higher.

- Suggested Positions -

Long Aug $70 call (AMT1218H70) entry $2.15

06/29/12 triggered @ 70.25

Entry on June 29 at $70.25
Earnings Date 08/02/12 (unconfirmed)
Average Daily Volume = 2.3 million
Listed on June 27, 2012


Ashland Inc. - ASH - close: 69.00 change: -0.31

Stop Loss: 67.75
Target(s): 74.75, 77.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Comments:
07/02/12 update: ASH did not see any follow through on Friday's bounce. The stock is churning sideways between $68 and $70.

I am suggesting a trigger to buy calls at $70.25. The stock's all-time high is $75.17. We'll set our first target at $74.75. FYI: The Point & Figure chart for ASH is bullish with a $90 target.

Trigger @ 70.25

- Suggested Positions -

buy the Jul $70 call (ASH1221G70)

- or -

buy the Aug $75 call (ASH1218H75)

Entry on June xx at $ xx.xx
Earnings Date 07/24/12 (unconfirmed)
Average Daily Volume = 937 thousand
Listed on June 30, 2012


Costco Wholesale - COST - close: 94.40 change: -0.60

Stop Loss: 91.75
Target(s): 99.00
Current Option Gain/Loss: Jul$92.50c: +61.4% & Aug95c: +109.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
07/02/12 update: One analysts reiterated their "buy" rating on COST and raised their price target from $90 to $100. Yet this failed to inspire any new buying. After two big up days COST hit some profit taking today with a -0.6% dip. I am not suggesting new positions at this time.

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

06/30/12 new stop loss @ 91.75
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


McKesson Corp. - MCK - close: 95.03 change: +1.28

Stop Loss: 91.45
Target(s): 99.00
Current Option Gain/Loss: Jul92.50c: +26.6% & Aug95c: +21.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
07/02/12 update: MCK continues to rise and broke through resistance near the $94 level today. The relative strength is encouraging but I would not chase MCK here.

- Suggested Positions -

Long Jul $92.50 call (MCK1221G92.5) Entry $2.21

- or -

Long Aug $95 call (MCK1218H95) Entry $1.90

06/29/12 triggered on gap higher at $94.47 (trigger was 93.55)

Entry on June 29 at $94.47
Earnings Date 07/30/12 (unconfirmed)
Average Daily Volume = 1.6 million
Listed on June 28, 2012


Boston Beer Co. - SAM - close: 123.42 change: +2.42

Stop Loss: 117.25
Target(s): 127.50
Current Option Gain/Loss: +34.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
07/02/12 update: SAM continues to bubble higher. The stock outperformed the market's major indices today with a +2.0% gain. I am not suggesting new positions at this time but nimble traders could try and buy calls on a dip near $120.00, which should be new support.

- Suggested Positions -

Long Aug $125 call (SAM1218H125) Entry $3.35*

*option entry price is an estimate. option did not trade when our play opened
06/29/12 triggered @ 120.25

Entry on June 29 at $120.25
Earnings Date 08/02/12 (unconfirmed)
Average Daily Volume = 117 million
Listed on June 27, 2012


U.S. Oil ETF - USO - close: 31.43 change: -0.40

Stop Loss: 30.49
Target(s): 33.00
Current Option Gain/Loss: Jul$30c: + 95.7% & Aug30c: +69.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
07/02/12 update: After Friday's huge move higher in oil I am not surprised to see a little pullback today. There is no change from my prior comments.

Readers may want to go ahead and take some money off the table now. I am not suggesting new positions at this time.

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

06/30/12 new stop loss @ 30.49
06/29/12 USO surges as oil rallies on dollar weakness.

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


PUT Play Updates

Deckers Outdoor Corp. - DECK - close: 43.72 change: -0.29

Stop Loss: 50.05
Target(s): 42.00
Current Option Gain/Loss: Jul45p: + 70.3% & Aug45P: +34.4%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
07/02/12 update: After the initial decline, DECK spent the day drifting sideways and settled with a -0.6% decline. The relative weakness is a good sign for put holders. Readers may want to go ahead and just 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

06/29/12 DECK almost hit our target but bounced at $42.16
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


FLIR Systems - FLIR - close: 19.41 change: -0.09

Stop Loss: 20.35
Target(s): 17.75
Current Option Gain/Loss: Jul20p: -15.7% & Aug19p: - 7.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
07/02/12 update: FLIR opened higher at $19.56 but quickly reversed. Yet by lunchtime the stock's downward momentum had stalled and shares drifted sideways. I would still consider new bearish positions now. Our target is $17.75. FYI: The Point & Figure chart for FLIR is bearish with a $7 target.

- Suggested Positions -

Long Jul $20 PUT (FLIR1221S20) Entry $0.95

- or -

Long Aug $19 PUT (FLIR1218T19) Entry $0.65

Entry on July 02 at $19.56
Earnings Date 07/20/12 (unconfirmed)
Average Daily Volume = 1.7 million
Listed on June 30, 2012