Editor's Note:

The market's rally has paused as investors wait for the jobs report due out at 8:30 a.m. tomorrow morning.

Our SAM trade was closed at the opening bell this morning.

Current Portfolio:


CALL Play Updates

American Tower Corp. - AMT - close: 71.22 change: -0.21

Stop Loss: 69.35
Target(s): 74.50
Current Option Gain/Loss: +23.2%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
07/05/12 update: Thursday was a quiet day for AMT. Shares spent the session drifting sideways in a narrow range. Readers may want to look for a dip back toward the $70.50-70.00 zone as a new entry point.

- Suggested Positions -

Long Aug $70 call (AMT1218H70) entry $2.15

07/02/12 new stop loss @ 69.35
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


Athenahealth, Inc. - ATHN - close: 83.12 change: +0.51

Stop Loss: 79.85
Target(s): 89.00
Current Option Gain/Loss: +30.0%
Time Frame: exit prior to earnings on July 19th
New Positions: see below

Comments:
07/05/12 update: ATHN bounced between $82 and $84 and eventually settled with a +0.6% gain. That's good enough to outperform the major indices on Thursday. I am not suggesting new positions at this time. The $80.00 mark should be support.

Earlier Comments:
We'll aim for $89.00 but conservative traders may want to exit early near the June highs (about $87). We will plan to exit prior to the July 19th earnings report. FYI: The Point & Figure chart for ATHN is bullish with a $92 target.

- Suggested Positions -

Long Jul $85 call (ATHN1221G85) Entry $2.00

07/03/12 new stop loss @ 79.85

Entry on July 03 at $81.51
Earnings Date 07/19/12 (confirmed)
Average Daily Volume = 481 thousand
Listed on July 02, 2012


Costco Wholesale - COST - close: 94.00 change: -0.42

Stop Loss: 93.25
Target(s): 99.00
Current Option Gain/Loss: Jul$92.50c: +31.0% & Aug95c: + 73.8%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
07/05/12 update: Analysts were expecting June same-store sales of +3.7% for COST. The company reported +3.0% and the stock initially spiked lower almost hitting our new stop loss. It looks like the disappointment might have been a reflection of a drop in gasoline prices because excluding gas sales COST's same-store sales were up +5%. Shares spent the rest of the day moving sideways. 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

07/03/12 new stop loss @ 93.25, readers may want to take profits now
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: 94.53 change: -1.14

Stop Loss: 93.25
Target(s): 99.00
Current Option Gain/Loss: Jul92.50c: + 8.5% & Aug95c: + 5.2%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
07/05/12 update: MCK underperformed the market on Thursday with a -1.1% decline. Shares look headed toward the $94.00 level. I am not suggesting new positions at this time.

- Suggested Positions -

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

- or -

Long Aug $95 call (MCK1218H95) Entry $1.90

07/03/12 new stop loss @ 93.25
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


PUT Play Updates

Deckers Outdoor Corp. - DECK - close: 47.49 change: +3.31

Stop Loss: 50.05
Target(s): 42.00
Current Option Gain/Loss: Jul45p: - 48.1% & Aug45P: -15.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
07/05/12 update: Today looks like a short squeeze on DECK. Low volume in the market due to the midweek holiday combined with some retail-sector strength helped spark a squeeze. DECK outperformed with a +7.49% gain.

The $50.00 level should be overhead resistance. 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: 19.76 change: +0.05

Stop Loss: 20.35
Target(s): 17.75
Current Option Gain/Loss: Jul20p: -42.1% & Aug19p: -38.4%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
07/05/12 update: FLIR rallied up to tag its 20-dma before starting to pare its gains. The $20.00 level should also be overhead resistance. I am not suggesting new positions at this time.

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


J.C.Penney Co. - JCP - close: 22.50 change: +0.62

Stop Loss: 22.51
Target(s): 19.50, 15.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Comments:
07/05/12 update: Overall the trend in June same-store sales figures for the retail sector were a bit disappointing. Yet the sector managed to rally anyway. JCP managed a +2.8% gain in this low-volume market.

Currently we're waiting for a breakdown. We are suggesting a trigger to launch bearish positions at $21.30. Our first target is the 2010 lows near $19.50. Our second much more aggressive target is $15.50.

FYI: The Point & Figure chart for JCP is bearish with a $7.00 target.

Trigger @ 21.30

- Suggested Positions -

buy the Jul $20 PUT (JCP1221S20)

- or -

buy the Aug $20 PUT (JCP1218T20)

Entry on July xx at $ xx.xx
Earnings Date 08/08/12 (unconfirmed)
Average Daily Volume = 9.3 million
Listed on July 03, 2012


Youku Inc. - YOKU - close: 20.54 change: -0.28

Stop Loss: 21.25
Target(s): 16.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Comments:
07/05/12 update: YOKU is hovering just under short-term resistance at the $21.00 mark. I don't see any changes from my prior comments.

I am suggesting we launch small bearish positions if YOKU trades at $19.90 or lower. We'll use a stop loss at $21.25. More conservative traders may want to wait for YOKU to trade under the May low of $19.47 before initiating positions instead. If triggered our target is $16.00.

FYI: We want to keep our position size small because YOKU already has a high amount of short interest. The most recent data listed short interest at almost 19% of the 50.2 million share float and that raises the risk of a short squeeze higher.

Trigger @ 19.90 *Small Positions*

- Suggested Positions -

buy the Jul $19 PUT (YOKU1221S19)

- or -

buy the Aug $19 PUT (YOKU1218T19)

Entry on July xx at $ xx.xx
Earnings Date 08/08/12 (unconfirmed)
Average Daily Volume = 1.3 million
Listed on July 02, 2012


CLOSED BULLISH PLAYS

Boston Beer Co. - SAM - close: 127.98 change: +0.97

Stop Loss: 117.25
Target(s): 127.50
Current Option Gain/Loss: +49.2%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
07/05/12 update: Our plan was to exit at the open to lock in gains. If you chose to hold on then SAM would have hit our exit target at $127.50. The option closed with a bid at $6.80. Our exit was at $5.00**.

Shares opened at $126.99 (virtually flat).

- Suggested Positions -

Long Aug $125 call (SAM1218H125) Entry $3.35* exit $5.00** (+49.2%)

**option price is an estimate since it did not trade at the time of our exit. 07/05/12 exit at the open
07/03/12 prepare to exit at the open on Thursday morning
*option entry price is an estimate. option did not trade when our play opened
06/29/12 triggered @ 120.25

chart:

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