Editor's Note:

Our play list managed to survive the market's negative reaction to the jobs report pretty well. However, if there is any follow through lower on Monday we'll probably see some call plays get stopped out.

Current Portfolio:


CALL Play Updates

American Tower Corp. - AMT - close: 70.79 change: -0.43

Stop Loss: 69.35
Target(s): 74.50
Current Option Gain/Loss: + 9.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
07/07/12 update: AMT held up pretty well on Friday. Shares did gap down at the open but spent most of the day in the $70.50-71.00 zone. The $70.00 level should still be short-term, round-number support. Traders could buy this dip or wait for a bounce off $70.00 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

chart:

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: 82.76 change: -0.36

Stop Loss: 79.85
Target(s): 89.00
Current Option Gain/Loss: +15.0%
Time Frame: exit prior to earnings on July 19th
New Positions: see below

Comments:
07/07/12 update: The jobs report didn't have much impact on shares of ATHN. Shares have spent the last two trading days inside the same $82-84 range. If the market sinks then ATHN should find some support at the $80.00 mark. I am not suggesting new positions at this time.

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

chart:

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: 93.68 change: -0.32

Stop Loss: 93.25
Target(s): 99.00
Current Option Gain/Loss: Jul$92.50c: +14.9% & Aug95c: + 54.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
07/07/12 update: Honestly, I am surprised our COST trade is still open given the market's negative reaction to the disappointing jobs number. However, traders were buying the dip near $93.50. If there is any follow through lower on Monday we can expect COST to hit our stop loss at $93.25. Overall the larger trend is still up and traders could use a bounce off $92 or $90 as a new bullish entry point.

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

chart:

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: 93.52 change: -1.01

Stop Loss: 93.25
Target(s): 99.00
Current Option Gain/Loss: Jul92.50c: -25.3% & Aug95c: -18.4%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
07/07/12 update: MCK came close to hitting our stop loss on Friday. Shares broke down under short-term support at $94.00 but traders bought the dip at its rising 10-dma. The intraday low was $93.34. If there is any follow through lower on Monday we'll probably see MCK hit our stop loss at $93.25. The larger trend is still bullish but traders may want to wait for a new bounce off the $90 area before considering new positions.

- 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)

chart:

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: 45.04 change: -2.45

Stop Loss: 50.05
Target(s): 42.00
Current Option Gain/Loss: Jul45p: + 11.1% & Aug45P: +17.2%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
07/07/12 update: After the big rally on Thursday there was no follow through in DECK. The stock did get downgraded on Friday morning, which could have played a factor. Shares lost -5.1% on Friday but technically this is an "inside day", within Thursday's range and suggests indecision.

After seeing our options crumble on Thursday they both produced significant bounces on Friday. More conservative traders may want to exit early 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

07/07/12 it's been a volatile couple of days for DECK and more conservative traders may want to exit now following Friday's bounce in these put options.
06/29/12 DECK almost hit our target but bounced at $42.16
06/25/12 readers may want to take profits early now.

chart:

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: 19.42 change: -0.34

Stop Loss: 20.35
Target(s): 17.75
Current Option Gain/Loss: Jul20p: -21.0% & Aug19p: -15.3%
Time Frame: exit prior to the late July earnings report
New Positions: see below

Comments:
07/07/12 update: It looks like the oversold bounce in FLIR is reversing. Shares underperformed on Friday with a -1.7% decline. Readers could use this move as a new bearish entry point to buy puts, just remember that we want to exit prior to the late July earnings report.

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

chart:

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: 22.13 change: -0.37

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:
07/07/12 update: Friday proved to be a quiet day for JCP. There was no follow through on Thursday's bounce. The larger trend of lower highs should produce a breakdown soon.

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 Aug $20 PUT (JCP1218T20)

chart:

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: 20.29 change: -0.25

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:
07/07/12 update: YOKU continues to sink and is inching closer and closer to a breakdown under support near $20.00.

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 Aug $19 PUT (YOKU1218T19)

chart:

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