Editor's Note:

The market's drifted sideways on Monday with the major indices slipping into the red. Meanwhile COST and SHW are not cooperating. COST was stopped out and we've chosen to drop SHW as a candidate.

Current Portfolio:


CALL Play Updates

American Tower Corp. - AMT - close: 71.82 change: +1.03

Stop Loss: 69.35
Target(s): 74.50
Current Option Gain/Loss: +39.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
07/09/12 update: AMT is showing some relative strength with a +1.4% gain toward its recent highs near $72. I am not suggesting new positions at this time. More conservative traders may want to inch up their stop closer to $70.00.

- 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: 82.91 change: +0.15

Stop Loss: 79.85
Target(s): 89.00
Current Option Gain/Loss: -17.5%
Time Frame: exit prior to earnings on July 19th
New Positions: see below

Comments:
07/09/12 update: ATHN tried to breakout past the $84-82 range today but failed. The stock pared its gains to just +0.18%. There is likely support at $82 and at $80. 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

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


McKesson Corp. - MCK - close: 93.92 change: +0.40

Stop Loss: 93.25
Target(s): 99.00
Current Option Gain/Loss: Jul92.50c: -16.2% & Aug95c: -13.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
07/09/12 update: MCK is hovering right near $94 and short-term support at its rising 10-dma. If the market sinks much further I would expect MCK to hit our stop loss at $93.25. I am not suggesting new positions at current levels.

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)

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: 44.71 change: -0.33

Stop Loss: 50.05
Target(s): 42.00
Current Option Gain/Loss: Jul45p: + 14.8% & Aug45P: +20.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
07/09/12 update: DECK dipped to short-term support near $44.00 before trying to pare its losses. I don't see any changes from my weekend comments. 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.

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: 19.16 change: -0.26

Stop Loss: 20.35
Target(s): 17.75
Current Option Gain/Loss: Jul20p: - 5.2% & Aug19p: + 7.6%
Time Frame: exit prior to the late July earnings report
New Positions: see below

Comments:
07/09/12 update: FLIR was down -2.6% and hit a new multi-year low at $18.90 this morning. The stock managed to trim its losses in half to -1.3%. A close under $19.00 would help reaffirm the bearish trend.

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: 22.13 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:
07/09/12 update: JCP is drifting sideways in a very narrow range. The overall pattern continues to suggest further weakness.

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)

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


Weight Watchers Intl. - WTW - close: 48.00 change: -0.37

Stop Loss: 50.75
Target(s): 42.00
Current Option Gain/Loss: Jul47.50p: - 9.0% & Aug45p: - 5.4%
Time Frame: exit prior to the early August earnings report
New Positions: see below

Comments:
07/09/12 update: WTW spiked down to a new relative low this morning and hit $46.88 before bouncing. Our traded opened this morning at $48.28. The $50.00 level and the 10-dma overhead should be resistance.

FYI: The most recent data does list short interest at 10% of the small 26.6 million share float. That raises the risk of a short squeeze but lately the any short covering has failed at the 10 or 20-dma.

NOTE: July options expire in two weeks.

- Suggested Positions -

Long Jul $47.50 PUT (WTW1221S47.5) Entry $1.10

- or -

Long Aug $45 PUT (WTW1218T45) Entry $2.01

Entry on July 09 at $48.28
Earnings Date 08/02/12 (unconfirmed)
Average Daily Volume = 764 thousand
Listed on July 07, 2012


Youku Inc. - YOKU - close: 20.09 change: -0.20

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:
07/09/12 update: The bounce attempt in YOKU failed at technical resistance near the simple 200-dma. Shares look ready to breakdown under support at $20.00 soon.

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)

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

Costco Wholesale - COST - close: 93.97 change: +0.29

Stop Loss: 93.25
Target(s): 99.00
Current Option Gain/Loss: Jul$92.50c: -13.0% & Aug95c: + 25.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
07/09/12 update: COST managed a gain today but midday the stock dipped just under short-term technical support at its 10-dma and hit our stop loss at $93.25.

The plan was to keep our position size small.

- Suggested *Small* Positions -

Jul $92.50 call (COST1221G92.5) entry $1.61 exit $1.40 (-13.0%)

- or -

Aug $95 call (COST1218H95) entry $0.88 exit $1.10 (+25.0%)

07/09/12 stopped out at $93.25
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


Sherwin-Williams Co. - SHW - close: 130.20 change: -2.62

Stop Loss: 129.90
Target(s): 139.75
Current Option Gain/Loss: Unopened
Time Frame: exit prior to the July 19th earnings report
New Positions: see below

Comments:
07/09/12 update: We just added SHW this past weekend but SHW is not cooperating. Instead of breaking out higher the stock underperformed the market with a -1.9% drop. We are removing SHW from the play list.

Readers may want to keep SHW on their radar screen and wait for a close over resistance near $134.00 as their entry point. On the other hand more nimble traders could buy a dip near technical support at the rising 40-dma or 50-dma and just use a tight stop loss as their strategy.

Trade did not open.

07/09/12 SHW is not cooperating so we're dropping it.

Annotated Chart:

Entry on July xx at $ xx.xx
Earnings Date 07/19/12 (confirmed)
Average Daily Volume = 1.2 million
Listed on July 07, 2012