Editor's Note:

Stocks continue to sink. The FOMC minutes failed to inspire any new buyers. Our AMT call play was stopped out. SOHU was triggered. We want to exit our DECK trade early at the open tomorrow.

Current Portfolio:


CALL Play Updates

Athenahealth, Inc. - ATHN - close: 80.60 change: -1.20

Stop Loss: 79.85
Target(s): 89.00
Current Option Gain/Loss: -25.0%
Time Frame: exit prior to earnings on July 19th
New Positions: see below

Comments:
07/11/12 update: ATHN continues to sink. As we suspected yesterday the stock is headed for support near $80.00. The low today was $80.17. If ATHN breaks $80 it will quickly hit our stop loss at $79.85. 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


Dollar General - DG - close: 54.92 change: -0.68

Stop Loss: 53.45
Target(s): 59.50
Current Option Gain/Loss: -24.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
07/11/12 update: DG dipped to short-term support near $54.40 and its 10-dma before starting to pare its losses this afternoon. I would use this dip as a new entry point but more conservative traders could wait for a new rise past $55.50 instead (or a rise past $56.00).

- Suggested Positions -

long Aug $55 call (DG1218H55) Entry $2.05

Entry on July 11 at $55.51
Earnings Date 08/30/12 (unconfirmed)
Average Daily Volume = 3.8 million
Listed on July 10, 2012


Westlake Chemical Corp. - WLK - close: 54.01 change: -0.36

Stop Loss: 53.40
Target(s): 62.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Comments:
07/11/12 update: WLK is still hovering sideways just above technical support at its simple 50-dma. We wait to wait for a breakout past short-term resistance at $56.00. Currently, I am suggesting a trigger to buy calls at $56.35. We are using a wide stop loss at $53.35 so that does raise the risk on this trade. The $60.00 level might be resistance but we're aiming for $62.00. FYI: The Point & Figure chart for WLK is bullish with a $69 target.

Trigger @ 56.35

- Suggested Positions -

buy the Aug $60 call (WLK1218H60)

07/11/12 removed the July option

Entry on July xx at $ xx.xx
Earnings Date 07/31/12 (unconfirmed)
Average Daily Volume = 543 thousand
Listed on July 09, 2012


PUT Play Updates

Deckers Outdoor Corp. - DECK - close: 46.49 change: +1.63

Stop Loss: 50.05
Target(s): 42.00
Current Option Gain/Loss: Jul45p: - 48.1% & Aug45P: - 3.4%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
07/11/12 update: I could not find any news to explain DECK's relative strength today (+3.6%). The larger trend is still very much down but DECK could bounce back toward resistance near $50 and its 50-dma before rolling over again.

We are suggesting an early exit immediately tomorrow morning to avoid or minimize any losses. Traders can keep DECK on their watch list for a new failed rally near $50.00 as another bearish entry point.

- Suggested (SMALL) Positions -

Long Jul $45 PUT (DECK1221S45) Entry $1.35

- or -

Long Aug $45 PUT (DECK1218T45) Entry $2.90

07/11/12 prepare to exit at the open tomorrow morning
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: 18.84 change: -0.03

Stop Loss: 20.35
Target(s): 17.75
Current Option Gain/Loss: Jul20p: -78.9% & Aug19p: +23.0%
Time Frame: exit prior to the late July earnings report
New Positions: see below

Comments:
07/11/12 update: FLIR is not moving very much. Shares still look bearish with the close under support at $19.00. The stock is down four days in a row. Currently our target is $17.75 but more aggressive traders may want to aim lower.

NOTE: Something happened to the bid/ask spread on FLIR's $20 July puts today. It might be a typo ($0.20bid/$1.75ask) but it's the same value on two different quote feeds.

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

07/11/12 odd bid/ask spread on the July $20 puts affecting our P/L.

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


Fossil, Inc. - FOSL - close: 65.13 change: -0.95

Stop Loss: 70.05
Target(s): 60.50
Current Option Gain/Loss: + 1.9%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
07/11/12 update: FOSL continues to sink. Shares opened at $65.99 and fell to $64.34 this afternoon. The stock is down seven days in a row so don't be surprised to see an oversold bounce back toward the $67-68 area. Such a bounce will probably be a new bearish entry point to buy puts.

FYI: The Point & Figure chart for FOSL is bearish with a $54 target.

- Suggested Positions -

Long Aug $60 PUT (FOSL1218T60) Entry $2.60

Entry on July 11 at $65.99
Earnings Date 08/07/12 (unconfirmed)
Average Daily Volume = 1.3 million
Listed on July 10, 2012


J.C.Penney Co. - JCP - close: 20.30 change: -0.46

Stop Loss: 22.51
Target(s): 19.50, 15.50
Current Option Gain/Loss: +35.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
07/11/12 update: After yesterday's bearish breakdown in the stock, shares underperformed again with a -2.2% loss. The stock is now testing round-number, psychological support at the $20.00 mark. Also in the news today was a story that S&P had downgraded JCP's credit rating from BB- to B+ and their outlook on the company remains negative.

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.

- Suggested Positions -

Long Aug $20 PUT (JCP1218T20) Entry $1.20

07/10/12 triggered @ 21.30

Entry on July 10 at $21.30
Earnings Date 08/08/12 (unconfirmed)
Average Daily Volume = 9.3 million
Listed on July 03, 2012


Sohu.com Inc. - SOHU - close: 39.33 change: -0.72

Stop Loss: 41.75
Target(s): 35.25
Current Option Gain/Loss: July40p: + 3.4% & Aug37.50p: + 2.7%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
07/11/12 update: SOHU underperformed the major indices today with a -1.79% loss. Shares broke down under support near $40.00 and hit our trigger to launch positions at $39.65. I would still consider new positions now.

We will want to keep our position size small to limit our risk because the most recent data listed short interest at 23% of the small 29.6 million-share float. FYI: The Point & Figure chart for SOHU is bearish with a $32 target.

*Small Positions* - Suggested Positions -

(July options expire in less than two weeks)
Long Jul $40 PUT (SOHU1221S40) entry $1.45

- or -

Long Aug $37.50 PUT (SOHU1218T37.5) entry $1.85

07/11/12 triggered @ 39.65

Entry on July 11 at $39.65
Earnings Date 07/30/12 (unconfirmed)
Average Daily Volume = 634 thousand
Listed on July 09, 2012


Weight Watchers Intl. - WTW - close: 48.10 change: +0.13

Stop Loss: 50.75
Target(s): 42.00
Current Option Gain/Loss: Jul47.50p: -27.2% & Aug45p: -12.9%
Time Frame: exit prior to the early August earnings report
New Positions: see below

Comments:
07/11/12 update: Shares of WTW have fallen asleep. The stock is stuck churning sideways in a narrow range. There is no change from my prior comments. The $50.00 level and the 10-dma remain overhead resistance. A failed rally near $50.00 could be used as a new bearish entry point.

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: 18.21 change: -0.86

Stop Loss: 21.25
Target(s): 16.00
Current Option Gain/Loss: +38.7%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
07/11/12 update: YOKU underperformed the market with a -4.5% loss today. The stock had been down -9.7% at its worst levels of the day (intraday low was $17.22). Readers may want to adjust their stop loss closer to the $20 level, which should be resistance.

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.

*Small Positions* - Suggested Positions -

Long Aug $19 PUT (YOKU1218T19) Entry $1.55

07/10/12 triggered @ 19.90

Entry on July 10 at $19.90
Earnings Date 08/08/12 (unconfirmed)
Average Daily Volume = 1.3 million
Listed on July 02, 2012


CLOSED BULLISH PLAYS

American Tower Corp. - AMT - close: 70.20 change: +0.30

Stop Loss: 69.35
Target(s): 74.50
Current Option Gain/Loss: -25.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
07/11/12 update: After yesterday's bearish reversal move in AMT I am not surprised to see the stock showing relative weakness this morning. AMT dipped to $69.04 before bouncing back. Our stop loss was hit at $69.35.

- Suggested Positions -

Long Aug $70 call (AMT1218H70) entry $2.15 exit $1.60 (-25.5%)

07/11/12 stopped out at $69.35
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