Editor's Note:

Our new additions to the OI play list have been triggered (HCN & WYNN).

We did see MHK get stopped out.

Current Portfolio:


CALL Play Updates

Health Care REIT - HCN - close: 60.85 change: +0.00

Stop Loss: 59.85
Target(s): 64.75
Current Option Gain/Loss: -19.3%
Time Frame: exit prior to the Aug 6th earnings
New Positions: see below

Comments:
07/24/12 update: HCN briefly traded above short-term resistance at $61.00 and hit our trigger to buy calls at $61.15. Shares spent the rest of the day moving sideways and closed unchanged on the session. It wasn't the best day but it was better than the major averages, which all closed negative. The high today was $61.22. I'd wait for a new rise to $61.25 before initiating new positions.

FYI: The Point & Figure chart for HCN is bullish with a $70 target.

- Suggested Positions -

Long Aug $60 call (HCN1218H60) entry $1.55

07/24/12 triggered @ 61.15

Entry on July 24 at $61.15
Earnings Date 08/06/12 (confirmed)
Average Daily Volume = 1.5 million
Listed on July 23, 2012


PUT Play Updates

Alliant Techsystems - ATK - close: 44.00 change: -1.31

Stop Loss: 46.25
Target(s): 40.50
Current Option Gain/Loss: +17.6%
Time Frame: 4 to 5 weeks
New Positions: see below

Comments:
07/24/12 update: It was another ugly day for ATK. The stock spiked down to hit $43.08 before trimming its losses. Shares settled with a -2.8% decline. At this point readers may want to wait for a new failed rally near $45.00, which should now be resistance before launching new trades.

FYI: The Point & Figure chart for ATK is bearish with a $35 target.

- Suggested Positions -

Long Aug $45 PUT (ATK1218T45) Entry $1.70

07/23/12 triggered @ 44.75

Entry on July 23 at $44.75
Earnings Date 08/02/12 (unconfirmed)
Average Daily Volume = 261 thousand
Listed on July 21, 2012


SINA Corp. - SINA - close: 45.50 change: +0.94

Stop Loss: 47.60
Target(s): 40.50
Current Option Gain/Loss: -23.2%
Time Frame: 4 to 5 weeks
New Positions: see below

Comments:
07/24/12 update: We cautioned readers last night that SINA might pop today as Chinese stocks rallied on BIDU's better than expected earnings numbers. Shares of BIDU surged +7.3% (they were a lot higher intraday) while SINA only gained +2.1%. The larger trend in SINA remains bearish and I would still consider new positions now at current levels.

- Suggested Positions -

Long Aug $42.50 PUT (SINA1218T42.5) Entry $2.71

Entry on July 23 at $43.99
Earnings Date 08/16/12 (unconfirmed)
Average Daily Volume = 2.7 million
Listed on July 21, 2012


Wynn Resorts - WYNN - close: 93.00 change: -2.02

Stop Loss: 96.25
Target(s): 85.50
Current Option Gain/Loss: +10.9%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
07/24/12 update: As we expected shares of WYNN continued to break lower. The stock fell to $92.02 intraday. Our trigger to buy puts was hit at $93.75. I don't see any changes from my prior comments. The $90.00 level might offer some support but our target is $85.50. FYI: The Point & Figure chart for WYNN is bearish with a $60 target.

- Suggested Positions -

Long Aug $90 PUT (WYNN1218T90) Entry $2.20

07/24/12 triggered @ 93.75

Entry on July 24 at $93.75
Earnings Date 07/17/12
Average Daily Volume = 2.3 million
Listed on July 23, 2012


CLOSED BULLISH PLAYS

Mohawk Industries - MHK - close: 69.59 change: -1.69

Stop Loss: 69.75
Target(s): 78.50
Current Option Gain/Loss: -41.1%
Time Frame: exit prior to the Aug. 2nd earnings
New Positions: see below

Comments:
07/24/12 update: The market's widespread pullback today was strong enough to push MHK below support near $70.00. Our stop loss was hit at $69.75.

- Suggested Positions -

Aug $75 call (MHK1218H75) Entry $1.70 exit $1.00 (-41.1%)

07/24/12 stopped out at $69.75

chart:

Entry on July 20 at $72.07
Earnings Date 08/02/12 (unconfirmed)
Average Daily Volume = 408 thousand
Listed on July 19, 2012