Editor's Note:

AAPL plunged -4.3% following its earnings report but the market's major indices managed to shrug off this high-profile decline.

Current Portfolio:


CALL Play Updates

Health Care REIT - HCN - close: 60.87 change: +0.02

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:
07/25/12 update: HCN ignored most of the market's intraday volatility today. Shares continue to consolidate sideways and closed virtually unchanged on the session. Readers may want to wait for a new rise past $61.25 before initiating 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: 45.03 change: +1.03

Stop Loss: 46.25
Target(s): 40.50
Current Option Gain/Loss: -11.7%
Time Frame: 4 to 5 weeks
New Positions: see below

Comments:
07/25/12 update: ATK managed to recoup a good chunk of yesterday's losses with today's +2.3% gain. Yet today's move is technically just an inside day. ATK is testing what should be brand new resistance at the $45.00 level.

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


Salesforce.com - CRM - close: 125.32 change: -1.40

Stop Loss: 130.25
Target(s): 111.00
Current Option Gain/Loss: Unopened
Time Frame: exit prior to the mid August earnings
New Positions: Yes, see below

Comments:
07/25/12 update: CRM continues to drift lower. The stock is moving closer and closer to a bearish breakdown under support near $125.00. The three-month trend of lower highs would suggest CRM is going to break lower. The P&F chart is also forecasting a breakdown with a $108 target.

I am suggesting a trigger to buy puts at $124.00. If triggered we will target a drop to $111.00. This is an aggressive, higher-risk trade because CRM can be a volatile stock.

Trigger @ 124.00

- Suggested Positions -

buy the Aug $120 PUT (CRM1218T120)

Entry on July xx at $ xx.xx
Earnings Date 08/16/12 (unconfirmed)
Average Daily Volume = 1.8 million
Listed on July 24, 2012


Rackspace Hosting - RAX - close: 41.83 change: +0.61

Stop Loss: 41.55
Target(s): 35.50
Current Option Gain/Loss: Unopened
Time Frame: exit prior to the Aug 7th earnings
New Positions: Yes, see below

Comments:
07/25/12 update: RAX briefly dipped under its mid June lows near $40.65 only to bounce back. We knew that area looked like possible support, which is why we listed our trigger to buy puts at $39.90.

Trigger @ 39.90

- Suggested Positions -

buy the AUG $40 PUT (RAX1218T40)

Entry on July xx at $ xx.xx
Earnings Date 08/07/12 (confirmed)
Average Daily Volume = 1.6 million
Listed on July 24, 2012


SINA Corp. - SINA - close: 45.48 change: -0.02

Stop Loss: 47.60
Target(s): 40.50
Current Option Gain/Loss: -28.0%
Time Frame: 4 to 5 weeks
New Positions: see below

Comments:
07/25/12 update: Wednesday proved to be a quiet session for shares of SINA. Shares merely churned sideways in a narrow range under the $46.00 level and its simple 10-dma. Readers may want to wait for a new drop under $45.00 or under $44.75 as an entry point to launch new bearish positions.

- 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: 92.79 change: -0.21

Stop Loss: 96.25
Target(s): 85.50
Current Option Gain/Loss: +11.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
07/25/12 update: WYNN was showing a little bit of volatility today as it bounced around the $94.00-91.50 area. The path of least resistance still looks lower. 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