Editor's Note:

After last week's rally the U.S. markets drifted sideways on Monday. There was definitely an upward bias to the sideways consolidation.

Our BA trade has been triggered.
We want to exit our AGU trade tomorrow. See the play update for details.


Current Portfolio:


CALL Play Updates

The Boeing Co. - BA - close: 94.19 change: +0.45

Stop Loss: 92.40
Target(s): 99.00
Current Option Gain/Loss: - 1.4%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/06/13: BA managed to outperform the S&P 500 with a +0.4% gain. Shares also pushed above the $94.00 level and hit our entry trigger at $94.25.

- Suggested Positions -

Long Jun $95 call (BA1322F95) entry $2.02

Entry on May 06 at $94.25
Average Daily Volume = 4.9 million
Listed on May 04 2013


Diageo Plc - DEO - close: 122.55 change: -0.90

Stop Loss: 121.45
Target(s): 129.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Comments:
05/06/13: DEO did not see any follow through higher on Monday. Shares pulled back to a -0.7% decline. I don't see any changes from my weekend comments. We are waiting for a bullish breakout from its current sideways trading range.

I am suggesting a trigger to buy calls at $124.00. If triggered our target is $129.50. We want to keep our position size small because the bid/ask spread is a little wide.

Trigger @ 124.00 *Small Positions*

- Suggested Positions -

buy the Jun $125 call (DEO1322F125)

Entry on May -- at $---.--
Average Daily Volume = 608 thousand
Listed on May 04 2013


L Brands, Inc. - LTD - close: 50.98 change: -0.19

Stop Loss: 49.40
Target(s): 54.50
Current Option Gain/Loss: - 7.0%
Time Frame: Exit PRIOR to earnings in mid-May
New Positions: see below

Comments:
05/06/13: Monday proved to be a quiet day for both the retail sector and shares of LTD. Traders bought the dip twice in LTD but the stock closed in negative territory. Readers may want to wait for a new relative high above $51.30 before initiating new positions. Keep in mind we only have a couple of weeks, maybe less, before we need to exit prior to LTD's earnings report.

- Suggested Positions -

Long Jun $50 call (LTD1322F50) entry $2.26

Entry on May 03 at $50.85
Average Daily Volume = 2.7 million
Listed on April 27 2013


Ross Stores - ROST - close: 65.20 change: -0.50

Stop Loss: 64.15
Target(s): 69.00
Current Option Gain/Loss: -16.1%
Time Frame: exit prior to earnings in late May
New Positions: see below

Comments:
05/06/13: ROST is still struggling with short-term resistance near $66.00. Shares failed at this level Monday morning and underperformed the market with a -0.7% pullback. I am not suggesting new positions.

- Suggested Positions -

Long Jun $67.50 call (ROST1322F67.5) entry $1.55

05/04/13 new stop loss @ 64.15
05/01/13 new stop loss @ 63.90

Entry on April 26 at $65.25
Average Daily Volume = 2.3 million
Listed on April 25 2013


PUT Play Updates

Agrium Inc. - AGU - close: 90.38 change: +0.37

Stop Loss: 91.55
Target(s): 85.25
Current Option Gain/Loss: -14.2%
Time Frame: Exit prior to earnings on May 9th
New Positions: see below

Comments:
05/06/13: Our time is almost up. The plan is to exit our AGU positions tomorrow, May 7th, at the closing bell to avoid holding over the company's earnings report. I am adjusting our stop loss down to $91.55.

We wanted to keep our position size small to limit our risk.

Trigger @ 89.75 *Small Positions*

- Suggested Positions -

buy the May $90 PUT (AGU1318Q90) entry $2.45

05/06/13 new stop loss @ 91.55, exit tomorrow at the close
05/04/13 prepare to exit on May 7th at the closing bell

Entry on May 01 at $89.75
Average Daily Volume = 1.5 million
Listed on April 23 2013


Amgen Inc. - AMGN - close: 104.83 change: -1.65

Stop Loss: 106.75
Target(s): 96.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
05/06/13: As we suspected the bounce in AMGN is rolling over under short-term technical resistance. AMGN underperformed the market with a -1.5% decline. Shares look poised to hit new relative lows soon.

Last Tuesday's low was $103.85. More aggressive traders could buy puts now but I am suggesting a trigger to buy puts at $103.65. If triggered our target is $96.00. However, more conservative traders may want to exit near $100 since it's possible the $100 level could prove to be round-number support.

Trigger @ 103.65

- Suggested Positions -

buy the Jun $100 PUT (AMGN1322R100)

Entry on May -- at $---.--
Average Daily Volume = 1.4 million
Listed on April 30 2013


Domtar Corp. - UFS - close: 68.91 change: +0.14

Stop Loss: 70.05
Target(s): 62.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Comments:
05/06/13: UFS spent Monday's session churning sideways. I do not see any changes from my earlier comments. Right now the plan is to wait for a new relative low. I am suggesting a trigger to buy puts at $66.75. If triggered our target is $62.50.

Trigger @ 66.75

- Suggested Positions -

buy the Jun $65 PUT (UFS1322R65)

Entry on May -- at $---.--
Average Daily Volume = 448 thousand
Listed on May 02 2013


Vertex Pharma. - VRTX - close: 77.25 change: +1.26

Stop Loss: 80.50
Target(s): 66.00
Current Option Gain/Loss: + 2.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/06/13: VRTX was not cooperating today. The stock recouped more than 2/3rds of Friday's decline. I am not suggesting new positions at the moment.

Earlier Comments:
The old 2012 highs were near $65.00. This could be new support. We will aim for $66.00.

- Suggested Positions -

Long Jun $75 PUT (VRTX1322R75) entry $3.60

Entry on May 02 at $76.30
Average Daily Volume = 3.8 million
Listed on May 01 2013



Longer-Term Play Updates



Chicago Bridge & Iron Co. - CBI - close: 56.30 change: +1.08

Stop Loss: 49.25
Target(s): 62.50
Current Option Gain/Loss: July's: +59.0% or Jan's: +34.4%
Time Frame: 3 to 4 months
New Positions: see below

Comments:
05/06/13: CBI continues to show relative strength and closed above short-term resistance at $56.00 and its 50-dma on Monday.

Please review our original play description on this page here.

- Suggested Positions -

Long 2013 Jul $55 call (CBI1320G55) Entry $2.20*

- or -

Long 2014 Jan $60 call (CBI1418A60) Entry $2.90*

*option entry price is an estimate since the option did not trade at the time our play opened.

Entry on April 22 at $51.53
Average Daily Volume = 2.5 million
Listed on April 20 2013