Editor's Note:

Today we closed our bullish Lumber Liquidators (LL) trade near its new highs.

Elsewhere KORS was triggered. ROST was stopped out.

We want to exit our EXPE trade immediately.


Current Portfolio:


CALL Play Updates

The Boeing Co. - BA - close: 94.76 change: +0.52

Stop Loss: 92.40
Target(s): 99.00
Current Option Gain/Loss: +17.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/13/13: BA displayed some relative strength on Monday with a +0.5% gain Yet the stock remains inside the $94-95 trading range. More conservative traders may want to ratchet up their stop loss. Readers may want to wait for a move past $95.25 before considering new bullish positions.

- 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


HanesBrands Inc. - HBI - close: 49.91 change: -0.62

Stop Loss: 48.75
Target(s): 54.75
Current Option Gain/Loss: -32.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/13/13: HBI's performance today was disappointing with a -1.2% decline. The close below the $50.00 mark and below its 10-dma is also very short-term bearish. I am not suggesting new positions. More conservative traders could tighten their stop loss.

NOTE: HBI is scheduled to begin trading ex-dividend on May 16th. The quarterly cash dividend should be 20 cents.

- Suggested Positions -

Long Jun $50 call (HBI1322F50) entry $2.00

Entry on May 08 at $50.72
Average Daily Volume = 1.4 million
Listed on May 07 2013


Michael Kors - KORS - close: 60.98 change: +0.62

Stop Loss: 57.65
Target(s): 64.75
Current Option Gain/Loss: -11.7%
Time Frame: exit PRIOR to earnings on May 29th
New Positions: see below

Comments:
05/13/13: KORS continued to show relative strength on Monday. Unfortunately much of today's gain occurred on the stock's gap open higher. The gap was sparked by news that KORS had been added to Morgan Stanley's "best ideas" list. We had a trigger to buy calls at $60.65 but the open at $61.55 triggered our play instead. I would wait for a dip back to the $60.50-60.00 zone as an alternative entry point if you're still looking to launch positions.

- Suggested Positions -

Long Jun $62.50 call (KORS1322F62.5) entry $3.40

05/13/13 trade triggered on gap open higher at $61.55
trigger was $60.65

Entry on May 13 at $61.55
Average Daily Volume = 3.5 million
Listed on May 11 2013


L Brands, Inc. - LTD - close: 50.85 change: -0.79

Stop Loss: 50.40
Target(s): 54.50
Current Option Gain/Loss: -13.0%
Time Frame: Exit PRIOR to earnings on May 22nd
New Positions: see below

Comments:
05/13/13: At a national level April's U.S. retail sales came in better than expected. Economists were estimating a -0.3% decline but the government said retail sales grew +0.1%. This should have been bullish for the retail stocks yet the retail sector retreated. LTD displayed relative weakness with a -1.5% decline. Today's breakdown below TLD's 10-dma is short-term bearish. If there is any follow through tomorrow we'll likely see LTD hit our stop loss at $50.40. More aggressive traders may want to readjust their stop so it's below the $50.00 mark.

Keep in mind we that we want to exit prior to LTD's earnings report on May 22nd.

- Suggested Positions -

Long Jun $50 call (LTD1322F50) entry $2.26

05/11/13 we want to exit prior to earnings on May 22nd.
05/07/13 new stop loss $ 50.40

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


MEDNAX, Inc. - MD - close: 90.23 change: -0.25

Stop Loss: 88.90
Target(s): 98.50
Current Option Gain/Loss: Unopened
Time Frame: 4 to 8 weeks
New Positions: Yes, see below

Comments:
05/13/13: MD spent Monday quietly churning sideways in narrow range. We are waiting for a breakout higher.

Earlier Comments:
The early April high was $91.00. I am suggesting a trigger to buy calls at $91.15. If triggered our target is $98.50. However, I am suggesting we keep our position size small. MD doesn't trade a lot of volume and the options do not see a lot of volume either.

Trigger @ $91.15 *Small Positions*

- Suggested Positions -

buy the Jun $95 call (MD1322F95)

Entry on May -- at $---.--
Average Daily Volume = 242 thousand
Listed on May 11 2013


WellPoint Inc. - WLP - close: 76.01 change: +0.12

Stop Loss: 73.35
Target(s): 79.75
Current Option Gain/Loss: +17.8%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/13/13: WLP continues to show strength. Traders bought the dip this morning and WLP inched back up to positive territory. I don't see any changes from my prior comments.

- Suggested Positions -

Long Jun $75 call (WLP1322F75) entry $1.91

Entry on May 08 at $75.25
Average Daily Volume = 2.0 million
Listed on May 07 2013


PUT Play Updates

Allergan Inc. - AGN - close: 103.86 change: -0.32

Stop Loss: 105.30
Target(s): 98.50
Current Option Gain/Loss: -21.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/13/13: Monday turned out to be a quiet session for shares of AGN. Shares drifted sideways and closed with a minor decline. Depending on your trading style you could look for a failed rally near $105.00 as a new entry point or a new drop below $102.80 as a new entry point.

Earlier Comments:
There is potential support at $100.00, at the 200-dma near $97.85, and at the May 1st low of $96.77. I am suggesting we aim for $98.50.

- Suggested Positions -

Long Jun $100 PUT (AGN1322R100) entry $1.85

Entry on May 09 at $103.46
Average Daily Volume = 2.4 million
Listed on May 08 2013


Expedia Inc. - EXPE - close: 58.87 change: +2.90

Stop Loss: 60.25
Target(s): 1st target: 55.10, 2nd target 53.00
Current Option Gain/Loss: -36.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/13/13: EXPE's rival Priceline.com (PCLN) continues to surge higher and that's lifting shares of EXPE as well. EXPE gained +0.9%, bucking the market's sideways trend today. The stock is currently testing potential technical resistance at its simple 200-dma. There is also likely resistance at the $60.00 level. Yet given EXPE's sudden reversal we are throwing in the towel. I am suggesting an immediate exit tomorrow morning. More aggressive traders may want to hang on and see if EXPE reverses at this resistance.

- Suggested Positions -

Long Jun $55 PUT (EXPE1322R55) entry $1.50

05/13/13 prepare to exit tomorrow morning at the open

Entry on May 07 at $58.48
Average Daily Volume = 2.9 million
Listed on May 06 2013



Longer-Term Play Updates



Chicago Bridge & Iron Co. - CBI - close: 57.35 change: +0.20

Stop Loss: 51.90
Target(s): 62.50
Current Option Gain/Loss: July's: +86.3% or Jan's: +44.8%
Time Frame: 3 to 4 months
New Positions: see below

Comments:
05/13/13: Traders bought the dip in CBI near its 50-dma this morning. The stock displayed a little bit of relative strength with a bounce back into positive territory.

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*

05/08/13 new stop loss @ 51.90
*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


CLOSED BULLISH PLAYS

Lumber Liquidators - LL - close: 89.28 change: +0.30

Stop Loss: 79.45
Target(s): 89.50
Current Option Gain/Loss: +55.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/13/13: Target achieved. LL continues to outperform the market. Shares rallied to $89.99 midday before paring its gains. Our exit target was $89.50. However , over the weekend we had decided to exit positions immediately on Monday morning at the open to lock in gains. LL opened at $88.62.

*Small Positions* - Suggested Positions -

Jun $85 call (LL1322F85) entry $4.10 exit $6.38 (+55.6%)

05/13/13 planned exit at the open
05/11/13 prepare to exit on Monday morning (May 13th) to lock in gains
05/07/13 triggered on gap open higher

chart:

Entry on May 07 at $84.35
Average Daily Volume = 761 thousand
Listed on May 06 2013


Ross Stores - ROST - close: 64.95 change: -0.90

Stop Loss: 64.95
Target(s): 69.00
Current Option Gain/Loss: -32.2%
Time Frame: exit prior to earnings in late May
New Positions: see below

Comments:
05/13/13: In the weekend newsletter I expressed concerns about our ROST trade. The U.S. retail sales data for April should have been bullish for retail stocks. Yet the group declined and ROST underperformed with a -1.3% drop. Shares have broken down and closed below technical support at the 10-dma. ROST also hit our stop loss at $64.95.

- Suggested Positions -

Jun $67.50 call (ROST1322F67.5) entry $1.55 exit $1.05 (-32.2%)

05/13/13 stopped out
05/11/13 new stop loss @ 64.95
05/09/13 new stop loss @ 64.70
05/04/13 new stop loss @ 64.15
05/01/13 new stop loss @ 63.90

chart:

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