Editor's Note:

If you haven't heard yet, hedge fund manager David Tepper, had some bullish comments for the stock market today. You can read more about Mr. Tepper's comments in tonight's market wrap.

Heard on CNBC today, the U.S. stock market is up 178 days without a -5% pullback, which is a new record. It also illustrates how overbought the market is. We are due for a correction but that doesn't mean one is imminent.

Our EXPE trade was closed this morning. I am suggesting we exit our LTD trade at the open tomorrow. Both MD and OXY were triggered today.


Current Portfolio:


CALL Play Updates

The Boeing Co. - BA - close: 96.11 change: +1.35

Stop Loss: 93.75
Target(s): 99.00
Current Option Gain/Loss: +48.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/14/13: The stock market's widespread rally helped BA breakout past resistance near $95.00. These are new multi-year highs for the stock. I am raising our stop loss to $93.75.

- Suggested Positions -

Long Jun $95 call (BA1322F95) entry $2.02

05/14/13 new stop loss @ 93.75

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


HanesBrands Inc. - HBI - close: 50.84 change: +0.93

Stop Loss: 49.40
Target(s): 54.75
Current Option Gain/Loss: -10.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/14/13: HBI shot higher this morning but the rally slowed by lunchtime with HBI hitting resistance near $50.60. Yet by the closing bell shares had pushed past this level. HBI is nearing prior resistance near $51.00. Readers could use today's bounce as a new entry point or wait for a rise past $51.00 as a potential entry point.

Please note our new stop loss at $49.40.

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

05/14/13 new stop loss @ 49.40

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


Michael Kors - KORS - close: 61.34 change: +0.36

Stop Loss: 57.65
Target(s): 64.75
Current Option Gain/Loss: - 8.8%
Time Frame: exit PRIOR to earnings on May 29th
New Positions: see below

Comments:
05/14/13: KORS underperformed the retail sector and the broader market today. That's probably okay since shares looked poised to pullback as of yesterday's closing bell. That fact that KORS posted a gain today is a good sign.

- 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: 50.70 change: -0.15

Stop Loss: 50.40
Target(s): 54.50
Current Option Gain/Loss: -15.9%
Time Frame: Exit PRIOR to earnings on May 22nd
New Positions: see below

Comments:
05/14/13: LTD continues to underperform the market. Shares gapped open lower and spent the session drifting sideways in a narrow range. I can't find any news to explain the relative weakness. We are giving up on the stock given its lack of performance. I am suggesting traders exit immediately at the opening bell tomorrow.

- Suggested Positions -

Long Jun $50 call (LTD1322F50) entry $2.26

05/14/13 prepare to exit tomorrow at the opening bell
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: 91.21 change: +0.98

Stop Loss: 88.90
Target(s): 98.50
Current Option Gain/Loss: -11.1%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
05/14/13: Traders bought the dip in MD near the $90.00 mark midday. By the closing bell shares had rallied to a new all-time high. Our trigger to buy calls was hit at $91.15.

Earlier Comments:
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.

*Small Positions* - Suggested Positions -

Long Jun $95 call (MD1322F95) entry $0.90

Entry on May 14 at $91.15
Average Daily Volume = 242 thousand
Listed on May 11 2013


Occidental Petroleum - OXY - close: 91.03 change: +0.50

Stop Loss: 87.75
Target(s): 98.50
Current Option Gain/Loss: -3.0%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
05/14/13: OXY garnered some bullish analyst comments again today. Shares posted a +0.5% gain and hit our trigger to buy calls at $90.75. Unfortunately the option gapped open higher, which did have a small impact on our entry point.

Earlier Comments:
On the weekly chart (see below) OXY has created a huge, inverse head-and-shoulders pattern, which is bullish. FYI: The Point & Figure chart for OXY is bullish with a $114 target.

- Suggested Positions -

Long Jun $92.50 call (OXY1322F92.5) entry $1.95

Entry on May 14 at $90.75
Average Daily Volume = 6.3 million
Listed on May 13 2013


WellPoint Inc. - WLP - close: 78.00 change: +1.99

Stop Loss: 74.65
Target(s): 79.75
Current Option Gain/Loss: +88.4%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/14/13: WLP surged today with a +2.6% gain. The stock gapped open this morning thanks to an analyst upgrade. The stock has hit new 18-month highs. I am raising our stop loss up to $74.65.

- Suggested Positions -

Long Jun $75 call (WLP1322F75) entry $1.91

05/14/13 new stop loss @ 74.65

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: 103.78 change: -0.08

Stop Loss: 105.30
Target(s): 98.50
Current Option Gain/Loss: -27.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/14/13: With almost the entire market in rally mode it's tough to make money on bearish trades. AGN is trying to help by underperforming the market and the stock did eke out another loss today. Traders sold the intraday rally attempt near resistance at $105.00. Yet given the market's strength I would hesitate to launch new positions here.

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


Intuit Inc. - INTU - close: 59.11 change: +0.12

Stop Loss: 60.25
Target(s): 55.65
Current Option Gain/Loss: Unopened
Time Frame: exit PRIOR to earnings on May 21st
New Positions: Yes, see below

Comments:
05/14/13: INTU continues to look bearish here. The stock tried to rally but failed in spite of the market's widespread advance higher. This stock is poised to breakdown under short-term support and continues its move lower.

Last week's low was $58.88. Today's low was $58.87. I am suggesting a trigger to buy puts at $58.75. If triggered our target is $55.65. More aggressive traders could definitely aim lower.

Trigger @ 58.75

- Suggested Positions -

buy the Jun $57.50 put (INTU1322R57.5) current ask $1.25

Entry on May -- at $---.--
Average Daily Volume = 3.4 million
Listed on May 13 2013




Longer-Term Play Updates



Chicago Bridge & Iron Co. - CBI - close: 57.90 change: +0.55

Stop Loss: 51.90
Target(s): 62.50
Current Option Gain/Loss: July's: +95.4% or Jan's: +55.1%
Time Frame: 3 to 4 months
New Positions: see below

Comments:
05/14/13: The market's widespread rally today helped lift CBI back toward short-term resistance near $58.00.

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 BEARISH PLAYS

Expedia Inc. - EXPE - close: 60.76 change: +1.33

Stop Loss: 60.25
Target(s): 1st target: 55.10, 2nd target 53.00
Current Option Gain/Loss: -47.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/14/13: EXPE has not been cooperating with us. The recent rally was sparked by a surge in its rival PCLN. Both stocks have continued to march higher and today's widespread market rally didn't help if you were bearish. Even though yesterday EXPE was still below what should have been resistance we decided that it was time to exit. I suggested traders exit this morning at the opening bell. Unfortunately, EXPE gapped open higher at $59.67 before pushing past resistance near $60.00.

- Suggested Positions -

Jun $55 PUT (EXPE1322R55) entry $1.50 exit $0.79 (-47.3%)

05/14/13 planned exit at the open
05/13/13 prepare to exit tomorrow morning at the open

chart:

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