Editor's Note:

Wednesday's session produced another round of all-time highs for the S&P 500, Dow Industrials, Russell 2000 index, and the Dow Transportation average.

Our LMT trade was triggered. LTD was closed. INTU has been removed.


Current Portfolio:


CALL Play Updates

The Boeing Co. - BA - close: 97.02 change: +0.91

Stop Loss: 94.40
Target(s): 99.00
Current Option Gain/Loss: +75.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/15/13: The rally in BA continues after shares broke out past resistance near $95.00 yesterday. The next level of likely resistance is the $100 level. BA's 10-dma has risen to $94.57. I am raising our stop loss to $94.40.

- Suggested Positions -

Long Jun $95 call (BA1322F95) entry $2.02

05/15/13 new stop loss @ 94.40
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: 51.38 change: +0.54

Stop Loss: 49.40
Target(s): 54.75
Current Option Gain/Loss: + 5.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/15/13: It was a good day for shares of HBI with a bullish breakout past short-term resistance at $51.00. The stock will begin trading ex-dividend tomorrow so don't be surprised to see HBI gap down 20 cents to account for its dividend.

- 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: -17.6%
Time Frame: exit PRIOR to earnings on May 29th
New Positions: see below

Comments:
05/15/13: Hmmm.... There were positive analyst comments about KORS upcoming earnings report at the end of May. Yet the stock underperformed the market today. I can't find a reason for this relative weakness. Technically today's move has painted a bearish engulfing candlestick reversal pattern. I am not suggesting new positions. Look for short-term support at the 10-dma near $59.00.

- 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


Lockheed Martin - LMT - close: 104.05 change: +1.18

Stop Loss: 101.45
Target(s): 109.00
Current Option Gain/Loss: +11.7%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/15/13: It was a volatile session for LMT. The stock immediately spiked lower but reversed to breakout to new highs. There was news for LMT early this morning with Bloomberg reporting a deal with LMT and MBDA to work together. MBDA is a major European military defense contractor. The two companies plan to work together on naval missile systems. Considering this news came out hours before the market opened I am surprised by LMT's spike lower. Shares did hit our trigger to buy calls at $103.05 this afternoon.

- Suggested Positions -

Long Jun $105 call (LMT1322F105) Entry $0.85

Entry on May 15 at $103.05
Average Daily Volume = 1.7 million
Listed on May 14 2013


MEDNAX, Inc. - MD - close: 91.97 change: +0.76

Stop Loss: 88.90
Target(s): 98.50
Current Option Gain/Loss: + 5.5%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
05/15/13: MD continues to climb and outperformed the market with a +0.8% gain.

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: 90.93 change: -0.10

Stop Loss: 87.75
Target(s): 98.50
Current Option Gain/Loss: -11.7%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
05/15/13: OXY found support near $90.00 this morning. Readers can use the dip as another bullish 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: 77.83 change: -0.17

Stop Loss: 74.65
Target(s): 79.75
Current Option Gain/Loss: +80.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/15/13: After strong gains yesterday WLP took the day off to hover sideways under the $78.00 level. I am not suggesting new positions.

In the news WLP announced a quarterly dividend of 37.5 cents payable on June 25th, 2013 to shareholders on record as of June 10th.

- 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


Energy ETF - XLE - close: 81.17 change: -0.23

Stop Loss: 79.45
Target(s): 89.00
Current Option Gain/Loss: Unopened
Time Frame: 4 to 8 weeks
New Positions: Yes, see below

Comments:
05/15/13: The XLE spent Wednesday's session churning sideways. I don't see any changes from my prior comments. I am suggesting a trigger to buy calls at $81.55. If triggered our multi-week target is $89.00. The $90.00 level was major resistance back in 2008 and will probably be a hurdle for the ETF to cross.

Trigger @ 81.55

- Suggested Positions -

buy the Jun $85 call (XLE1322F85)

- or -

buy the Sep $85 call (XLE1321i85)

Entry on May -- at $---.--
Average Daily Volume = 13.0 million
Listed on May 14 2013


PUT Play Updates

Allergan Inc. - AGN - close: 102.82 change: -0.96

Stop Loss: 105.30
Target(s): 98.50
Current Option Gain/Loss: -16.2%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/15/13: AGN continues to underperform the market and posted a -0.9% decline today.

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



Longer-Term Play Updates



Chicago Bridge & Iron Co. - CBI - close: 57.76 change: -0.14

Stop Loss: 54.90
Target(s): 62.00
Current Option Gain/Loss: July's: +90.9% or Jan's: +51.7%
Time Frame: 3 to 4 months
New Positions: see below

Comments:
05/15/13: Wednesday's normal session was rather quiet for shares of CBI. The situation changed after hours. Major investors and hedge funds are reporting their 13F filings for the first quarter. It was revealed tonight that Warren Buffett's Berkshire Hathaway had initiated a new position in CBI in the first quarter. This revelation has pushed shares of CBI toward $60.00 in after hours trading. CBI will likely gap open higher. More conservative traders may want to exit on tomorrow's rally.

I am adjusting our exit target from $62.50 down to $62.00. I am also raising our stop loss to $54.90.

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*

05/15/13 new stop loss @ 54.90, adjust exit target to $62.00
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

L Brands, Inc. - LTD - close: 50.86 change: +0.16

Stop Loss: 50.40
Target(s): 54.50
Current Option Gain/Loss: -14.6%
Time Frame: Exit PRIOR to earnings on May 22nd
New Positions: see below

Comments:
05/15/13: LTD managed to erase yesterday's decline but that's not saying much. Our plan was to exit positions at the opening bell this morning.

- Suggested Positions -

Long Jun $50 call (LTD1322F50) entry $2.26 exit $1.93 (-14.6%)

05/15/13 closed this morning
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

chart:

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


CLOSED BEARISH PLAYS

Intuit Inc. - INTU - close: 60.59 change: +1.48

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:
05/15/13: Shares of INTU reversed higher today with a +2.5% gain. Our trade has not opened yet. The trigger was $58.75. I am removing INTU as an active candidate given today's reversal.

Trade did not open.

05/15/13 removed from the newsletter

chart:

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