Editor's Note:

Shares of Allergan (AGN) hit our bearish target today. Overall it was a rough morning for the U.S. market. We saw a few trades get stopped out.

KORS, MLM, OXY, and XLE were stopped out.


Current Portfolio:


CALL Play Updates

Ecolab Inc. - ECL - close: 87.19 change: -0.24

Stop Loss: 87.95
Target(s): 98.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
05/23/13: Thursday was a relatively quiet session for ECL. The stock did gap down this morning but the selling wasn't that bad. We'll give it another day to see how shares perform tomorrow and then re-evaluate. Currently, we are suggesting a trigger at $90.25. If triggered our target is $98.50.

I am encouraging traders to keep their position size small to limit risk since ECL does look a bit over extended here.

Trigger @ 90.25 *Small Positions*

- Suggested Positions -

buy the Jun $90 call (ECL1322F90)

Entry on May -- at $---.--
Average Daily Volume = 1.0 million
Listed on May 21 2013


Lockheed Martin - LMT - close: 106.30 change: -0.19

Stop Loss: 103.45
Target(s): 109.00
Current Option Gain/Loss: +141.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/23/13: LMT weathered the market weakness this morning pretty well. The stock did gap open lower at $105.68 but shares managed to pare their gains significantly. I am not suggesting new positions. More conservative traders may want to raise their stops closer to $105.00.

- Suggested Positions -

Long Jun $105 call (LMT1322F105) Entry $0.85

05/18/13 new stop loss @ 103.45. More conservative traders may want to take profits now with the bid on our call at more than $2.00

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


MEDNAX, Inc. - MD - close: 93.01 change: +0.80

Stop Loss: 90.75
Target(s): 98.50
Current Option Gain/Loss: +16.6%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
05/23/13: MD displayed some relative strength today which is somewhat surprising given yesterday's ugly reversal candlestick. Traders bought the dip twice this morning near $91.30. MD managed to rebound to a +0.8% gain.

Earlier Comments:
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

05/22/13 caution: today's session has created a bearish reversal candlestick pattern
05/20/13 new stop loss @ 90.75

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


Panera Bread Co. - PNRA - close: 189.91 change: +0.25

Stop Loss: 199.00
Target(s): 183.95
Current Option Gain/Loss: +11.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/23/13: Lots of stocks gapped open lower today. PNRA was one of them with an open at $188.37. Traders did buy the dip at $187.45 and PNRA eked out a small gain. I would not launch new positions here.

FYI: The Point & Figure chart for PNRA is bullish with a $234 target.

*Small Positions* - Suggested Positions -

Long Jun $190 call (PNRA1322F190) entry $3.60

Entry on May 20 at $187.00
Average Daily Volume = 558 thousand
Listed on May 18 2013


Western Digital - WDC - close: 62.26 change: +1.86

Stop Loss: 58.95
Target(s): 64.75
Current Option Gain/Loss: +41.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/23/13: An upgrade for rival STX and bullish comments on WDC this morning helped shares of WDC outperform the market. Traders bought the dip near short-term support at $60.00 and its 10-dma. The stock surged to a +3.0% gain and another new high.

*small positions* - Suggested Positions -

Long Jun $60 call (WDC1322F60) entry $2.55

Entry on May 21 at $60.65
Average Daily Volume = 3.3 million
Listed on May 18 2013


PUT Play Updates

Facebook, Inc. - FB - close: 25.06 change: -0.10

Stop Loss: 26.05
Target(s): 21.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
05/23/13: Hmm... it was an interesting session for shares of FB. The stock gapped open lower thanks to the market's widespread weakness. Yet a few minutes later FB surged higher. The rally didn't last long and FB rolled over underneath its short-term trend of lower highs. Shares closed right on technical support at its simple 200-dma.

The low today was only $24.77. We are suggesting a trigger to buy puts at $24.65. If triggered our target is $21.50.

Trigger @ $24.65

- Suggested Positions -

buy the Jun $25 PUT (FB1322R25) current ask $0.83

Entry on May -- at $---.--
Average Daily Volume = 38 million
Listed on May 22 2013


iShares Russell 2000 - IWM - close: 97.90 change: +0.12

Stop Loss: 102.25
Target(s): 95.25
Current Option Gain/Loss: +61.6%
Time Frame: 2 to 3 weeks
New Positions: see below

Comments:
05/23/13: As the market reacted to stock market weakness overseas the major U.S. indices spiked lower at the open. The IWM dipped to $96.51 before bouncing back. I suspect we will see the IWM's rebound fail in the $98.00-99.00 zone and nimble traders could launch new positions in that area. More conservative investors may want to tighten their stops closer to yesterday's high ($100.38).

Earlier Comments:
Readers may want to keep their position size small since this is a riskier entry point.

- Suggested Positions -

Long Jun $95 PUT (IWM1322R95) entry $0.60

05/22/13 triggered @ 99.75
05/21/13 added a secondary entry trigger at $98.75
05/18/13 adjust entry trigger to $99.75
adjust the stop loss to $102.25, adjust the exit target to $95.25.

Entry on May 22 at $99.75
Average Daily Volume = 41.8 million
Listed on May 16 2013


CLOSED BULLISH PLAYS

Michael Kors - KORS - close: 59.81 change: -0.65

Stop Loss: 59.65
Target(s): 64.75
Current Option Gain/Loss: -44.1%
Time Frame: exit PRIOR to earnings on May 29th
New Positions: see below

Comments:
05/23/13: The stock market's weakness this morning produced a sharp gap down in shares of KORS. The stock opened at $59.02. Our stop loss was $59.65 so the trade was closed immediately.

- Suggested Positions -

Jun $62.50 call (KORS1322F62.5) entry $3.40 exit $1.90 (-44.1%)

05/23/13 stopped out on gap down at $59.02
05/22/13 new stop loss @ 59.65
05/21/13 new stop loss @ 58.95
05/13/13 trade triggered on gap open higher at $61.55
trigger was $60.65

chart:

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


Martin Marietta Materials - MLM - close: 108.24 change: -0.43

Stop Loss: 107.45
Target(s): 118.50
Current Option Gain/Loss: -41.9%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
05/23/13: MLM gapped open lower this morning at $107.14. That was below our stop loss at $107.45 so the play was closed immediately.

- Suggested Positions -

Jun $110 call (MLM1322F110) entry $3.10

05/23/13 stopped out on gap down at $107.14
05/22/13 caution: today's move looks like a bearish reversal.

chart:

Entry on May 16 at $110.25
Average Daily Volume = 378 thousand
Listed on May 15 2013


Occidental Petroleum - OXY - close: 90.53 change: -0.57

Stop Loss: 89.75
Target(s): 98.50
Current Option Gain/Loss: -46.1%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
05/23/13: Shares of OXY also gapped open lower as the U.S. market plunged this morning following weakness overseas. OXY opened at $90.00 and quickly hit our stop loss at $89.75.

- Suggested Positions -

Jun $92.50 call (OXY1322F92.5) entry $1.95 exit $1.05 (-46.1%)

05/23/13 stopped out
05/18/13 new stop loss @ 89.75

chart:

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


Energy ETF - XLE - close: 82.19 change: +0.04

Stop Loss: 80.95
Target(s): 89.00
Current Option Gain/Loss: Jun85c: -59.5% & Sep85c: -13.8%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
05/23/13: Energy stocks were not spared from the market's weakness this morning. The XLE gapped open lower at $81.12 and dipped just low enough to hit our new stop loss at $80.95 before rebounding. Our trade is closed but investors may want to keep an eye on the XLE for a dip to what should be decent support near $80.00 as a potential entry point.

- Suggested Positions -

Jun $85 call (XLE1322F85) entry $0.42 exit $0.17 (-59.5%)

- or -

Sep $85 call (XLE1321i85) entry $1.80 exit $1.55 (-13.8%)

05/23/13 stopped out
05/22/13 new stop loss @ 80.95
05/20/13 new stop loss @ 80.50

chart:

Entry on May 17 at $81.55
Average Daily Volume = 13.0 million
Listed on May 14 2013


CLOSED BEARISH PLAYS

Allergan Inc. - AGN - close: 97.96 change: +0.23

Stop Loss: 102.25
Target(s): 97.00
Current Option Gain/Loss: +89.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/23/13: Target exceeded.

The stock market's weakness this morning played into our favor. Our exit target was $97.00 but shares of AGN gapped open lower at $96.93, providing a slightly better exit point. Unfortunately the option didn't really react this morning.

I would be careful here since AGN could bounce from its early May low.

- Suggested Positions -

Jun $100 PUT (AGN1322R100) entry $1.85 exit $3.50 (+89.1%)

05/23/13 target exceeded on gap down
05/20/13 new stop loss @ 102.25, readers may want to take profits now
05/16/13 new stop loss @ 104.25, adjust exit target to $97.00

chart:

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