Editor's Note:

A multi-year high in the consumer confidence survey helped fuel gains for the stock market.

We want to exit our LMT trade tomorrow morning.
MD was closed this morning as planned.
OPEN was triggered.


Current Portfolio:


CALL Play Updates

The Boeing Co. - BA - close: 100.11 change: +0.11

Stop Loss: 97.75
Target(s): 104.50
Current Option Gain/Loss: -11.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/28/13: A number of stocks gapped open higher this morning and BA was one of them. In addition to a bullish market open shares of BA garnered a higher price target from one analyst. Shares did gave back most of their gains to settle near the $100 mark. This is not a successful breakout past resistance at $100.00.

*Small Positions* - Suggested Positions -

Long Jun $100 call (BA1322F100) entry $2.55

Entry on May 24 at $100.25
Average Daily Volume = 5.0 million
Listed on May 23 2013


Ecolab Inc. - ECL - close: 87.06 change: -0.08

Stop Loss: 85.95
Target(s): 94.75
Current Option Gain/Loss: Unopened
Time Frame: 4 to 8 weeks
New Positions: Yes, see below

Comments:
05/28/13: ECL's gap open rally didn't make it very far. Shares reversed at short-term resistance near $88.00 and its 10-dma. I don't see any changes from my prior comments.

Currently this is an aggressive, higher-risk trade. I am suggesting a trigger to buy calls at $88.25. The $89.25 and $90.00 levels could still be overhead resistance.

Earlier Comments:
I am encouraging traders to keep their position size small to limit risk.

Trigger @ 88.25 *Small Positions*

- Suggested Positions -

buy the Jul $90 call (ECL1320G90) current ask $1.00

05/25/13 adjust entry trigger to $88.25 (was 90.25)
adjust stop loss down to $85.95
adjust the option strike from Jun $90 to Jul $90 call
We are also moving the exit target to $94.75.

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


Lockheed Martin - LMT - close: 107.75 change: +0.69

Stop Loss: 103.95
Target(s): 109.00
Current Option Gain/Loss: +235.2%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/28/13: LMT popped higher this morning and the intraday high was $108.80. The stock almost hit our exit target of $109.00 before paring its gains.

I am suggesting we exit immediately, tomorrow morning, at the opening bell. LMT is scheduled to begin trading ex-dividend on May 30th. The dividend will be $1.15 a share.

FYI: The bid on our call is currently at $2.85 (+235.2%)

- Suggested Positions -

Long Jun $105 call (LMT1322F105) Entry $0.85

05/28/13 prepare to exit immediately (tomorrow morning)
05/25/13 new stop loss @ 103.95
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


OpenTable, Inc. - OPEN - close: 66.53 change: -1.20

Stop Loss: 64.90
Target(s): 74.00
Current Option Gain/Loss: -39.1%
Time Frame: 4 weeks
New Positions: see below

Comments:
05/28/13: Ouch! It was not a great day for our new OPEN trade. The stock gapped open higher at $68.26, made it to $68.54, and then collapsed to a fall back toward its 10-dma before paring its losses. OPEN underperformed the market with a -1.77% decline on no news.

Our trade was triggered on the gap open. Today's relative weakness is a troubling sign but it's worth noting that traders have bought the last two spikes lower near the 10-dma.

Earlier Comments:
If the rally continues OPEN could see another short squeeze. The most recent data listed short interest at 24% of the small 21 million-share float.

NOTE: Keep in mind that OPEN is a volatile stock. Traders may want to limit their position size.

- Suggested Positions -

Long Jun $70 call (OPEN1322F70) entry $2.30

05/28/13 trade opened on gap higher at $68.26

Entry on May 28 at $68.26
Average Daily Volume = 823 thousand
Listed on May 25 2013


Panera Bread Co. - PNRA - close: 193.28 change: +3.09

Stop Loss: 199.00
Target(s): 187.25
Current Option Gain/Loss: +66.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/28/13: Bulls came back from the three-day weekend hungry for more PNRA. The stock surged +1.6% and hit new all-time highs.

The May 23rd low was $187.45. I am raising our stop loss up to $187.25. I would not launch new positions at this time.

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

05/28/13 new stop loss @ 187.25

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


Western Digital - WDC - close: 62.86 change: +0.56

Stop Loss: 59.65
Target(s): 64.75
Current Option Gain/Loss: +50.9%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/28/13: The market's bullish open helped WDC gap open higher. Shares hit $63.72 intraday. Tonight we are adjusting our stop loss up to $59.65.

*small positions* - Suggested Positions -

Long Jun $60 call (WDC1322F60) entry $2.55

05/28/13 new stop loss @ 59.65

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


PUT Play Updates

Caterpillar Inc. - CAT - close: 86.19 change: -0.02

Stop Loss: 87.05
Target(s): 80.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
05/28/13: CAT did not participate in the market's rally today. The stock did gap open higher but the rally failed at short-term resistance. Shares slipped back toward support near $86 and its 50-dma.

Earlier Comments:
We're suggesting a trigger to buy puts at $85.50. If triggered our target is $80.50. More conservative traders might want to wait for a drop below $85.00 as an alternative entry point since it's possible that $85.00 could be round-number support.

Trigger @ $85.50

- Suggested Positions -

buy the Jun $85 PUT (CAT1322R85) current ask $1.22

Entry on May -- at $---.--
Average Daily Volume = 7.0 million
Listed on May 25 2013


Concur Technologies - CNQR - close: 83.27 change: +1.31

Stop Loss: 82.25
Target(s): 76.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
05/28/13: CNQR popped higher this morning and then spent the rest of the day churning inside the $82.50-83.50 zone. At the moment I don't see any changes from my weekend comments.

Earlier Comments:
We suspect that CNQR has moved too far too fast. The bullish market environment may have exaggerated the stock's valuations. Shares look ripe for a pullback. We want to try and capture some of the profit taking so we're suggesting a trigger to buy puts at $80.50. If triggered our target is $76.50, which is just above the 2012 highs, which may try and act as support.

Trigger @ $80.50

- Suggested Positions -

buy the Jun $80 PUT (CNQR1322R80)

Entry on May -- at $---.--
Average Daily Volume = 489 thousand
Listed on May 25 2013


Facebook, Inc. - FB - close: 24.10 change: -0.21

Stop Loss: 26.05
Target(s): 21.50
Current Option Gain/Loss: + 20.9%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/28/13: FB is still underperforming the broader market and posted an -0.8% decline today. The stock is arguably oversold here. Nimble traders could look for a failed rally near likely resistance at $25.00 as an alternative entry point.

- Suggested Positions -

Long Jun $25 PUT (FB1322R25) entry $1.10

Entry on May 24 at $24.65
Average Daily Volume = 38 million
Listed on May 22 2013


iShares Russell 2000 - IWM - close: 99.15 change: +1.27

Stop Loss: 102.25
Target(s): 95.25
Current Option Gain/Loss: +13.3%
Time Frame: 2 to 3 weeks
New Positions: see below

Comments:
05/28/13: Bingo! I cautioned readers to expect another bounce back toward the $100 level and use it as another entry point. IWM is cooperating with just that - a failed rally at resistance. I would launch new positions here. More conservative traders might want to tighten their stop loss.

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

MEDNAX, Inc. - MD - close: 93.20 change: +1.25

Stop Loss: 90.75
Target(s): 98.50
Current Option Gain/Loss: -44.4%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
05/28/13: Shares of MD were not really performing very well. Over the weekend we decided to close positions at the opening bell today to minimize any losses. A good portion of the market actually gapped open higher this morning. Unfortunately, MD did not want to cooperate. Shares gapped open lower, exaggerating our loss, and then immediately spiked higher.

NOTE: Our exit price ($0.50) on the option is an estimate. The option didn't trade until late morning and opened at $1.20 before falling to $0.90.

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 exit $0.50* (-44.4%)

05/28/13 scheduled exit this morning. The stock gapped down at $90.25
*option exit price is an estimate since the option did not trade at the time our play was closed.
05/25/13 prepare to exit on Tuesday morning, May 28th
05/22/13 caution: today's session has created a bearish reversal candlestick pattern
05/20/13 new stop loss @ 90.75

chart:

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