Editor's Note:

Today we closed our successful LMT call trade with the stock near new highs.

Tonight we are removing ECL as a candidate. Meanwhile CAT and CNQR hit our entry triggers.


Current Portfolio:


CALL Play Updates

The Boeing Co. - BA - close: 99.09 change: -1.02

Stop Loss: 97.75
Target(s): 104.50
Current Option Gain/Loss: -31.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/29/13: BA hit some profit taking today with a -1.0% pullback. The close below the $100.00 mark is short-term bearish but the selling paused at its rising 10-dma. The stock "should" bounce from this moving average. More conservative traders may want to tighten their stop loss.

*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


OpenTable, Inc. - OPEN - close: 66.86 change: +0.33

Stop Loss: 64.90
Target(s): 74.00
Current Option Gain/Loss: -36.9%
Time Frame: 4 weeks
New Positions: see below

Comments:
05/29/13: As expected OPEN rebounded off its rising 10-dma but the bounce didn't make it very far. Shares only gained +0.49%.

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: 192.40 change: -0.88

Stop Loss: 199.00
Target(s): 187.25
Current Option Gain/Loss: +44.4%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/29/13: PNRA gapped open lower today but shares managed to pare their losses with a rebound off its morning lows. 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: 63.73 change: +0.87

Stop Loss: 59.65
Target(s): 64.75
Current Option Gain/Loss: +78.4%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/29/13: WDC continues to outperform the market with another gain today. Shares garnered a higher price target from another analyst this morning. The stock tagged another record high. More conservative traders may want to lock in gains now. The bid on our call is up to $4.55.

*small positions* - Suggested Positions -

Long Jun $60 call (WDC1322F60) entry $2.55

05/29/13 more conservative traders may want to lock in gains now.
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

AthenaHealth, Inc. - ATHN - close: 85.09 change: +1.91

Stop Loss: 85.10
Target(s): 76.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
05/29/13: Our new put play on ATHN may have been short circuited by an analyst upgrade this morning. The stock gapped open higher on the upgrade news and outperformed the market with a +2.2% gain. It is worth noting that today is just an "inside day" (it is inside yesterday's range) so it's not a bullish reversal yet. We are leaving our strategy unchanged.

I am suggesting a trigger to buy puts at $82.00. If triggered our target is $76.00. Please note that I am also suggesting traders keep their position size small to limit risk. The most recent data listed short interest at 26% of the small 36.1 million share float. That does raise the risk of a short squeeze. FYI: The Point & Figure chart for ATHN is bearish with a $67 target.

Trigger @ 82.00 *Small Positions*

- Suggested Positions -

buy the Jun $80 PUT (ATHN1322R80)

Entry on May -- at $---.--
Average Daily Volume = 495 thousand
Listed on May 28 2013


Caterpillar Inc. - CAT - close: 86.49 change: +0.30

Stop Loss: 87.25
Target(s): 80.50
Current Option Gain/Loss: -23.4%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/29/13: CAT broke down to a new relative low this morning. Shares dipped to $85.33 and then reversed to a +0.3% gain. The bounce back, above broken support, is a bit concerning. Shares did hit our entry point to buy puts at $85.50. At this point traders could look for a failed rally at the 10-dma (87.15) as an alternative entry point or a new relative low under $85.33. Speaking of the 10-dma, tonight we are adjusting the stop loss to $87.25 so it's just above the 10-dma.

Earlier Comments:
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.

- Suggested Positions -

Long Jun $85 PUT (CAT1322R85) entry $1.45

05/29/13 adjust stop loss to $87.25, just above the 10-dma

Entry on May 29 at $85.50
Average Daily Volume = 7.0 million
Listed on May 25 2013


Concur Technologies - CNQR - close: 79.13 change: -4.14

Stop Loss: 82.25
Target(s): 76.50
Current Option Gain/Loss: + 6.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/29/13: CNQR was a big weak spot in the market today. Shares gapped open lower at $82.21 and then plunged to a -4.9% decline. This sell-off was powered by strong volume at more than double its normal trading volume. The breakdown below $80.00 is bearish. Our trigger to buy puts at $80.50 was hit before lunchtime.

- Suggested Positions -

Long Jun $80 PUT (CNQR1322R80) entry $2.35

Entry on May 29 at $80.50
Average Daily Volume = 489 thousand
Listed on May 25 2013


Facebook, Inc. - FB - close: 23.32 change: -0.78

Stop Loss: 26.05
Target(s): 21.50
Current Option Gain/Loss: + 77.2%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
05/29/13: FB's weakness continues with a -3.2% decline and another six-month low. Shares are growing more and more oversold. Readers may want to start adjusting their stop losses lower.

- 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: 98.23 change: -0.92

Stop Loss: 102.25
Target(s): 95.25
Current Option Gain/Loss: +30.0%
Time Frame: 2 to 3 weeks
New Positions: see below

Comments:
05/29/13: Traders keep buying the dips but it looks like momentum in IWM is definitely slowing down and potentially rolling over. I would still consider new bearish positions at current levels but readers may want to tighten their stops down toward last week'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

Ecolab Inc. - ECL - close: 86.04 change: -1.02

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

Comments:
05/29/13: Today's -1.1% decline looks like a confirmation of yesterday's bearish reversal at $88.00. We were planning to buy calls if ECL could hit $88.25 but shares are not cooperating. I am almost tempted to buy puts but the 50-dma could be support.

Trade did not open.

05/29/13 removed from the newsletter. trade did not open.
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.

chart:

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


Lockheed Martin - LMT - close: 107.31 change: -0.44

Stop Loss: 103.95
Target(s): 109.00
Current Option Gain/Loss: +176.4%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
05/29/13: Tuesday's market decline helped spark a gap down in shares of LMT. Our plan was to exit positions at the open this morning. LMT opened down at $107.15. Sadly that gap down shaved a good chunk off of our potential gains with the option gapping down as well.

LMT is scheduled to begin trading ex-dividend on May 30th. The dividend will be $1.15 a share.

- Suggested Positions -

Long Jun $105 call (LMT1322F105) Entry $0.85 exit $2.35 (+ 176.4%)

05/29/13 planned exit this morning
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

chart:

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