Editor's Note:

The stock market continues to see bad news as good news if it keeps the Fed's addictive stimulus program going.

Stocks ignored bearish economic data and traders bought the dip today.

OPEN was stopped out. JNJ was triggered.


Current Portfolio:


CALL Play Updates

The Boeing Co. - BA - close: 100.74 change: +1.72

Stop Loss: 98.40
Target(s): 104.50
Current Option Gain/Loss: + 0.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/03/13: BA saved the up trend with a show of relative strength today. After breaking down below its 10-dma on Friday the stock looked vulnerable. Shares managed a rebound and outperformed the market with a +1.7% gain.

*Small Positions* - Suggested Positions -

Long Jun $100 call (BA1322F100) entry $2.55

06/01/13 new stop loss @ 98.40, readers may want to exit immediately

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


Domino's Pizza - DPZ - close: 59.72 change: +0.45

Stop Loss: 57.75
Target(s): 64.75
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Comments:
06/03/13: DPZ also managed to outperform the market today with a +0.75% gain. We are waiting for a breakout past resistance at the $60.00 level. The high last Tuesday as $60.21. I am suggesting a trigger to buy calls at $60.30. If triggered our target is $64.75. However, I am suggesting that investors keep their position size small.

FYI: DPZ will begin trading ex-dividend on June 12th. The cash dividend should be about 20 cents.

Trigger @ 60.30 *Small Positions*

- Suggested Positions -

buy the Jul $60 call (DPZ1320G60)

Entry on May -- at $---.--
Average Daily Volume = 733 thousand
Listed on May 30, 2013


Panera Bread Co. - PNRA - close: 192.02 change: +0.19

Stop Loss: 199.00
Target(s): 187.25
Current Option Gain/Loss: +30.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/03/13: PNRA managed to shrug off an analyst downgrade this morning. Shares rebounded slowly off the intraday low to eke out a small gain.

I am not suggesting new positions. Cautious traders may want to raise their stop closer to the $190.00 level.

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: 63.80 change: +0.48

Stop Loss: 61.45
Target(s): 64.75
Current Option Gain/Loss: +70.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/03/13: WDC is still flexing some relative strength muscle. Traders bought the dip near $62.00 and its rising 10-dma. The stock ended the session up +0.75% and now looks poised to breakout past short-term resistance near $64.00.

*small positions* - Suggested Positions -

Long Jun $60 call (WDC1322F60) entry $2.55

06/01/13 new stop loss @ 61.45, readers may want to exit now
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: 84.96 change: +0.41

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:
06/03/13: ATHN spent most of Monday's session churning inside the $84-86 zone. We are still waiting for a breakdown out of this four-week sideways consolidation.

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: 86.13 change: +0.33

Stop Loss: 87.25
Target(s): 80.50
Current Option Gain/Loss: -24.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/03/13: Monday proved to be a quiet session for shares of CAT, which traded sideways in a narrow range. I don't see any changes from my prior comments. I would consider new bearish put positions now or you could wait for a drop under last Wednesday's low ($85.33).

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: 80.61 change: -0.12

Stop Loss: 82.25
Target(s): 76.50
Current Option Gain/Loss: -31.9%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/03/13: CNQR's morning decline reversed around lunchtime. The stock pared its losses to just 12 cents. I remain bearish here but readers may want to look for a new failed rally under the 10-dma or the $82.00 level before initiating new positions.

- 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


CARBO Ceramics - CRR - close: 66.35 change: +0.45

Stop Loss: 70.05
Target(s): 62.00
Current Option Gain/Loss: + 8.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/03/13: After a big drop on Friday CRR managed a bit of an oversold bounce today. Shares actually traded sideways most of the session. It looks like $65.50 is new short-term support. The stock might see a bounce back toward the $68.00 area, which was prior support and should be new resistance.

Earlier Comments:
If triggered we do want to keep our position size small. The most recent data listed short interest at 33% of the very small 19.8 million share float. That does raise the risk of a short squeeze but the last squeeze attempt (May 20th) didn't last very long.

*small positions* - Suggested Positions -

Long Jun $65 PUT (CRR1322R65) entry $1.25

Entry on May 31 at $67.65-
Average Daily Volume = 266 thousand
Listed on May 30, 2013


Facebook, Inc. - FB - close: 23.85 change: -0.50

Stop Loss: 25.10
Target(s): 21.50
Current Option Gain/Loss: + 33.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/03/13: The weakness in FB continues with a -2.0% decline. This could be a reaction to bad news out of Zynga (ZYNG) today. Zynga is an online and mobile game maker. FB makes money with Zynga through Zynga's social games on FB's platform. ZNGA just announced today they were laying off 18% of their staff due to underperforming games. That could spell trouble for FB's revenues too.

- Suggested Positions -

Long Jun $25 PUT (FB1322R25) entry $1.10

05/31/13 no follow through on the bullish reversal from Thursday
05/30/13 new stop loss @ 25.10, FB was upgraded by two analysts today. The stock has created a technical reversal pattern higher.

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


Hittite Microwave - HITT - close: 54.74 change: +0.46

Stop Loss: 55.20
Target(s): 50.00
Current Option Gain/Loss: Unopened
Time Frame: 4 to 6 weeks
New Positions: Yes, see below

Comments:
06/03/13: HITT delivered a bounce. Yet the stock remains squeezed between support near $54.00 and resistance at its descending 10-dma. There is no change from my prior comments. If the $54 level breaks it could signal a drop toward $50 or lower.

Earlier Comments:
I do consider this a higher-risk, more aggressive traders because the option spreads on HITT's options are relatively wide. Thus I am suggesting we keep our position size small to limit our overall risk.

We're suggesting a trigger to buy puts at $53.90. If triggered our target is $50.00. More aggressive traders could aim lower. FYI: The Point & Figure chart for HITT is bearish with a $43 target.

Trigger @ 53.90 *Small Positions*

- Suggested Positions -

Buy the Jul $50 PUT (HITT1320S50)

Entry on June -- at $---.--
Average Daily Volume = 183 thousand
Listed on June 01, 2013


iShares Russell 2000 - IWM - close: 98.73 change: +0.93

Stop Loss: 100.50
Target(s): 95.25
Current Option Gain/Loss: +18.3%
Time Frame: 2 to 3 weeks
New Positions: see below

Comments:
06/03/13: The market is not cooperating. There was bearish economic data out again this morning. Yet market participants chose to interpret today's data as further signs that the Fed would keep the stimulus drug flow going for the market. Thus stocks rallied.

The IWM rebounded off its intraday lows to close up +0.9%, almost enough to erase Friday's loss. We are turning more cautious on this trade. The May 22nd high was $100.38. I am lowering our stop loss down to $100.50.

Earlier Comments:
Our target is only $95.25. More aggressive traders might be tempted to aim lower. We are expecting some support at the $95.00 mark.

- Suggested Positions -

Long Jun $95 PUT (IWM1322R95) entry $0.60

06/03/13 new stop loss at $100.50
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


Johnson & Johnson - JNJ - close: 84.71 change: +0.53

Stop Loss: 86.05
Target(s): 80.25
Current Option Gain/Loss: -20.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/03/13: Our new JNJ trade has been opened with shares hitting our trigger at $83.95. Yet I am not suggesting any new positions tonight. The stock's sharp intraday bounce left shares up +0.6% on the session. Today's move almost looks like a potential bullish reversal candlestick. Odds are probably pretty good, if the market is positive tomorrow, that we'll see JNJ try and bounce back toward the $86.00 area. On a short-term basis $86.00 and its 30-dma should be resistance. Nimble traders could use a failed rally near $86.00 as an alternative entry point to buy puts.

*small positions* - Suggested Positions -

Long Jul $80 PUT (JNJ1320S80) entry $0.80

Entry on June 03 at $83.95
Average Daily Volume = 10 million
Listed on June 01, 2013


Susser Holdings - SUSS - close: 48.54 change: +1.20

Stop Loss: 50.25
Target(s): 45.25
Current Option Gain/Loss: -28.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/03/13: SUSS is not cooperating either. The stock is bouncing from its 100-dma. Shares outperformed the market today with a +2.5% gain. I suspect we are going to see SUSS try and rally back toward $50.00. Wait for a new relative low before initiating new positions.

FYI: The Point & Figure chart for SUSS is bearish with a $41 target.

- Suggested Positions -

Long Jun $50 PUT (SUSS1322R50) entry $2.60

06/01/13 new stop loss @ 50.25

Entry on May 30 at $48.75
Average Daily Volume = 369 thousand
Listed on May 29 2013



Longer-Term Play Updates



Chicago Bridge & Iron - CBI - close: 62.58 change: -0.72

Stop Loss: 61.45
Target(s): 74.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 months
New Positions: Yes, see below

Comments:
06/03/13: CBI delivered a bearish session with a breakdown and a close below its rising 10-dma. I couldn't find any specific news to account for today's show of relative weakness. The stock did produce a decent bounce off its intraday low.

Currently we are on the sidelines waiting for a breakout past resistance at $65.00. I don't see any changes from my weekend comments.

Earlier Comments:
Last time we added CBI we successfully caught the bounce from mid April back toward its March highs. You can read the background details and bullish fundamentals for CBI in our original play description here, since it still applies. Just scroll down to the "longer-term trades" section of the page.

I am suggesting a trigger to buy calls at $65.25. If triggered our long-term target is $74.50. NOTE: the broader market does look vulnerable to more selling. Thus traders may want to start this trade with small positions to limit risk. Even though CBI looks strong it is up six weeks in a row and could succumb to profit taking. More conservative traders may want to wait for shares of CBI to close above $65.25 and then launch bullish positions the next morning as an alternative entry point strategy.

Trigger @ 65.25 *Small Positions*

- Suggested Positions -

Buy the 2014 Jan $70 call (CBI1418A70)

Entry on June -- at $---.--
Average Daily Volume = 1.8 million
Listed on June 01, 2013



CLOSED BULLISH PLAYS

OpenTable, Inc. - OPEN - close: 65.46 change: -1.24

Stop Loss: 64.90
Target(s): 74.00
Current Option Gain/Loss: -68.6%
Time Frame: 4 weeks
New Positions: see below

Comments:
06/03/13: It was not a good day for OPEN. Shares broke down under their simple 10-dma and also slipped below what should have been some round-number resistance at $65.00 intraday. Our stop loss was hit at $64.90.

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

- Suggested Positions -

Jun $70 call (OPEN1322F70) entry $2.30 exit $0.72 (-68.6%)

06/03/13 stopped out
05/28/13 trade opened on gap higher at $68.26

chart:

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