Editor's Note:

There was no follow through on Monday's rebound and the major indices closed negative. The Dow Jones Industrial Average snapped a record-setting 20 positive Tuesdays in a row.

Our DPZ and HITT trades were triggered today.
ATHN was removed.


Current Portfolio:


CALL Play Updates

The Boeing Co. - BA - close: 99.61 change: -0.13

Stop Loss: 98.40
Target(s): 104.50
Current Option Gain/Loss: -23.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/04/13: Sadly there was no follow through on yesterday's rebound in BA. The stock market's widespread decline today pulled BA down to a -1.1% decline. Shares are once again testing their 10-dma and the bottom of what appears to be a short-term trading range in the $99.00-101.00 area. I am not suggesting new positions.

*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: 60.18 change: +0.46

Stop Loss: 57.75
Target(s): 64.75
Current Option Gain/Loss: - 9.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/04/13: DPZ displayed some relative strength with a bullish breakout past resistance near $60.00. Our trigger to buy calls was hit at $60.30.

Earlier Comments:
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.

*Small Positions* - Suggested Positions -

Long Jul $60 call (DPZ1320G60) entry $2.15

Entry on June 04 at $60.30
Average Daily Volume = 733 thousand
Listed on May 30, 2013


Ingersoll-Rand - IR - close: 57.06 change: -1.46

Stop Loss: 56.95
Target(s): 64.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Comments:
06/04/13: IR reversed at the $59.00 level this morning and ended the session with a -2.5% decline. I didn't see any specific news behind today's show of relative weakness. If the stock continues to drop we will likely drop it. Currently we are on the sidelines waiting for a breakout higher.

Earlier Comments:
I am suggesting a trigger to launch bullish positions at $59.15. If triggered our target is $64.00.

FYI: IR will begin trading ex-dividend on June 12th. The quarterly dividend should be 21 cents.

Trigger @ 59.15

- Suggested Positions -

buy the Jul $60 call (IR1320G60)

Entry on June -- at $---.--
Average Daily Volume = 1.6 million
Listed on June 03, 2013


Panera Bread Co. - PNRA - close: 190.79 change: -1.23

Stop Loss: 199.00
Target(s): 187.25
Current Option Gain/Loss: - 8.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/04/13: PNRA tried to rally this morning. The stock almost made it to $195.00 before giving into the market's weakness. Traders were buying the dip near $190.00-189.50. Technically the MACD indicator on the daily chart has turned negative. More conservative traders may want to raise their stops.

I am not suggesting new positions.

*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: 63.42 change: -0.38

Stop Loss: 61.75
Target(s): 64.75
Current Option Gain/Loss: +58.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/04/13: WDC managed to tag a new high at $64.63 before paring its gains. That was almost enough to hit our exit target at $64.75. Readers may want to just exit now and lock in gains.

We are raising the stop loss to $61.75.

*small positions* - Suggested Positions -

Long Jun $60 call (WDC1322F60) entry $2.55

06/04/13 new stop loss @ 61.75
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

Caterpillar Inc. - CAT - close: 85.92 change: -0.21

Stop Loss: 87.25
Target(s): 80.50
Current Option Gain/Loss: -20.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/04/13: Hmm... today's performance in CAT was rather disappointing. The market produced a widespread decline and yet CAT couldn't break down to a new relative low. That's a potential warning signal for bears. The May 29th low was $85.33. Readers may want to wait for a drop below this level before initiating new positions.

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: 79.15 change: -1.46

Stop Loss: 82.25
Target(s): 76.50
Current Option Gain/Loss: - 4.2%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/04/13: No surprises here. The recent oversold bounce has reversed and shares tagged a new relative low with today's -1.8% decline.

NOTE: I am adjusting our exit target from $76.50 to $76.00. More aggressive traders could aim lower although I do expect potential support in the $76-72 zone.

- 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: 66.76 change: +0.41

Stop Loss: 70.05
Target(s): 62.00
Current Option Gain/Loss: - 4.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/04/13: CRR's oversold bounce continued today. Yet the stock failed near $67.50. I am suggesting readers use today's move as a new bearish entry point to buy puts. More conservative traders might want to drop their stop loss closer to the $68.00 level, which should be 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: 23.52 change: -0.33

Stop Loss: 25.10
Target(s): 21.50
Current Option Gain/Loss: + 55.4%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/04/13: FB sank again today with a -1.3% decline. The stock is nearing last week's low near $23.25. I am not suggesting new positions at this time.

- 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: 54.17 change: -0.57

Stop Loss: 55.20
Target(s): 50.00
Current Option Gain/Loss: -23.8%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
06/04/13: HITT saw some volatility today. The stock initially rallied this morning. HITT broke out past short-term resistance at its 10-dma but the rally reversed and shares then proceeded to break down below support near $54.00. Our trigger to buy puts was hit at $53.90 this afternoon.

Tonight I am adjusting our stop loss to $55.45, which is just above today's high. I would suggest readers wait for a drop below today's low (53.81) before initiating new positions.

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. FYI: The Point & Figure chart for HITT is bearish with a $43 target.

*Small Positions* - Suggested Positions -

Long Jul $50 PUT (HITT1320S50) entry $1.05

Entry on June 04 at $53.90
Average Daily Volume = 183 thousand
Listed on June 01, 2013


iShares Russell 2000 - IWM - close: 97.68 change: -1.05

Stop Loss: 100.50
Target(s): 95.25
Current Option Gain/Loss: +38.3%
Time Frame: 2 to 3 weeks
New Positions: see below

Comments:
06/04/13: The small caps underperformed their large cap peers, which is a good sign for the bears. I don't see any changes from my prior comments.

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: 84.10 change: -0.61

Stop Loss: 86.05
Target(s): 80.25
Current Option Gain/Loss: -11.2%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/04/13: Thankfully there was no follow through on yesterday's bounce in JNJ. The stock traded up to $85.00 this morning and then reversed. I would consider new positions at current levels.

*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: 48.21 change: -0.33

Stop Loss: 50.25
Target(s): 45.25
Current Option Gain/Loss: - 9.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/04/13: We were fortunate with SUSS' performance today. Yesterday the stock was rebounding off technical support at its 100-dma. There wasn't much follow through this morning and shares ended down -0.6%. SUSS still has support at its 100-dma for now but the stock looks like it might break down below this level soon.

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: 61.63 change: -0.95

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:
06/04/13: CBI continues to disappointing with a -1.5% decline. Shares could be signaling a deeper correction ahead. 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 BEARISH PLAYS

AthenaHealth, Inc. - ATHN - close: 84.47 change: -0.49

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:
06/04/13: The stock market produced a widespread decline today. Yet ATHN's decline was rather mild. Shares seem stuck inside their trading range. Our trade has not opened yet. Tonight we're removing ATHN from the newsletter. The suggested trigger was $82.00.

Trade did not open.

06/04/13 removed from the newsletter

chart:

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