Editor's Note:

It was a down day for stocks across all the major indices around the world. The S&P 500 closed near its lows for the session with a -1.3% decline.

We saw two bullish plays stopped out (BA and PNRA). I am removing IR as a candidate. Our VMW put play was triggered.


Current Portfolio:


CALL Play Updates

Colfax Corp. - CFX - close: 48.80 change: -1.97

Stop Loss: 49.45
Target(s): 55.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
06/05/13: Ouch! CFX had a rough day. The stock underperformed the market with a -3.8% decline. I couldn't find any news to explain the relative weakness. It looks like traders rushing to lock in gains. Our trade is not open yet. Right now the plan is to buy calls if CFX hits $51.05 but if the stock continues to sink we'll likely drop it as a candidate.

Trigger @ 51.05

- Suggested Positions -

buy the SEP $55 call (CFX1321i55)

Entry on June -- at $---.--
Average Daily Volume = 1.29 million
Listed on June 04, 2013


Domino's Pizza - DPZ - close: 58.35 change: -1.83

Stop Loss: 57.75
Target(s): 64.75
Current Option Gain/Loss: -44.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/05/13: After breaking out to new all-time highs yesterday traders reversed course and sold the stock with some profit taking today (-3.0%). The stock has closed below what should have been short-term technical support at both the 10-dma and 20-dma. If DPZ doesn't bounce from $58.00 we'll see it hit our stop loss at $57.75 soon.

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


Western Digital - WDC - close: 62.81 change: -0.61

Stop Loss: 61.75
Target(s): 64.75
Current Option Gain/Loss: +37.2%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/05/13: Shares of WDC held up reasonably well. The stock gave back -0.9% versus a -1.27% drop in the NASDAQ. WDC is still holding above short-term support at the $62.00 level. That may not hold tomorrow if the market continues to sink so readers may want to exit early now to lock in gains.

*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: 84.42 change: -1.50

Stop Loss: 87.25
Target(s): 80.50
Current Option Gain/Loss: +28.9%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/05/13: CAT has finally broke down below potential support near $85.00. Shares underperformed the market with a -1.74% decline. Readers may want to start adjusting their stop loss lower.

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: 78.35 change: -0.80

Stop Loss: 82.25
Target(s): 76.00
Current Option Gain/Loss: +10.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/05/13: CNQR has fallen to a new four-week low. Yet it looked like shares found some short-term support at the $78.00 level today. I am not suggesting new positions at this time.

- Suggested Positions -

Long Jun $80 PUT (CNQR1322R80) entry $2.35

06/04/13 adjusted the exit target from $76.50 to $76.00.

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


CARBO Ceramics - CRR - close: 65.72 change: -1.04

Stop Loss: 70.05
Target(s): 62.00
Current Option Gain/Loss: +24.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/05/13: Bingo! Right on cue the oversold bounce in CRR is rolling over. Shares gave back -1.5% and look poised to hit new lows soon.

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: 22.90 change: -0.62

Stop Loss: 25.10
Target(s): 21.50
Current Option Gain/Loss: +101.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/05/13: FB continues to slide. The stock underperformed the market today with a -2.6% decline and a new low for the year. Shares are starting to look short-term oversold with a four-day decline. Our put option has already doubled (+100% in value). Traders may want to consider taking profits early right here. I am not suggesting new positions at this time.

- Suggested Positions -

Long Jun $25 PUT (FB1322R25) entry $1.10

06/05/13 our put option has doubled (+100%) readers might want to consider taking profits early right now.
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: 53.92 change: -0.25

Stop Loss: 55.45
Target(s): 50.00
Current Option Gain/Loss: -33.3%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
06/05/13: HITT is not really cooperating with us. Shares fell toward $53 today but managed a decent rebound off its intraday lows. I am not suggesting new bearish positions at this time.

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

06/04/13 adjusted stop loss to $55.45

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


iShares Russell 2000 - IWM - close: 96.43 change: -1.25

Stop Loss: 97.25
Target(s): 95.25
Current Option Gain/Loss: +93.3%
Time Frame: 2 to 3 weeks
New Positions: see below

Comments:
06/05/13: So far so good. The IWM slipped -1.27% and closed at a new three-week low. We are aiming for $95.25 but more conservative traders may want to take profits now since our option is up +90%. We are turning a bit more defensive on this trade and adjusting our stop loss down to $97.25.

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

06/05/13 new stop loss @ 97.25
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: 83.68 change: -0.42

Stop Loss: 86.05
Target(s): 80.50
Current Option Gain/Loss: - 1.2%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/05/13: Traders sold the bounce in JNJ near round-number resistance at the $85.00 level this morning. Shares reversed to close down -0.49%. The simple 100-dma has risen to $80.27. I am adjusting our exit target to $80.50.

*small positions* - Suggested Positions -

Long Jul $80 PUT (JNJ1320S80) entry $0.80

06/05/13 adjust exit target to $80.50

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


Susser Holdings - SUSS - close: 47.30 change: -0.91

Stop Loss: 50.25
Target(s): 45.25
Current Option Gain/Loss: +11.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/05/13: It looks like SUSS' attempt to bounce from its 100-dma is done. Shares lost -1.88% today and closed below this moving average. I don't see any changes from my previous comments.

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


VMware Inc. - VMW - close: 66.93 change: -1.69

Stop Loss: 70.55
Target(s): 60.50
Current Option Gain/Loss: + 6.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/05/13: Our new trade on VMW has been triggered. The plan was to buy puts if VMW hit $67.75. The stock gapped open lower at $67.76 and quickly hit our entry point. It looks like the gap down was a reaction to a new analyst downgrade before the opening bell. Shares underperformed the broader market with a -2.4% decline on the session.

Earlier Comments:
If triggered our target is $60.50. More aggressive traders may want to aim for the $50 area (give yourself enough time).

- Suggested Positions -

Long Jul $65 PUT (VMW1320s65) entry $2.50

Entry on June 05 at $67.75
Average Daily Volume = 2.58 million
Listed on June 04, 2013



Longer-Term Play Updates



Chicago Bridge & Iron - CBI - close: 60.22 change: -1.41

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:
06/05/13: It was another down day for CBI. Today shares flirted with a breakdown below the $60.00 mark.

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

The Boeing Co. - BA - close: 98.49 change: -1.12

Stop Loss: 98.40
Target(s): 104.50
Current Option Gain/Loss: -47.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/05/13: The market's correction lower is starting to take its toll and BA broke down below its short-term trading range. Shares hit our stop loss at $98.40.

*Small Positions* - Suggested Positions -

Jun $100 call (BA1322F100) entry $2.55 exit $1.35 (-47.0%)

06/05/13 stopped out
06/01/13 new stop loss @ 98.40, readers may want to exit immediately

chart:

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


Ingersoll-Rand - IR - close: 55.83 change: -1.23

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

Comments:
06/05/13: The pullback in shares of IR continued today. Shares underperformed the market with a -2.1% decline. Our trade has not opened yet so we're dropping IR as a candidate. The suggested trigger was $59.15.

Technical traders may want to keep an eye on IR since the stock has a pattern of bouncing near its rising 100-dma. Right now the 100-dma is near $54.00.

Trade did not open.

06/05/13 removed from the newsletter

chart:

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


Panera Bread Co. - PNRA - close: 187.50 change: -3.29

Stop Loss: 199.00
Target(s): 187.25
Current Option Gain/Loss: -36.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/05/13: The stock market's declined has pulled PNRA below short-term support near $190.00. The stock hit our stop loss at $187.25 today.

*Small Positions* - Suggested Positions -

Jun $190 call (PNRA1322F190) entry $3.60 exit $2.30 (-36.1%)

06/05/13 stopped out at $187.25
05/28/13 new stop loss @ 187.25

chart:

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