Editor's Note:

The S&P 500 index rebounded off of technical support near 1600 and its rising 50-dma. Stocks produced a widespread bounce ahead of tomorrow's jobs report.

Our SYNA trade was triggered. The IWM and VMW trades were stopped out.
We have updated several stop losses tonight.


Current Portfolio:


CALL Play Updates

Colfax Corp. - CFX - close: 49.30 change: -0.50

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:
06/06/13: CFX managed a little bit of a bounce today (+0.5%) Traders did buy the dip twice at the $48.50 level. More aggressive traders could buy this bounce with a stop under today's low. The newsletter is suggesting investors wait for a breakout higher. 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: 59.45 change: +1.10

Stop Loss: 57.75
Target(s): 64.75
Current Option Gain/Loss: -25.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/06/13: Traders were in a buy-the-dip mood midday. DPZ bounced from the $58.00 level and outperformed the market with a +1.88% gain. The low today was $57.91.

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


Synaptics - SYNA - close: 42.47 change: -0.28

Stop Loss: 40.95
Target(s): 47.50
Current Option Gain/Loss: - 17.2%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
06/06/13: The action in SYNA was a bit frustrating. Shares did continue to show relative strength this morning and the stock hit our trigger to buy calls at $43.15. Unfortunately, shares peaked at $43.37 and eventually closed with a -0.6% loss. SYNA did not participate in the market's afternoon rebound higher. At this point I would wait for a bounce from $42.00 or a new relative high above $43.40 before initiating new positions.

Earlier Comments:
We do want to limit our position size since we are going against the grain of the broader market.

*Small Positions* - Suggested Positions -

Long Jul $45 call (SYNA1320G45) entry $1.45

Entry on June 06 at $43.15
Average Daily Volume = 848 thousand
Listed on June 05, 2013


Western Digital - WDC - close: 63.86 change: +1.05

Stop Loss: 61.75
Target(s): 64.75
Current Option Gain/Loss: +68.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/06/13: WDC held support near $62.00 again and the afternoon rebound pushed shares to a +1.6% gain on the session.

*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: 84.00 change: -0.42

Stop Loss: 85.25
Target(s): 80.50
Current Option Gain/Loss: +38.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/06/13: CAT fell to $83.30 midday. Shares did pare their losses but still closed in negative territory. Tonight we are adjusting the stop loss down to $85.25.

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

06/06/13 new stop loss @ 85.25
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


CH Robinson Worldwide - CHRW - close: 56.31 change: +0.05

Stop Loss: 56.65
Target(s): 51.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
06/06/13: CHRW barely managed to eke out a five-cent gain. I don't see any changes from my prior comments. CHRW is nearing major support near $56.00. A breakdown here could signal a significant move lower.

The April 19th low was $55.68. I am suggesting a trigger to buy puts at $55.50. If triggered our target is $51.00, near the 2012 low.

FYI: The Point & Figure chart for CHRW is currently bullish but a trade below $55.00 would create a brand new, quadruple bottom breakdown sell signal.

Trigger @ 55.50

- Suggested Positions -

Buy the Jul $55 PUT (CHRW1320s55) current ask $1.15

Entry on June -- at $---.--
Average Daily Volume = 1.8 million
Listed on June 05, 2013


Concur Technologies - CNQR - close: 80.75 change: +2.40

Stop Loss: 81.25
Target(s): 76.00
Current Option Gain/Loss: -42.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/06/13: Ouch! What is happening with CNQR. I couldn't find any bullish headlines today. Shares were in rally mode almost all session long. CNQR did not follow the market lower midday. The stock managed to outperform with a +3.0% bounce. Today's close back above $80.00 is potentially bullish.

We are adjusting the stop loss down to $81.25.

- Suggested Positions -

Long Jun $80 PUT (CNQR1322R80) entry $2.35

06/06/13 new stop loss @ 81.25
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: 69.27 change: +3.55

Stop Loss: 70.05
Target(s): 62.00
Current Option Gain/Loss: -60.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/06/13: What happened to CRR today? Shares spiked lower at the open. The stock tagged $65.00, a new seven-month low, and then exploded higher to a +5.4% gain on the session. I couldn't find any news to explain this show of relative strength. Technically the close back above $68.00 is arguably bullish but CRR should still have resistance at $70.00.

If the market rallies on the jobs report tomorrow morning then CRR will probably hit our stop loss. If the market declines on the jobs data then CRR may reverse at $70.00.

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: 22.97 change: +0.07

Stop Loss: 24.10
Target(s): 21.50
Current Option Gain/Loss: + 96.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/06/13: FB barely managed to close in positive territory today. The relative weakness here is encouraging. However, if the market rallies tomorrow on the jobs report I would expect FB to follow it higher. Tonight we are lowering our stop loss to $24.10. I am not suggesting new positions at this time.

- Suggested Positions -

Long Jun $25 PUT (FB1322R25) entry $1.10

06/06/13 new stop loss @ 24.10
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: 53.94 change: +0.02

Stop Loss: 54.65
Target(s): 50.00
Current Option Gain/Loss: -33.3%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
06/06/13: HITT also underperformed the market with only a two-cent gain today. Yet traders did buy the dip midday. That's two days in a row that the $53.15 level has been support. We are turning more defensive here and lowering our stop loss to $54.65. 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

06/06/13 new stop loss @ 54.65
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


Johnson & Johnson - JNJ - close: 84.46 change: +0.78

Stop Loss: 85.25
Target(s): 80.50
Current Option Gain/Loss: -21.2%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/06/13: Uh-oh! Be careful here. The big bounce off JNJ's intraday low looks like a potential bullish reversal. Tonight we are lowering the stop loss to $85.25.

*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: 48.20 change: +0.90

Stop Loss: 49.25
Target(s): 45.25
Current Option Gain/Loss: -11.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/06/13: SUSS bounced just enough to erase yesterday's losses. If the rebound continues the stock "should" see resistance at its 10-dma near $48.75. Just in case it doesn't we are lowering the stop loss to $49.25.

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

- Suggested Positions -

Long Jun $50 PUT (SUSS1322R50) entry $2.60

06/06/13 new stop loss @ 49.25
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: 60.47 change: +0.25

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:
06/06/13: There is no change from my earlier comments. Currently we are on the sidelines waiting for a breakout past resistance at $65.00.

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

iShares Russell 2000 - IWM - close: 97.45 change: +1.02

Stop Loss: 97.25
Target(s): 95.25
Current Option Gain/Loss: +41.6%
Time Frame: 2 to 3 weeks
New Positions: see below

Comments:
06/06/13: We were concerned that stocks might bounce today, which is why we lowered our stop loss to $97.25 last night. The IWM's intraday move lower saw a decline to $95.73 but the small cap ETF reversed and rallied to a +1.0% gain. Shares hit our stop loss in the last five minutes of trading today. FYI: The put option hit a high of $1.46 midday.

- Suggested Positions -

Long Jun $95 PUT (IWM1322R95) entry $0.60 exit $0.85 (+41.6%)

06/06/13 stopped out
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.

chart:

Entry on May 22 at $99.75
Average Daily Volume = 41.8 million
Listed on May 16 2013


VMware Inc. - VMW - close: 71.83 change: +4.90

Stop Loss: 70.55
Target(s): 60.50
Current Option Gain/Loss: -44.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/06/13: Sometimes the market just says "screw you!" Shares of VMW were downgraded to a "sell" this morning. Did the stock go down? Nope! Shares gapped open higher and quickly sprinted past what should have been round-number resistance at $70.00 to hit our stop at $70.55. After a midday pause the market's widespread rebound this afternoon pushed VMW even higher. Shares closed up +7.3%.

- Suggested Positions -

Jul $65 PUT (VMW1320s65) entry $2.50 exit $1.40 (-44.0%)

06/06/13 stopped out at $70.55

chart:

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