Editor's Note:

The market appears happy with the jobs report on Friday morning. Equities rallied with broad-based gains.

We did see our COST and WHR trades hit our entry trigger. Meanwhile SYNA, CAT, and CNQR were stopped out. We have removed CHRW.

As you read tonight's updates, keep in mind that June options expire in two weeks.


Current Portfolio:


CALL Play Updates

Colfax Corp. - CFX - close: 50.53 change: +1.23

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:
06/08/13: The stock market's rebound from its Thursday lows has lifted CFX off its rising 20-dma. Yet the stock remains under resistance near $51.00. I am suggesting investors wait for a breakout higher. Right now the plan is to buy calls if CFX hits $51.05.

Trigger @ 51.05

- Suggested Positions -

buy the SEP $55 call (CFX1321i55) current ask $1.25

chart:

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


Costco Wholesale - COST - close: 110.58 change: -0.51

Stop Loss: 108.80
Target(s): 118.50
Current Option Gain/Loss: - 23.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/08/13: COST delivered a disappointing session for us. Shares bounced on Friday morning as expected and COST hit our entry trigger at $111.50. Yet the rebound failed at $112.00. I cautioned readers on Thursday night that this might happen and COST retreated to a -0.4% decline on Friday. The relative weakness on Friday is worrisome. Investors may want to wait for a breakout past $112.00 before initiating new positions. FYI: The Point & Figure chart for COST is bullish with a $124 target.

*Small Positions* - Suggested Positions -

Long Jul $115 call (COST1320G115) entry $1.20

06/07/13 triggered

chart:

Entry on June 07 at $111.50
Average Daily Volume = 2.0 million
Listed on June 06, 2013


Domino's Pizza - DPZ - close: 59.45 change: +1.10

Stop Loss: 57.75
Target(s): 64.75
Current Option Gain/Loss: - 2.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/08/13: DPZ continues to rebound and set a new closing high on Friday thanks to a +1.8% gain. I don't see any changes from my prior comments. We are keeping the stop loss just under the Thursday low for now.

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

chart:

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


Western Digital - WDC - close: 64.15 change: +0.29

Stop Loss: 62.40
Target(s): 66.00
Current Option Gain/Loss: +74.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/08/13: WDC's +0.45% gain on Friday underperformed the broader market. Yet shares did post a new all-time closing high. Plus, WDC is now up seven weeks in a row. I am still suggesting that more conservative traders take profits right now. I am actually turning a little bit more aggressive. We will adjust our exit target to $66.00. The $65.00 level could still be round-number resistance so traders may want to exit earlier near this level. We will also raise the stop loss to $62.40, which is just below Thursday's low.

*small positions* - Suggested Positions -

Long Jun $60 call (WDC1322F60) entry $2.55

06/08/13 new stop loss @ 62.40, adjust target to $66.00
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

chart:

Entry on May 21 at $60.65
Average Daily Volume = 3.3 million
Listed on May 18 2013


Whirlpool Corp. - WHR - close: 124.55 change: +1.67

Stop Loss: 118.65
Target(s): 132.00
Current Option Gain/Loss: + 7.4%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/08/13: Our new trade on WHR has been triggered. The plan was to buy calls at $123.35 but WHR gapped higher at $123.49 on Friday morning. Shares initially pulled back from potential round-number resistance near $125.00 but traders were buying the dip again on Friday afternoon. Friday's gain helps confirm Thursday's bullish reversal pattern.

- Suggested Positions -

Long Jul $125 call (WHR1320G125) entry $4.70

06/07/13 trade opened on gap higher at $123.49, trigger was 123.35

chart:

Entry on June 07 at $123.49
Average Daily Volume = 826 thousand
Listed on June 06, 2013


PUT Play Updates

CARBO Ceramics - CRR - close: 67.84 change: -1.43

Stop Loss: 70.05
Target(s): 62.00
Current Option Gain/Loss: -48.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/08/13: As expected the rebound in CRR failed at resistance near $70.00. Actually the high on Friday was $69.45, near its 20-dma and 30-dma. If you're looking for a bearish trade then Friday's move could be a new entry point in CRR. Keep in mind that June options expire in two weeks. You may want to buy Julys.

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

chart:

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


Facebook, Inc. - FB - close: 23.29 change: +0.32

Stop Loss: 24.10
Target(s): 21.50
Current Option Gain/Loss: + 65.4%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/08/13: The new NSA spying scandal is unlikely to have any immediate effect on shares of FB. Consumers love their social media and they don't have a lot of alternatives. Most people hate change. Meanwhile shares of FB, which were oversold, managed a bounce on Friday (+1.39%). If you want to get picky you could argue that FB has created a three-day bullish reversal pattern. If the rebound continues the first hurdle is short-term technical resistance at the 10-dma. I am not suggesting new positions at this time.

Note our option has already pulled back from +100% to +65%. Readers may want to take profits now.

- 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.

chart:

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


Hittite Microwave - HITT - close: 54.46 change: +0.52

Stop Loss: 54.65
Target(s): 50.00
Current Option Gain/Loss: -47.6%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
06/08/13: HITT produced a small gap higher on Friday morning. The stock spent almost the whole day quietly churning sideways above the $54.00 level. Then in the last 30 minutes of trading saw a spike higher. Shares hit $54.58 at its best levels. If there is any follow through higher on Monday we'll see HITT hit our stop loss at $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

chart:

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: -38.7%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/08/13: It looks like our JNJ put play could be in trouble. The stock has broken one of its short-term trend lines of lower highs. Plus JNJ has closed back above its simple 50-dma. The high on Friday was $85.18. If there is any follow through higher then we'll see JNJ hit our stop at $85.25.

*small positions* - Suggested Positions -

Long Jul $80 PUT (JNJ1320S80) entry $0.80

06/06/13 move stop loss to $85.25.
06/05/13 adjust exit target to $80.50

chart:

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


Susser Holdings - SUSS - close: 48.63 change: +0.43

Stop Loss: 49.25
Target(s): 45.25
Current Option Gain/Loss: -25.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/08/13: The Friday morning rally in SUSS failed near $49.00 but traders bought the dip midday. The stock ended the session up +0.89%. If there is any follow through higher we'll likely see SUSS hit our stop loss at $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

chart:

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: 60.62 change: +0.15

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:
06/08/13: Friday's performance for CBI was surprisingly disappointing. The rally failed at its 20-dma and shares settled with a +0.24% gain. Compare that to the +1.28% gain in the S&P 500.

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)

chart:

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


CLOSED BULLISH PLAYS

Synaptics - SYNA - close: 42.47 change: -0.28

Stop Loss: 40.95
Target(s): 47.50
Current Option Gain/Loss: - 55.1%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
06/08/13: SYNA's performance was definitely disappointing. Thursday's intraday move higher was enough to hit our entry trigger but there was no follow through. Then shares collapsed on Friday, completely ignoring the market's rally. Shares plunged Friday morning to break support and hit our stop loss at $40.95 in the process.

Earlier Comments:
We do want to limit our position size.

*Small Positions* - Suggested Positions -

Jul $45 call (SYNA1320G45) entry $1.45 exit $0.65 (-55.1%)

06/07/13 stopped out

chart:

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


CLOSED BEARISH PLAYS

Caterpillar Inc. - CAT - close: 84.65 change: +0.65

Stop Loss: 85.25
Target(s): 80.50
Current Option Gain/Loss: -17.2%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/08/13: Thursday night we adjusted our stop loss on CAT just in case the market rallied and CAT followed. Sure enough stocks advanced but the rally in CAT stalled under resistance near its 50-dma. Still our trade was stopped out at $85.25. The stock continues to look bearish but our play is closed.

- Suggested Positions -

Jun $85 PUT (CAT1322R85) entry $1.45 exit $1.20 (-17.2%)

06/07/13 stopped out
06/06/13 new stop loss @ 85.25
05/29/13 adjust stop loss to $87.25, just above the 10-dma

chart:

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


CH Robinson Worldwide - CHRW - close: 57.16 change: +0.85

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

Comments:
06/08/13: CHRW is not cooperating. The stock added +1.5% on Friday. With the market bouncing it's less likely that we're going to see CHRW break down under significant support near $56.00. Our trade did not open.

Trade did not open.

06/08/13 removed from the newsletter

chart:

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


Concur Technologies - CNQR - close: 80.92 change: +0.17

Stop Loss: 81.25
Target(s): 76.00
Current Option Gain/Loss: -53.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/08/13: CNQR is another bearish play that fell victim to the market's volatility on Friday. The stock underperformed the market with a +0.2% gain versus a +1.3% rally in the NASDAQ. Yet shares managed to hit our new stop loss at $81.25 intraday.

- Suggested Positions -

Jun $80 PUT (CNQR1322R80) entry $2.35 exit $1.10 (-53.1%)

06/07/13 stopped out
06/06/13 new stop loss @ 81.25
06/04/13 adjusted the exit target from $76.50 to $76.00.

chart:

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