Editor's Note:

News that S&P had upgraded the U.S. credit outlook to "stable" failed to have any lasting impact on the stock market today.

CFX hit our entry point. FB, HITT, and JNJ all hit our stop loss.


Current Portfolio:


CALL Play Updates

Aegerion Pharma. - AEGR - close: 74.95 change: +0.95

Stop Loss: 71.90
Target(s): 84.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Comments:
06/10/13: AEGR continues to melt higher but today's +1.28% gain wasn't enough. The stock continues to struggle with resistance at the $75.00 mark. I do not see any changes from my prior comments.

This is an aggressive, higher-risk trade. Shares of AEGR have been volatile over the last few weeks. I am suggesting small bullish positions if AEGR can hit a new high. This past week saw two intraday spikes to $75.70. We are suggesting a trigger to buy calls at $75.75. If triggered our target is $84.00. More aggressive traders may want to aim higher. New highs could spark another short squeeze. The most recent data listed short interest at 15% of the small 24.3 million share float. FYI: The Point & Figure chart for AEGR is bullish with a $102 target.

Trigger @ 75.75 *Small Positions*

- Suggested Positions -

Buy the Jul $80 call (AEGR1320G80) current ask $4.70

Entry on June -- at $---.--
Average Daily Volume = 980 thousand
Listed on June 08, 2013


Colfax Corp. - CFX - close: 51.56 change: +1.03

Stop Loss: 49.45
Target(s): 55.00
Current Option Gain/Loss: - 6.4%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/10/13: It looks like our patience with CFX might be rewarded. The stock displayed relative strength today with a +2.0% gain. CFX also broke through resistance near $51.00 and hit our trigger at $51.05. This is a new record high for the stock.

- Suggested Positions -

long SEP $55 call (CFX1321i55) entry $1.55

Entry on June 10 at $51.05
Average Daily Volume = 1.29 million
Listed on June 04, 2013


Costco Wholesale - COST - close: 110.31 change: -0.27

Stop Loss: 108.80
Target(s): 118.50
Current Option Gain/Loss: - 35.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/10/13: COST is still disappointing. Shares underperformed today with a -0.2% decline. The lack of participation in the rally over the last couple of days 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

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


Domino's Pizza - DPZ - close: 60.72 change: +0.19

Stop Loss: 57.75
Target(s): 64.75
Current Option Gain/Loss: + 0.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/10/13: DPZ inched higher today and added another +0.3%. 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

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


Western Digital - WDC - close: 64.61 change: +0.46

Stop Loss: 62.40
Target(s): 66.00
Current Option Gain/Loss: +86.2%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/10/13: Monday was a relatively quiet day for shares of WDC. Yet the stock did close on its highs for the session, which should be a bullish sign for tomorrow morning. It looks like WDC is about to breakout from its two-week trading range.

*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

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


Whirlpool Corp. - WHR - close: 126.28 change: +1.73

Stop Loss: 118.65
Target(s): 132.00
Current Option Gain/Loss: +22.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/10/13: WHR continues to rebound and added +1.3% today. The relative strength is encouraging but I want to caution you that the $128-132 zone could be tougher for WHR to chew through resistance.

- 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

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


PUT Play Updates

CARBO Ceramics - CRR - close: 67.31 change: -0.53

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:
06/10/13: CRR continues to underperform the market and posted a -0.7% decline today. Traders could use today's move as a new entry point for bearish positions. 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

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


iShares Russell 2000 - IWM - close: 98.80 change: +0.60

Stop Loss: 100.65
Target(s): 93.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Comments:
06/10/13: Traders are still in a buy-the-dip mood and market participants stepped in to buy the IWM near $97.80 this morning. Currently our plan is unchanged.

The Friday afternoon low on the IWM was about $97.60. We are suggesting a trigger to launch small bearish positions if the IWM trades at $97.45. If triggered we will start this trade with a stop loss at $100.65. More conservative traders may want to choose a tighter stop loss (maybe just above the 98.50 level instead). Our target is the rising 100-dma. Currently the 100-dma is at $93.15. We will temporarily set our exit target at $93.50.

Trigger @ 97.45 *Small Positions*

- Suggested Positions -

Buy the Jul $95 PUT (IWM1320S95)

Entry on June -- at $---.--
Average Daily Volume = 43 million
Listed on June 08, 2013


Susser Holdings - SUSS - close: 48.88 change: +0.25

Stop Loss: 49.25
Target(s): 45.25
Current Option Gain/Loss: -32.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/10/13: Hmm... SUSS managed to outperform the major indices with a +0.5% gain today. This relative strength is not a good sign for the bears. Traders may want to abandon ship and exit immediately. I am not suggesting new positions.

- Suggested Positions -

Long Jun $50 PUT (SUSS1322R50) entry $2.60

06/10/13 readers may want to exit early now
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: 60.74 change: +0.12

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:
06/10/13: Monday proved to be another quiet session for CBI. The stock is hovering below its simple 20-dma.

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

Facebook, Inc. - FB - close: 24.33 change: +1.04

Stop Loss: 24.10
Target(s): 21.50
Current Option Gain/Loss: + 10.9%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/10/13: Shares of FB were upgraded this morning before the opening bell. This news sparked some short covering and FB gapped open higher at $24.06 and quickly rallied toward $24.50. Our stop loss was hit at $24.10. Ouch! I hate to see a trade go from +100% back toward zero.

- Suggested Positions -

Jun $25 PUT (FB1322R25) entry $1.10 exit $1.22 (+10.9%)

06/10/13 stopped out
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: 54.19 change: -0.49

Stop Loss: 54.65
Target(s): 50.00
Current Option Gain/Loss: -76.1%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
06/10/13: HITT looks like it wants to roll over again. Shares underperformed the market with a -0.49% loss today. Yet shares gapped open higher this morning at $54.67, which was above our stop loss at $54.65. Our trade was immediately closed. Unfortunately, the option saw a steep gap down as well.

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.

*Small Positions* - Suggested Positions -

Jul $50 PUT (HITT1320S50) entry $1.05 exit $0.25 (-76.1%)

06/10/13 stopped out on gap open higher at $54.67
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: 85.14 change: +0.23

Stop Loss: 85.25
Target(s): 80.50
Current Option Gain/Loss: -52.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/10/13: The rebound in JNJ continued and the stock hit our stop loss at $85.25. Bear in mind that the $86.00 level and the simple 30-dma could still be overhead resistance. We might be witnessing nothing more than an oversold bounce in JNJ.

*small positions* - Suggested Positions -

Jul $80 PUT (JNJ1320S80) entry $0.80 exit $0.38 (-52.5%)

06/10/13 stopped out
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