Editor's Note:

Uh-oh! It looks like the S&P 500's bounce from the 1600 level is already starting to fail. We could see the index testing 1600 again soon.

Today saw three of our trades hit entry triggers. They are: DVA, DISCA, and the IWM.


Current Portfolio:


CALL Play Updates

Aegerion Pharma. - AEGR - close: 74.01 change: -0.94

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:
06/11/13: AEGR's attempt to rally failed by lunchtime. Shares erased yesterday's gains. Yet AEGR still has a trend of higher lows, at least for now. The high today was $75.58. 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)

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


Colfax Corp. - CFX - close: 51.01 change: -0.55

Stop Loss: 49.45
Target(s): 55.00
Current Option Gain/Loss: -16.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/11/13: CFX gapped down this morning but managed to pare its losses to -1.0%. Shares should find short-term support near $50.00 or at its rising 10-dma ad 20-dma.

- 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: 110.02 change: -0.29

Stop Loss: 108.80
Target(s): 118.50
Current Option Gain/Loss: - 40.8%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/11/13: It is interesting to note that on a down day for the market (S&P 500 -1.0%) that COST only lost -0.26%. I remain concerned with the stock's current sideways consolidation in the $108-112 zone. The 50-dma should offer some short-term support near $109.00. If this moving average fails then we'll see COST hit our stop loss at $108.80. 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: 59.80 change: -0.92

Stop Loss: 57.75
Target(s): 64.75
Current Option Gain/Loss: -18.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/11/13: DPZ gapped down this morning but shares managed to settle on its rising 10-dma. I am not suggesting new positions at this time. More conservative traders might want to consider raising their stop closer to the 20-dma (currently 58.80).

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


DaVita Healthcare - DVA - close: 129.41 change: +1.81

Stop Loss: 124.75
Target(s): 134.00
Current Option Gain/Loss: +10.8%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/11/13: DVA continues to show relative strength. The stock gapped open lower like so many stocks did this morning. Yet traders quickly bought the dip and DVA surged to a +1.4% gain. Our trigger to buy calls was hit at $128.05.

It is possible that the May highs near $131.25 could be overhead resistance but we're targeting a move to $134.00. FYI: The Point & Figure chart for DVA is bullish with a $141 target.

*small positions* - Suggested Positions -

Long Jul $135 call (DVA1320G135) entry $1.85

Entry on June 11 at $128.05
Average Daily Volume = 573 thousand
Listed on June 10, 2013


Western Digital - WDC - close: 64.54 change: -0.07

Stop Loss: 62.95
Target(s): 66.00
Current Option Gain/Loss: +84.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/11/13: WDC managed to hit a new all-time high before some afternoon profit taking. The stock stalled at round-number resistance near the $65.00 mark. Our previous exit target was hit at $64.75. However, we are currently aiming for $66.00. More aggressive traders may want to aim higher (potentially the 67-68 area). While more conservative traders will want to seriously consider taking profits right now.

Please note that I am raising our stop loss to $62.95.

*small positions* - Suggested Positions -

Long Jun $60 call (WDC1322F60) entry $2.55

06/11/13 new stop loss @ 62.95
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: 124.10 change: -2.18

Stop Loss: 118.65
Target(s): 132.00
Current Option Gain/Loss: - 1.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/11/13: WHR erased yesterday's gains and more with a -1.7% pullback today. If the market continues lower tomorrow we could see WHR retesting the $122-120.00 zone. I am not suggesting new positions at this time.

- 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: 66.75 change: -0.56

Stop Loss: 70.05
Target(s): 62.00
Current Option Gain/Loss: -36.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/11/13: CRR gapped lower this morning. Shares managed a bounce but after filling the gap, shares rolled over into a -0.8% decline. The stock is nearing prior support near $65.00. Keep in mind that June options expire in less than two weeks.

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


Discovery Communications - DISCA - close: 73.87 change: -0.48

Stop Loss: 76.55
Target(s): 68.50
Current Option Gain/Loss: -20.8%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/11/13: Our new trade on DISCA is open. We wanted to buy puts at $73.95 but shares gapped down at $73.30 immediately triggering our play. DISCA bounced off its morning lows but once it filled the gap the rally stalled. I would still consider new positions at current levels.

Our target is $68.50 but I will warn you that the $70.00 level could be round-number support and DISCA might bounce at $70.00. More conservative traders may want to exit near $70.00 instead.

- Suggested Positions -

Long Jul $70 PUT (DISCA1320S70) entry $1.20

06/11/13 triggered on gap down at $73.30. Trigger was $73.95

Entry on June 11 at $73.95
Average Daily Volume = 1.4 million
Listed on June 10, 2013


iShares Russell 2000 - IWM - close: 97.73 change: -1.07

Stop Loss: 100.65
Target(s): 93.50
Current Option Gain/Loss: - 5.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/11/13: Our IWM trade has been opened. The small cap ETF gapped lower at $97.68 and quickly hit our trigger at $97.45. The IWM did manage to pare its losses but I would still consider new positions now at current levels.

We have a stop loss at $100.65 but more conservative traders may want to tighten their stops closer to yesterday's high (98.80) instead.

Our target is the rising 100-dma. Currently the 100-dma is at $93.36. We will temporarily set our exit target at $93.50.

*Small Positions* - Suggested Positions -

Long Jul $95 PUT (IWM1320S95) entry $1.80

Entry on June 11 at $97.45
Average Daily Volume = 43 million
Listed on June 08, 2013


Susser Holdings - SUSS - close: 48.43 change: -0.45

Stop Loss: 49.25
Target(s): 45.25
Current Option Gain/Loss: -26.9%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/11/13: SUSS slipped -0.9% today. I remain cautious on this trade. Shares merely dipped to their simple 10-dma. 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: 58.78 change: -1.96

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:
06/11/13: Ouch! It looks like shares of CBI have caught a cold. The stock underperformed the broader market with a -3.2% decline. We may need to reconsider our entry point strategy. One alternative might be buying calls on a dip near $55.00 or its rising 100-dma. However, for the moment we are still on the sidelines and we will stick to the $65.25 entry trigger.

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