Editor's Note:

The S&P 500 index is now down three days in a row and testing its simple 50-dma. Will it bounce here or will it dip to the 1600 mark? Will the 1600 level hold up as support this time?

NOTE: We want to exit our COST trade at the opening bell tomorrow.


Current Portfolio:


CALL Play Updates

Aegerion Pharma. - AEGR - close: 72.05 change: -1.96

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:
06/12/13: We may have to give up on AEGR soon. The stock underperformed the market today with a -2.6% decline and a breakdown below its 10-dma. Currently we're still on the sidelines. If the sell-off continues we'll probably drop it. 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: 50.99 change: -0.02

Stop Loss: 49.45
Target(s): 55.00
Current Option Gain/Loss: -12.9%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/12/13: CFX held up relatively well. Shares closed virtually unchanged while most of the market turned lower. I am not suggesting new positions at current levels but nimble traders could buy calls on a bounce from the $50.00 level.

- 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: 109.40 change: -0.62

Stop Loss: 108.80
Target(s): 118.50
Current Option Gain/Loss: - 51.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/12/13: We are giving up on COST. The stock has not been cooperating and we have been cautious on it since the failed rally at $112.00 a few days ago. Shares are still holding above technical support at the 50-dma so COST could bounce. However, we are suggesting investors exit immediately at the opening bell tomorrow.

*Small Positions* - Suggested Positions -

Long Jul $115 call (COST1320G115) entry $1.20

06/12/13 prepare to exit tomorrow morning
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: 59.43 change: -0.17

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:
06/12/13: DPZ only lost -0.2% versus a -0.8% pullback in the S&P 500. The stock should see some short-term support near its 20-dma or the $58.00 level. I am not suggesting new positions at this time.

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: 130.01 change: +0.60

Stop Loss: 124.75
Target(s): 134.00
Current Option Gain/Loss: +24.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/12/13: DVA continues to show relative strength with another gain today. Yet the stock spent almost the entire day churning sideways near the $130.00 level. I am not suggesting new positions at this time.

Earlier Comments:
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


The Fresh Market, Inc. - TFM - close: 52.20 change: +0.33

Stop Loss: 49.75
Target(s): 54.75
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
06/12/13: TFM displayed a little relative strength with another gain today. Although it's worth noting that shares closed off their intraday highs and spent much of the day churning sideways. I don't see any changes from my prior comments.

Earlier Comments:
Chart readers will notice that traders have been buying the dips in TFM near its rising 10-dma. Technically the recent breakout past $50 and its 200-dma is also bullish. If this trend continues TFM could see more short covering. The most recent data listed short interest at 13.9% of the small 40 million share float.

I suspect we're going to see TFM retesting its 10-dma soon. Tonight I am suggesting a buy-the-dip trigger to buy calls when TFM hits $50.75. If triggered we will try and limit our risk with a stop loss at $49.75. Our upside target is $54.75. FYI: The Point & Figure chart for TFM is bullish with a long-term $85 target.

Trigger @ 50.75

- Suggested Positions -

Buy the Jul $50 call (TFM1320G50) current ask $3.40

Entry on June -- at $---.--
Average Daily Volume = 741 thousand
Listed on June 11, 2013


Western Digital - WDC - close: 63.91 change: -0.63

Stop Loss: 63.35
Target(s): 66.00
Current Option Gain/Loss: +60.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/12/13: Warning! Today's session in WDC has created a bearish engulfing candlestick reversal pattern. The stock hit a new high this morning but couldn't hold on to it.

Readers will want to seriously consider an early exit right now. I am raising our stop loss up to $63.35.

*small positions* - Suggested Positions -

Long Jun $60 call (WDC1322F60) entry $2.55

06/12/13 new stop loss @ 63.35, you may want to exit early now!
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: 122.85 change: -1.25

Stop Loss: 118.65
Target(s): 132.00
Current Option Gain/Loss: -13.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/12/13: WHR continues to slip lower for a second day in a row. Shares lost -1.0%, which was slightly worse than the S&P500's -0.8% decline. WHR should find support near $120.00 and nimble traders could buy a dip or a bounce from this level.

- 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: 65.89 change: -0.86

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:
06/12/13: CRR tried to rally this morning but traders sold into strength. CRR underperformed the market with a -1.28% 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: 73.57 change: -0.30

Stop Loss: 76.55
Target(s): 68.50
Current Option Gain/Loss: -16.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/12/13: DISCA gapped open higher but shares didn't make it very far before rolling over. Although it's worth noting that DISCA only lost -0.4%, which is only half the loss across the market's major indices.

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: 96.76 change: -0.97

Stop Loss: 100.65
Target(s): 93.50
Current Option Gain/Loss: +22.7%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/12/13: Investors were in a mood to sell stocks today so the strength in the IWM this morning didn't last very long. Today's move reaffirms the current short-term trend of lower highs.

We have a stop loss at $100.65 but more conservative traders may want to tighten their stops closer to Monday'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: 47.33 change: -1.10

Stop Loss: 49.25
Target(s): 45.25
Current Option Gain/Loss: + 3.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/12/13: SUSS underperformed the market with a -2.2% decline today. Today's move is also a bearish breakdown below its 100-dma. Our option values have rallied back to breakeven (actually slightly above breakeven).

Keep in mind that our June option has less than two weeks left.

- 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: 57.89 change: -0.84

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:
06/12/13: The sell-off continues. Watching to see if CBI bounces from the 50-dma or if shares will fall toward the 100-dma or the $55.00 level.

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