Editor's Note:

The S&P 500 index delivered another bounce off its simple 50-dma. The broader market experienced a widespread rally.

We are removing AEGR as a candidate.
COST has been closed.
WDC has been stopped out.
We want to exit our CRR trade at the open tomorrow morning.


Current Portfolio:


CALL Play Updates

Colfax Corp. - CFX - close: 51.80 change: +0.81

Stop Loss: 49.45
Target(s): 55.00
Current Option Gain/Loss: - 3.2%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/13/13: CFX managed a +1.58% gain and closed just below short-term resistance at the $52.00 level. This is a new all-time high for the stock. Readers may want to start ratcheting up their stop loss.

- 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


Domino's Pizza - DPZ - close: 60.02 change: +0.59

Stop Loss: 57.75
Target(s): 64.75
Current Option Gain/Loss: - 9.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/13/13: Traders bought the dip in DPZ near its 20-dma, just as expected. Thanks to a narrow trading range yesterday, today's rally looks like a bullish engulfing candlestick reversal pattern. Today's high was $60.23. I would consider new positions on a rally past $60.30 again.

Earlier Comments:
I am suggesting that investors keep their position size small.

*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: 129.86 change: -0.15

Stop Loss: 124.75
Target(s): 134.00
Current Option Gain/Loss: +43.2%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/13/13: DVA has been outperforming the market these last few days so today shares took a day off. There was some profit taking this morning but traders bought the dip and DVA pared its losses. 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


Monster Beverage - MNST - close: 62.00 change: +0.10

Stop Loss: 60.90
Target(s): 68.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Comments:
06/13/13: Hmm... the stock market produced a very widespread rally and MNST does not participate. That's a bit worrisome. Shares merely continued to drift sideways in the $61.00-62.50 zone. For the moment I do not see any changes from my prior comments.

I do consider this a more aggressive, higher-risk trade since shares of MNST can be volatile. Tonight I am suggesting we use a trigger to launch small bullish positions at $62.65. If triggered our target is $68.50. FYI: The Point & Figure chart for MNST is bullish with a $76 target.

Trigger @ 62.65 *Small Positions*

- Suggested Positions -

Buy the Jul $65 call (MNST1320G65) current ask $1.60

Entry on June -- at $---.--
Average Daily Volume = 2.1 million
Listed on June 12, 2013


The Fresh Market, Inc. - TFM - close: 52.30 change: +0.10

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:
06/13/13: The action in TFM today is also a little head scratching. Shares were initially weak this morning but managed a bounce back to just above breakeven for the day. The stock did not participate in the market's widespread rally, which is troubling. At the moment we are still on the sidelines and still waiting for a dip toward $50.00.

NOTE: I am adjusting our buy-the-dip trigger to $51.00 since the 10-dma has risen to $50.93.

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. 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 @ 51.00

- Suggested Positions -

Buy the Jul $50 call (TFM1320G50)

06/13/13 adjust buy-the-dip trigger to $51.00 from $50.75

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


Whirlpool Corp. - WHR - close: 127.82 change: +4.97

Stop Loss: 120.90
Target(s): 132.00
Current Option Gain/Loss: +41.4%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/13/13: It was a big day for WHR. Traders quickly bought the dip this morning and the stock surged to a +4.0% gain, outperforming the broader market. I am raising our stop loss up to $120.90.

- Suggested Positions -

Long Jul $125 call (WHR1320G125) entry $4.70

06/13/13 new stop loss @ 120.90
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: 67.69 change: +1.80

Stop Loss: 70.05
Target(s): 62.00
Current Option Gain/Loss: -64.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/13/13: Oil stocks and related equities were showing relative strength today. Shares of CRR outperformed most of its peers with a +2.7% bounce. I am suggesting we throw in the towel and exit immediately. Close positions at the opening bell tomorrow morning. Unfortunately, our put option was cut in half today and has a bid of 45 cents.

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

06/13/13 prepare to exit immediately tomorrow morning

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


Discovery Communications - DISCA - close: 76.06 change: +2.49

Stop Loss: 76.55
Target(s): 68.50
Current Option Gain/Loss: -58.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/13/13: Bullish analyst comments on DISCA this morning fueled a big bounce in the stock. Shares rallied +3.3% and closed right on resistance near $76.00 and its 100-dma. If there is any follow through higher tomorrow we could see DISCA hit our stop loss at $76.55. I am not suggesting new positions.

Earlier Comments:
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


eBay Inc. - EBAY - close: 51.48 change: +0.73

Stop Loss: 52.05
Target(s): 45.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Comments:
06/13/13: Shares of EBAY essentially kept pace with the bounce in the S&P 500 with both adding +1.4%. EBAY remains beneath both its 10-dma and the 200-dma. We are waiting for a breakdown.

I am suggesting a trigger to buy puts at $49.85. If triggered our target is $45.50. FYI: The Point & Figure chart for EBAY is bearish with a $44 target.

Trigger @ 49.85

- Suggested Positions -

Buy the Jul $50 PUT (EBAY1320s50)

Entry on June -- at $---.--
Average Daily Volume = 10.7 million
Listed on June 12, 2013


iShares Russell 2000 - IWM - close: 98.48 change: +1.72

Stop Loss: 100.65
Target(s): 93.50
Current Option Gain/Loss: -21.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/13/13: Warning! Our Russell 2000 small cap ETF trade is in trouble. The stock market's big bounce today has created a bullish engulfing candlestick reversal pattern on the IWM. More conservative traders may want to exit immediately. However, I will point out that normally these reversal patterns need to see confirmation and the IWM has not yet broken the three-week bearish trend of lower highs. Although it definitely looks poised to move higher tomorrow.

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

06/13/13 conservative traders may want to exit ASAP. The IWM has produced what appears to be a bullish reversal pattern but it needs confirmation.

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


Susser Holdings - SUSS - close: 49.12 change: +1.79

Stop Loss: 49.25
Target(s): 45.25
Current Option Gain/Loss: -48.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/13/13: Ouch! Our put option has been cut in half with today's move. SUSS was so close to breaking down to new relative lows. Yet today's widespread market rebound has reversed the stock higher with a +3.7% gain. Readers may want to abandon ship immediately. The high today was $49.14 and if there is any follow through tomorrow we will likely see SUSS hit our stop loss at $49.25.

- 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: 58.61 change: +0.72

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:
06/13/13: CBI managed a bounce from its 50-dma but I am not convinced the correction is over. We will re-evaluate our entry point strategy this weekend.

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 BULLISH PLAYS

Aegerion Pharma. - AEGR - close: 69.47 change: -2.58

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:
06/13/13: The correction lower in shares of AEGR continues. Shares underperformed the market today with a -3.5% decline. The close below $70.00 is also bearish. Our trade has not opened yet. Tonight we are removing AEGR as a candidate. More aggressive traders may want to consider bearish trades instead.

Trade did not open.

06/13/13 removed from the newsletter

chart:

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


Costco Wholesale - COST - close: 110.88 change: +1.48

Stop Loss: 108.80
Target(s): 118.50
Current Option Gain/Loss: - 54.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/13/13: Last night we decided to close our COST trade because the stock had been underperforming. Naturally COST produces a bullish reversal higher today. I'm not surprised by the bounce from its 50-dma but I am a little surprised that today's session has created a new bullish engulfing candlestick reversal pattern.

Our trade closed this morning when COST opened at $109.17. Readers may want to give COST another look if shares can breakout past $112.00.

*Small Positions* - Suggested Positions -

Jul $115 call (COST1320G115) entry $1.20 exit $0.55 (-54.1%)

06/13/13 early exit at the opening bell
06/12/13 prepare to exit tomorrow morning
06/07/13 triggered

chart:

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


Western Digital - WDC - close: 64.26 change: +0.35

Stop Loss: 63.35
Target(s): 66.00
Current Option Gain/Loss: +43.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/13/13: Traders bought the dip in WDC yet again today. Unfortunately, the intraday low this morning was just low enough to hit our new stop loss at $63.35. Our trade is closed.

Investors may want to keep WDC on their watch list for a correction lower and buy it on a pullback near support.

*small positions* - Suggested Positions -

Long Jun $60 call (WDC1322F60) entry $2.55 exit $3.65 (+43.1%)

06/13/13 stopped out
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

chart:

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