Editor's Note:

The U.S. markets failed to see any follow through on Thursday's big bounce.

MNST, DISCA, and SUSS were stopped out.
CRR was closed.


Current Portfolio:


CALL Play Updates

Colfax Corp. - CFX - close: 52.21 change: +0.41

Stop Loss: 49.80
Target(s): 55.00
Current Option Gain/Loss: + 6.4%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/15/13: CFX displayed some relative strength on Friday. The stock bucked the market's down trend and posted a +0.79% gain and a new high. I am raising our stop loss to $49.80.

- Suggested Positions -

long SEP $55 call (CFX1321i55) entry $1.55

06/15/13 new stop loss @ 49.80

chart:

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


Domino's Pizza - DPZ - close: 59.59 change: -0.43

Stop Loss: 57.75
Target(s): 64.75
Current Option Gain/Loss: -20.9%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/15/13: DPZ gave back most of Thursday's bounce and spent Friday's session hovering near the $60.00 level. Shares did post a loss for the week. Currently we have our stop loss below the June 6th low (57.91). More conservative traders may want to raise their stop closer to the 20-dma or 30-dma instead.

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

*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


DaVita Healthcare - DVA - close: 128.83 change: -1.03

Stop Loss: 124.75
Target(s): 134.00
Current Option Gain/Loss: +27.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/15/13: DVA's two-week bounce has paused near the $130 area. Shares gave back -0.79% on Friday. I would look for DVA to find short-term support near $128.00 or possibly in the $128-126 zone. 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

chart:

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


The Fresh Market, Inc. - TFM - close: 51.95 change: -0.35

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:
06/15/13: The early morning rally in TFM faded and shares closed down -0.66%. We are still waiting for a minor correction. Currently the plan is to buy calls on a dip at $51.00.

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.

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

chart:

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


Toyota Motor Co. - TM - close: 117.38 change: -3.92

Stop Loss: 118.25
Target(s): 130.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
06/15/13: TM did not see any follow through on Thursday's rally. Instead shares gapped down and posted a -3.2% decline in spite of a widespread bounce across Asian stock markets. The NIKKEI saw a +1.9% bounce on Friday. Of course my comments on Thursday night were how TM had disconnected from the volatility in the Japanese market.

At the moment our plan is to buy calls if TM can trade at $122.10 or higher. Nimble traders could look for TM to dip toward the bottom of its wide bullish channel (see chart) near $115.00 as an alternative entry point.

Trigger @ 122.10

- Suggested Positions -

Buy the Jul $125 call (TM1320G125)

chart:

Entry on June -- at $---.--
Average Daily Volume = 821 thousand
Listed on June 13, 2013


Whirlpool Corp. - WHR - close: 129.24 change: +1.42

Stop Loss: 121.45
Target(s): 132.00
Current Option Gain/Loss: +58.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/15/13: The rally continued for WHR on Friday and shares outperformed the market with a +1.1% gain. I am adjusting our stop loss higher to $121.45.

- Suggested Positions -

Long Jul $125 call (WHR1320G125) entry $4.70

06/15/13 new stop loss @ 121.45
06/13/13 new stop loss @ 120.90
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

eBay Inc. - EBAY - close: 51.29 change: -0.19

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:
06/15/13: It looks like EBAY's recent bounce is stalling under technical resistance at its 10-dma and 200-dma directly overhead. More aggressive traders may want to buy puts now. We are suggesting investors wait for a breakdown below $50.00 and use an entry trigger at $49.85.

FYI: The Point & Figure chart for EBAY is bearish with a $44 target.

Trigger @ 49.85

- Suggested Positions -

Buy the Jul $50 PUT (EBAY1320s50)

chart:

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


iShares Russell 2000 - IWM - close: 97.71 change: -0.76

Stop Loss: 100.65
Target(s): 93.50
Current Option Gain/Loss: - 7.2%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/15/13: Yesterday's rebound looked impressive yet there was no follow through higher today. The IWM drifted lower all day to post a -0.77% decline. The ETF remains below its three-week trend line of lower highs. This sideways consolidation might continue until the FOMC decision on June 19th (Wednesday afternoon).

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.

chart:

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



Longer-Term Play Updates



Chicago Bridge & Iron - CBI - close: 58.99 change: +0.38

Stop Loss: 53.75
Target(s): 74.50
Current Option Gain/Loss: Unopened
Time Frame: 4 to 6 months
New Positions: Yes, see below

Comments:
06/15/13: CBI has seen a two-week, -10% correction from its recent highs near resistance at $65.00. Currently CBI is bouncing from technical support at its 50-dma but the short-term trend is still lower. In April CBI found support at its 100-dma before resuming its up trend. Tonight we are adjusting our entry point strategy.

Instead of waiting for a breakout past $65.00 we are suggesting a buy-the-dip trigger at $56.50, which is just above the simple 100-dma. If triggered we'll use a stop loss at $53.75. Our long-term target is unchanged at $74.50. You could adjust these numbers and wait to buy a dip near $55.00, which is potential support, or use a stop loss closer to the $55.00 level.

NOTE: We are also adjusting the option from the 2014 Jan. $70 call to the $65 call. The current ask is $3.60.

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.

Trigger @ 56.50 *Small Positions*

- Suggested Positions -

Buy the 2014 Jan $65 call (CBI1418A65)

06/15/13 entry strategy change: change the breakout trigger at $65.25 to a buy-the-dip trigger at $56.50. Adjust the stop loss to $53.75.
Adjust the option strike to the 2014 Jan. $65 call

chart:

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


CLOSED BULLISH PLAYS

Monster Beverage - MNST - close: 59.26 change: -2.74

Stop Loss: 60.90
Target(s): 68.50
Current Option Gain/Loss: -27.7%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/15/13: The first 20 minutes of trading on Friday saw a rally in MNST. The stock broke out past resistance and hit our trigger to buy calls at $62.65. Then the stock immediately collapsed. A news story surfaced that the American Medical Association (AMA) might decide to support an advertising ban on "high energy" drinks targeted at young people due to worries over possible health risks.

The issue over the health risks of "energy" drinks was a black cloud over MNST shares last year. I discussed this in the original play description for MNST. Traders panicked at this headline late this morning and MNST plunged to a -4.4% decline and hit our stop loss at $60.90.

*Small Positions* - Suggested Positions -

Jul $65 call (MNST1320G65) entry $1.80 exit $1.30 (-27.7%)

06/14/13 stopped out at $60.90
06/14/13 triggered at $62.65

chart:

Entry on June 14 at $62.65
Average Daily Volume = 2.1 million
Listed on June 12, 2013


CLOSED BEARISH PLAYS

CARBO Ceramics - CRR - close: 67.98 change: +0.29

Stop Loss: 70.05
Target(s): 62.00
Current Option Gain/Loss: -72.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/15/13: CRR has not been cooperating so Thursday night we decided the best move was to exit immediately on Friday morning. Shares of CRR opened at $67.83.

Earlier Comments:
If triggered we do want to keep our position size small.

*small positions* - Suggested Positions -

Long Jun $65 PUT (CRR1322R65) entry $1.25 exit $0.35 (-72.0%)

06/14/13 early exit this morning
06/13/13 prepare to exit immediately tomorrow morning

chart:

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


Discovery Communications - DISCA - close: 76.38 change: +0.32

Stop Loss: 76.55
Target(s): 68.50
Current Option Gain/Loss: -65.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/15/13: The bounce in DISCA continued. The stock managed to trade above last Friday's high and above its 100-dma again. Our stop loss was hit at $76.55.

- Suggested Positions -

Jul $70 PUT (DISCA1320S70) entry $1.20 exit $0.42 (-65.0%)

06/14/13 stopped out
06/11/13 triggered on gap down at $73.30. Trigger was $73.95

chart:

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


Susser Holdings - SUSS - close: 48.73 change: -0.39

Stop Loss: 49.25
Target(s): 45.25
Current Option Gain/Loss: -55.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/15/13: The intraday rally in SUSS on Friday was enough to hit our stop loss at $49.25.

- Suggested Positions -

Jun $50 PUT (SUSS1322R50) entry $2.60 exit $1.15 (-55.7%)

06/14/13 stopped out
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

chart:

Entry on May 30 at $48.75
Average Daily Volume = 369 thousand
Listed on May 29 2013