Editor's Note:

The market rallied this morning but gains faded this afternoon. Overall it was a relatively broad-based advance.

RKT was triggered.


Current Portfolio:


CALL Play Updates

Colfax Corp. - CFX - close: 52.60 change: +0.39

Stop Loss: 49.80
Target(s): 55.00
Current Option Gain/Loss: +16.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/17/13: CFX continues to inch higher and posted a +0.7% gain on Monday. I don't see any changes from my prior comments. Readers may want to inch their stop loss higher.

- Suggested Positions -

long SEP $55 call (CFX1321i55) entry $1.55

06/15/13 new stop loss @ 49.80

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


Domino's Pizza - DPZ - close: 59.55 change: -0.04

Stop Loss: 57.75
Target(s): 64.75
Current Option Gain/Loss: -27.9%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/17/13: DPZ did not participate with the market's widespread rally on Monday. That is a concern. Shares merely continued to churn sideways in the $60.25-59.00 zone. 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

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


DaVita Healthcare - DVA - close: 130.16 change: +1.33

Stop Loss: 124.75
Target(s): 134.00
Current Option Gain/Loss: +40.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/17/13: DVA still appears to be struggling to get past the $130 level but shares did add +1.0% today. More conservative traders may want to raise their stop loss now. 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


Rock-Tenn Company - RKT - close: 107.05 change: +1.20

Stop Loss: 103.45
Target(s): 114.00
Current Option Gain/Loss: +15.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/17/13: The rally in RKT continues. The stock gapped open higher at $106.45 and hit $108.00 before paring its gains. Our trigger to buy calls was $106.25 so the gap open triggered our play.

NOTE: We were lucky with the option entry this morning. The option actually opened lower at $1.65. I would have expected an entry closer to $2.00 or higher.

Earlier Comments:
If triggered our target is $114.00. More nimble traders may want to consider trying to buy a dip near $104.50 since broken resistance near $104.00 should be new support.

- Suggested Positions -

Long Jul $110 call (RKT1320G110) entry $1.65

06/17/13 triggered on gap open higher at $106.45, trigger was $106.25
option opened lower at $1.65

Entry on June 17 at $106.45
Average Daily Volume = 594 thousand
Listed on June 15, 2013


The Fresh Market, Inc. - TFM - close: 52.73 change: +0.78

Stop Loss: 50.75
Target(s): 58.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
06/17/13: Shares of TFM are coiling for a breakout higher. Tonight we are adjusting our entry strategy. Instead of waiting to buy a dip at $51.00 we are moving the entry trigger to $53.10 to catch the breakout. We'll move the stop loss to $50.75. Adjust the option to the July $55 call. I am also adjusting our bullish target to $58.50 but keep in mind the $55.00 level remains overhead resistance and TFM could fail there.

Earlier Comments:
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. FYI: The Point & Figure chart for TFM is bullish with a long-term $85 target.

Trigger @ 53.10

- Suggested Positions -

Buy the Jul $55 call (TFM1320G55) current ask $1.00

06/17/13 adjust the entry strategy to buy calls when TFM hits $53.10
adjust the stop loss to $50.75, adjust the target to $58.50.
adjust the option strike to the July $55 call
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


Toyota Motor Co. - TM - close: 120.38 change: +3.00

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:
06/17/13: TM reversed Friday's decline with a +3.00 bounce today. Shares are once again testing technical resistance at its simple 20-dma.

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)

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


Whirlpool Corp. - WHR - close: 129.28 change: +0.04

Stop Loss: 121.45
Target(s): 132.00
Current Option Gain/Loss: +54.2%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/17/13: WHR almost hit our $132.00 target with a spike higher this morning. Unfortunately shares pared their gains and settled virtually unchanged on the session. Readers may want to take profits now or raise their stops.

- 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

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


PUT Play Updates

Agrium Inc. - AGU - close: 89.33 change: +0.53

Stop Loss: 90.05
Target(s): 81.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
06/17/13: AGU spent most of the day in a narrow range inside the $89-90 zone. We are waiting for a breakdown to buy puts. The May 2nd low was $87.92. I am suggesting a trigger to buy puts at $87.80. If triggered our target is $81.00.

FYI: AGU will begin trading ex-dividend on June 26th. The quarterly cash dividend should be 50 cents.

Trigger @ 87.80

- Suggested Positions -

Buy the Jul $85 PUT (AGU1320s85)

Entry on June -- at $---.--
Average Daily Volume = 744 thousand
Listed on June 15, 2013


eBay Inc. - EBAY - close: 52.07 change: +0.78

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:
06/17/13: EBAY managed to pierce its simple 200-dma this morning but the stock pared its gains to close back below this key moving average. EBAY still managed a +1.5% gain. We are still on the sidelines waiting for a breakdown given the stock's multi-week trend of lower highs and lower lows.

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)

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


iShares Russell 2000 - IWM - close: 98.35 change: +0.64

Stop Loss: 100.65
Target(s): 93.50
Current Option Gain/Loss: -30.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/17/13: The small cap index lagged behind its large cap rivals. The IWM gapped open higher but faded lower most of the session before bouncing late in the day. If shares close above $100.00 we may want to switch directions and buy calls. I am not suggesting new positions at this time.

We have a stop loss at $100.65 but more conservative traders may want to tighten their stops closer to the $99.00 level.

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



Longer-Term Play Updates



Chicago Bridge & Iron - CBI - close: 59.92 change: +0.93

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:
06/17/13: The bounce in CBI today outpaced the broader market with a +1.5% gain. Shares remain below the $60.00 level for now. At the moment we are looking to buy calls on a dip at $56.50.

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

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