Editor's Note:

Investors were unhappy with Bernanke's taper talk and stocks sold off this afternoon.

CVX was triggered. DVA was stopped out.


Current Portfolio:


CALL Play Updates

Automatic Data Processing - ADP - close: 69.04 change: -0.56

Stop Loss: 67.00
Target(s): 74.00
Current Option Gain/Loss: -21.2%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
06/19/13: The bounce failed at round-number resistance at the $70.00 mark this morning. ADP followed the market lower this afternoon and closed on the $69.00 level. More conservative traders may want to consider a tighter stop loss.

Earlier Comments:
If triggered our target is $74.00 but that could be optimistic since ADP still has resistance at $72.00. We may need patience to give ADP time to hit our target.

- Suggested Positions -

Long Aug $70 call (ADP1317H70) entry $1.65

Entry on June 18 at $69.25
Average Daily Volume = 1.8 million
Listed on June 17, 2013


Colfax Corp. - CFX - close: 52.46 change: -0.79

Stop Loss: 50.90
Target(s): 55.00
Current Option Gain/Loss: +12.9%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/19/13: CFX succumbed to profit taking and produced a -1.4% decline. Technically today's move has created a bearish engulfing candlestick reversal pattern. Look for potential support at $52.00 and potential support at the 10-dma.

- Suggested Positions -

long SEP $55 call (CFX1321i55) entry $1.55

06/18/13 new stop loss @ 50.90
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


Chevron Corp. - CVX - close: 120.50 change: -1.02

Stop Loss: 119.75
Target(s): July calls: 126.50, August call: 129.50
Current Option Gain/Loss: Jul: -45.0% & Aug -30.2%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/19/13: CVX saw a spike right at 2:00 p.m. and rallied just enough to hit our trigger at $122.25 before reversing lower with the market. The stock closed on its lows for the session and looks poised to test the $120.00 level soon. I would wait for a bounce off $120.00 before initiating new positions. If the market starts accelerating lower tomorrow we could see CVX hit our stop loss.

Earlier Comments:
I'm listing both the July and August calls but I prefer the August strike. Target $126.50 with the July calls. Target $129.50 with the August calls.

- Suggested Positions -

Long Jul $125 call (CVX1320G125) entry $1.00

- or -

Long Aug $125 call (CVX1317H125) entry $1.75

Entry on June 19 at $122.25
Average Daily Volume = 6.4 million
Listed on June 18, 2013


Domino's Pizza - DPZ - close: 59.77 change: -0.67

Stop Loss: 58.75
Target(s): 64.75
Current Option Gain/Loss: -27.9%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/19/13: DPZ gave back -1.1% but is still holding above its 20-dma. I am not suggesting new positions at this time.

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

*Small Positions* - Suggested Positions -

Long Jul $60 call (DPZ1320G60) entry $2.15

06/18/13 new stop loss @ 58.75

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


Rock-Tenn Company - RKT - close: 105.77 change: -0.65

Stop Loss: 103.45
Target(s): 114.00
Current Option Gain/Loss: -24.2%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/19/13: RKT could not escape the market's pullback today but the decline was mild. Look for support near $104.00.

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: 51.87 change: -0.87

Stop Loss: 50.75
Target(s): 58.50
Current Option Gain/Loss: -40.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/19/13: On a short-term basis today looks a little bit ugly for TFM. The stock lost -1.6% and closed right below its simple 10-dma. This moving average has been support for several weeks. If this decline sees any follow through tomorrow we could see TFM hit our stop loss at $50.75.

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.

- Suggested Positions -

Long Jul $55 call (TFM1320G55) entry $1.25

06/18/13 triggered @ 53.10
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: 120.78 change: -1.51

Stop Loss: 118.25
Target(s): 130.00
Current Option Gain/Loss: -33.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/19/13: TM failed at the $123.00 level this morning. Shares followed the U.S. market lower this afternoon. If TM breaks down under $120.00 we could witness shares dive toward our stop loss at $118.25.

Earlier Comments:
Don't forget that TM tends to gap open, up or down, each day in reaction to trading back home in Japan, although lately TM has ignored the some of the volatility in the NIKKEI index.

- Suggested Positions -

Long Jul $125 call (TM1320G125) entry $3.43

06/18/13 trade opened on gap higher at $122.44. Trigger was $122.10

Entry on June 18 at $122.44
Average Daily Volume = 821 thousand
Listed on June 13, 2013


Whirlpool Corp. - WHR - close: 126.80 change: -2.81

Stop Loss: 124.75
Target(s): 132.00
Current Option Gain/Loss: +13.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/19/13: WHR spent the day churning sideways until the FOMC decision. Then shares plunged with the rest of the market. The stock gave back -2.1%. I'm not suggesting new positions at this time.

- Suggested Positions -

Long Jul $125 call (WHR1320G125) entry $4.70

06/18/13 new stop loss @ 124.75, readers may want to take profits now
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: 89.24 change: -0.29

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:
06/19/13: Hmm... I am suddenly less enthusiastic about our AGU put play. The stock market produced a widespread sell-off this afternoon. AGU did follow it lower but AGU's decline was only -0.3% versus a -1.3% drop in the S&P 500. We don't want to see relative strength in our put candidate. I'm not changing our strategy yet but I am suggesting we limit our position size and keep positions small to limit our risk.

Earlier Comments:
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 *Small Positions*

- Suggested Positions -

Buy the Jul $85 PUT (AGU1320s85)

06/19/13 keep position size small.

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


eBay Inc. - EBAY - close: 52.23 change: -0.33

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:
06/19/13: EBAY failed twice near $53.00 and its 20-dma today. Yet it's worth noting that EBAY only lost -0.6% versus a -1.1% drop in the NASDAQ. We are still on the sidelines.

Currently 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: 98.29 change: -1.22

Stop Loss: 100.65
Target(s): 93.50
Current Option Gain/Loss: -34.4%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/19/13: There was no follow through on yesterday's bullish breakout in the major indices including the Russell 2000. The market was falling fast this afternoon and IWM reversed yesterday's gains. It looks like investors sold the Fed news as we suspected they might.

I am not suggesting new positions at this time.

*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: 61.08 change: -0.02

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:
06/19/13: CBI spiked higher this morning after garnering a higher price target of $75.00 from an analyst firm. The rally didn't last. CBI struggled with the $62.00 level as investors waited for the Fed decision. Shares pulled back to close almost unchanged. Of course the fact that CBI did not post any losses is a sign of relative strength.

Currently we are on the sidelines with a buy-the-dip trigger 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


CLOSED BULLISH PLAYS

DaVita Healthcare - DVA - close: 126.82 change: -2.68

Stop Loss: 127.95
Target(s): 134.00
Current Option Gain/Loss: -13.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/19/13: We were concerned that DVA might underperform today and that's why we raised the stop loss last night. Shares did hit our stop at $127.95 pretty early this morning.

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 -

Jul $135 call (DVA1320G135) entry $1.85 exit $1.60 (-13.5%)

06/19/13 stopped out
06/18/13 new stop loss @ 127.95

chart:

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