Editor's Note:

After a painful midweek swoon it looks like traders were still buying the dips on Friday. The major indices all pared their Friday losses.

Our SBUX and SPY trades were triggered.


Current Portfolio:


CALL Play Updates

Automatic Data Processing - ADP - close: 68.68 change: +0.48

Stop Loss: 67.00
Target(s): 74.00
Current Option Gain/Loss: -30.3%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
06/22/13: ADP held support at the $68.00 level again on Friday. Shares managed to outpace the market with a +0.7% bounce and a close back above its 50-dma. I would be tempted to buy calls again on a rally past $69.25 but more conservative traders might want to wait for ADP to rise past its 30-dma or the $70.00 level as an alternative entry point.

- Suggested Positions -

Long Aug $70 call (ADP1317H70) entry $1.65

chart:

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


Cameron Intl. Corp. - CAM - close: 61.53 change: -0.34

Stop Loss: 59.75
Target(s): 69.75
Current Option Gain/Loss: Unopened
Time Frame: 3 to 5 weeks
New Positions: Yes, see below

Comments:
06/22/13: CAM seems to be finding support near its rising 150-dma, although it does tend to pierce this moving average and then rebound. That's what occurred on Friday.

Currently we are still on the sidelines but we're adjusting our strategy. We will move the entry trigger to buy calls from $65.60 down to $63.25 and move the stop loss from $63.75 to $59.75. Keep in mind that the $65.50 area is still overhead resistance so I am suggesting we keep our position size small to limit our risk.

FYI: The Point & Figure chart for CAM is bullish with a $76 target.

Trigger @ 63.25 *small positions*

- Suggested Positions -

Buy the Jul $65 call (CAM1320G65)

06/22/13 strategy adjustment: move the entry trigger from $65.60 down to $63.25. move the stop loss from $63.75 to $59.75.
Keep position size small.

chart:

Entry on June -- at $---.--
Average Daily Volume = 1.6 million
Listed on June 19, 2013


Green Mtn Coffee Roasters - GMCR - close: 74.42 change: -3.90

Stop Loss: 78.99
Target(s): 95.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Comments:
06/22/13: GMCR has been hit hard by two days of steep profit taking (down almost -$8.00). The close below its 10, 20, and 30-dma is definitely short-term bearish. You could argue that shares have created a bearish double top with the peak in May and the peak this past week.

Currently we are on the sidelines. It's unlikely that GMCR is going to hit our suggested entry point at $83.05 any time soon. We are going to keep GMCR on the play list for another day or two and see how it performs. Then we'll either adjust our trade strategy or drop it. More aggressive traders may want to consider buying a dip or a bounce from the $70.00 level, which should be support.

Earlier Comments:
GMCR can be a volatile stock so we do want to keep our position size small to limit risk. Today's move is a bullish breakout to new 52-week highs. If the rally continues GMCR could see a short squeeze. The most recent data listed short interest at 33% of the 129 million share float.

If triggered our multi-week target is $95.00. FYI: The Point & Figure chart for GMCR is bullish with a $105 target.

Trigger @ $83.05 *Small Positions*

- Suggested Positions -

Buy the Jul $85 call (GMCR1320G85)

- or -

Buy the Aug $90 call (GMCR1317H90)

chart:

Entry on June -- at $---.--
Average Daily Volume = 3.3 million
Listed on June 19, 2013


Starbucks Corp. - SBUX - close: 64.69 change: -0.53

Stop Loss: 61.85
Target(s): 69.50
Current Option Gain/Loss: Jul$65c: + 7.4% & Aug65c: + 5.2%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
06/22/13: Our new SBUX trade has been triggered. The Friday morning rally attempt failed and shares fell toward its 30-dam. Just as we suspected the stock found support near this moving average and SBUX hit our buy-the-dip trigger at $64.25.

In other news SBUX announced on Friday that they would be raising prices for some of their drinks in their U.S. stores. Starting on June 25th prices will rise, on average, by 1%. According to an SBUX spokesman, it's the first price rise for some areas in almost two years. Less than one third of their drinks will see the increase.

- Suggested Positions -

Long Jul $65 call (SBUX1320G65) entry $1.35

- or -

Long Aug $65 call (SBUX1317H65) entry $2.30

06/21/13 triggered at $64.25.

chart:

Entry on June 21 at $64.25
Average Daily Volume = 4.6 million
Listed on June 20, 2013


S&P500 SPDR ETF - SPY - close: 159.07 change: +0.51

Stop Loss: 152.90
Target(s): 168.00
Current Option Gain/Loss: + 5.4%
Time Frame: 6 to 9 weeks
New Positions: see below

Comments:
06/22/13: Our buy-the-dip trigger at $158.00 was hit on Friday. As expected the S&P 500 index dipped to its rising 100-dma. The SPY ETF actually dipped just below it and hit $157.47 before bouncing. I would still consider new positions now although more conservative traders may want to wait for a rebound back above $160.00 before initiating positions.

The market is likely to remain volatile for a few days. We are lowering our stop loss down to $152.90 to give the index more room to maneuver. Cautious traders may want to go the opposite direction and tighten stops closer to Friday's low instead.

- Suggested Positions -

Long Aug $162 call (SPY1317H162) entry $2.40

06/22/13 adjust stop loss to $152.90
06/21/13 triggered on dip at $158.00

chart:

Entry on June 21 at $158.00
Average Daily Volume = 162 million
Listed on June 20, 2013


PUT Play Updates

Agrium Inc. - AGU - close: 86.01 change: -0.35

Stop Loss: 87.60
Target(s): 81.00
Current Option Gain/Loss: + 64.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/22/13: The breakdown in AGU continued on Friday with an intraday drop to $84.36. Yet shares managed a pretty decent bounce closing at $86.00. The bounce may not be over yet.

We are going to try and limit our risk by moving the stop loss down to $87.60. Readers may want to consider adjusting their stop so it's just above $88.00 instead since prior support near $88.00 should be new resistance.

Earlier Comments:
I am suggesting we limit our position size and keep positions small to limit our risk.

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

*Small Positions* - Suggested Positions -

Long Jul $85 PUT (AGU1320s85) entry $1.25

06/22/13 new stop loss @ 87.60
06/20/13 triggered on gap down at $87.71, trigger was $87.80
06/19/13 keep position size small.

chart:

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


eBay Inc. - EBAY - close: 51.13 change: +0.39

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:
06/22/13: EBAY tagged a new three-month low on Friday but shares managed to pare its losses and close in positive territory. Big picture the up trend definitely looks like it's in trouble but shorter-term the stock is not seeing much follow through on the way down. I am adjusting our option from the July $50 put to the August $50 put.

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 Aug $50 PUT (EBAY1317T50) current ask $1.97

06/22/13 adjust option strike from July $50 put to Aug. $50 put

chart:

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


iShares Russell 2000 - IWM - close: 95.98 change: +0.29

Stop Loss: 97.50
Target(s): 94.20
Current Option Gain/Loss: +17.7%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/22/13: The small cap Russell 2000 ETF (IWM) dipped to $94.63 on Friday before bouncing. That was almost a -5% correction from Tuesday's close at $99.50 so it's not surprising to see a little oversold bounce. The low on Friday also lines up with the short-term trend of lower lows.

We are not suggesting new positions at this time. I suspect the 100-dma could be support. The 100-dma has risen to $94.03. We will adjust our exit target to $94.20.

*Small Positions* - Suggested Positions -

Long Jul $95 PUT (IWM1320S95) entry $1.80

06/22/13 adjust exit target to $94.20
06/20/13 new stop loss @ 97.50, adjust exit target to $94.10
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: 59.13 change: -0.29

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:
06/22/13: CBI dipped to its simple 50-dma near $58.00 and bounced on Friday. We are expecting shares to test the 100-dma, currently at $56.71. Tonight we are adjusting our buy-the-dip entry point to $56.75.

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 @ 56.75 *Small Positions*

- Suggested Positions -

Buy the 2014 Jan $65 call (CBI1418A65)

06/22/13 adjust entry trigger to $56.75
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