Editor's Note:

On Monday stocks rebounded off their intraday low. That oversold bounce continued on Tuesday.

Our CME trade was triggered this morning.


Current Portfolio:


CALL Play Updates

Automatic Data Processing - ADP - close: 68.84 change: +0.46

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:
06/25/13: ADP failed to keep pace with the bounce in the S&P 500 today. Shares only added +0.67%. It looks like the stock struggled with its 40-dma as overhead resistance. I am not suggesting new positions at this time.

- 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


Cigna Corp. - CI - close: 70.67 change: -0.17

Stop Loss: 69.75
Target(s): 74.85
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Comments:
06/25/13: Shares of CI failed to see much progress today. Shares posted a -0.2% decline. Nimble traders may want to consider trying to buy calls on a bounce from the $70.00 level. We are suggesting small bullish positions if CI can trade at $72.05. If triggered our target is $74.85.

FYI: The Point & Figure chart for CI is bullish with an $82 target.

EDIT: It looks like in the original play description I listed the August $75 call but used the October $75 call price. Tonight I am correcting the symbol to show the October $75 calls.

Trigger @ 72.05

- Suggested Positions -

Buy the Oct $75 call (CI1319J75) current ask $2.11

06/25/13 correction: use the October $75 call (CI1319j75)

Entry on June -- at $---.--
Average Daily Volume = 1.8 million
Listed on June 24, 2013


CME Group Inc. - CME - close: 76.38 change: +0.32

Stop Loss: 73.85
Target(s): 84.00
Current Option Gain/Loss: -42.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/25/13: Some bullish analyst comments on CME this morning sparked a rally higher and CME trade up towards $78 a share. Unfortunately the rally didn't last long and shares fell back toward the $76 level and drifted sideways the rest of the session. Our trade was triggered at $77.85. If you're looking for a new entry point I would consider an alternative. You could look for CME to test its 10-dma (near 75.70) and buy calls on a bounce or you could wait for CME to rally above the $78.00 level as an alternative entry point.

Earlier Comments:
If triggered we'll use a stop loss at $73.85. More cautious traders may want to use a stop closer to $75.00, which looks like short-term support. I do expect some resistance at $80.00 but our target is $84.00.

*small positions* - Suggested Positions -

Long Jul $80 call (CME1320G80) entry $1.30

Entry on June 25 at $77.85
Average Daily Volume = 3.0 million
Listed on June 22, 2013


Green Mtn Coffee Roasters - GMCR - close: 73.80 change: +0.47

Stop Loss: 67.75
Target(s): 95.00
Current Option Gain/Loss: Unopened
Time Frame: 4 to 8 weeks
New Positions: Yes, see below

Comments:
06/25/13: Tuesday's session was a relatively quiet one for GMCR. The stock churned sideways and settled near its 40-dma again.

After the closing bell tonight Moody's Investor Services upgraded their credit rating on GMCR one notch from Ba3 to Ba2. GMCR's rating remains in "junk" territory. Shares may see some movement on this news tomorrow morning.

Currently we have two different triggers to launch bullish positions on GMCR. One trigger is at $76.00. The other is a buy-the-dip trigger at $70.50.

Earlier Comments:
GMCR can be a volatile stock so we do want to keep our position size small to limit risk. 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 #1 buy calls @ $76.00 *Small Positions*

Trigger #2 buy calls @ $70.50 *small positions*

- Suggested Positions -

Buy the Jul $80 call (GMCR1320G80)

- or -

Buy the Aug $85 call (GMCR1317H85)

06/24/13 Strategy Update: Move the trigger to buy calls down to $76.00. Also add a second buy-the-dip trigger at $70.50. Adjust the stop loss down to $67.75. Adjust the options to July $80 or August $85 calls

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


Starbucks Corp. - SBUX - close: 64.74 change: +0.73

Stop Loss: 61.85
Target(s): 69.50
Current Option Gain/Loss: Jul$65c: - 2.9% & Aug65c: + 0.0%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
06/25/13: SBUX gapped open higher this morning. Shares managed to outperform the broader market with a +1.1% gain. Technically shares may be forming a three-day bullish reversal pattern but the rally did stall at its 10-dma midday.

- 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.

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


SodaStream Intl. - SODA - close: 69.31 change: +2.14

Stop Loss: 68.65
Target(s): 79.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
06/25/13: SODA produced a big bounce today following yesterday's sell-off. The short-term, two-week trend of lower highs remains in place.

Currently I am suggesting a trigger to buy calls at $72.50. Friday's high was $72.35. If we are triggered at $72.50 our target is $79.00. The stock struggled with resistance at $80.00 back in 2011 so the $80 level could still be trouble. SODA can be a volatile stock so traders may want to limit their position size to reduce risk.

Trigger @ 72.50

- Suggested Positions -

Buy the Jul $75 call (SODA1320G75)

Entry on June -- at $---.--
Average Daily Volume = 1.5 million
Listed on June 22, 2013


S&P500 SPDR ETF - SPY - close: 158.58 change: +1.52

Stop Loss: 154.90
Target(s): 168.00
Current Option Gain/Loss: - 5.4%
Time Frame: 6 to 9 weeks
New Positions: see below

Comments:
06/25/13: The SPY gapped open higher and recouped about 75% of yesterday's losses. Shares are once again back above their 100-dma. It's worth noting that the rebound did fail near the $160.00 mark.

- 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

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


PUT Play Updates

Agrium Inc. - AGU - close: 85.52 change: +1.10

Stop Loss: 87.60
Target(s): 81.00
Current Option Gain/Loss: + 68.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/25/13: AGU followed the market higher today with an oversold bounce of +1.3%. If you look at an intraday chart you'll notice that AGU stalled at the $86.00 level. I am not suggesting new positions at this time.

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.

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


eBay Inc. - EBAY - close: 51.64 change: +0.82

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:
06/25/13: EBAY managed to outperform the broader market with a +1.6% bounce.

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)

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

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



Longer-Term Play Updates



Chicago Bridge & Iron - CBI - close: 59.04 change: +0.95

Stop Loss: 53.75
Target(s): 74.50
Current Option Gain/Loss: +33.3%
Time Frame: 4 to 6 months
New Positions: see below

Comments:
06/25/13: CBI has recovered nearly all of yesterday's losses with a gap open higher this morning. Shares ended the session with a +1.6% gain. The next hurdle for the bulls is probably round-number resistance at $60.00.

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.

*Small Positions* - Suggested Positions -

Long 2014 Jan $65 call (CBI1418A65) entry $2.55

06/24/13 triggered @ 56.75
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

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