Editor's Note:

The U.S. market's oversold bounce continues and the S&P 500 managed to close back above the 1600 level, which is a small victory for the bulls. Broken support at its 50-dma remains overhead resistance. The S&P 500 could reverse in the 1620 area.

We saw the GMCR, SFLY, and XOP trades hit our entry triggers today.


Current Portfolio:


CALL Play Updates

Automatic Data Processing - ADP - close: 69.35 change: +0.51

Stop Loss: 67.00
Target(s): 74.00
Current Option Gain/Loss: -18.1%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
06/26/13: ADP failed to keep pace with the market's rally on Wednesday. Shares only gained +0.74% versus the +0.95% gain in the S&P 500. The stock is above short-term resistance at the $69.00 level but now ADP faces round-number resistance at the $70.00 mark. 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: 71.37 change: +0.70

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:
06/26/13: CI is still trading inside the $70-72 zone. We are waiting for a breakout higher. I am 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.

Trigger @ 72.05

- Suggested Positions -

Buy the Oct $75 call (CI1319J75) current ask $2.29

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: 76.31 change: -0.07

Stop Loss: 74.95
Target(s): 84.00
Current Option Gain/Loss: -53.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/26/13: We are concerned with our CME trade. The stock market is up two days in a row and yet CME is churning sideways. Both today and yesterday saw some volatility early in the morning that quickly faded. CME's failure to follow the market higher this week is a potential warning signal for the bulls. I am not suggesting new positions. We are moving our stop loss up to $74.95. More conservative traders may want to just exit early now.

Earlier Comments:
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

06/26/13 new stop loss @ 74.95, readers may want to exit early now since CME is not participating in the market's rally.

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


Green Mtn Coffee Roasters - GMCR - close: 75.61 change: +1.81

Stop Loss: 67.75
Target(s): 95.00
Current Option Gain/Loss: Jul80c: -11.0% & Aug85c: - 3.1%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
06/26/13: GMCR managed to outperform the broader market with a +2.45% gain today. Shares also hit our higher trigger to launch small bullish positions at $76.00. Remember, this is a more aggressive, higher-risk trade.

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. FYI: The Point & Figure chart for GMCR is bullish with a $105 target.

- Suggested Positions -

Long Jul $80 call (GMCR1320G80) entry $1.45

- or -

Long Aug $85 call (GMCR1317H85) entry $3.20

06/26/13 triggered at $76.00
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 26 at $76.00
Average Daily Volume = 3.3 million
Listed on June 19, 2013


Starbucks Corp. - SBUX - close: 65.80 change: +1.06

Stop Loss: 61.85
Target(s): 69.50
Current Option Gain/Loss: Jul$65c: +31.1% & Aug65c: +21.3%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
06/26/13: Bullish analyst comments and news that SBUX was expanding its presence in Asia helped shares outperform today with a +1.6% gain. I would not chase it at current levels.

- 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


Shutterfly, Inc. - SFLY - close: 56.03 change: +1.04

Stop Loss: 52.40
Target(s): 59.75
Current Option Gain/Loss: Jul55c: + 2.0% & Aug60c: + 2.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/26/13: SFLY shot past resistance at the $55.00 level this morning. Shares actually gapped higher at $55.43. That was above our suggested entry point at $55.25 so our trade opened immediately. SFLY managed to outperform the market with a +1.89% gain today. Nimble traders may want to consider trying to buy calls on a dip near $55.00 since broken resistance at $55.00 should be new support.

Earlier Comments:
The $55.00 level is significant resistance and a breakout here could spark a short squeeze. The most recent data listed short interest at 19% of the small 34 million share float. FYI: The Point & Figure chart for SFLY is bullish with an $84 target.

- Suggested Positions -

Long Jul $55 call (SFLY1320G55) entry $2.40*

- or -

Long Aug $60 call (SFLY1317H60) entry $2.00*

06/26/13 triggered on gap open higher at $55.43. Trigger was $55.25
*option entry price is an estimate since the option did not trade at the time our play was opened.

Entry on June 26 at $55.43
Average Daily Volume = 628 thousand
Listed on June 25, 2013


SodaStream Intl. - SODA - close: 71.30 change: +1.99

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:
06/26/13: SODA has seen two strong bounces in a row this week. Shares almost hit our suggested entry point this morning but the high was only $72.15. It does look like SODA is breaking through its two-week down trend of lower highs. Readers may want to consider buying calls on a rally past $72.15. The newsletter is suggesting investors use a trigger at $72.50.

Earlier Comments:
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: 160.14 change: +1.57

Stop Loss: 154.90
Target(s): 168.00
Current Option Gain/Loss: +12.9%
Time Frame: 6 to 9 weeks
New Positions: see below

Comments:
06/26/13: The SPY continues to bounce and posted a +0.98% gain today. I will warn you that the 50-dma near $162.00 could be tough resistance for the ETF to rally past. I am not suggesting new positions.

- 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


SPDR S&P Oil & Gas Exploration - XOP - close: 58.43 change: +0.11

Stop Loss: 55.90
Target(s): 62.50
Current Option Gain/Loss: -10.2%
Time Frame: 6 to 9 weeks
New Positions: see below

Comments:
06/26/13: The XOP spiked higher this morning. Shares actually gapped open higher at $58.80 and hit an intraday high of $59.34 before paring its gains. Since our suggested trigger to buy calls was at $58.60 the gap higher immediately opened our play. On a technical note it is worth mentioning that the rally reversed at the XOP's 50-dma and 100-dma near $59.30.

The plan was to keep our position size small to limit our risk.

*small positions* - Suggested Positions -

Long Sep $60 call (XOP1321i60) entry $2.35*

06/26/13 triggered on gap higher at $58.80. Trigger was $58.60
*option entry price is an estimate since the option did not trade at the time our play was opened.

Entry on June 26 at $58.80
Average Daily Volume = 4.2 million
Listed on June 25, 2013


PUT Play Updates

Agrium Inc. - AGU - close: 87.03 change: +2.01

Stop Loss: 87.71
Target(s): 81.00
Current Option Gain/Loss: - 8.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/26/13: The oversold bounce in AGU continues and an up day for the market didn't hurt. Shares outperformed the broader indices with a +2.3% gain. The simple 10-dma has fallen to $87.61. I am adjusting our stop loss to $87.71, which would allow AGU to test the 10-dma and reverse instead of hitting our stop loss and reverse. 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

06/26/13 adjust stop loss to $87.71
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: 51.33 change: -0.31

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:
06/26/13: EBAY underperformed the market today. Shares produced a bearish failed rally pattern and a bearish engulfing candlestick pattern at resistance near $52.00 and near its 20-dma.

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: 59.58 change: +0.54

Stop Loss: 53.75
Target(s): 74.50
Current Option Gain/Loss: +37.2%
Time Frame: 4 to 6 months
New Positions: see below

Comments:
06/26/13: The bounce in CBI today (+0.9%) kept pace with the rally in the S&P 500. Shares remain below short-term, round-number resistance at the $60.00 mark.

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 24 at $56.75
Average Daily Volume = 1.8 million
Listed on June 01, 2013