Editor's Note:

The U.S. stock market is up three days in a row. The S&P 500 tagged resistance near 1620 and its simple 50-dma this morning and stalled.

CI & SODA were triggered today.
We want to exit our GMCR trade immediately.
AGU was stopped out. EBAY has been removed.
I have updated a few stop losses tonight.


Current Portfolio:


CALL Play Updates

Automatic Data Processing - ADP - close: 69.37 change: +0.02

Stop Loss: 67.90
Target(s): 74.00
Current Option Gain/Loss: -21.2%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
06/27/13: Hmm... ADP's performance today was pretty disappointing. Shares failed at resistance near $70.00 and the stock closed virtually unchanged. That's not very encouraging given the market's widespread advance. Tonight we are raising the stop loss to $67.90. I am not suggesting new positions at this time.

- Suggested Positions -

Long Aug $70 call (ADP1317H70) entry $1.65

06/27/13 new stop loss @ 67.90

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


Cigna Corp. - CI - close: 72.56 change: +1.19

Stop Loss: 69.75
Target(s): 74.85
Current Option Gain/Loss: + 9.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/27/13: The rally in CI continues and shares broke through short-term resistance at the $72.00 level. Our trigger to buy calls was hit at $72.05.

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

- Suggested Positions -

Long Oct $75 call (CI1319J75) entry $2.40

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

Entry on June 27 at $72.05
Average Daily Volume = 1.8 million
Listed on June 24, 2013


CME Group Inc. - CME - close: 76.52 change: +0.21

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:
06/27/13: Warning! I am growing increasingly worried about our CME trade. The U.S. stock market has produced one of its biggest three-day rallies of the year and shares of CME have not participated. Readers will want to seriously consider an early exit now. I am not suggesting new positions.

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

06/27/13 Reiterating the idea to just exit early now
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: 73.84 change: -1.77

Stop Loss: 67.75
Target(s): 95.00
Current Option Gain/Loss: Jul80c: -35.1% & Aug85c: -20.0%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
06/27/13: Caution! The action in GMCR today was bearish. Shares gapped open higher but struggled with short-term technical resistance at its 10-dma. Then midday, around lunchtime, the stock collapsed and shares eventually settled with a -2.3% loss, still clinging to technical support at its 40-dma. Technically today's move has created a bearish engulfing candlestick reversal pattern.

We are suggesting an early exit immediately. Close positions at the opening bell tomorrow morning.

Earlier Comments:
GMCR can be a volatile stock so we do want to keep our position size small to limit risk.

- Suggested Positions -

Long Jul $80 call (GMCR1320G80) entry $1.45

- or -

Long Aug $85 call (GMCR1317H85) entry $3.20

06/27/13 suggest an early exit immediately (at the open tomorrow)
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: 65.69 change: -0.11

Stop Loss: 62.75
Target(s): 69.50
Current Option Gain/Loss: Jul$65c: +21.4% & Aug65c: +16.5%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
06/27/13: SBUX also gapped open higher this morning but the rally didn't last very long. Shares underperformed the broader market with a -0.16% decline. The simple 50-dma has risen to $63.15. Tonight I am raising the stop loss to $62.75.

- Suggested Positions -

Long Jul $65 call (SBUX1320G65) entry $1.35

- or -

Long Aug $65 call (SBUX1317H65) entry $2.30

06/27/13 new stop loss @ 62.75
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: 56.11 change: +0.08

Stop Loss: 52.40
Target(s): 59.75
Current Option Gain/Loss: Jul55c: + 0.0% & Aug60c: - 2.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/27/13: SFLY has extended its rally to five days in a row. Yet today's performance was less than exciting with a meager eight-cent gain. Has the rally run out of steam? Shares may need to retrace back toward $54.00 or its 10-dma before moving higher.

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: 72.35 change: +1.05

Stop Loss: 68.65
Target(s): 79.00
Current Option Gain/Loss: -10.2%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/27/13: The rebound in SODA continued and shares finally broke the two-week trend of lower highs. Shares also hit our suggested trigger to buy calls at $72.50.

Earlier Comments:
Last 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.

- Suggested Positions -

Long Jul $75 call (SODA1320G75) entry $2.45

Entry on June 27 at $72.50
Average Daily Volume = 1.5 million
Listed on June 22, 2013


S&P500 SPDR ETF - SPY - close: 161.08 change: +0.94

Stop Loss: 158.75
Target(s): 164.75
Current Option Gain/Loss: +36.2%
Time Frame: 6 to 9 weeks
New Positions: see below

Comments:
06/27/13: This is it! Today and tomorrow is a very important (short-term) test for the S&P 500 and the SPY. The S&P 500 index has resistance near 1620 and its simple 50-dma (that's about 162.00 for the SPY).

The S&P 500 index hit 1620.07 and stalled. A reversal here might reaffirm the down trend that began from the May 22nd peak. A breakout higher could spark some short covering.

We are adjusting the stop loss on this trade to $158.75 and adjusting the exit target to $164.75. Cautious traders may want to just take profits now (currently up +36%). I am not suggesting new positions.

- Suggested Positions -

Long Aug $162 call (SPY1317H162) entry $2.40

06/27/13 new stop loss @ 158.75, adjust target to $164.75
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: 58.36 change: -0.07

Stop Loss: 55.90
Target(s): 62.50
Current Option Gain/Loss: -12.7%
Time Frame: 6 to 9 weeks
New Positions: see below

Comments:
06/27/13: Uh-oh! The action in the energy sector today was worrisome. Crude oil prices rallied but the energy sector retreated from its morning highs. The action in the XOP looks bearish with a second failed rally in two days time near its 50-dma and 100-dma. Let me repeat - this is a warning signal. I am not suggesting new positions and more conservative traders may want to just exit now.

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*

06/27/13 Warning! The action in the XOP looked bearish today
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

Joy Global, Inc. - JOY - close: 49.44 change: +0.45

Stop Loss: 50.25
Target(s): 41.00
Current Option Gain/Loss: Unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Comments:
06/27/13: JOY managed a bounce today but the down trend remains unchanged. There is no change from my Wednesday night new play comments.

Earlier Comments:
The stock has been underperforming and shares hit new lows for the year this week. JOY did not participate in the market bounce today. It might be tempting to buy puts now but JOY does appear to have what could be significant support in the $47.50-48.00 zone dating back to summer of 2012 (see the weekly chart below). Therefore, I am suggesting a trigger to buy puts at $47.40. If triggered our multi-week target is $41.00.

Trigger @ 47.40

- Suggested Positions -

Buy the Aug $45 PUT (JOY1317T45)

Entry on June -- at $---.--
Average Daily Volume = 2.1 million
Listed on June 26, 2013



Longer-Term Play Updates



Chicago Bridge & Iron - CBI - close: 59.72 change: +0.14

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:
06/27/13: CBI didn't move much on Thursday. Shares merely drifted sideways along resistance near the $60.00 level.

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


CLOSED BEARISH PLAYS

Agrium Inc. - AGU - close: 86.52 change: -0.51

Stop Loss: 87.71
Target(s): 81.00
Current Option Gain/Loss: - 28.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/27/13: Our AGU trade has been stopped out. We tried to prevent this from happening by adjusting the stop loss higher last night to $87.71, which was just above the simple 10-dma. The expectation was AGU might rebound to its 10-dma and reverse. Unfortunately the stock market's widespread rally this morning produced a gap open higher in AGU and shares opened at $87.79, stopping us out immediately. Pouring salt in the wound was AGU's failure at the $88.00 level and subsequent underperformance with a -0.5% drop today. Nimble traders may want to buy puts again with a stop above today's high.

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

*Small Positions* - Suggested Positions -

Jul $85 PUT (AGU1320s85) entry $1.25 exit $0.90 (- 28.0%)

06/27/13 stopped out on gap open higher at $87.79
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.

chart:

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


eBay Inc. - EBAY - close: 52.14 change: +0.81

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:
06/27/13: EBAY outperformed the market again with a +1.5% gain. Shares are not cooperating with us. The larger trend still looks bearish. Plus today's rally did stall at its simple 200-dma. Yet it seems unlikely that EBAY will hit our suggested entry point at $49.85 soon. Therefore we are removing it from the newsletter. Investors may want to keep an eye on EBAY for a breakdown below $50.00. Although at the moment the rebound this week is forming a potential bullish reversal pattern on EBAY's weekly chart.

Trade did not open.

06/27/13 removed from the newsletter
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