Editor's Note:

After a three-day rally the S&P 500 index is retreating from resistance near 1620 and its 50-dma.

GMCR was closed on Friday morning.
We want to exit both the CME and XOP trades on Monday morning.


Current Portfolio:


CALL Play Updates

Automatic Data Processing - ADP - close: 68.86 change: -0.51

Stop Loss: 67.90
Target(s): 74.00
Current Option Gain/Loss: -36.3%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
06/29/13: After failing at resistance near $70.00 on Thursday ADP continued to pullback on Friday with a -0.7% decline. Friday's move followed the action in the S&P 500. Shares still have a bullish trend of higher lows for now but momentum seems to be waning. We raised our stop to $67.90 on Thursday night. I'm not suggesting new positions.

- Suggested Positions -

Long Aug $70 call (ADP1317H70) entry $1.65

06/27/13 new stop loss @ 67.90

chart:

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


Cigna Corp. - CI - close: 72.49 change: -0.07

Stop Loss: 69.75
Target(s): 74.85
Current Option Gain/Loss: + 8.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
06/29/13: The managed healthcare names are still holding up pretty well. CI only lost seven cents on Friday. I would not be surprised to see shares dip back toward their 10-dma or what should be support near $70.00.

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)

chart:

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


CME Group Inc. - CME - close: 75.95 change: -0.57

Stop Loss: 74.95
Target(s): 84.00
Current Option Gain/Loss: -65.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/29/13: CME has failed to perform all week long. We've grown progressively more cautious on it. Friday's session saw shares close below their 10-dma for the first time in weeks. There is still potential support at the $75.00 mark but we are suggesting an immediate exit on Monday morning.

*small positions* - Suggested Positions -

Long Jul $80 call (CME1320G80) entry $1.30

06/29/13 prepare to exit immediately on Monday morning
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.

chart:

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


Starbucks Corp. - SBUX - close: 65.51 change: -0.18

Stop Loss: 62.75
Target(s): 69.50
Current Option Gain/Loss: Jul$65c: +11.1% & Aug65c: +10.4%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
06/29/13: Profit taking in SBUX was relatively mild on Friday but shares did close near their lows for the session. I suspect we'll see this stock retest the 30-dma and possibly the $64.00 level again. More conservative traders may want to adjust their stop loss higher.

There was an interesting story out about SBUX on Friday. Its U.K. business did not pay any taxes last year. That's because SBUX's U.K. division has posted an annual loss for the 15th year in a row. I'll leave it up to you to decide if the U.K. business is in trouble or if it's some sort of tax avoidance issue.

- 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.

chart:

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


Shutterfly, Inc. - SFLY - close: 55.91 change: -0.20

Stop Loss: 52.75
Target(s): 59.75
Current Option Gain/Loss: Jul55c: -14.5% & Aug60c: - 7.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/29/13: SFLY ended another bullish week with some minor profit taking. This stock is up six out of the last eight weeks. Shares ended the month at new 18-month highs. I would not be surprised to see a dip back toward its 10-dma (near 54.00). We are raising the stop loss up to $52.75.

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*

06/29/13 new stop loss @ 52.75
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.

chart:

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


SodaStream Intl. - SODA - close: 72.65 change: +0.30

Stop Loss: 68.65
Target(s): 79.00
Current Option Gain/Loss: - 4.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
06/29/13: Shares of SODA managed to buck the market's drift lower on Friday and shares posted a gain. Yet that does not mean the stock is immune to weakness and if the market dips again this week we could see SODA retest the $70.00 level. Readers may want to consider raising their stop loss closer to the $70 mark.

Earlier Comments:
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

chart:

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


S&P500 SPDR ETF - SPY - close: 160.42 change: -0.66

Stop Loss: 158.75
Target(s): 164.75
Current Option Gain/Loss: +15.0%
Time Frame: 6 to 9 weeks
New Positions: see below

Comments:
06/29/13: We have multiple reasons to be cautious about our SPY trade and more conservative traders may want to take profits now.

The S&P 500 index has stalled and looks like it's about to reverse lower after testing resistance near 1620 and its simple 50-dma. It's quite common to see prior support act as new resistance and that's what we are witnessing now.

Another technical issue that does not favor the bulls is how the oversold bounce has stalled at the 61.8% Fibonacci retracement of the sell-off two weeks ago (see chart below).

We did raise the stop loss on Thursday night t $158.75 but you may want to raise yours higher.

On a positive note the first week or two of July usually has a bullish bias but it's not a guarantee. I am not suggesting new positions.

- Suggested Positions -

Long Aug $162 call (SPY1317H162) entry $2.40

06/29/13 The S&P 500 and the SPY has stalled at resistance. Be careful!
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

chart:

chart:

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: 58.18 change: -0.18

Stop Loss: 55.90
Target(s): 62.50
Current Option Gain/Loss: -15.3%
Time Frame: 6 to 9 weeks
New Positions: see below

Comments:
06/29/13: We just added XOP as a call play a few days ago. Big picture this ETF is little changed and still has a longer-term trend of higher lows, which is bullish. Yet short-term XOP is not cooperating and has failed twice near resistance. I am suggesting we abandon ship immediately and exit on Monday morning.

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*

06/29/13 prepare to exit on Monday morning
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.

chart:

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


PUT Play Updates

CH Robinson Worldwide - CHRW - close: 56.31 change: +0.58

Stop Loss: 56.65
Target(s): 50.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
06/29/13: I could find no explanation for CHRW's show of relative strength on Friday. The transportation sector lost -0.4%, which was in-line with the S&P 500 index. Yet shares of CHRW outperformed the market with a +1.0% gain. The close above $56.00 is arguably short-term bullish.

Currently we are on the sidelines waiting for the bounce to reverse. There is no change from my Thursday night, new play comments.

I am suggesting a trigger to buy puts at $55.45. If triggered our target is $50.50 but we might adjust it down the road. The 2012 low was $50.81 and could be support. FYI: The Point & Figure chart for CHRW is bearish with a $48 target.

Trigger @ 55.45

- Suggested Positions -

Buy the Aug $55 PUT (CHRW1317T55) current ask $1.60

chart:

Entry on June -- at $---.--
Average Daily Volume = 1.5 million
Listed on June 26, 2013


Joy Global, Inc. - JOY - close: 48.53 change: -0.91

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:
06/29/13: JOY tried to bounce on Friday morning but shares failed at round-number resistance near the $50.00 mark. Shares underperformed the market with a -1.8% decline. 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. 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. 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) current ask $1.03

chart:

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



Longer-Term Play Updates



Chicago Bridge & Iron - CBI - close: 59.66 change: -0.06

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:
06/29/13: The last few days have been quiet for CBI. Shares have been stuck under resistance near the $60.00 level. That means the one-month trend of lower highs is still in place. While CBI did post a gain for the week the intermediate trend is still down. We may see shares retest the $57-55 zone again. Nimble traders could buy the dip or better yet watch for the dip and buy calls on the bounce.

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

06/29/13 CBI might be poised to dip into the $57-55 zone again.
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

chart:

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


CLOSED BULLISH PLAYS

Green Mtn Coffee Roasters - GMCR - close: 75.22 change: +0.38

Stop Loss: 67.75
Target(s): 95.00
Current Option Gain/Loss: Jul80c: -35.8% & Aug85c: -20.0%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
06/29/13: GMCR has not been cooperating and shares created what appeared to be a bearish reversal pattern on Thursday. We decided the best move was to exit positions on Friday morning. GMCR opened Friday at $73.87.

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

- Suggested Positions -

Jul $80 call (GMCR1320G80) entry $1.45 exit $0.93 (-35.8%)

- or -

Aug $85 call (GMCR1317H85) entry $3.20 exit $2.56 (-20.0%)

06/28/13 planned exit this morning
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

chart:

Entry on June 26 at $76.00
Average Daily Volume = 3.3 million
Listed on June 19, 2013