Editor's Note:

The S&P 500 index failed near technical resistance at its simple 50-dma again. Yet overall the market produced a widespread rally.

We closed the CME and XOP trades this morning.
PRU was triggered. CHRW has been removed.


Current Portfolio:


CALL Play Updates

Automatic Data Processing - ADP - close: 69.45 change: +0.59

Stop Loss: 67.90
Target(s): 74.00
Current Option Gain/Loss: -24.2%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
07/01/13: ADP bounced and managed to erase Friday's decline. Yet shares remain below resistance at the $70.00 level. Readers may want to wait for a breakout past $70.00 before initiating new bullish positions.

- 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: 72.81 change: +0.32

Stop Loss: 69.75
Target(s): 74.85
Current Option Gain/Loss: +11.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
07/01/13: CI tagged another new high but pared its gains to settle up +0.4%. Thee is no change from my weekend comments. 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)

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


Prudential Financial - PRU - close: 73.30 change: +0.27

Stop Loss: 70.99
Target(s): 79.50
Current Option Gain/Loss: - 12.5%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
07/01/13: Our new PRU trade has been triggered. The stock broke out past resistance near $73.50 and hit our trigger at $73.65. Unfortunately the rally reversed at $74.00 and shares closed back below the resistance level. I would be cautious here. If you're looking for an entry point consider waiting for a new high above $74.00.

Big picture, nothing has changed from my weekend comments. Our multi-week target is $79.50.

- Suggested Positions -

Long Aug $75 call (PRU1317H75) entry $2.40

Entry on July 01 at $73.65
Average Daily Volume = 3.1 million
Listed on June 29, 2013


Starbucks Corp. - SBUX - close: 66.24 change: +0.74

Stop Loss: 62.75
Target(s): 69.50
Current Option Gain/Loss: Jul$65c: +41.4% & Aug65c: +27.3%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
07/01/13: SBUX reversed Friday's decline with a +1.1% gain today. Once again this stock is sitting just below short-term resistance at the $66.50 level. The 50-dma has risen to $63.45. I am raising our stop to $63.40. More conservative traders may want to inch their stop higher.

- Suggested Positions -

Long Jul $65 call (SBUX1320G65) entry $1.35

- or -

Long Aug $65 call (SBUX1317H65) entry $2.30

07/01/13 new stop loss @ 63.40
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: 57.22 change: +1.31

Stop Loss: 53.25
Target(s): 59.75
Current Option Gain/Loss: Jul55c: +20.8% & Aug60c: +12.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
07/01/13: Good news! After three days of churning sideways near the $56.00 level, shares of SFLY have broken out to a new 52-week high. I am raising our stop loss up to $53.25.

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*

07/01/13 new stop loss @ 53.25
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.

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


SodaStream Intl. - SODA - close: 70.38 change: -2.27

Stop Loss: 68.65
Target(s): 79.00
Current Option Gain/Loss: -42.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
07/01/13: Warning! Today's action in SODA was bearish. Not only did shares underperform the market with a -3.1% decline but today's pullback has also created a bearish engulfing candlestick reversal pattern.

Right now we have our stop loss just below the simple 30-dma near $68.75. More conservative traders may want to adjust their stops closer to the $70.00 level instead.

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

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


S&P500 SPDR ETF - SPY - close: 161.36 change: +0.94

Stop Loss: 160.75
Target(s): 164.75
Current Option Gain/Loss: +26.2%
Time Frame: 6 to 9 weeks
New Positions: see below

Comments:
07/01/13: Stocks posted another gain on Monday but the S&P 500 index and the SPY pared their gains. The SPY has produced a failed rally at technical resistance on its simple 50-dma. More conservative traders may want to take profits right now.

We are raising our stop loss up to $160.75.

- Suggested Positions -

Long Aug $162 call (SPY1317H162) entry $2.40

07/01/13 new stop loss @ 160.75
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

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


PUT Play Updates

F5 Networks Inc. - FFIV - close: 69.61 change: +0.81

Stop Loss: 70.25
Target(s): 61.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Comments:
07/01/13: Shares of FFIV were upgraded this morning and that caused shares to gap open higher. Yet there was no follow through and FFIV spent the day hovering just below round-number resistance at the $70.00 level. We are still expecting the down trend to resume.

We are suggesting a trigger to buy puts at $67.40. That means waiting for shares to breakdown below last week's low near $67.50. If we are triggered our target is $61.00.

Trigger @ 67.40

- Suggested Positions -

Buy the AUG $65 PUT (FFIV1317T65)

Entry on June -- at $---.--
Average Daily Volume = 1.7 million
Listed on June 29, 2013


Joy Global, Inc. - JOY - close: 48.82 change: +0.29

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:
07/01/13: JOY tagged a new low for the year and then bounced. We are waiting for a drop below the 2012 lows. There is no change from last week's new play description.

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)

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



Longer-Term Play Updates



Chicago Bridge & Iron - CBI - close: 60.13 change: +0.47

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:
07/01/13: I don't see any changes from my earlier comments. CBI is hovering near round-number resistance at the $60.00 level. I am not suggesting new positions at these levels.

*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

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


CLOSED BULLISH PLAYS

CME Group Inc. - CME - close: 76.01 change: +0.56

Stop Loss: 74.95
Target(s): 84.00
Current Option Gain/Loss: -66.9%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
07/01/13: CME opened on a positive note but the rally stalled near $77.00. Our plan was to exit positions at the opening bell this morning.

*small positions* - Suggested Positions -

Jul $80 call (CME1320G80) entry $1.30 exit $0.43 (-66.9%)

07/01/13 planned exit
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


SPDR S&P Oil & Gas Exploration - XOP - close: 58.62 change: +0.44

Stop Loss: 55.90
Target(s): 62.50
Current Option Gain/Loss: -13.1%
Time Frame: 6 to 9 weeks
New Positions: see below

Comments:
07/01/13: Our plan was to exit positions at the open today and XOP was kind enough to gap open higher at $58.56. Did you notice how the rally failed at resistance near its 100-dma again. That's the third time ni four sessions.

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

*small positions* - Suggested Positions -

Sep $60 call (XOP1321i60) entry $2.35* exit $2.04 (-13.1%)

07/01/13 planned exit
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


CLOSED BEARISH PLAYS

CH Robinson Worldwide - CHRW - close: 56.52 change: +0.21

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

Comments:
07/01/13: CHRW is not cooperating. Shares just posted their fifth gain in a row. CHRW has broken back above what should have been resistance near $56.00. Our trade did not open.

Trade did not open.

07/01/13 removed from the newsletter

chart:

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