Editor's Note:

The Tuesday morning rally failed by lunchtime and stocks drifted lower into the closing bell.

Our SODA and SPY trades were stopped out. TM was triggered. We've updated a few stop losses tonight.


Current Portfolio:


CALL Play Updates

Automatic Data Processing - ADP - close: 70.08 change: +0.63

Stop Loss: 67.90
Target(s): 74.00
Current Option Gain/Loss: - 6.0%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
07/02/13: ADP outperformed the broader market with a +0.9% gain. Shares are on the verge of breaking out past resistance at the $70.00 level.

- 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: 72.12 change: -0.69

Stop Loss: 71.45
Target(s): 74.85
Current Option Gain/Loss: - 0.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
07/02/13: CI pulled back -0.9%. The $72.00 level could be short-term support but I would not be surprised to see a dip to the 10-dma or the $70.00 area. We are turning more cautious here and raising the stop loss to $71.45. That might be too tight for you and traders may want to consider leaving their stop below the $70.00 level instead.

- Suggested Positions -

Long Oct $75 call (CI1319J75) entry $2.40

07/02/13 new stop loss @ 71.45
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


Energizer Holdings - ENR - close: 100.92 change: -1.43

Stop Loss: 99.85
Target(s): 109.75
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Comments:
07/02/13: Hmm... ENR underperformed the market today with a -1.39% decline. Shares are retreating from resistance. At the moment I don't see any changes from my prior comments.

Earlier Comments:
Shares of this battery-making company have risen toward its multi-year highs set in May and June this year. A breakout here could start the next leg higher. We are suggesting a trigger to buy calls at $103.25. If triggered our target is $109.75. More aggressive traders may want to aim higher. The Point & Figure chart for ENR is bullish with a $121 target.

Trigger @ 103.25

- Suggested Positions -

Buy the Aug $105 call (ENR1317H105)

Entry on July -- at $---.--
Average Daily Volume = 497 thousand
Listed on July 01, 2013


Prudential Financial - PRU - close: 74.10 change: +0.80

Stop Loss: 72.40
Target(s): 79.50
Current Option Gain/Loss: + 0.8%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
07/02/13: PRU was making headlines today. The U.S. government believes that PRU is "too big to fail" and needs more federal oversight. The government's fear is that if PRU were to collapse it would be a risk to the financial system. Essentially federal regulators believe that PRU should be held to the new standards in the Dodd-Frank Wall Street Reform act. This news came out in June 2013. Today PRU has filed an appeal and is requesting a hearing to explain why these new regulations don't apply to their company.

The headlines failed to stop the rally in PRU and shares posted a +1.0% gain today. We are raising the stop loss to $72.40.

- Suggested Positions -

Long Aug $75 call (PRU1317H75) entry $2.40

07/02/13 new stop loss @ 72.40

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


Starbucks Corp. - SBUX - close: 66.79 change: +0.55

Stop Loss: 64.90
Target(s): 69.50
Current Option Gain/Loss: Jul$65c: +64.4% & Aug65c: +39.1%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
07/02/13: SBUX continues to show strength but shares did stall near their June 19th high above $67.00 (that's also an all-time high). On a positive note SBUX did break above short-term resistance at $66.50 and traders were buying dips at $66.50 this afternoon.

Tonight we are adjusting the stop loss up to $64.90.

NOTE: The July options have less than three weeks left. Readers may want to consider taking profits early.

- Suggested Positions -

Long Jul $65 call (SBUX1320G65) entry $1.35

- or -

Long Aug $65 call (SBUX1317H65) entry $2.30

07/02/13 new stop loss @ 64.90
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: 56.63 change: -0.59

Stop Loss: 54.75
Target(s): 59.75
Current Option Gain/Loss: Jul55c: + 4.1% & Aug60c: + 0.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
07/02/13: After showing relative strength yesterday, shares of SFLY pulled back -1.0% today. Yet traders were buying the dip near recent resistance at the $56.00 level. Tonight we are raising the stop loss up to $54.75.

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*

07/02/13 new stop loss @ 54.75
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


Toyota Motor Corp. - TM - close: 124.47 change: +1.45

Stop Loss: 118.90
Target(s): 130.00
Current Option Gain/Loss: - 2.8%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
07/02/13: Most of the big car makers had an up day thanks to better than expected June sales. Toyota said their 2013 June sales came in at +14% above last June's levels. The stock gapped open higher at $124.70. That is above our suggested entry triggered and I cautioned readers that a gap higher was expected. oint.

Our short-term target is $130.00.

- Suggested Positions -

Long Aug $130 call (TM1317H130) entry $2.80

07/02/13 trade opened on gap higher at $124.70, trigger was 123.65

Entry on July 02 at $124.70
Average Daily Volume = 694 thousand
Listed on July 01, 2013


PUT Play Updates

F5 Networks Inc. - FFIV - close: 68.94 change: -0.67

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:
07/02/13: FFIV continues to look weak. The stock struggled with resistance near $70.00 and its simple 10-dma today. More aggressive traders may want to buy puts now. 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: 48.35 change: -0.47

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:
07/02/13: JOY is still underperforming the market and shares closed at new multi-month 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: 60.16 change: +0.03

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:
07/02/13: CBI is still drifting sideways near the $60.00 level. There is short-term technical resistance at the 30-dma directly overhead. 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

SodaStream Intl. - SODA - close: 67.41 change: -2.97

Stop Loss: 68.65
Target(s): 79.00
Current Option Gain/Loss: -57.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
07/02/13: Ouch! SODA lost another -4.2% today following yesterday's loss. I warned readers last night that Monday's session looked like a bearish reversal pattern. SODA broke down below the $70.00 level and its 30-dma today. Our stop loss was hit at $68.65.

Earlier Comments:
SODA can be a volatile stock so traders may want to limit their position size to reduce risk.

- Suggested Positions -

Jul $75 call (SODA1320G75) entry $2.45 exit $1.05 (-57.1%)

07/02/13 stopped out

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: 161.21 change: -0.15

Stop Loss: 160.75
Target(s): 164.75
Current Option Gain/Loss: +23.3%
Time Frame: 6 to 9 weeks
New Positions: see below

Comments:
07/02/13: The SPY tried to rally a gain this morning but it failed at resistance near the 50-dma again. The afternoon weakness was enough to hit our stop loss at $160.75.

- Suggested Positions -

Aug $162 call (SPY1317H162) entry $2.40 exit $2.96 (+23.3%)

07/02/13 stopped out
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

chart:

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