Editor's Note:

Traders bought the dip in stocks this morning. Equities spent the rest of the day drifting higher toward the early close.

The U.S. markets will be closed tomorrow for the Fourth of July Independence Day holiday.

Our CI trade was stopped out on Wednesday.


Current Portfolio:


CALL Play Updates

Automatic Data Processing - ADP - close: 70.24 change: +0.16

Stop Loss: 67.90
Target(s): 74.00
Current Option Gain/Loss: + 3.0%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
07/03/13: ADP is still slowly drifting higher as traders buy the morning dips this week. The close above $70.00 is technically bullish. As long as the jobs report on Friday doesn't crash the market then traders could use today's move in ADP as another bullish entry point.

- 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


Energizer Holdings - ENR - close: 100.94 change: +0.02

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:
07/03/13: Shares of ENR bounced off round-number support near the $100 level today. 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: 73.84 change: -0.26

Stop Loss: 72.40
Target(s): 79.50
Current Option Gain/Loss: - 6.2%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
07/03/13: PRU spiked lower this morning but pared its losses by the closing bell. Yesterday the stock was struggling with the $74.15 level. Traders could use a rally past $74.15 as an alternative entry point to buy calls.

- 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: 67.30 change: +0.51

Stop Loss: 64.90
Target(s): 69.50
Current Option Gain/Loss: Jul$65c: +92.5% & Aug65c: +52.1%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
07/03/13: SBUX continues to pour profits with anther gain and hitting a new record high. Shares briefly traded above the mid-June high and hit $67.68 today. We remain bullish but I wouldn't chase it here.

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: 56.92 change: +0.29

Stop Loss: 54.75
Target(s): 59.75
Current Option Gain/Loss: Jul55c: +12.5% & Aug60c: + 5.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
07/03/13: June 26 through June 28th saw SFLY consolidating sideways in a narrow range. Now we see SFLY consolidating sideways the last three days in a slightly higher range (56.00-57.50). I am not suggesting new positions.

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: 124.52 change: +0.05

Stop Loss: 118.90
Target(s): 130.00
Current Option Gain/Loss: - 4.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
07/03/13: TM announced a recall of 185,000 vehicles today, mostly in Japan and Europe. According to TM only 100 vehicles in the North America are effected by this recall. The news didn't seem to have much impact on the stock price. Shares saw a small dip this morning but traders jumped in and pushed TM back toward breakeven on the day. I would still consider new positions now at current levels.

- 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: 69.32 change: +0.38

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:
07/03/13: FFIV shot higher this morning but once again the rally failed at resistance near $70.00 and its 10-dma.

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: 48.34 change: -0.01

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:
07/03/13: It was a very quiet Wednesday session for JOY with shares trading in a 50-cent range. 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


Marathon Petroleum - MPC - close: 70.73 change: +1.44

Stop Loss: 72.25
Target(s): 62.00
Current Option Gain/Loss: -26.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
07/03/13: Our new MPC trade has been triggered and shares are not cooperating. The stock opened lower and spiked down to a new five-month low, hitting our trigger at $68.25. Then it bounced back toward unchanged. As the shortened trading day wore on and volume started to dwindle the rally higher seemed to pick up speed. By the closing bell MPC has surged back above the $70.00 level and closed near its simple 200-dma.

At this point I would wait for a new drop under $69.50 before considering bearish positions.

- Suggested Positions -

Long Aug $65 PUT (MPC1317T65) entry $2.05

Entry on July 03 at $68.25
Average Daily Volume = 3.2 million
Listed on July 02, 2013



Longer-Term Play Updates



Chicago Bridge & Iron - CBI - close: 59.93 change: -0.23

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:
07/03/13: CBI remains little changed this week as it drifts sideways near the $60 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

Cigna Corp. - CI - close: 72.92 change: +0.80

Stop Loss: 71.45
Target(s): 74.85
Current Option Gain/Loss: - 6.2%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
07/03/13: Many of the healthcare names dropped this morning on news that the full implementation of Obamacare would be delayed. Shares of CI gapped down at $71.55 and quickly hit our stop at $71.45. The stock did bounce near its 10-dma and actually closed up on the session.

- Suggested Positions -

Oct $75 call (CI1319J75) entry $2.40 exit $2.25* (-6.2%)

07/03/13 stopped out
*option exit price is an estimate since the option did not trade at the time our play was closed.
07/02/13 new stop loss @ 71.45
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