Editor's Note:

Few people were paying attention to the markets on Friday and stocks rallied on the headline jobs number in a low-volume environment.


Current Portfolio:


CALL Play Updates

Automatic Data Processing - ADP - close: 70.75 change: +0.51

Stop Loss: 68.40
Target(s): 74.00
Current Option Gain/Loss: +15.1%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
07/06/13: Traders bought the dip in ADP midday on Friday at round-number support near the $70.00 level. It was a bullish week for ADP with the breakout past $70.00. Shares are now up three weeks in a row.

I am raising the stop loss to $68.40.

- Suggested Positions -

Long Aug $70 call (ADP1317H70) entry $1.65

07/06/13 new stop loss @ 68.40
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


Energizer Holdings - ENR - close: 101.95 change: +1.01

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:
07/06/13: ENR is still bouncing from its recent test of round-number support at the $100.00 mark. Shares are nearing resistance at $103.00 again. 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)

chart:

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


Prudential Financial - PRU - close: 75.60 change: +1.76

Stop Loss: 72.40
Target(s): 79.50
Current Option Gain/Loss: +27.0%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
07/06/13: The financial sector displayed relative strength on Friday and shares of PRU was out front leading the pack with a +2.38% gain. Friday is a bullish breakout to new multi-year highs. I would not chase it here. If you're looking for an entry point consider waiting for a dip.

- Suggested Positions -

Long Aug $75 call (PRU1317H75) entry $2.40

07/02/13 new stop loss @ 72.40

chart:

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


Starbucks Corp. - SBUX - close: 67.72 change: +0.42

Stop Loss: 64.90
Target(s): 69.00
Current Option Gain/Loss: Jul$65c: +115.5% & Aug65c: +63.0%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
07/06/13: SBUX continues to show strength and closed at a new all-time high on Friday after testing the $68.00 level Friday morning. We have two weeks left on our July calls. Readers may want to exit the July calls now to lock in gains. I am adjusting our exit target down to $69.00 although more aggressive or more patient traders could aim higher.

- Suggested Positions -

Long Jul $65 call (SBUX1320G65) entry $1.35

- or -

Long Aug $65 call (SBUX1317H65) entry $2.30

07/06/13 adjust exit target to $69.00, consider exiting the July calls now with two weeks until expiration
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.

chart:

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


Shutterfly, Inc. - SFLY - close: 57.44 change: +0.52

Stop Loss: 54.75
Target(s): 59.75
Current Option Gain/Loss: Jul55c: +25.0% & Aug60c: +15.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
07/06/13: SFLY tagged a new 52-week high at $58.00 on Friday before paring its gains. Look for short-term support at $56.00 and the $55.00 level. I am not suggesting new positions.

Don't forget that we have just two weeks left on July options.

Earlier Comments:
A breakout higher 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.

chart:

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


Toyota Motor Corp. - TM - close: 125.27 change: +0.75

Stop Loss: 118.90
Target(s): 130.00
Current Option Gain/Loss: - 1.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
07/06/13: A strong dollar and weaker yen is continuing to help the Japanese market. TM hit new six-week highs. More conservative traders may want to start adjusting their stop loss higher. Readers may want to wait for a dip before considering new positions now.

- 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

chart:

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: 69.19 change: -0.13

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:
07/06/13: FFIV tried to rally with the market on Friday morning but shares failed at resistance near $70.00. Currently we are waiting on a breakdown to new relative lows.

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)

chart:

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


Joy Global, Inc. - JOY - close: 48.82 change: +0.48

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:
07/06/13: Friday's session was an interesting day for JOY as the stock seemed to disconnect from the drop in commodities. Granted, JOY is not actually a miner but makes mining equipment but a slowing Chinese economy is not good for commodity demand. Combine that with a rising dollar and precious metals were sinking on Friday. Yet JOY bounced from the $48.00 level.

We're not giving up yet. There is no change from my earlier 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)

chart:

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


Marathon Petroleum - MPC - close: 68.99 change: -1.74

Stop Loss: 72.25
Target(s): 62.00
Current Option Gain/Loss: - 7.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
07/06/13: MPC delivered another volatile session on Friday but shares also erased Wednesday's gain. MPC has resistance directly overhead at its simple 200-dma. Shares have also found short-term support at $67.60. I suggest traders wait for a new drop below $67.60 before initiating new bearish positions.

- Suggested Positions -

Long Aug $65 PUT (MPC1317T65) entry $2.05

07/06/13 MPC has been volatile the last couple of trading days. Wait for a new low under $67.60 to launch new positions

chart:

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: 60.28 change: +0.35

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:
07/06/13: CBI managed a bounce off its simple 50-dma on Friday. Yet the rebound couldn't make it past short-term resistance at its simple 30-dma. The July 2nd high was $60.82 and I would be tempted to buy calls on a rally past this level. However, if the S&P 500 is still trading under its old trend line of higher lows I'd probably hesitate to launch new bullish positions. As a longer-term play we can afford to be patient when it comes to entry points.

*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