Editor's Note:

The stock market opened higher on Monday morning but spent most of the day drifting sideways in a narrow range.

BA and FLS were triggered.


Current Portfolio:


CALL Play Updates

Automatic Data Processing - ADP - close: 70.97 change: +0.22

Stop Loss: 68.40
Target(s): 74.00
Current Option Gain/Loss: +21.2%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
07/08/13: ADP spent most of Monday's session hovering near the $71.00 level. If the market dips we can watch for short-term support near $70.00.

- 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

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


The Boeing Co. - BA - close: 104.37 change: +0.17

Stop Loss: 102.45
Target(s): 107.00
Current Option Gain/Loss: - 2.3%
Time Frame: Exit prior to option expiration on July 19th
New Positions: see below

Comments:
07/08/13: As expected the tragedy in San Francisco over the weekend with the crashing Boeing 777 did not have much impact on shares of BA. The stock actually rallied to a new multi-year high and hit our trigger to buy calls at $104.35.

Earlier Comments:
This should be a very short-term trade. If triggered our short-term target is $107.00. More aggressive traders could definitely aim higher but I am expecting the $107.00-107.50 zone to be resistance. Since this is a short-term trade I'm using the July calls that only have two weeks left. If you are going to aim higher I would suggest a different month.

*small positions, short-term trade* - Suggested Positions -

Long Jul $105 call (BA1320G105) entry $1.33

Entry on July 08 at $104.35
Average Daily Volume = 4.7 million
Listed on July 06, 2013


Energizer Holdings - ENR - close: 102.75 change: +0.80

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:
07/08/13: ENR tagged a new multi-year with today's intraday rally above resistance at $103.00. Yet the stock did not hit our entry trigger at $103.25. The high today was only $103.23. If the market cooperates tomorrow we could see ENR hit our entry trigger. 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


Flowserve Corp. - FLS - close: 55.03 change: -0.33

Stop Loss: 53.95
Target(s): 59.00
Current Option Gain/Loss: - 25.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
07/08/13: The rebound in FLS continued with FLS hitting $55.79 intraday. Unfortunately shares reversed to close down -0.59% and underperform the broader market. Our trigger to buy calls was hit at $55.60.

Our multi-week target is $59.00 but we will plan on exiting prior to the earnings report.

- Suggested Positions -

Long Oct $60 call (FLS1319J60) entry $1.20*

*07/08/13 entry price on the option is an estimate since the option did not trade when our entry trigger was hit.

Entry on July 08 at $55.60
Average Daily Volume = 665 thousand
Listed on July 06, 2013


Noble Energy - NBL - close: 62.29 change: -0.42

Stop Loss: 60.95
Target(s): 68.50
Current Option Gain/Loss: Unopened
Time Frame: Exit PRIOR to earnings on July 25th
New Positions: Yes, see below

Comments:
07/08/13: After hitting new highs on Friday the rally in NBL stalled on Monday. Shares churned sideways between $62.75 and $62.00.

I am suggesting a trigger to buy calls at $63.05. If triggered our target is $68.50. However, we will plan on exiting positions prior to NBL's earnings report on July 25th.

More aggressive traders may want to aim higher. This past week has generated a new triple-top breakout buy signal on the point & figure chart with a $74.00 target.

Trigger @ 63.05

- Suggested Positions -

Buy the Aug $65 call (NBl1317H65)

Entry on July -- at $---.--
Average Daily Volume = 1.9 million
Listed on July 06, 2013


Prudential Financial - PRU - close: 76.78 change: +1.18

Stop Loss: 72.40
Target(s): 79.50
Current Option Gain/Loss: +52.0%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
07/08/13: PRU continues to show relative strength with another +1.5% gain on Monday. This is a new multi-year high. Readers may want to raise their stop loss again.

- 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: 68.29 change: +0.57

Stop Loss: 64.90
Target(s): 69.00
Current Option Gain/Loss: Jul$65c: +148.1% & Aug65c: +80.4%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
07/08/13: SBUX outperformed the market again with a +0.8% gain. Shares hit $68.82 intraday. Currently our exit target is $69.00. Readers may want to exit the July calls now to lock in gains.

- 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.

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: +0.00

Stop Loss: 54.75
Target(s): 59.75
Current Option Gain/Loss: Jul55c: +18.7% & Aug60c: +10.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
07/08/13: It was a very quiet Monday for shares of SFLY. The stock drifted sideways and closed unchanged on the session. 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.

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


Toyota Motor Corp. - TM - close: 124.90 change: -0.37

Stop Loss: 118.90
Target(s): 130.00
Current Option Gain/Loss: -14.2%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
07/08/13: TM also produced a quiet Monday with shares drifting sideways. I don't see any changes from my weekend comments. 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

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: 68.52 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:
07/08/13: FFIV is still underperforming the market with a -0.9% drop today. Shares failed at $70.00 again this morning. The stock looks poised to breakdown tomorrow.

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: 49.12 change: +0.30

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:
07/08/13: JOY continued to bounce on Monday but stalled at its simple 10-dma. 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)

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


Marathon Petroleum - MPC - close: 69.44 change: +0.45

Stop Loss: 72.25
Target(s): 62.00
Current Option Gain/Loss: -21.9%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
07/08/13: MPC bounced today but the rally failed at resistance near $70 and its 200-dma again. I would be tempted to buy puts right here or you could wait for a new drop below $67.60.

- 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

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: 59.84 change: -0.44

Stop Loss: 53.75
Target(s): 74.50
Current Option Gain/Loss: +29.4%
Time Frame: 4 to 6 months
New Positions: see below

Comments:
07/08/13: CBI continues to churn between $59.00 and $61.00. It is worth noting that CBI underperformed the market today (-0.7%) and looks like another failed rally at the 30-dma again. No new positions at this time.

*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