Editor's Note:

The U.S. market ended relatively flat on Wednesday. The FOMC minutes generated a brief spike higher that faded by the close.

We have removed FFIV as a candidate.


Current Portfolio:


CALL Play Updates

Automatic Data Processing - ADP - close: 71.75 change: +0.71

Stop Loss: 69.40
Target(s): 74.00
Current Option Gain/Loss: +48.4%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
07/10/13: ADP displayed some relative strength today after lagging the market the prior two sessions. Shares added almost +1% and are nearing resistance at the $72.00 level. I am raising the stop loss up to $69.40.

- Suggested Positions -

Long Aug $70 call (ADP1317H70) entry $1.65

07/10/13 new stop loss @ 69.40
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


Ameriprise Financial - AMP - close: 84.56 change: -0.36

Stop Loss: 83.25
Target(s): 89.25
Current Option Gain/Loss: Unopened
Time Frame: exit PRIOR to earnings on July 24th
New Positions: Yes, see below

Comments:
07/10/13: The high today was only $85.17 so our trade is not open yet. Shares faded toward the $84.00 level this afternoon. More aggressive traders may want to consider buying the dip now at current levels.

I am suggesting a trigger to buy calls at $85.25. If triggered our target is $89.25. However, we will plan to exit prior to the earnings report on July 24th.

Trigger @ 85.25

- Suggested Positions -

Buy the Aug $85 call (AMP1317H85)

Entry on July -- at $---.--
Average Daily Volume = 1.25 million
Listed on July 09, 2013


The Boeing Co. - BA - close: 105.50 change: +0.82

Stop Loss: 102.45
Target(s): 107.00
Current Option Gain/Loss: +20.3%
Time Frame: Exit prior to option expiration on July 19th
New Positions: see below

Comments:
07/10/13: The aerospace and defense-related stocks were showing strength today thanks to some positive analyst comments this morning. BA managed a +0.78% gain.

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: 103.00 change: -1.97

Stop Loss: 99.85
Target(s): 109.75
Current Option Gain/Loss: -10.9%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
07/10/13: Ouch! Yesterday ENR broke out past resistance to close at new highs. Today the stock almost completely erased those gains with a nearly $2.00 decline. Traders appeared to buy the dip near its 10-dma. I would wait for a rally back above $103.25 before considering new bullish positions.

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.

- Suggested Positions -

Long Aug $105 call (ENR1317H105) entry $2.75*

*option entry price is an estimate since the option did not trade at the time our play was opened.

Entry on July 09 at $103.25
Average Daily Volume = 497 thousand
Listed on July 01, 2013


Flowserve Corp. - FLS - close: 55.57 change: -0.18

Stop Loss: 53.95
Target(s): 59.00
Current Option Gain/Loss: - 20.8%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
07/10/13: Shares of FLS dipped to their rising 40-dma before traders bought the dip and shares pared their losses. I would consider new positions now at current levels.

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


Medidata Solutions - MDSO - close: 79.79 change: +0.71

Stop Loss: 78.75
Target(s): 84.85
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
07/10/13: MDSO recovered nearly half of yesterday's pullback with a 71-cent bounce today. There is no change from my prior comments. We are still on the sidelines. Our plan is to buy calls if MDSO can trade at $81.25 (or higher). If shares don't show improvement tomorrow we might drop it.

Earlier Comments:
I am suggesting a trigger to buy calls at $81.25. If triggered our target is $84.85 but we will plan on exiting positions prior to the next earnings report, which is expected in late July or early August. More aggressive traders may want to aim higher. The Point & Figure chart for MDSO is bullish with a $101 target.

Trigger @ 81.25

- Suggested Positions -

Buy the Aug $85 call (MDSO1317H85)

Entry on July -- at $---.--
Average Daily Volume = 190 thousand
Listed on July 08, 2013


Noble Energy - NBL - close: 63.75 change: -0.11

Stop Loss: 60.95
Target(s): 68.50
Current Option Gain/Loss: +11.1%
Time Frame: Exit PRIOR to earnings on July 25th
New Positions: see below

Comments:
07/10/13: NBL tagged new highs this morning but the rally failed near $64.50. Actually the stock failed twice near $64.50. This could be suggesting that NBL is tired and due for a brief pullback. I would look for a dip back toward the $62.75-62.00 area.

Earlier Comments:
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.

- Suggested Positions -

Long Aug $65 call (NBl1317H65) entry $1.35

Entry on July 09 at $63.05
Average Daily Volume = 1.9 million
Listed on July 06, 2013


Prudential Financial - PRU - close: 77.43 change: -0.67

Stop Loss: 74.75
Target(s): 79.00
Current Option Gain/Loss: +64.5%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
07/10/13: After a multi-day rally PRU finally saw a little bit of profit taking today with a -0.8% decline. I don't see any changes from my prior comments. Readers may want to exit early now to lock in gains.

- Suggested Positions -

Long Aug $75 call (PRU1317H75) entry $2.40

07/09/13 new stop loss @ 74.75, adjust exit target to $79.00
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


Shutterfly, Inc. - SFLY - close: 56.60 change: -0.20

Stop Loss: 55.85
Target(s): 59.75
Current Option Gain/Loss: Jul55c: -10.4% & Aug60c: - 5.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
07/10/13: SFLY dipped to short-term support near $56.00 this morning. The stock bounced off this level but the rebound was fading lower into the closing bell. SFLY's rally looks like it could be in trouble here. Readers may want to exit early.

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*

07/09/13 new stop loss @ 55.85
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: 126.77 change: +0.57

Stop Loss: 118.90
Target(s): 130.00
Current Option Gain/Loss: + 3.2%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
07/10/13: TM continued to drift higher on Wednesday but drift is the key word there. Shares moved sideways most of the session.

More conservative traders may want to start adjusting their stop loss higher.

- 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

Marathon Petroleum - MPC - close: 68.30 change: -1.82

Stop Loss: 72.25
Target(s): 62.00
Current Option Gain/Loss: -17.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
07/10/13: Oil refining stocks were weak today. MPC displayed relative weakness with a -2.59% decline. Today's move also looks like a failed rally at resistance near $70 and its 10-dma. Shares look poised to breakdown under the recent lows near $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


Varian Medical Sys. - VAR - close: 66.93 change: +0.63

Stop Loss: 66.60
Target(s): 61.00
Current Option Gain/Loss: Unopened
Time Frame: Exit PRIOR to earnings on July 24th
New Positions: Yes, see below

Comments:
07/10/13: There was no follow through on yesterday's sell-off in VAR. The stock bounced with a +0.9% gain. We are waiting for a breakdown.

We're suggesting small bearish positions if VAR can trade at $65.40. If triggered our target is $61.00. Keep a wary eye on the April 2013 low of $63.10. It could be support.

Trigger @ 65.40

- Suggested Positions -

Buy the Aug $65 PUT (VAR1317T65)

Entry on July -- at $---.--
Average Daily Volume = 716 thousand
Listed on July 09, 2013



Longer-Term Play Updates



Chicago Bridge & Iron - CBI - close: 60.80 change: +0.08

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:
07/10/13: There is no change from my earlier comments on CBI. 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


CLOSED BEARISH PLAYS

F5 Networks Inc. - FFIV - close: 71.95 change: +2.59

Stop Loss: 70.25
Target(s): 61.00
Current Option Gain/Loss: Unopened
Time Frame: Exit PRIOR to earnings on July 24th
New Positions: see below

Comments:
07/10/13: Has FFIV found a bottom? It's too early to tell but shares did outperform the market today with a +3.7% rally. It's worth noting that volume on the rally was more than double the average, which is bullish.

Our trade has not opened yet. The trigger to buy puts was $67.40. We are removing FFIV as a candidate tonight.

Trade did not open.

07/10/13 removed from the newsletter.

chart:

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