Editor's Note:

Shares of Boeing Co. (BA) hit our short-term bullish target today.
AMP, BWA, and MDSO hit our bullish entry triggers.
SFLY was stopped out. VAR has been removed.
We want to exit the MPC trade immediately.


Current Portfolio:


CALL Play Updates

Automatic Data Processing - ADP - close: 71.85 change: +0.10

Stop Loss: 69.85
Target(s): 74.00
Current Option Gain/Loss: +51.5%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
07/11/13: ADP gapped open higher this morning, above resistance at the $72.00 level. Yet the rally didn't last and shares pared their gains down to 10 cents. Overall it was a rather disappointing session. I am raising our stop loss up to $69.85.

- Suggested Positions -

Long Aug $70 call (ADP1317H70) entry $1.65

07/11/13 new stop loss @ 69.85
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: 86.46 change: +1.90

Stop Loss: 83.25
Target(s): 89.25
Current Option Gain/Loss: + 3.0%
Time Frame: exit PRIOR to earnings on July 24th
New Positions: see below

Comments:
07/11/13: The stock market's strength this morning also produced a gap open higher in AMP. Shares opened at $86.17. That was above our suggested entry point at $85.25. AMP ended the session with a +2.2% gain. If you missed the move then consider waiting for AMP to fill the gap this morning and launch positions on the dip.

Earlier Comments:
If triggered our target is $89.25. However, we will plan to exit prior to the earnings report on July 24th.

- Suggested Positions -

Long Aug $85 call (AMP1317H85) entry $3.30

07/11/13 trade opened on gap open at $86.17. Trigger was $85.25.

Entry on July 11 at $86.17
Average Daily Volume = 1.25 million
Listed on July 09, 2013


Borg Warner - BWA - close: 88.85 change: +1.60

Stop Loss: 85.40
Target(s): 93.00
Current Option Gain/Loss: + 7.1%
Time Frame: exit PRIOR to earnings on July 25th
New Positions: see below

Comments:
07/11/13: Our brand new trade on BWA has been triggered. The plan was to buy calls at $87.75 but the stock gapped open higher at $88.28 this morning. Shares managed to outperform the broader market with a +1.8% gain.

Earlier Comments:
It is possible that $90.00 could be round-number resistance but we're aiming for $93.00. Please note that we will plan on exiting positions prior to the earnings report on July 25th. FYI: The Point & Figure chart for BWA is bullish with a $114 target.

- Suggested Positions -

Long Aug $90 call (BWA1317H90) entry $2.10*

07/11/13 trade opened on gap higher at $88.28. Trigger was $87.75
*option entry price is an estimate since the option did not trade at the time our play was opened.

Entry on July 11 at $88.28
Average Daily Volume = 860 thousand
Listed on July 10, 2013


Energizer Holdings - ENR - close: 104.36 change: +1.36

Stop Loss: 99.85
Target(s): 109.75
Current Option Gain/Loss: +12.7%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
07/11/13: ENR added +1.3% but today's trading remained inside yesterday's trading range, which could be a warning signal. I would still be tempted to buy calls here.

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: 55.94 change: +0.37

Stop Loss: 53.95
Target(s): 59.00
Current Option Gain/Loss: - 12.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
07/11/13: FLS' performance today was somewhat disappointing. The early morning gains faded and shares settled with a +0.66% gain. I would be cautious here.

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: 79.83 change: +0.04

Stop Loss: 78.75
Target(s): 84.85
Current Option Gain/Loss: - 26.9%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
07/11/13: Warning! The action in shares of MDSO today was not a good sign. The stock spiked up to a new high and then reversed. Shares barely closed in positive territory. This is not positive with the market breaking out to new highs. Unfortunately the rally this morning did hit our suggested entry trigger to buy calls at $81.25.

I am not suggesting new positions at this time. Our stop is right on the simple 10-dma.

Earlier Comments:
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.

- Suggested Positions -

Long Aug $85 call (MDSO1317H85) entry $2.60

07/11/13 Warning! The action in MDSO is not bullish.

Entry on July 11 at $81.25
Average Daily Volume = 190 thousand
Listed on July 08, 2013


Noble Energy - NBL - close: 64.53 change: +0.78

Stop Loss: 60.95
Target(s): 68.50
Current Option Gain/Loss: +29.6%
Time Frame: Exit PRIOR to earnings on July 25th
New Positions: see below

Comments:
07/11/13: The rally in NBL continues with shares gaining +1.2% and closing at another new high.

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: 78.01 change: +0.58

Stop Loss: 74.75
Target(s): 79.00
Current Option Gain/Loss: +83.3%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
07/11/13: Traders bought the dip in PRU midday and the stock closed up +0.74%. The high today was $78.64. We're still aiming to exit at $79.00. More aggressive traders may want to aim higher. Cautious traders may want to lock in gains right here.

- 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


Toyota Motor Corp. - TM - close: 129.29 change: +2.52

Stop Loss: 124.00
Target(s): 130.00
Current Option Gain/Loss: +39.2%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
07/11/13: The Japanese NIKKEI index didn't move that much on Thursday but that didn't stop shares of TM from surging higher. The stock posted a +1.98% gain and is on the verge of hitting our exit target at $130.00. I am raising our stop loss to $124.00.

- Suggested Positions -

Long Aug $130 call (TM1317H130) entry $2.80

07/11/13 new stop loss @ 124.00
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: 71.51 change: +3.21

Stop Loss: 72.25
Target(s): 62.00
Current Option Gain/Loss: -58.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
07/11/13: Reversal warning! After churning below resistance for days MPC broke out higher thanks to the market's widespread rally. Shares outperformed with a +4.69% gain. The stock also closed above technical resistance at the simple 200-dma. I am suggesting an immediate exit at the open tomorrow morning.

- Suggested Positions -

Long Aug $65 PUT (MPC1317T65) entry $2.05

07/11/13 exit immediately on Friday morning. MPC appears to have reversed higher and is breaking through resistance.
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: 61.35 change: +0.55

Stop Loss: 53.75
Target(s): 74.50
Current Option Gain/Loss: +45.0%
Time Frame: 4 to 6 months
New Positions: see below

Comments:
07/11/13: CBI is slowly inching higher. 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 BULLISH PLAYS

The Boeing Co. - BA - close: 106.88 change: +1.38

Stop Loss: 102.45
Target(s): 107.00
Current Option Gain/Loss: +87.9%
Time Frame: Exit prior to option expiration on July 19th
New Positions: see below

Comments:
07/11/13: Target achieved.

BA gapped open higher this morning at $106.43 and then rallied to $107.46 before 10:00 a.m. Our exit target was hit at $107.00.

It is possible that the rally continues but the $107 area was tough resistance and the all-time highs set back in 2007.

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

Jul $105 call (BA1320G105) entry $1.33 exit $2.50 (+87.9%)

07/11/13 target hit

chart:

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


Shutterfly, Inc. - SFLY - close: 56.57 change: -0.03

Stop Loss: 55.85
Target(s): 59.75
Current Option Gain/Loss: Jul55c: -27.0% & Aug60c: -15.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
07/11/13: We have been worried about our SFLY trade the last few days. The stock continued to underperform the market today and broke down below short-term support near $56.00. Our stop loss was hit at $55.85.

- Suggested Positions -

Jul $55 call (SFLY1320G55) entry $2.40* exit $1.75** (-27.0%)

- or -

Aug $60 call (SFLY1317H60) entry $2.00* exit $1.70** (-15.0%)

07/11/13 stopped out
**option exit price is an estimate since the option did not trade at the time our play was closed.
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.

chart:

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


CLOSED BEARISH PLAYS

Varian Medical Sys. - VAR - close: 68.27 change: +1.34

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

Comments:
07/11/13: The stock market is in rally mode and shares of VAR have bounced from the bottom of its trading back to the top of the range. Shares are flirting with a bullish breakout above technical resistance at the 200-dma.

Our trade has not opened yet (trigger $65.40) so tonight we are removing VAR as a candidate.

Trade did not open.

07/11/13 removed from the newsletter

chart:

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