Editor's Note:

The market's major indices inched higher on Monday but plenty of stocks experienced some minor profit taking.

Almost all of our bullish candidates saw their rally stall today. We are taking a more defensive posture here and raised our stop losses on almost every trade.

Please note that we do want to exit our TM trade at the opening bell tomorrow.


Current Portfolio:


CALL Play Updates

Automatic Data Processing - ADP - close: 72.36 change: -1.05

Stop Loss: 70.95
Target(s): 74.00
Current Option Gain/Loss: + 75.7%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
07/15/13: ADP underperformed the market today. Shares pulled back -1.4% although it's worth noting that today's session is an "inside day". That means it traded inside of Friday's range, which could suggest indecision by investors.

The simple 10-dma has risen to $71.19. We will raise our stop loss up to $70.95.

- Suggested Positions -

Long Aug $70 call (ADP1317H70) entry $1.65

07/15/13 new stop loss @ 70.95
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: 86.33 change: -0.27

Stop Loss: 84.65
Target(s): 89.25
Current Option Gain/Loss: - 3.0%
Time Frame: exit PRIOR to earnings on July 24th
New Positions: see below

Comments:
07/15/13: It was a relatively quiet day for AMP. Shares tagged $87.00 this morning and then faded lower. Technically today's session has created a bearish engulfing candlestick reversal pattern. I mentioned over the weekend that AMP might be poised for a dip back toward the $85.00 level. We are raising the stop loss to $84.65.

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

07/15/13 new stop loss @ 84.65
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: 88.81 change: -0.49

Stop Loss: 86.40
Target(s): 93.00
Current Option Gain/Loss: - 2.3%
Time Frame: exit PRIOR to earnings on July 25th
New Positions: see below

Comments:
07/15/13: BWA saw some minor profit taking today with a -0.5% decline. Look for short-term support in the $88-87.50 zone. We are raising the stop loss up to $86.40.

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*

07/15/13 new stop loss @ 86.40
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


Eastman Chemical Co. - EMN - close: 74.20 change: +0.24

Stop Loss: 73.49
Target(s): 79.75
Current Option Gain/Loss: Unopened
Time Frame: exit PRIOR to earnings on July 29th
New Positions: Yes, see below

Comments:
07/15/13: EMN posted a gain today and outperformed the major indices yet it remains below resistance at the $75.00 mark. I don't see any changes from my earlier comments.

Earlier Comments:
Shares of EMN have been consolidating sideways for the last four and a half months. The rally this month has pushed shares back toward major resistance in the $74-75 zone. A breakout past $75.00 would be a new all-time high.

I am suggesting a trigger to buy calls at $75.25. If triggered our target is $79.75. However, we will plan on exiting positions prior to the earnings report on July 29th. FYI: The Point & Figure chart for EMN is bullish with a $91 target.

Trigger @ 75.25

- Suggested Positions -

Buy the Aug $75 call (EMN1317H75) current ask $2.10

Entry on July -- at $---.--
Average Daily Volume = 1.3 million
Listed on July 11, 2013


Energizer Holdings - ENR - close: 106.79 change: -1.36

Stop Loss: 104.65
Target(s): 109.50
Current Option Gain/Loss: + 60.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
07/15/13: After a big move higher on Friday shares of ENR hit some profit taking today with a -1.25% decline. I am raising our stop loss up to $104.65.

I am not suggesting new positions. Cautious traders may want to take profits now.

- Suggested Positions -

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

07/15/13 new stop loss @ 104.65
07/13/13 new stop loss @ 102.75. Adjust exit target from $109.75 to $109.50
*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: 55.29 change: -0.22

Stop Loss: 54.65
Target(s): 59.00
Current Option Gain/Loss: - 33.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
07/15/13: FLS is still drifting lower. Shares tested their 10-dma, 40-dma, and almost the 50-dma today. We are turning a bit more cautious here and raising the stop loss to $54.65. I am not suggesting new positions.

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*

07/15/13 new stop loss @ 54.65
*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


Harman Intl. Industries - HAR - close: 55.32 change: +0.07

Stop Loss: 54.40
Target(s): 59.75
Current Option Gain/Loss: Unopened
Time Frame: Exit PRIOR to earnings on August 6th
New Positions: Yes, see below

Comments:
07/15/13: HAR inched higher today. We are waiting for a breakout past resistance near $56.00.

I am suggesting a trigger to buy calls at $56.10. If we are triggered at $56.10 our target is $59.75. However, we will plan on exiting positions prior to the company's earnings report on August 6th. FYI: The Point & Figure chart for HAR is bullish with a long-term $81 target.

Trigger @ $56.10

- Suggested Positions -

Buy the Aug $57.50 call (HAR1317H57.5) current ask $1.65

Entry on July -- at $---.--
Average Daily Volume = 785 thousand
Listed on July 13, 2013


Medidata Solutions - MDSO - close: 81.74 change: +0.86

Stop Loss: 79.45
Target(s): 84.85
Current Option Gain/Loss: - 1.9%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
07/15/13: MDSO displayed some relative strength today (+1.0%). The stock climbed to $83.00 before paring its gains. The simple 10-dma has risen to $79.69. We are raising our stop loss up to $79.45.

Earlier Comments:
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

07/15/13 new stop loss @ 79.45
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: 63.55 change: -0.75

Stop Loss: 62.45
Target(s): 68.50
Current Option Gain/Loss: - 3.7%
Time Frame: Exit PRIOR to earnings on July 25th
New Positions: see below

Comments:
07/15/13: Warning! The action in NBL today looks like a potential bearish reversal. The stock has been struggling with resistance near $64.50 the last few days. This morning saw shares spike above this level and then immediately reversal. Closing on its lows for the session doesn't bode well for tomorrow.

I do expect the $61.50-62.00 zone to be short-term support but we are turning more cautious here and raising the stop loss to $62.45, just below the simple 10-dma (currently 62.75).

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

07/15/13 new stop loss @ 62.45
07/13/13 new stop loss @ 61.40

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


Prudential Financial - PRU - close: 77.53 change: -0.36

Stop Loss: 75.90
Target(s): 79.00
Current Option Gain/Loss: +62.5%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
07/15/13: Hmm... readers may want to take profits and exit now. The market's major indices hit new highs but PRU failed at the $78.50 level again. Shares have been struggling with resistance near this level for the last four days in a row.

The 10-dma has risen to $76.26. We will raise our stop loss up to $75.90.

- Suggested Positions -

Long Aug $75 call (PRU1317H75) entry $2.40

07/15/13 new stop loss @ 75.90, readers may want to exit now.
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: 129.64 change: +0.05

Stop Loss: 124.00
Target(s): 130.00
Current Option Gain/Loss: +35.7%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
07/15/13: TM is just taunting us. Our exit target is $130.00. This morning the stock rallied up to $129.99 before paring its gains. Shares spent the rest of the day drifting sideways.

We are suggesting an immediate exit at the opening bell tomorrow morning.

- Suggested Positions -

Long Aug $130 call (TM1317H130) entry $2.80

07/15/13 prepare to exit at the open tomorrow morning
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


Visteon Corp. - VC - close: 66.27 change: +0.06

Stop Loss: 64.40
Target(s): 72.50
Current Option Gain/Loss: Unopened
Time Frame: 2 to 4 weeks
New Positions: Yes, see below

Comments:
07/15/13: VC traded higher this morning but failed to hit our entry trigger at $66.75. I don't see any changes from my weekend comments (new play section).

Earlier Comments:
VC is poised to breakout past resistance in the $66.00-66.50 zone. We are suggesting a trigger to buy calls at $66.75. If triggered our target is 72.50 but we will plan to exit prior to the company's earnings report. Right now it looks like VC is scheduled to report in early August but there is no confirmed date yet. FYI: The Point & Figure chart for VC is bullish with a $79 target.

Trigger @ 66.75

- Suggested Positions -

Buy the Aug $70 call (VC1317H70) current ask $1.20

Entry on July -- at $---.--
Average Daily Volume = 484 thousand
Listed on July 13, 2013


PUT Play Updates


Currently we do not have any active put trades.




Longer-Term Play Updates



Chicago Bridge & Iron - CBI - close: 62.09 change: +0.79

Stop Loss: 53.75
Target(s): 74.50
Current Option Gain/Loss: +49.0%
Time Frame: 4 to 6 months
New Positions: see below

Comments:
07/15/13: CBI gapped open higher on Monday. The stock managed to maintain most of its gains and closed up +1.28%. I am not suggesting 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