Editor's Note:

The stock market snapped a multi-day winning streak. Investors took some money off the table ahead of Fed Chairman Bernanke's testimony before congress tomorrow.

FLS and MDSO were stopped out. TM was closed as planned. VC and LL were triggered.


Current Portfolio:


CALL Play Updates

Automatic Data Processing - ADP - close: 72.30 change: -0.06

Stop Loss: 70.95
Target(s): 74.00
Current Option Gain/Loss: + 69.6%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
07/16/13: ADP dipped toward prior resistance and now new support near $72.00 this morning. More conservative traders may want to tighten their stops closer toward $72.

- 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: 85.40 change: -0.93

Stop Loss: 84.65
Target(s): 89.25
Current Option Gain/Loss: -19.6%
Time Frame: exit PRIOR to earnings on July 24th
New Positions: see below

Comments:
07/16/13: No surprises here. I warned readers last night that AMP was likely heading back toward $85.00. Look for a bounce before considering new positions.

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: 87.21 change: -1.60

Stop Loss: 86.40
Target(s): 93.00
Current Option Gain/Loss: -35.7%
Time Frame: exit PRIOR to earnings on July 25th
New Positions: see below

Comments:
07/16/13: I cautioned readers that BWA would likely dip toward the $87.50 zone yesterday. The stock overshot that level and fell to $86.83. Today's move briefly traded below the rising 10-dma before closing on this moving average. Traders could use a bounce from current levels as a new bullish entry point.

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: 73.59 change: -0.61

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:
07/16/13: EMN continues to churn below resistance near $75.00. It is worth noting that today's session has created a bearish engulfing candlestick reversal pattern. 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)

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


Energizer Holdings - ENR - close: 105.03 change: -1.76

Stop Loss: 104.65
Target(s): 109.50
Current Option Gain/Loss: + 27.2%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
07/16/13: ENR saw a second day of profit taking with a -1.6% decline. Shares seemed to find some support near the $105.00 level. If there is any follow through lower tomorrow then we will likely see ENR hit our new stop loss at $104.65.

I am not suggesting new positions.

- 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


Harman Intl. Industries - HAR - close: 54.49 change: -0.83

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:
07/16/13: HAR is retreating from resistance near $56.00. Today the stock closed below its 10-dma, which is short-term bearish. 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)

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


Noble Energy - NBL - close: 63.07 change: -0.48

Stop Loss: 62.45
Target(s): 68.50
Current Option Gain/Loss: -22.2%
Time Frame: Exit PRIOR to earnings on July 25th
New Positions: see below

Comments:
07/16/13: NBL produced a bearish reversal looking candlestick yesterday. The weakness continued today with a -0.75% decline. Yet shares managed to close on technical support at its 10-dma. The low today was $62.76. Our new stop is at $62.45. More conservative traders may want to abandon ship right here.

Earlier Comments:
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: 77.33 change: -0.20

Stop Loss: 75.90
Target(s): 79.00
Current Option Gain/Loss: +54.1%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
07/16/13: PRU held up reasonably well today. Traders were buying the dip before shares could reach the 10-dma. The stock does look vulnerable to more profit taking and readers may want to exit now to lock in gains.

- 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


Visteon Corp. - VC - close: 64.95 change: -1.32

Stop Loss: 64.40
Target(s): 72.50
Current Option Gain/Loss: -53.5%
Time Frame: Exit PRIOR to earnings on Aug. 8th
New Positions: see below

Comments:
07/16/13: Ouch! Our new VC trade has been triggered but the play is off to a sour start. The stock gapped open higher at $66.89. Since our trigger to buy calls was $66.75 our trade opened immediately. Unfortunately, VC immediately reversed lower. The stock underperformed the market with a -1.99% decline. This may have been a reaction to news that Goldman Sachs had downgraded the U.S. auto sector today.

The low today was $64.44. Our stop is at $64.40. If there is any follow through lower tomorrow we will see VC hit our stop loss.

- Suggested Positions -

Long Aug $70 call (VC1317H70) entry $1.40

07/16/13 triggered on gap open higher at $66.89
suggested trigger was $66.75

Entry on July 16 at $66.89
Average Daily Volume = 484 thousand
Listed on July 13, 2013


PUT Play Updates

Lumber Liquidators - LL - close: 85.27 change: -1.03

Stop Loss: 88.25
Target(s): 80.25
Current Option Gain/Loss: + 1.7%
Time Frame: exit PRIOR to earnings on July 24th
New Positions: see below

Comments:
07/16/13: Our new LL put play is off to an okay start. Shares underperformed the market with a -1.19% decline. Our plan was to buy puts if shares hit $85.75. The play has been triggered. I would still consider new positions now. More conservative traders may want to wait for a drop below the simple 50-dma instead.

Earlier Comments:
I want to point out that this is a higher-risk, more aggressive trade. Shares are up three weeks in a row (just like the market) and there is a high amount of short interest. The most recent data listed short interest at almost 25% of the small 26.2 million share float. That does pose a risk of a short squeeze.

Our short-term target is $80.25 but more aggressive traders could aim for the 100-dma instead. Keep in mind this is short-term trade as well. We do not want to hold over the earnings report on July 24th.

*use Small Positions* - Suggested Positions -

Long Aug $80 PUT (LL1317T80) entry $2.80

Entry on July 16 at $85.75
Average Daily Volume = 840 thousand
Listed on July 15, 2013




Longer-Term Play Updates



Chicago Bridge & Iron - CBI - close: 61.65 change: -0.44

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:
07/16/13: CBI saw some profit taking today but traders were buying the dip midday near $61.00. 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


CLOSED BULLISH PLAYS

Flowserve Corp. - FLS - close: 55.18 change: -0.11

Stop Loss: 54.65
Target(s): 59.00
Current Option Gain/Loss: - 45.8%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
07/16/13: FLS hit our stop loss today.

We've been worried about FLS' recent weakness and yesterday we raised the stop loss to $54.65. Today the stock broke down below its 50-dma and dipped to $54.59 before paring its losses.

- Suggested Positions -

Oct $60 call (FLS1319J60) entry $1.20* exit $0.65** (-45.8%)

07/16/13 stopped out
**option exit price is an estimate since the option did not trade at the time our play was closed.
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.

chart:

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


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

Stop Loss: 79.45
Target(s): 84.85
Current Option Gain/Loss: - 32.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
07/16/13: MDSO was showing promise yesterday after hitting new all-time highs. Something changed today and I cannot find the catalyst behind today's sell-off. Shares opened higher and then collapsed with a -6.8% decline. Our stop loss was hit at $79.45.

- Suggested Positions -

Aug $85 call (MDSO1317H85) entry $2.60 exit $1.75* (-32.6%)

07/16/13 stopped out
*option exit price is an estimate since the option did not trade at the time our play was closed.
07/15/13 new stop loss @ 79.45
07/11/13 Warning! The action in MDSO is not bullish.

chart:

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


Toyota Motor Corp. - TM - close: 128.91 change: -0.73

Stop Loss: 124.00
Target(s): 130.00
Current Option Gain/Loss: +22.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
07/16/13: After coming within one cent of our exit target yesterday we decided to exit positions this morning at the opening bell. Shares of TM gapped down at $129.38 before closing with a -0.5% decline. Sadly the option saw a 40-cent gap down this morning, which cut into our potential gains.

- Suggested Positions -

Aug $130 call (TM1317H130) entry $2.80 exit $3.43 (+22.5%)

07/16/13 scheduled exit
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

chart:

Entry on July 02 at $124.70
Average Daily Volume = 694 thousand
Listed on July 01, 2013