Editor's Note:

The stock market's early morning Wednesday gains faded but the major indices still managed to close in positive territory.

Our EMN trade has been triggered.


Current Portfolio:


CALL Play Updates

Automatic Data Processing - ADP - close: 72.32 change: +0.02

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:
07/17/13: The stock market spent Wednesday's session churning sideways. ADP followed suit and closed virtually unchanged for the session. 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: 85.79 change: +0.39

Stop Loss: 84.65
Target(s): 89.25
Current Option Gain/Loss: -18.1%
Time Frame: exit PRIOR to earnings on July 24th
New Positions: see below

Comments:
07/17/13: AMP spiked higher near the open but spent most of the day inside a 60-cent range. Readers may want to wait for a bounce off the simple 10-dma before considering new bullish 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: 89.36 change: +2.15

Stop Loss: 86.40
Target(s): 93.00
Current Option Gain/Loss: + 7.1%
Time Frame: exit PRIOR to earnings on July 25th
New Positions: see below

Comments:
07/17/13: Shares of BWA were upgraded this morning. The stock gapped open higher and erased yesterday's decline with a +2.4% gain today. The next challenge is round-number, psychological resistance at the $90.00 level.

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: 75.28 change: +1.69

Stop Loss: 73.49
Target(s): 79.75
Current Option Gain/Loss: + 3.9%
Time Frame: exit PRIOR to earnings on July 29th
New Positions: see below

Comments:
07/17/13: A big rally in EMN's rival DuPont (DD) helped shares of EMN advance. Shares of EMN have finally broken out past major resistance at the $75.00 level and hit our suggested entry point to buy calls at $75.25.

Earlier Comments:
A breakout past $75.00 would be a new all-time high. 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.

- Suggested Positions -

Long Aug $75 call (EMN1317H75) entry $2.55

Entry on July 17 at $75.25
Average Daily Volume = 1.3 million
Listed on July 11, 2013


Energizer Holdings - ENR - close: 105.07 change: +0.04

Stop Loss: 104.65
Target(s): 109.50
Current Option Gain/Loss: + 27.2%
Time Frame: Exit PRIOR to earnings on July 31st
New Positions: see below

Comments:
07/17/13: ENR tried to rally this morning but failed, which is a bit concerning. The stock spent the second half of the session hovering near the $105 level. I am not suggesting new positions at this time. The low today was $104.83. Our stop is at $104.65.

- 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: 54.57 change: +0.08

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:
07/17/13: HAR is still consolidating sideways inside the $54-56 zone. 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: 63.86 change: +0.79

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:
07/17/13: After a two-day pullback traders bought the dip in NBL near its simple 10-dma. The stock outperformed the major indices today with a +1.25% gain. I am not suggesting new positions at this time.

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: 77.06 change: -0.27

Stop Loss: 75.90
Target(s): 79.00
Current Option Gain/Loss: +45.8%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
07/17/13: It was a quiet session for shares of PRU. The stock is hovering near its simple 10-dma. More conservative traders may want to raise their stop or lock in profits now.

- 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: 64.98 change: +0.03

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:
07/17/13: It's tough to interpret today's session on VC. On the positive side the lack of follow through on yesterday's sell-off is a good thing (for the bulls). Yet there was virtually no bounce today, which isn't very inspiring either. Traders might want to consider new bullish positions if VC can trade above $65.50 again.

- 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

Green Mountain Coffee Roasters - GMCR - close: 72.23 change: +0.23

Stop Loss: 76.01
Target(s): 65.50
Current Option Gain/Loss: - 8.2%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
07/17/13: GMCR spent the day churning sideways between $72 and $73. I don't see any changes from my comments last night (new play section of the newsletter). I would still consider new bearish positions here or you could wait for a drop below $71.70 as an entry point since both yesterday and today's low was $71.73.

Earlier Comments:
GMCR does have an above average level of short interest and shares will likely be volatile. We will want to keep our position size small to limit our risk. Our short-term target is $65.50. More aggressive traders could aim for the $61-60 zone instead since $60 looks like stronger support. FYI: The Point & Figure chart for GMCR is bearish with a $57 target.

- Suggested (Small) Positions -

Long Aug $65 PUT (GMCR1317T65) entry $3.65

Entry on July 17 at $71.90
Average Daily Volume = 4.0 million
Listed on July 16, 2013


Lumber Liquidators - LL - close: 85.87 change: +0.60

Stop Loss: 88.25
Target(s): 80.25
Current Option Gain/Loss: -10.7%
Time Frame: exit PRIOR to earnings on July 24th
New Positions: see below

Comments:
07/17/13: Hmm... we need to be careful here. LL dipped to short-term support at its rising 10-dma and 50-dma near $84.00 and then bounced. Traders may want to look for a new lower high or failed rally below the $88.00 level before initiating new positions. 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: 61.76 change: +0.11

Stop Loss: 53.75
Target(s): 74.50
Current Option Gain/Loss: +41.1%
Time Frame: 4 to 6 months
New Positions: see below

Comments:
07/17/13: CBI quietly traded sideways today. 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