Editor's Note:

The bulls continue to push stocks higher and the market's major indices closed at new record highs.

ENR was stopped out. FIRE and HAR were triggered.
We want to exit the PRU and LL trades at the opening bell tomorrow morning.


Current Portfolio:


CALL Play Updates

Automatic Data Processing - ADP - close: 72.82 change: +0.50

Stop Loss: 70.95
Target(s): 74.00
Current Option Gain/Loss: + 87.8%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
07/18/13: The market's major indices have continued to hit new highs. Yet ADP has been struggling the last few days. The overall trend is still bullish but I am growing more cautious here.

Tonight I am suggesting we go ahead and sell at least half of our call positions at the opening bell tomorrow to lock in gains. The rest we will continue to aim for $74.00.

- Suggested Positions -

Long Aug $70 call (ADP1317H70) entry $1.65

07/18/13 prepare to sell half of our position at the open tomorrow to lock in some gains
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: 86.84 change: +1.05

Stop Loss: 84.65
Target(s): 89.25
Current Option Gain/Loss: + 0.0%
Time Frame: exit PRIOR to earnings on July 24th
New Positions: see below

Comments:
07/18/13: The financial sector continued to strength today. AMP rebounded from support near $85 and its 10-dma. Shares added +1.2% and set a new all-time closing high.

Earlier Comments:
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: 90.82 change: +1.46

Stop Loss: 86.40
Target(s): 93.00
Current Option Gain/Loss: +40.4%
Time Frame: exit PRIOR to earnings on July 25th
New Positions: see below

Comments:
07/18/13: BWA continued to show strength today with a +1.6% gain and a bullish breakout past the $90.00 mark. Readers may want to inch up their stops.

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: 74.87 change: -0.41

Stop Loss: 73.49
Target(s): 79.75
Current Option Gain/Loss: -11.7%
Time Frame: exit PRIOR to earnings on July 29th
New Positions: see below

Comments:
07/18/13: EMN tagged a new all-time high above the $76 level today but the rally reversed. The close back below the $75.00 level is troubling. Suddenly we are faced the possibility that yesterday's bullish breakout past resistance was a bull-trap pattern. I am not suggesting new positions with EMN below $75.00.

Earlier Comments:
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


Sourcefire, Inc. - FIRE - close: 60.25 change: +0.82

Stop Loss: 57.95
Target(s): 64.75
Current Option Gain/Loss: - 5.0%
Time Frame: exit PRIOR to the earnings report on July 29th
New Positions: see below

Comments:
07/18/13: The rally in FIRE continued on Thursday and shares have broken out past major resistance at the $60.00 level. The stock has also hit our suggested entry point to buy calls at $60.25.

Earlier Comments:
A breakout here could spark a short squeeze. The most recent data listed short interest at 18% of the 30.0 million-share float. Please note that we do not want to hold over the earnings report on July 29th. FYI: The Point & Figure chart for FIRE is bullish with a long-term $74 target.

- Suggested Positions -

Long Aug $65 call (FIRE1317H65) entry $2.00

Entry on July 18 at $60.25
Average Daily Volume = 431 thousand
Listed on July 17, 2013


Harman Intl. Industries - HAR - close: 55.85 change: +1.28

Stop Loss: 54.40
Target(s): 59.75
Current Option Gain/Loss: -11.1%
Time Frame: Exit PRIOR to earnings on August 6th
New Positions: see below

Comments:
07/18/13: HAR decided to participate in today's market rally. The rise in HAR looks like a reaction to some sort of news, possibly another company's earnings report since shares saw a sharp surge higher in the first hour of trading. HAR did briefly traded above resistance at $56.00 and hit our trigger to buy calls at $56.10.

I would wait for a new rally past $56.10 or $56.20 before initiating new positions.

Don't forget that 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.

- Suggested Positions -

Long Aug $57.50 call (HAR1317H57.5) entry $1.80*

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

Entry on July 18 at $56.10
Average Daily Volume = 785 thousand
Listed on July 13, 2013


Noble Energy - NBL - close: 65.66 change: +1.80

Stop Loss: 62.45
Target(s): 68.50
Current Option Gain/Loss: +59.2%
Time Frame: Exit PRIOR to earnings on July 25th
New Positions: see below

Comments:
07/18/13: NBL surged +2.8% to a new all-time high thanks to bullish news regarding an oil field near Israel. NBL previously estimated that the Leviathan field might contain 34 million barrels of condensate, a raw input used to make light, sweet crude oil. Yet according to a new Bloomberg report out today NBL now estimates there could be 1.5 billion barrels of oil in the field. NBL owns a 39.6% stake in the Leviathan field.

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: 78.52 change: +1.46

Stop Loss: 75.90
Target(s): 79.00
Current Option Gain/Loss: +83.3%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
07/18/13: Strength in the financial sector helped PRU rallied +1.89% today. Shares closed near the top of its recent trading range. We've been aiming for $79.00 but I am suggesting we exit immediately at the opening bell tomorrow to lock in gains.

- Suggested Positions -

Long Aug $75 call (PRU1317H75) entry $2.40

07/18/13 prepare to exit at the opening bell tomorrow
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: 65.35 change: +0.37

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:
07/18/13: The bounce in VC today failed near the $66 level. That is not very encouraging. I would be cautious on VC tomorrow.

- 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: 73.86 change: +1.63

Stop Loss: 75.01
Target(s): 65.50
Current Option Gain/Loss: -19.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
07/18/13: Bullish data that GMCR's market share of the K-cups industry had grown helped spur a rally in the stock. GMCR rallied up to technical resistance near its 50-dma before paring its gains. For the moment GMCR still has a bearish trend of lower highs but that could change if the stock sees any follow through higher tomorrow.

Today's high was $74.78. We are adjusting our stop loss down to $75.01. I am not suggesting new positions at this time.

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

07/18/13 new stop loss @ 75.01

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


Lumber Liquidators - LL - close: 87.05 change: +1.18

Stop Loss: 88.25
Target(s): 80.25
Current Option Gain/Loss: -21.4%
Time Frame: exit PRIOR to earnings on July 24th
New Positions: see below

Comments:
07/18/13: LL continues to bounce after testing its 10 and 50-dma. The stock managed to outperform the major indices today with a +1.37% gain. We are throwing in the towel and suggesting an early exit at the opening bell tomorrow.

Earlier Comments:
I want to point out that this is a higher-risk, more aggressive trade.

*use Small Positions* - Suggested Positions -

Long Aug $80 PUT (LL1317T80) entry $2.80

07/18/13 prepare to exit at the opening bell tomorrow

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: 62.27 change: +0.51

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:
07/18/13: CBI bounced back toward its highs for the week with a +0.8% gain. 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

Energizer Holdings - ENR - close: 105.94 change: +0.87

Stop Loss: 104.65
Target(s): 109.50
Current Option Gain/Loss: + 12.7%
Time Frame: Exit PRIOR to earnings on July 31st
New Positions: see below

Comments:
07/18/13: Sometimes it feels like the stock market is a malevolent creature. This morning ENR spiked lower and traded just low enough to hit our stop loss at $104.65 only to bounce immediately. Shares eventually rallied to a +0.8% gain. I couldn't find any news or catalyst to explain the spike down this morning.

Nimble traders may want to consider buying calls on a rally past today's high and aiming for the $110 level.

- Suggested Positions -

Aug $105 call (ENR1317H105) entry $2.75* exit $3.10** (+12.7%)

07/18/13 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 @ 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.

chart:

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