Editor's Note:

The S&P 500 index inched a little closer to the 1700 level on Monday.

Our AMP trade was closed today. GMCR hit our stop loss.
We want to exit the BWA and NBL trades tomorrow.


Current Portfolio:


CALL Play Updates

Automatic Data Processing - ADP - close: 73.16 change: +0.28

Stop Loss: 71.75
Target(s): 74.00
Current Option Gain/Loss: +100.0%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
07/22/13: Hmm... if you look at an intraday chart of ADP the stock has hit our exit target at $74.00 with the spike higher this morning. Yet the official data for today says the high was only $73.79. I couldn't find any news that would explain the gap higher (probably a rival's earnings report). Shares eventually settled with a +0.38% gain, which is slightly better than the S&P 500's today.

I am not suggesting new positions at this time.

- Suggested Positions -

Long Aug $70 call (ADP1317H70) entry $1.65

07/20/13 new stop loss @ 71.75
07/19/13 sold half at the open. ADP gapped open higher at $73.14
option exit at $3.20 (+93.9%)
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


Borg Warner - BWA - close: 91.66 change: +0.49

Stop Loss: 89.75
Target(s): 93.00
Current Option Gain/Loss: +57.1%
Time Frame: exit PRIOR to earnings on July 25th
New Positions: see below

Comments:
07/22/13: BWA kept the rally alive with another gain and another high. Shares are up four days in a row. Our plan is to exit this trade tomorrow (July 23rd) at the closing bell to avoid holding over the earnings report coming up soon. I am raising the stop loss to $89.75.

- Suggested Positions -

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

07/22/13 new stop @ 89.75, ready to exit tomorrow at the close
07/20/13 new stop loss @ 87.75, prepare to exit on Tuesday, July 23rd at the closing bell
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: 75.61 change: -0.10

Stop Loss: 73.49
Target(s): 79.75
Current Option Gain/Loss: - 1.9%
Time Frame: exit PRIOR to earnings on July 29th
New Positions: see below

Comments:
07/22/13: Monday was another quiet day for EMN. Shares actually tagged a new all-time high on an intraday basis. Sadly the stock gave back all of its gains to close negative. Keep in mind we only have a few days for this trade to work.

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: 59.08 change: -0.72

Stop Loss: 57.95
Target(s): 64.75
Current Option Gain/Loss: -30.0%
Time Frame: exit PRIOR to the earnings report on July 29th
New Positions: see below

Comments:
07/22/13: FIRE is not cooperating with us. Shares underperformed the market again with a -1.2% decline on Monday. Shares are about to hit what should be short-term technical support at the rising 10-dma.

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: 57.17 change: +1.11

Stop Loss: 54.40
Target(s): 59.75
Current Option Gain/Loss: +13.8%
Time Frame: Exit PRIOR to earnings on August 6th
New Positions: see below

Comments:
07/22/13: HAR has been flirting with a breakout past resistance near $56.00 the last couple of days. Shares finally producing a convincing breakthrough today with a +1.98% gain and a new multi-year high.

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: 65.97 change: -0.10

Stop Loss: 64.75
Target(s): 68.00
Current Option Gain/Loss: +66.6%
Time Frame: Exit PRIOR to earnings on July 25th
New Positions: see below

Comments:
07/22/13: Monday proved to be a non-event for NBL. Shares drifted sideways near the $66 level. The stock might be stuck moving sideways until its earnings report on the 25th.

Our plan is to exit positions tomorrow (July 23rd) at the closing bell. Please note our new stop loss at $64.75.

- Suggested Positions -

Long Aug $65 call (NBl1317H65) entry $1.35

07/22/13 new stop loss @ 64.75, exit tomorrow at the close
07/20/13 new stop loss @ 63.65, adjust the exit target to $68.00
prepare to exit positions on Tuesday, July 23rd at the close
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


The Fresh Market, Inc. - TFM - close: 54.37 change: -0.17

Stop Loss: 53.25
Target(s): 59.50
Current Option Gain/Loss: Unopened
Time Frame: Exit PRIOR to August option expiration
New Positions: Yes, see below

Comments:
07/22/13: It was a weird day for TFM. The stock saw an intraday plunge down to $52.78 and then bounced back to almost completely recoup its losses. I couldn't find any news to account for the midday weakness. Currently we are still on the sidelines waiting for a breakout above $55.00.

We are suggesting a trigger to buy calls at $55.25. Our target is $59.50. However, we're only buying the August calls so we'll need to plan an exit prior to August expiration. TFM is expected to report earnings in late August. We also want to keep an eye on shares of Whole Foods (WFM). WFM is a rival grocer and WFM's earnings report on July 31st could have an influence on shares of TFM.

FYI: The Point & Figure chart for TFM is bullish with a $65 target.

Trigger @ 55.25

- Suggested Positions -

buy the Aug $55 call (TFM1317H55)

Entry on July -- at $---.--
Average Daily Volume = 469 thousand
Listed on July 20, 2013


Visteon Corp. - VC - close: 65.21 change: -0.39

Stop Loss: 64.40
Target(s): 72.50
Current Option Gain/Loss: -57.1%
Time Frame: Exit PRIOR to earnings on Aug. 8th
New Positions: see below

Comments:
07/22/13: VC produced another disappointing session with shares failing at short-term resistance near the $60.00 mark this morning. This is the second time in three days that VC has failed at $60.00. Readers may want to just abandon ship now.

- 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

Marathon Petroleum - MPC - close: 69.84 change: +0.24

Stop Loss: 70.15
Target(s): 61.00
Current Option Gain/Loss: Unopened
Time Frame: exit PRIOR to earnings on Aug. 1st
New Positions: Yes, see below

Comments:
07/22/13: MPC spent most of the day drifting sideways. We are still on the sidelines waiting for a breakdown. Tomorrow could be interest as MPC reacts to earnings from its rival VLO. VLO reports tomorrow morning.

Earlier Comments:
Right now the plan is to buy puts on a breakdown with a trigger at $67.45.

If triggered our target is $61.00. More conservative traders may want to exit near $64.00 instead.

Trigger @ 67.45

- Suggested Positions -

buy the Aug $65 PUT (MPC1317T65)

Entry on July -- at $---.--
Average Daily Volume = 3.8 million
Listed on July 18, 2013


Questcor Pharma. - QCOR - close: 47.52 change: +1.68

Stop Loss: 47.01
Target(s): 42.25
Current Option Gain/Loss: Unopened
Time Frame: Exit PRIOR to earnings on July 30th
New Positions: Yes, see below

Comments:
07/22/13: QCOR does not want to cooperate. The stock produced a big bounce today with a +3.6% gain. I couldn't find any news that might account for today's display of relative strength. So far I don't see any changes from our new play description from the weekend.

Earlier Comments:
Shares have definitely been volatile over the last couple of years. Plenty of investors are bearish. The most recent data listed short interest at 32% of the relatively small 48.6 million share float.

On a short-term basis QCOR has definitely been underperforming its peers in the biotech sector and the broader market. The stock had rallied up to resistance at $50.00 a few days ago but it promptly reversed. Now QCOR is down four days in a row. If this trend continues we could see it retest support near $42.00 or even the $40 area.

I do consider this an aggressive, higher-risk trade. Friday's low was $45.41. I am suggesting a trigger to buy puts at $45.30. You may want to wait for a drop under $45.00 instead. Our target is $42.25. We don't have much time. QCOR is scheduled to report earnings on July 30th and we do not want to hold over the announcement.

Trigger @ 45.30 *Small Positions*

- Suggested Positions -

buy the Aug $42 PUT (QCOR1317T42)

Entry on July -- at $---.--
Average Daily Volume = 1.2 million
Listed on July 20, 2013



Longer-Term Play Updates



Chicago Bridge & Iron - CBI - close: 62.75 change: +0.04

Stop Loss: 55.75
Target(s): 74.50
Current Option Gain/Loss: +49.0%
Time Frame: 4 to 6 months
New Positions: see below

Comments:
07/22/13: The early morning spike higher in CBI quickly faded. Shares closed almost unchanged on the session. I don't see any changes from my prior comments. The company is expected to report earnings on July 30th.

*Small Positions* - Suggested Positions -

Long 2014 Jan $65 call (CBI1418A65) entry $2.55

07/20/13 new stop loss @ 55.75
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

Ameriprise Financial - AMP - close: 87.36 change: +1.05

Stop Loss: 85.40
Target(s): 89.25
Current Option Gain/Loss: + 3.0%
Time Frame: exit PRIOR to earnings on July 24th
New Positions: see below

Comments:
07/22/13: AMP is going to report earnings soon. We do not want to hold over the announcement. Our plan was to exit positions today at the closing bell. Shares were nice enough to rally +1.2% and close at a new high for us. Unfortunately, AMP never moved enough for the option to overcome the option spread. This trade essentially broke even.

- Suggested Positions -

Aug $85 call (AMP1317H85) entry $3.30 exit $3.40 (+3.0%)

07/22/13 planned exit
07/20/13 new stop loss @ 85.40, prepare to exit positions on Monday, July 22nd, at the closing bell
07/15/13 new stop loss @ 84.65
07/11/13 trade opened on gap open at $86.17. Trigger was $85.25.

chart:

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


CLOSED BEARISH PLAYS

Green Mountain Coffee Roasters - GMCR - close: 75.58 change: +1.96

Stop Loss: 75.01
Target(s): 65.50
Current Option Gain/Loss: -36.9%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
07/22/13: We added GMCR as a put play last week because shares had been underperforming the market and was building a bearish trend of lower highs and lower lows. Unfortunately there was no follow through. The stock appears to be reversing higher. Shares hit our stop loss at $75.01 today thanks to a sharp midday surge higher. GMCR will looks bullish if it can breakout past the $76.00 level.

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.

- Suggested (Small) Positions -

Aug $65 PUT (GMCR1317T65) entry $3.65 exit $2.30 (-36.9%)

07/22/13 stopped out
07/18/13 new stop loss @ 75.01

chart:

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