Editor's Note:

It looks like market participants are buying the dip again although it wasn't a very big dip. The major U.S. indices all rebounded off their intraday lows today and look poised to keep climbing tomorrow.

HAIN hit our entry trigger today.
We want to exit our EMN trade tomorrow at the close.


Current Portfolio:


CALL Play Updates

Eastman Chemical Co. - EMN - close: 75.47 change: +0.43

Stop Loss: 73.75
Target(s): 79.75
Current Option Gain/Loss: - 9.8%
Time Frame: exit PRIOR to earnings on July 29th
New Positions: see below

Comments:
07/25/13: EMN managed a bounce (+0.5%) but we're almost out of time. We are planning to exit positions tomorrow (Friday) at the closing bell to avoid holding over earnings on Monday.

- Suggested Positions -

Long Aug $75 call (EMN1317H75) entry $2.55

07/25/13 prepare to exit tomorrow at the close
07/24/13 new stop loss @ 73.75

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


The Hain Celestial Group, Inc. - HAIN - close: 74.79 change: +1.99

Stop Loss: 71.95
Target(s): 79.50
Current Option Gain/Loss: + 3.3%
Time Frame: exit PRIOR to August expiration
New Positions: see below

Comments:
07/25/13: Shares of HAIN shot higher today and outperformed the market with a +2.7% gain. Shares also hit our entry trigger to buy calls at $74.40. More conservative traders may want to wait for the stock to rally past $75.00 before initiating positions.

Earlier Comments:
The most recent data listed short interest at 20% of the relatively small 38.6 million share float. The shorts might be ready to cover again. I am suggesting a trigger to launch small bullish positions at $74.40. If triggered our target is $79.50. FYI: The Point & Figure chart for HAIN is bullish with a $99 target.

- Suggested Positions -

Long Aug $75 call (HAIN1317H75) entry $1.50

Entry on July 25 at $74.40
Average Daily Volume = 420 thousand
Listed on July 22, 2013


Harman Intl. Industries - HAR - close: 58.66 change: +0.83

Stop Loss: 55.90
Target(s): 59.50
Current Option Gain/Loss: +55.5%
Time Frame: Exit PRIOR to earnings on August 6th
New Positions: see below

Comments:
07/25/13: HAR is still showing relative strength. Shares rallied to another new multi-year high. If this keeps up we could see HAR hit our exit target at $59.50 soon. I am raising our stop loss to $55.90.

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*

07/25/13 new stop loss @ 55.90
07/23/13 new stop loss @ 55.40, adjust the exit target to $59.50
*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


PUT Play Updates

Accenture Plc - ACN - close: 73.14 change: -0.58

Stop Loss: 75.21
Target(s): 70.25
Current Option Gain/Loss: + 5.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
07/25/13: ACN continues to sink. Shares confirmed the bearish breakdown below the 200-dma today. The next level of support should be the $70.00 area.

FYI: The Point & Figure chart for ACN is bearish with a $54 target.

- Suggested Positions -

Long Aug $72.50 PUT (ACN1317T72.5) entry $0.85

Entry on July 24 at $73.80
Average Daily Volume = 4.9 million
Listed on July 23, 2013


Darden Restaurant - DRI - close: 48.39 change: +0.01

Stop Loss: 49.35
Target(s): 44.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
07/25/13: DRI is still flirting with a breakdown near significant support. Shares slipped to $47.76 midday before bouncing back to unchanged. That means we are still on the sidelines since our trigger to buy puts was $47.75. I don't see any changes from our new play description on Wednesday night.

We do want to keep our position size small. Bulls could argue that DRI is already short-term oversold and due for a bounce. If we are triggered at $47.75 our target is $44.50.

Trigger @ 47.75 *small positions*

- Suggested Positions -

Buy the Aug $50 PUT (DRI1317T50)

Entry on July -- at $---.--
Average Daily Volume = 1.3 million
Listed on July 24, 2013


The Mosaic Co. - MOS - close: 52.51 change: +0.13

Stop Loss: 54.65
Target(s): 50.25
Current Option Gain/Loss: +15.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
07/25/13: MOS sank to another new low for the year (51.71) before bouncing. If this bounce continues we can watch for potential short-term resistance near $53.00 and near the $54.00 levels.

I am surprised that MOS did not show more weakness today following news that its rival POT lowered their Q3 earnings guidance.

Earlier Comments:
The Point & Figure chart for MOS is bearish with a $45 target.

- Suggested Positions -

Long Aug $52.50 PUT (MOS1317T52.5) entry $1.40

Entry on July 24 at $52.95
Average Daily Volume = 4.0 million
Listed on July 23, 2013


SPDR S&P 500 ETF - SPY - close: 168.93 change: +0.41

Stop Loss: 172.75
Target(s): 165.25
Current Option Gain/Loss: +20.2%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
07/25/13: The S&P 500 index found support near the 1680 level twice today. The index could be setting up for a rebound back toward 1700. That means we could see the SPY testing the $170 level again soon. Readers may want to wait for a new bounce near $170 before initiating positions (or be patient and wait for a new failed rally near $170 instead).

NOTE: There are a lot of different option symbols for the SPY. Make sure you get the right one. We're choosing the regular August $170 put that expires on the 17th.

- Suggested Positions -

Long Aug $170 PUT (SPY1317T170) entry $1.98

07/24/13 trade opened with the SPY gapping higher at $169.79
07/23/13 adjust entry strategy. Do not wait for a trigger. Buy puts at the opening bell tomorrow.

Entry on July 24 at $169.79
Average Daily Volume = 123 million
Listed on July 22, 2013



Longer-Term Play Updates



Chicago Bridge & Iron - CBI - close: 60.82 change: -0.46

Stop Loss: 55.75
Target(s): 74.50
Current Option Gain/Loss: +13.7%
Time Frame: 4 to 6 months
New Positions: see below

Comments:
07/25/13: Profit taking in CBI continues. Today the stock is flirting with a close below its simple 50-dma. Shares could be volatile next week. The company is due to report earnings on Tuesday, 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