Editor's Note:

Stock market participants are still in a buy-the-dip mood. The major U.S. indices all rebounded from their Friday lows.

EMN hit our stop loss on Friday morning.


Current Portfolio:


CALL Play Updates

The Hain Celestial Group, Inc. - HAIN - close: 74.52 change: -0.27

Stop Loss: 71.95
Target(s): 79.50
Current Option Gain/Loss: -13.3%
Time Frame: exit PRIOR to August expiration
New Positions: see below

Comments:
07/27/13: After Thursday's big move higher shares of HAIN saw some profit taking on Friday morning. Shares managed to rebound and pared their losses to about a third of one percent. The afternoon bounce looks like a new bullish entry point to buy calls.

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

chart:

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


Harman Intl. Industries - HAR - close: 58.72 change: +0.06

Stop Loss: 55.90
Target(s): 59.50
Current Option Gain/Loss: +58.3%
Time Frame: Exit PRIOR to earnings on August 6th
New Positions: see below

Comments:
07/27/13: HAR managed to eke out another gain on Friday after traders bought the dip twice on Friday morning. The stock closed at another multi-year high. We are down to just a handful of trading days left before we need to exit ahead of the company's earnings. At the current pace we should see HAR hit our exit target at $59.50 soon.

Earlier Comments:
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.

chart:

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


Xilinx Inc. - XLNX - close: 46.18 change: -0.25

Stop Loss: 44.99
Target(s): 49.85
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
07/27/13: XLNX did not see any follow through on Thursday's strong move higher. The stock gapped down on Friday morning. XLNX managed to pare its losses to just -0.5% by the closing bell. We are waiting for a breakout higher.

Earlier Comments:
We are suggesting a trigger to buy calls at $46.65. If triggered our target is $49.85. I would keep our position size small since bears could argue that XLNX is overbought with a significant five-week rally already underway.

Trigger @ 46.65 *small positions*

- Suggested Positions -

buy the Aug $46 call (XLNX1317H46) current ask $0.90

chart:

Entry on July -- at $---.--
Average Daily Volume = 3.5 million
Listed on July 25, 2013


PUT Play Updates

Accenture Plc - ACN - close: 73.12 change: -0.02

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:
07/27/13: Friday was an interesting day for ACN. Shares extended their decline to six days in a row. Yet the stock had fallen to almost $72 by lunchtime on Friday and managed to bounce back to virtually unchanged. This looks like an oversold bounce. I suspect we'll see ACN retest the $74.00 level and the 200-dma (near $74) which should be new overhead resistance.

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

chart:

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


Darden Restaurant - DRI - close: 48.93 change: +0.54

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:
07/27/13: DRI came within a heartbeat of hitting our bearish trigger to buy puts on Thursday before bouncing. That rebound continued on Friday with DRI adding +1.1%. If this rebound continues it could lift DRI to what should be resistance at its simple 200-dma or the $50.00 level. At the moment we are on the sidelines with a trigger to buy puts at $47.75.

Earlier Comments:
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)

chart:

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


The Mosaic Co. - MOS - close: 52.61 change: +0.10

Stop Loss: 54.65
Target(s): 50.25
Current Option Gain/Loss: + 8.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
07/27/13: MOS continued to bounce on Friday but it only gained 10 cents. The stock should find overhead resistance at both the $53 and $54 levels. Traders may want to wait for the next failed rally before initiating new positions.

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

chart:

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: 169.11 change: +0.18

Stop Loss: 172.75
Target(s): 165.25
Current Option Gain/Loss: + 8.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
07/27/13: The SPY briefly traded below short-term support near the 168.00 level. The sell-off didn't last very long and traders are still in a buy-the-dip mood. The SPY looks ready to retest overhead resistance at the $170 level. More conservative traders may want to lower their stop loss. I am not suggesting new positions tonight. Let's way and see if the SPY breaks out or reverses at $170.00.

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.

chart:

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: 60.72 change: -0.10

Stop Loss: 55.75
Target(s): 74.50
Current Option Gain/Loss: + 9.8%
Time Frame: 4 to 6 months
New Positions: see below

Comments:
07/27/13: The profit taking in CBI continues with the stock down four days in a row. Yet shares managed to hold the $60 level on Friday. I expect shares to see more volatility this week following the company's earnings report on July 30th (after the closing bell).

We are not suggesting new positions at this time.

*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

chart:

Entry on June 24 at $56.75
Average Daily Volume = 1.8 million
Listed on June 01, 2013


CLOSED BULLISH PLAYS

Eastman Chemical Co. - EMN - close: 74.16 change: -1.31

Stop Loss: 73.75
Target(s): 79.75
Current Option Gain/Loss: -39.2%
Time Frame: exit PRIOR to earnings on July 29th
New Positions: see below

Comments:
07/27/13: We were planning to exit our EMN trade on Friday at the closing bell. Unfortunately shares turned lower on Friday morning and hit our stop loss at $73.75.

- Suggested Positions -

Aug $75 call (EMN1317H75) entry $2.55 exit $1.55 (-39.2%)

07/26/13 stopped out at $73.75
07/25/13 prepare to exit tomorrow at the close
07/24/13 new stop loss @ 73.75

chart:

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