Editor's Note:

It looks like investors are turning a little cautious ahead of a news-heavy week.

JNJ hit our entry trigger.


Current Portfolio:


CALL Play Updates

The Hain Celestial Group, Inc. - HAIN - close: 74.69 change: +0.17

Stop Loss: 71.95
Target(s): 79.50
Current Option Gain/Loss: - 6.6%
Time Frame: exit PRIOR to August expiration
New Positions: see below

Comments:
07/29/13: HAIN managed to buck the market's widespread decline today and post a gain instead. Shares still look like they are coiling for a bullish move higher. However, if the market does accelerate lower HAIN may reverse. Traders may want to limit their position size.

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: 58.76 change: +0.04

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:
07/29/13: HAR also managed to buck the market's trend today and posted a gain albeit a very small gain. Shares hit an intraday high of $58.93 today. We are worried that the market might be poised for a pullback and thus traders may want to exit their HAR positions now to lock in gains.

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.

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


Johnson & Johnson - JNJ - close: 93.21 change: +0.38

Stop Loss: 91.49
Target(s): 98.00
Current Option Gain/Loss: Aug.call +5.1% & Sept.call: +3.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
07/29/13: JNJ continued to show relative strength and shares rallied to another new high. Our suggested trigger to buy calls was hit at $93.05. I don't see any other changes from our new play comments from the weekend newsletter.

- Suggested Positions -

Long Aug $92.50 call (JNJ1317H92.5) entry $1.37

- or -

Long Sep $95 call (JNJ1321i95) entry $0.82

Entry on July 29 at $93.05
Average Daily Volume = 9.0 million
Listed on July 27, 2013


V.F. Corp. - VFC - close: 197.13 change: -1.96

Stop Loss: 195.75
Target(s): 209.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Comments:
07/29/13: Hmm... there was no follow through on last week's rebound. The stock reversed lower with a -0.9% decline. If VFC closes under $196 we will likely drop it as a candidate. Currently we are suggesting a trigger to buy calls at $200.75. If triggered our target is $209.50. FYI: The Point & Figure chart for VFC is bullish with a $226 target.

Trigger @ 200.75

- Suggested Positions -

Buy the Aug $200 call (VFC1317H200)

- or -

Buy the Sept $210 call (VFC1321i210)

Entry on July -- at $---.--
Average Daily Volume = 495 thousand
Listed on July 27, 2013


Xilinx Inc. - XLNX - close: 45.67 change: -0.51

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:
07/29/13: XLNX continues to churn sideways inside the $45.20-46.50 range. It is worth noting that shares underperformed their peers in the semiconductor sector today. XLNX should bounce from its 10-dma near $45.40.

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)

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


PUT Play Updates

Accenture Plc - ACN - close: 72.37 change: -0.75

Stop Loss: 75.21
Target(s): 70.25
Current Option Gain/Loss: +35.2%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
07/29/13: ACN gapped down this morning and spent the majority of Monday hovering near the $72.50 level. Lack of follow through on Friday's afternoon bounce is good news for the bears.

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: 49.02 change: +0.09

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:
07/29/13: DRI managed to outperform the market's major indices today. Yet the rally did fail at resistance near its converging 10-dma and 200-dma. In theory the stock should reverse lower higher. Currently we are waiting for a new relative low. The plan is to buy puts if DRI hits $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)

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


The Mosaic Co. - MOS - close: 53.21 change: +0.60

Stop Loss: 54.65
Target(s): 50.25
Current Option Gain/Loss: -16.4%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
07/29/13: Seeing your bearish play show relative strength on a day most of the market was down is a warning signal. I cautioned readers over the weekend that MOS should find resistance at $53 and $54. Well today MOS managed to close above the $53.00 mark and looks poised to test $54 soon.

The rally in MOS today can be blamed in part on an explosive move in shares of CF. Shares of CF Industries (CF), a rival to MOS, surged from $180 a share to $202 in the last hour of trading today. The sudden rally was attributed to news that Dan Loeb's Third Point Management firm disclosed a position in CF in their quarterly newsletter. Third Point believes that CF should be paying a larger dividend.

I would wait for MOS to trade back below $53.00 or fail at $54.00 before initiating new bearish 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

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: 168.59 change: -0.52

Stop Loss: 172.75
Target(s): 165.25
Current Option Gain/Loss: +16.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
07/29/13: It looks like the SPY is testing short-term support near $168 again. We are certainly expecting a breakdown this week. It is worth pointing out that multiple events could move the market (either way) this week with the FOMC meeting, the Q2 GDP estimate, and the jobs report.

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: 59.45 change: -1.27

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:
07/29/13: CBI has been underperforming the market these last few days and shares accelerated lower today with a -2.0% decline and a close below the $60.00 mark. Shares should find technical support at the rising 100-dma near $58.65 but I am not suggesting new positions. CBI is due to report earnings tomorrow (July 30th) after the closing bell. We can expect to see some volatility on Wednesday morning.

*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