Editor's Note:

Shares of the Mosaic Company (MOS) exceeded our bearish target today with a big move lower.

Elsewhere we have removed VFC as a candidate.


Current Portfolio:


CALL Play Updates

The Hain Celestial Group, Inc. - HAIN - close: 74.09 change: -0.60

Stop Loss: 71.95
Target(s): 79.50
Current Option Gain/Loss: -30.0%
Time Frame: exit PRIOR to August expiration
New Positions: see below

Comments:
07/30/13: HAIN delivered a disappointing performance with a -0.8% pullback. Shares are hovering near $74 and their 10-dma. Readers may want to raise their stop loss. I am not suggesting new positions at this time.

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: 59.15 change: +0.39

Stop Loss: 57.40
Target(s): 59.50
Current Option Gain/Loss: +72.2%
Time Frame: Exit PRIOR to earnings on August 6th
New Positions: see below

Comments:
07/30/13: HAR is still inching higher with a +0.6% gain today. The intraday high was $59.37. Our exit target is $59.50 but readers may want to exit immediately to lock in gains. The simple 10-dma has risen to $57.50. We will raise our stop loss to $57.40.

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*

07/30/13 new stop loss @ 57.40
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: 93.17 change: -0.04

Stop Loss: 91.49
Target(s): 98.00
Current Option Gain/Loss: Aug.call +2.9% & Sept.call: +1.2%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
07/30/13: JNJ tagged a new all-time high near the $94.00 level this morning. Shares eventually erased their gains to close virtually flat on the session.

- 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


Xilinx Inc. - XLNX - close: 46.24 change: +0.57

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:
07/30/13: Semiconductor stocks were showing relative strength today and XLNX added +1.24%. The stock is poised to breakout from its current sideways consolidation.

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: 73.74 change: +1.37

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:
07/30/13: ACN popped higher this morning but the rally struggled with technical resistance near $74 and its 200-dma. More conservative traders may want to lower their stop loss closer to $74.00.

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: -0.00

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:
07/30/13: DRI is still struggling with technical resistance near its 10-dma and 150-dma. The stock closed unchanged on the session.

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


iShares Russell 2000 ETF - IWM - close: 103.48 change: +0.09

Stop Loss: 106.05
Target(s): 97.00
Current Option Gain/Loss: - 2.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
07/30/13: Our plan was to open positions at the morning bell. The IWM opened higher at $103.69. There wasn't much follow through higher. I would still consider new positions now or you could wait for a new relative low under the $103.00 mark.

Earlier Comments:
I do expect to see some support and a temporary bounce when the IWM hits the $100 level and its 50-dma but we are going to aim for a drop to the rising 100-dma (currently near $97).

While this looks like a good set up for puts there are always risks. Short interest in the market has hit levels not seen since December 2012. If the FOMC statement or the Q2 GDP estimate on Wednesday or the jobs data on Friday surprise the market it could spark some short covering.

- Suggested Positions -

Long Sep $100 PUT (IWM1321u100) Entry $1.48

Entry on July 30 at $103.69
Average Daily Volume = 31 million
Listed on July 29, 2013


SPDR S&P 500 ETF - SPY - close: 168.59 change: -0.00

Stop Loss: 172.75
Target(s): 165.25
Current Option Gain/Loss: + 9.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
07/30/13: The market's early morning gains faded and the SPY closed unchanged on Tuesday. There is no change from my earlier comments.

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: 59.70 change: +0.25

Stop Loss: 55.75
Target(s): 74.50
Current Option Gain/Loss: - 5.8%
Time Frame: 4 to 6 months
New Positions: see below

Comments:
07/30/13: CBI managed a +0.4% bounce following Monday's decline. The company reported earnings tonight. The bottom line came in at $1.04 a share, which was one cent better than expected. Revenues surged +119% to $2.85 billion, which beat Wall Street estimates. Management reaffirmed their prior guidance. I would expect a bounce on the revenue beat but CBI's earnings could be overshadowed by the U.S. Q2 GDP news tomorrow morning.

I would still expect some volatility one way or the other tomorrow.

*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

V.F. Corp. - VFC - close: 197.52 change: +0.39

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

Comments:
07/30/13: VFC continues to coil sideways under resistance near $200. Our trade has not opened yet with the entry trigger at $200.75. We're removing VFC as a candidate but the larger up trend remains intact.

Trade did not open.

07/30/13 removed from the newsletter

chart:

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


CLOSED BEARISH PLAYS

The Mosaic Co. - MOS - close: 43.81 change: -9.15

Stop Loss: 54.65
Target(s): 50.25
Current Option Gain/Loss: +710.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
07/30/13: We hit the jackpot with MOS today. Our plan was to exit at $50.25 but the stock gapped open lower at $40.54. Shares managed an oversold bounce from the $40 level and closed up about four points off its low.

The action in MOS and the fertilizer industry was one of the big stories today. There are two big cartels that control about 80% of the potash market. Today's volatility was a reaction to news that a Russian potash maker was pulling out of a cartel. Some speculate this is a gambit to shake up the industry and allow the Russians to buy the Belarus Potash Co. I'm skimming over the details. What matters to us is MOS gapped down and exceeded our target. The option opened at $11.50 and hit a high of $12.62 before paring its gains.

- Suggested Positions -

Aug $52.50 PUT (MOS1317T52.5) entry $1.40 exit $11.35 (+710.7%)

07/30/13 target exceeded on gap down at $40.54

chart:

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