Editor's Note:

Shares of Harman Intl. (HAR) hit our bullish exit target today.
Our bullish trades on PII and XLNX were triggered.
We want to exit our HAIN trade at the open tomorrow.


Current Portfolio:


CALL Play Updates

The Hain Celestial Group, Inc. - HAIN - close: 72.96 change: -1.13

Stop Loss: 71.95
Target(s): 79.50
Current Option Gain/Loss: -60.0%
Time Frame: exit PRIOR to August expiration
New Positions: see below

Comments:
07/31/13: HAIN underperformed the market again on Wednesday with a -1.5% decline. Shares have not closed back below their 10-dma. It is possible that shares could bounce at $72.00 but we are suggesting an early exit now (tomorrow morning) to cut our losses.

- Suggested Positions -

Long Aug $75 call (HAIN1317H75) entry $1.50

07/31/13 prepare to exit tomorrow morning.

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


Johnson & Johnson - JNJ - close: 93.17 change: -0.04

Stop Loss: 91.90
Target(s): 98.00
Current Option Gain/Loss: Aug.call +19.7% & Sept.call: +14.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
07/31/13: Another day another new all-time high for JNJ. Today the stock hit $94.42 before paring its gains. JNJ has been trading higher in a very narrow channel since the start of July. We are moving our stop loss to $91.90. More conservative traders might want to raise their stop toward the $92.50 area.

- Suggested Positions -

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

- or -

Long Sep $95 call (JNJ1321i95) entry $0.82

07/31/13 new stop loss @ 91.90

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


Polaris Industries - PII - close: 112.14 change: +2.05

Stop Loss: 108.49
Target(s): 114.85
Current Option Gain/Loss: + 9.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
07/31/13: As expected the upward momentum in PII continues. Today shares got a boost from bullish analyst comments after PII unveiled its 2014 product line and a handful of new products. Shares gapped open higher at $110.78. Our trigger to buy calls was hit at $111.05. Our exit target is $114.85. More aggressive traders may want to aim higher.

*small positions* - Suggested Positions -

Long Sep $115 call (PII1321i115) entry $2.10

Entry on July 31 at $111.05
Average Daily Volume = 765 thousand
Listed on July 30, 2013


Xilinx Inc. - XLNX - close: 46.69 change: +0.45

Stop Loss: 44.99
Target(s): 49.85
Current Option Gain/Loss: - 3.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
07/31/13: The semiconductor sector index is starting to rebound and XLNX managed to breakout from its sideways consolidation. Our trigger to buy calls was hit at $46.65. As long as the market opens positive tomorrow we would still consider new bullish positions here.

Earlier Comments:
I would keep our position size small since bears could argue that XLNX is overbought with a significant five-week rally already underway.

*small positions* - Suggested Positions -

Long Aug $46 call (XLNX1317H46) entry $1.06

Entry on July 31 at $46.65
Average Daily Volume = 3.5 million
Listed on July 25, 2013


PUT Play Updates

Accenture Plc - ACN - close: 73.81 change: +0.07

Stop Loss: 75.21
Target(s): 70.25
Current Option Gain/Loss: -29.4%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
07/31/13: ACN hovered near its 200-dma most of the session. Then in the last two hours the stock spiked higher but the rally rolled over under the $75.00 level.

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: 49.05 change: +0.03

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:
07/31/13: DRI rallied toward resistance at its 200-dma before rolling over and closing virtually unchanged on the day. Traders could interpret this as a failed rally pattern. More aggressive investors might want to buy puts on a drop below $48.75. Currently we are waiting to buy puts at $47.75. Please note that I am moving our option strike from the August $50 to the September $50 put.

Earlier Comments:
We do want to keep our position size small. If we are triggered at $47.75 our target is $44.50.

Trigger @ 47.75 *small positions*

- Suggested Positions -

Buy the SEP $50 PUT (DRI1321u50) current ask $2.10

07/31/13 adjust the option strike from Aug $50 to Sep $50

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


iShares Russell 2000 ETF - IWM - close: 103.65 change: +0.17

Stop Loss: 106.05
Target(s): 97.00
Current Option Gain/Loss: - 6.7%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
07/31/13: It was a volatile afternoon for the IWM. The small cap ETF rallied only to reverse lower late in the session. Is this a short-term double top forming? Traders might want to wait for a drop under $103.00 before initiating positions.

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: 168.71 change: +0.12

Stop Loss: 172.75
Target(s): 165.25
Current Option Gain/Loss: + 7.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
07/31/13: The SPY eked out a small gain today. Yet intraday this ETF produced another failed rally at resistance near the $170.00 level.

We have a stop loss at $172.75. Cautious traders may want to use a stop; loss closer to the $170.00 level 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: 59.58 change: -0.12

Stop Loss: 55.75
Target(s): 74.50
Current Option Gain/Loss: - 7.8%
Time Frame: 4 to 6 months
New Positions: see below

Comments:
07/31/13: Uh-oh! We were expecting some volatility today in reaction to CBI's earnings last night. I suggested CBI would likely bounce. The stock did rally this morning but it failed by lunchtime. The intraday reversal looks bearish. CBI should have support at the 100-dma currently near $58.70. More conservative investors may want to adjust their stop loss higher.

*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

Harman Intl. Industries - HAR - close: 60.53 change: +1.38

Stop Loss: 57.40
Target(s): 59.50
Current Option Gain/Loss: +77.7%
Time Frame: Exit PRIOR to earnings on August 6th
New Positions: see below

Comments:
07/31/13: Target achieved.

The rally in HAR continued on Wednesday and shares hit our exit target at $59.50. The stock kept going and broke out past the $60.00 level. The stock is on track for its sixth weekly gain in a row.

- Suggested Positions -

Aug $57.50 call (HAR1317H57.5) entry $1.80* exit $3.20 (+77.7%)

07/31/13 target hit
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.

chart:

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