Current Portfolio:

CALL Play Updates

Direct TV - DTV - close 37.71 change -0.19 stop 35.70

Target(s): 38.50, 39.50, 41.50
Key Support/Resistance Areas: 38.60, 37.00, 36.30
Current Gain/Loss: N/A
Time Frame: Several weeks
New Positions: Waiting to be triggered

DTV remains strong in a weak tape. The stock is approaching our $37.00 entry trigger which is where I suggest entering long positions. The stock is holding an upward trend line from February which is right on its rising 50-day SMA, currently at $36.32. This should offer solid support and gives us a good reference point to place a protective stop at $35.70. I've listed 3 targets as possible exit areas. These are good areas to at least tighten stops.

Suggested Position: Buy July $37.00 CALL, current ask $2.26, estimated ask at entry $1.80

Annotated Chart:

Entry on June xx
Earnings Date 8/5/10 (unconfirmed)
Average Daily Volume: 12.3 million
Listed on 6/5/10

Qualcomm Inc - QCOM - close 35.01 change -0.29 stop 34.20

Target(s): 20-day SMA, 36.45 (hit), $36.75, 38.00, 38.95
Key Support/Resistance Areas: 37.50, 37.00, 36.25, 35.25, 34.50
Current Gain/Loss: -15%
Time Frame: 1 to 2 weeks
New Positions: No

QCOM held up relatively well most of the day before selling off late. The stock is still holding the long term support area dating back to 2007 in the $35.00 to $35.25 area. Our first target of $36.45 was hit on Thursday last week and I am looking for the stock to bounce towards these levels from here. This is still a valid target but I suggest readers watch the 20-day SMA and tighten stops if QCOM trades up this level this week. I've also listed $36.75 as a target which is just below Thursday's highs. If the markets bounce QCOM should do well as it is a quality name in a good industry. I'm going to move the stop up to $34.20 which is below the stock's recent lows to protect capital if things proceed lower.

Current Position: July $36.00 CALL, entry at $1.30

Entry on 6/1/2010
Earnings Date 7/21/2010 (unconfirmed)
Average Daily Volume: 26 million
Listed on 5/29/10

Quest Software - QSFT - close 19.00 change -1.01 stop 18.10

Target(s): 19.60, 20.00, 20.50, 21.00
Key Support/Resistance Areas: 18.60, 19.36, 20-day SMA, 50-day SMA
Current Gain/Loss: +0.00%
Time Frame: Several weeks
New Positions: Yes

The profit takers showed up in QSFT today which triggered our long entry at $19.00. The stock remains above the recent breakout of resistance at $18.70 which are highs from April, January, and October and should now act as support. QSFT closed almost to the penny of its 12/2007 high at $18.87. The market is oversold and any bounces should bode well for QSFT as investors may flock to relative strength names like QSFT. I am expecting a quick bounce and suggest not hesitating to take a quick profit if QSFT spikes higher from here. NOTE: We have chosen a $20.00 out of the money call option to limit capital at risk.

Current Position: July $20.00 CALL, entry at $0.85

Annotated chart:

Entry on June xx
Earnings Date 8/10/10 (unconfirmed)
Average Daily Volume: 1.9 million
Listed on 6/2/10

PUT Play Updates

Apple Inc - AAPL - close 255.96 change -7.15 stop 267.50 *NEW*

Target(s): 245.00, 238.00, 233.00
Key Support/Resistance Areas: 265, 260, 257, 250, 243, 237, 232
Current Gain/Loss: +29%
Time Frame: 1 to 2 weeks
New Positions: Yes, but only on bounces

AAPL gapped higher this morning and traded in a $2.25 range during the first 15 minutes of trading. When the stock broke below this range it was our signal to initiate PUTS in the stock even though it didn't trade up to our initial entry target of $262. It was apparent the stock was weak and our July $250 puts were opened for $10.50. AAPL will inevitably bounce so readers who haven't initiated positions can do so on strength in the stock. I wouldn't be surprised to AAPL test our entry area near $257.00 in the next day or two. This is an intraday resistance area and will provide readers a second chance to enter. AAPL has a developers conference this week. The stock typically spikes on the keynote announcement by Steve Jobs then struggles the next couple of weeks. Apple has stubbornly refused to give up much ground and I believe the stock is due for a correction. The stock made a recent double top on the dailies and also a lower high. We'll use a stop of $267.50 which is above the recent highs.

Current Position: July $250.00 PUT, entry at $10.70.

Annotated chart:

Entry on June 7, 2010
Earnings 7/20/2010 (unconfirmed)
Average Daily Volume: 29 million
Listed on June 5, 2010