Current Portfolio:

CALL Play Updates

Direct TV - DTV - close 37.61 change -0.10 stop 35.70

Target(s): 38.20, 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

I am going to shift gears on this trade and lower our trigger to enter long positions to the rising 50-day SMA near $36.50. It feels like DTV wants to trade down there so lets limit our risk in the trade and pounce on the stock if it gets there. The 50-day SMA is currently $36.40 but is rising.

Suggested Position: Buy July $37.00 CALL if DTV trades down to its 50-day SMA currently near $36.50, current ask $1.91, estimated ask at entry $1.40

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 35.27 change +0.26 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 found buyers step in late in the day and closed +0.74% on the day. 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 18.78 change -0.10 stop 18.10

Target(s): 19.60, 20.00, 20.50, 21.00
Key Support/Resistance Areas: 18.40, 18.60, 19.36, 20-day SMA, 50-day SMA
Current Gain/Loss: -29%
Time Frame: Several weeks
New Positions: Yes

QSFT traded down to its 20-day SMA today and bounced nicely. If the market gets some legs here I expect QSFT to make a run at its recent highs. But I also urge readers to protect capital and tighten stops if QSFT gains strength. The stock closed above the recent breakout of resistance at $18.70 which are highs from April, January, and October that should continue to act as support. I am expecting a quick bounce and suggest not hesitating to take a quick profit if QSFT spikes higher from here. Our stop remains at $18.10 which is just below its 50-day SMA. This may be a little to close to the 50-day SMA so the overall market strength or weakness should be considered if QSFT is trading down at this level. If there is a bar that closes below $18.10 I would suggest placing the stop below the low of that bar to see if the stock can reverse.

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

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 249.33 change -1.61 stop 267.50

Target(s): 246.00, 239.00, 233.00
Key Support/Resistance Areas: 265, 260, 258, 254, 250, 243, 237, 232
Current Gain/Loss: +29%
Time Frame: 1 to 2 weeks
New Positions: Yes, but only on bounces

AAPL traded to within 65 cents of our first target before reversing at the end of the day so I am going to raise our first target by $1.00 to $246. The stock closed below its 20-day and 50-day SMA today and I am expecting more downside but we may have to endure a bounce first. Our stop is way up at $267.50 which is above recent highs. But I urge readers who have positions to protect profits if APPL trades too much higher from here. I see intraday resistance at $254 and $258 which are good areas to place tighter stops. These are also areas where new positions could be initiated with tight stops. AAPL remains in a solid downtrend on its hourly chart but I wouldn't be surprised to see AAPL test our entry area near $257.00 in the next day or two. 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.

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

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

Aeropostale, Inc. - ARO - close 27.94 change +0.22 stop 29.55

Target(s): 27.00, 26.35, 25.25
Key Support/Resistance Areas: 29.35, 28.50, 27.50, 27.00, 26.30, 25,00
Current Gain/Loss: +3.78%
Time Frame: 1 to 2 weeks
New Positions: Yes

ARO traded up to our entry trigger at $28.20 so we are own July $27.00 PUTS at $1.35. Our entry point is a key pivot area for the dating back to March when it acted as support for the stock prior to its big run into April. ARO's 20-day SMA is also near $28.20 and I expect this are to hold as resistance before ARO takes a bigger fall. The stock has been mostly below this area for the past 3 to 4 weeks. Our stop is $29.55 which is above the congestion area and above the 50-day SMA. If the market bounces from here we may need to exercise some patience prior to the stock declining. The retail sector has some catching up to do with the broader market declines as the sector is still several percentage points away from its February lows. I believe ARO is vulnerable and is ready to make a trip down to its 200-day SMA which is near our second target of $26.35. But I also urge readers to protect profits as ARO approaches $27.00.

Current Position: Buy July $27.00 PUT, entry was at $1.35

Entry on June 8, 2010
Earnings 8/19/2010 (unconfirmed)
Average Daily Volume: 3.3 million
Listed on June 7, 2010

Arch Caol - ACI - close 21.21 change +0.61 stop 22.05 *NEW*

Target(s): 19.30, 18.00
Key Support/Resistance Areas: 22.00, 21.75, 21.40, 21.00, 20.40, 19.25
Current Gain/Loss: -4.50%
Time Frame: 1 to 2 weeks
New Positions:

ACI traded up to our target of $20.95 so we are now long July $20.00 PUTS at $1.10. Our stop is $21.80 which is above yesterday's high's, however, it is just below the 20-day SMA which should also provide resistance. This may be a little tight to withstand a bounce higher so I am going to raise this the stop to $22.05 which is well above the 20-day SMA and the highs from last Wednesday. This should be enough to withstand a spike and if it goes higher than $22.05 we'll just have to step aside. My comments from the play release remain the same. ACI is forming a bear pennant on its daily and weekly chart and I believe it is poised to test its recent lows near $19.30. There is also an upward trend line from its November 2008 lows near $18.00 that ACI could easily trade down to if the overall market continues to be weak.

Current Position: July $20.00 PUT, entry at $1.10

Entry on June 8, 2010
Earnings 7/22/2010 (unconfirmed)
Average Daily Volume: 6.4 million
Listed on June 7, 2010