Current Portfolio:

CALL Play Updates

Direct TV - DTV - close 38.57 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

My comments from the weekend remain the same. I am keeping the set-up on this trade the same and waiting for the stock to trade near its 50-day SMA prior to entering. It has to trade down there and we will be ready to pounce on the stock when it does. The 50-day SMA is currently $36.78 and it is rising but placing an order slightly above this is suggested.

Suggested Position: Buy July $37.00 CALL if DTV trades down near $36.85 which is just above its 50-day SMA, current ask $2.24, 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

Home Depot - HD - close 32.06 change -0.16 stop 33.65

Target(s): 31.35, 30.10
Key Support/Resistance Areas: 33.25, 32.90, 32.15, 31.25, 29.95
Current Gain/Loss: +21%
Time Frame: 1 to 2 weeks
New Positions: Yes, but preferably on bounces

HD struggled with the resistance and congestion range of $32.15 to $32.90. The stock traded up to $32.64 in early trading and then reversed on its downtrend line that started on May 18th. As such, we are long July $32 PUTS at 85 cents. I expect HD to retest its recent lows and possibly even make a trip down to its 200-day SMA. Our stop is $33.65 which is above the declining 20-day SMA. A tighter stop could be placed at $33.05 which would get you out of the trade if HD begins to fill the gap lower from 6/3 to 6/4.

Current Position: July $32.00 PUTS, entry was at $0.85

Entry on June 14, 2010
Earnings 8/18/2010 (unconfirmed)
Average Daily Volume: 23 million
Listed on June 12, 2010

PUT Play Updates

Freeport McMoRan Copper & Gold - FCX - close 65.26 change +0.33 stop 68.80

Target(s): 63.10, 61.50, 58.30, 55.20
Key Support/Resistance Areas: 66.00, 65.00, 64.00, 58.00, 55.00, 52.00
Current Gain/Loss: -14%
Time Frame: 1 weeks
New Positions: Yes

FCX remains below its downtrend line and is struggling with resistance in the $65 to $66 area. The stock also closed below its 20-day SMA. Now we need the market to cooperate to get things moving lower. I've listed two additional targets which are areas where I urge readers to tighten stops. The first target is at a level where FCX could form an inverse head and shoulders pattern which needs to be considered as a potential reversal point for FCX. I view this trade as aggressive and quick so proper position size should be used to limit risk. I am also choosing an out of the money option to limit capital at risk.

Current Position: July $60.00 PUT, entry was at $2.38

Entry on June 11, 2010
Earnings 7/21/2010 (unconfirmed)
Average Daily Volume: 19 million
Listed on June 10, 2010

SPDR S&P 500 ETF - SPY - close 109.50 change -0.17 stop 112.10

Target(s): 108.00, 107.50, 105.00, 103.50, 102.25
Key Support/Resistance Areas: 111.00, 110.00, 109.00, 108.00
Current Gain/Loss: -13%
Time Frame: 1 to 2 weeks
New Positions: Yes

SPY traded right up to its 200-day SMA and reversed lower, closing about $1.50 off of its highs. The overhead resistance remains and I am looking for SPY to move lower from here. I have listed $108.00 as our first target. This is just above the 50% retracement level from the 6/8 lows to the today's highs. This may be an area for a reversal higher so I suggest tightening stops here.

Current Position: July $109.00 PUTS, entry was at $3.75

Entry on June 11, 2010
Earnings N/A (unconfirmed)
Average Daily Volume: 340 million
Listed on June 10, 2010


Qualcomm Inc - QCOM - close 34.79 change -0.57 stop 34.20

Target(s): 20-day SMA (hit), 36.00, 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: -7.6%
Time Frame: 1 to 2 weeks
New Positions: No

QCOM traded up through its 20-day SMA which was at $35.70 in early trading and was our target to exit positions. QCOM just can't follow through with any momentum so we are now flat the positions for a small loss. I'll leave my comments from the weekend update. My exit strategy remains the same. I expect QCOM to at least trade up to its 20-day SMA which is about $35.70. This should create a small winner and is good place to tighten stops to see if we can get more out the stock. I've also listed $36.00 as a possible target which near many of the stock's closing prices in late May.

Closed Position: July $36.00 CALL @ $1.20, entry at $1.30

Annotated chart:

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 19.24 change -0.11 stop 18.58

Target(s): 19.50, 20.00, 20.50, 21.00
Key Support/Resistance Areas: 18.40, 18.70, 19.36, 20-day SMA, 50-day SMA
Current Gain/Loss: -11.76%
Time Frame: Several weeks
New Positions: Yes

QSFT opened at $19.54 this morning so we are flat the position for a small loss. If readers still have positions please be careful as the stock may be forming a bearish head and shoulders pattern on the daily and hourly chart. The above targets and support/resistance areas can be used as a guide to exit positions.

Closed Position: July $20.00 CALL at $0.75, entry at $0.85

Annotated chart:

Entry on June 7, 2010
Earnings Date 8/10/10 (unconfirmed)
Average Daily Volume: 1.9 million
Listed on 6/2/10


Toronto Dominion Bank - TD - close 69.03 change +0.83 stop 69.90

Target(s): 65.60, 64.50, 62.20, 60.50
Key Support/Resistance Areas: 69.15, 68.00, 66.50, 65.60, 64.50, 63.00
Current Gain/Loss: -47.36%
Time Frame: 1 to 2 weeks
New Positions: Closed

TD traded up to our stop this morning and reversed lower the remainder of the day. I place the stop at $69.90 because it was higher than TD's highest close since May 14. This was a frustrating trade and it ended even more so. For readers who may still have positions the candlestick formed today is a reversal pattern, but the pattern needs to be confirmed with follow through lower tomorrow. The above support/resistance areas and targets can be used as guide to exit positions.

Closed Position: July $65.00 PUT at $1.00, entry was at $1.90

Annotated chart:

Entry on June 9, 2010
Earnings 9/2/2010 (unconfirmed)
Average Daily Volume: 1.4 million
Listed on June 8, 2010