Option Investor
Newsletter

Daily Newsletter, Thursday, 9/19/2013

Table of Contents

  1. Market Wrap
  2. New Option Plays
  3. In Play Updates and Reviews

Market Wrap

Stocks Falter

by Thomas Hughes

Click here to email Thomas Hughes
Introduction

Index futures were up this morning after a round of increases in global stock prices. World markets followed through on yesterday's Fed inspired rally gaining more than 1% on average. The decision to hold tapering off was a big surprise to most market participants and in light of today's economic data may have been misplaced. Jobless claims are still at 6 year lows (with some caveats) and a string of other data released today showed surprising gains that, released last week, would have helped solidify the idea that tapering was going to happen. Perhaps it (tapering) will begin next month but even now that is in question. Some pundits are now speculating that the taper may not begin this year at all.


Bernanke stated several times during the press conference that tapering was data dependent. He also said that the data did not warrant the taper at this time which is in line with statements made earlier in the year. The threshold of 6.5% unemployment has not yet been reached although today's data suggests it could be closer than some think. There is no data scheduled for release tomorrow but it is triple witching day.

After the opening the broad markets traded around the flat line. The S&P opened up by roughly 3 points and traded in a range between +3 and 0 for most of the morning. The release of Philly Fed, Existing Home Sales and Leading Indicators helped to support the markets around 10 AM but that boost was short lived. Following the release the S&P moved up to the top of the morning range (about +3) before falling back into negative territory where it remained the rest of the day.

Today's Data

The big report of the day was the jobless claims numbers. The big revisions I was expecting from last week did not materialize and this weeks numbers are also at long term low levels. However, the two states which did not report in full last week reported similar delays in data processing this week. It will be hard to say for sure what is going on with claims until this issue is resolved. Initial claims from last week were revised up by only 2,000 claims, this weeks figures rose by 15,000 to reach 309,000. The four week moving average fell by 7,000 to reach 314,700. California is one of the states with a back log of claims which accounts for at least some of the -25,000 drop reported this week. There were 8 other states reporting a drop in claims of more than 1,000 (not including Nevada, the other state with a back log). No states reported an increase of more than 1,000 claims.


Continuing claims and total claims both fell this week. Continuing claims fell by 28,000 from last weeks downwardly revised 2.815 million. This is another multi-year low for continuing claims. If the data were more trustworthy this would be a great sign for the economy. However, we still have to wait for California and Nevada to catch up and this could take weeks at best. Total claims fell by over -235,000 to reach 4.037 million. It is unclear at this time how the back log will affect future reports. Will claims from last week be revised or will the claims be included in a future week? I am expecting more revisions and a possible spike in claims once the back log in claims gets worked out.



There was some good data released today that is more trustworthy. Existing home sales is one of them. Existing home sales increased by 1.7% versus an expected decline for the month. The annual rate of sales is now 5.48 million, the expected rate was closer to 5 million. This data came with a caveat though, it is based on contracts signed in June. Buyers were being spurred by higher interest rates at the time. Real estate analysts believe that the rate of sales has diminished since then.

The Philly Fed Survey and the Leading Indicators were also much better than expected. The Philly Fed incredibly so. The expected reading of 8.0 (9.3 in the previous month) was blow away by the actual reading of 22.3. This shows a robust expansion in manufacturing for the Philadelphia region. Within the report the employment and new orders segments showed the biggest gains. Leading indicators were expected to decline mildly from last months 0.6% gains. The actual 0.7% means that this month is should be better than expected for the economy.


Global Markets

Asian markets got a boost from the FOMC statements and policy decision. On average the Asian indexes gained 1.5-2% on the news led by the emerging markets. The Nikkei made the biggest gains of the major Asian indices with 1.8% and the yen made a see saw move against the dollar. The USD/JPY pair fell on the news initially but bounced back today recapturing all of yesterday's losses and more. The fall yesterday brought the pair down to the 23.6% retracement level of the original Abe/Kuroda rally from November 2012 to May 2013. This move seems to confirm support and the recent triangle break out. Looking ahead there is still resistance at 100 to deal with. Without a break above that level I remain cautious longer term. The lack of tapering, economic data and future expectations of tapering will be going head to head with Abenomics for now.


The European markets lifted as well although a little less enthusiastically. European indices gained roughly 0.75-1.25% on the news. Europe has been making steady progress on its own, progress supported in part by improvements in China as well as continued improvement here at home. This is being reflected in index prices which are trading at all time highs, just like ours own. The euro was the real winner in this arena. The euro gained over 1.5% on the news versus the dollar. Today the eur/usd pair is trading just above a long term resistance with bullish technicals.


The Gold Index

Gold made an impressive 5% swing after the Fed announcement. Today the metal increased the gains made yesterday, adding another $10-$15 to the initial $60+ move. $1300 looks like pretty firm support at this time, $1400 for resistance. Tapering is still ahead, we haven't escaped it, and could put some pressure on gold prices moving forward. The Gold Index got a boost yesterday along with gold and the general market. The index rose back to retest the 78.6% Fibonacci level it has been trading around the last few months. On the short term daily charts the index appears to be forming a longer term pennant centered around the retracement level. Today the index fell back from resistance, counter to golds move higher. Indicators are mixed, the stochastic is pointing higher while momentum remains bearish. Added to the other evidence it appears the index could indeed be range bound within the pennant.


Longer term on the weekly charts the index is still in a down trend and the pennant formation is still present. Indicators are still bullish but weak and suggestive of the aforementioned range. Currently resistance is at the retracement, around $111, with the next target the upper edge of the pennant around $118. Support is around the $99-$100 level, coincident with the lower edge of the pennant.


The Oil Index

Oil traded lower today on comments from Iranian President Hassan Rouhani. His new statements concerning Iran's quest for nuclear weapons point to reduced tensions with the west and a possible end or at least easing of sanctions placed on the country's oil exports. If so Iranian oil exports could significantly increase in the not to distant future. Even with the new pledge global tensions in places such as Libya and Egypt are still keeping oil prices high. The Oil Index is still benefiting from the sustained high oil prices. The index has now reached my second resistance line since the last trend line bounce. Momentum is bullish but weak and suggestive of a top/top of a range. Stochastic is also bullish but overbought. The long term trend is still up but the index may be at a short term top. A correction or consolidation is very possible at the current level. A break above the 1425 resistance level would be bullish, until then I see support at the 1,400 level and the long term trend line around 1,375.


Earnings Focus

Last week I began my focus on the upcoming earnings season by touching base with Adobe, Oracle and Redhat. These three tech companies are my signal that earnings are close and include my favorite stock, Redhat. Just to be clear, it's my favorite because it is the first stock I started watching, instigated by a friend losing his inheritance during the tech crash. Back to the point, earnings. Adobe was the first to release, Oracle second and Redhat is scheduled for Monday. Adobe at last glance was near the highs of an uptrend. The earnings reported by the company were not that great but the forward guidance was pretty good. The company is changing to a subscription based model for its software services, a move seen as very good for future revenue and earnings. The stock traded flat Monday and Tuesday, then got a pop yesterday before the opening bell following the announcement. Indicators are bullish but the gap opened yesterday needs to be tested before getting bullish from this point.


Oracle followed up with a better than expected report but dashed the good spirit with weaker than expected guidance. The company made an 8% gain in profits despite the third consecutive quarter of declining sales. Company executive lowered the outlook for current quarter to include the possibility of negative revenue growth and for adjusted earnings below the current consensus estimates. The stock did not gap down as with the previous two earnings reports but today's long legged doji may be just as telling. Indicators are bullish and stochastic has room to move higher. However, there is significant resistance at the $34 level.


Redhat reports on Monday. The open source software company is expected to earn $0.22 per share, a slight decline from last quarters $0.24. Some of the developments driving this stock over the last quarter are advances made in enterprise level open source applications and in cloud computing. The stock is making new four month highs with weakly bullish technicals. Next resistance is around the $55 level, support at $52.50 and $50.


Conagra was the big name reporting today. The food giant reported a shortcoming in profits and cut it's 2014 forecast. The company was expected to earn in the range of $0.40 versus the previous quarters $0.60. The actual results of $0.37 were attributed to softer volumes and significant investments by the company. Management reported that cost reduction plans were already in action and that they expect 2nd half of the year improvements to offset 1st half weakness. Current full year guidance was lowered to $2.34-$2.38, lower than previously offered but in line with the consensus estimates. The stock traded to the downside today, losing about 5% on an intraday basis.


The Indexes

There was not much follow through today in the markets. The indices opened higher after the global markets rallied overnight but could not maintain the gains. Even the better than expected economic data could not inspire more buyers to step in. The Fed relieved us all, I think, by not tapering but tapering is still on the way. Yesterday's rally brought the S&P and other major indices to new highs. The daily chart is breaking out with bullish momentum and rising stochastic which point to higher prices.


On the longer term charts of weekly prices things are looking a little different. Stochastic is making a bullish crossover but at this time is below the upper signal line and divergent from price action. This is cause to raise a red flag of caution, especially since momentum is still bearish in this time frame. The long term MACD also shows a series of divergent bullish peaks starting with the first peak of the rally starting at the beginning of the year.


The long term trend is still up for the S&P. However, the combined long and short term analysis suggest that a correction may be building. Tomorrow is triple witching day and could add a significant amount of volatility to stock trading. Not only that there is no scheduled economic data or earnings releases to help support the market. In addition, the S&P alone is up more than 5% since hitting bottom on the last dip and is in good position for some profit taking. With the improvements to the economy here and abroad I am maintaining my bullish stance on the markets, but with caution. At the current level I think a better buying opportunity will present itself before the market makes another move higher. In the meantime it is still a stock pickers market. Next week we'll get more data including some of the more forward looking housing numbers, jobless claims and the final revision to 2nd quarter GDP.

Until then, remember the trend!

Thomas Hughes


New Option Plays

New Highs Ahead

by James Brown

Click here to email James Brown


NEW DIRECTIONAL CALL PLAYS

Costco Wholesale Corp. - COST - close: 119.20 change: +0.56

Stop Loss: 116.90
Target(s): 127.50
Current Option Gain/Loss: Unopened
Time Frame: Exit PRIOR to earnings on October 9th
New Positions: Yes, see below

Company Description

Why We Like It:
COST operates over 630 wholesale membership warehouses. Same store sales have shown consistent +4% growth the last couple of months. Management actually lowered their guidance in early September but that didn't stop investors from pushing shares to new relative highs.

COST's rally has stalled near resistance at the $120 level. Yet after a multi-day consolidation sideways above the $117 mark this stock looks poised to breakout higher. The early August high was $120.20. I am suggesting a trigger to buy calls at $120.30. If triggered our target is $127.50. However, we will plan on exiting positions prior to the earnings report on October 9th.

Trigger @ 120.30

- Suggested Positions -

Buy the Oct $120 call (COST1319j120) current ask $1.90

Annotated Chart:

Entry on September -- at $---.--
Average Daily Volume = 1.5 million
Listed on September 19, 2013



In Play Updates and Reviews

Stocks End Four-Day Streak

by James Brown

Click here to email James Brown

Editor's Note:

The S&P 500 index snapped a four-day winning streak with some minor profit taking today.

ACT and BCR were triggered.
DO was closed this morning.


Current Portfolio:


CALL Play Updates

Actavis, Inc. - ACT - close: 138.40 change: -0.70

Stop Loss: 134.70
Target(s): 148.50
Current Option Gain/Loss: -26.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/19/13: ACT gapped higher at the open but the rally failed to breakout past the $140 level. Our trigger to buy calls was hit at $139.50 this morning. Yet traders may want to wait for some follow through higher, maybe a new rise past $139.50 or even $140.00 before initiating new positions.

- Suggested Positions -

Long Oct $145 call (ACT1319j145) entry $1.50*
*option entry price is an estimate since the option did not trade at the time our play was opened.

Entry on September 19 at $139.50
Average Daily Volume = 985 thousand
Listed on September 18, 2013


Anadarko Petroleum - APC - close: 94.80 change: -0.16

Stop Loss: 91.65
Target(s): 99.50
Current Option Gain/Loss: -15.0%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
09/19/13: APC's early morning Thursday gains faded but traders stepped in to buy the dip this afternoon. I would still consider new positions here.

- Suggested Positions -

Long Oct $95 call (APC1319j95) entry $3.05*

*option entry price is an estimate since the option did not trade at the time our play was opened.

Entry on September 11 at $94.25
Average Daily Volume = 2.55 million
Listed on September 09, 2013


CR Bard Inc. - BCR - close: 120.10 change: -0.45

Stop Loss: 118.75
Target(s): 124.75
Current Option Gain/Loss: -24.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/19/13: BCR gave back about a third of yesterday's gains but not before hitting new highs. Shares actually gapped open higher at $120.86. That was above our suggested entry point at $120.75 so our trade opened this morning. Traders did buy the dip near $120.00 midday. Readers may want to watch for a bounce off the $120.00 mark before initiating new positions.

- Suggested Positions -

Long Oct $120 call (BCR1319j120) entry $2.45*

09/19/13 trade opened on gap higher at $120.86.
suggested trigger was $120.75
*option entry price is an estimate since the option did not trade at the time our play was opened.

Entry on September 19 at $120.86
Average Daily Volume = 448 thousand
Listed on September 18, 2013


Cornerstone OnDemand, Inc. - CSOD - close: 54.50 change: +0.59

Stop Loss: 52.25
Target(s): 59.50
Current Option Gain/Loss: -34.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/19/13: After underperforming yesterday CSOD displayed some relative strength today with a +1.0% gain. The stock remains under short-term resistance near the $55.00 level.

- Suggested Positions -

Long Oct $55 call (CSOD1319j55) entry $2.60*

Entry on September 13 at $55.25
Average Daily Volume = 367 thousand
Listed on September 12, 2013


Fluor Corp. - FLR - close: 71.45 change: +1.54

Stop Loss: 65.75
Target(s): 74.50
Current Option Gain/Loss: Oct70c:+142.8% & 2014jan70c: +46.8%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
09/19/13: FLR has put together two big days in a row with a +2.2% gain today, which lifted shares above potential round-number resistance at the $70.00 mark. Today's move may have gotten a boost from news that the U.S. Department of Energy has awarded FLR a five-year contract to manage and operate the U.S. strategic petroleum reserve (SPR). The contract is worth almost $700 million.

If you're holding the October $70 calls you may want to take profits now with the bid up to $2.55 (+142.8%).

Our target is $74.50. You may want to aim higher. The Point & Figure chart for FLR is bullish with an $82 target.

- Suggested Positions -

Long Oct $70 call (FLR1319j70) entry $1.05

- or -

Long 2014 Jan $70 call (FLR1418a70) entry $3.20

09/18/13 new stop loss @ 65.75

Entry on September 12 at $67.65
Average Daily Volume = 1.1 million
Listed on September 11, 2013


Harman Intl. - HAR - close: 66.71 change: -0.40

Stop Loss: 64.70
Target(s): 71.00
Current Option Gain/Loss: -44.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/19/13: Yesterday HAR delivered a disappointing performance and the disappointment continues today. Shares lost -0.59% and the stock is once again testing very short-term support near $66.00. I am not suggesting new positions.

Our short-term target is $71.00. More aggressive traders could aim higher. The point & figure chart is bullish with an $88 target.

- Suggested Positions -

Long Oct $70 call (HAR1319j70) entry $1.25

09/16/13 trade opened on gap higher at $67.07.
trigger was 67.00

Entry on September 16 at $67.07
Average Daily Volume = 690 thousand
Listed on September 14, 2013


Hanesbrand Inc. - HBI - close: 64.47 change: +0.40

Stop Loss: 59.90
Target(s): 68.50
Current Option Gain/Loss: +14.2%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
09/19/13: Traders bought the morning dip and HBI outperformed the major indices with a +0.6% gain. The stock is nearing potential resistance at $65.00 and its late July and early August highs.

Earlier Comments:
The late July high near $65.60 could be short-term overhead resistance. I would not be surprised to see HBI stall or pullback on its initial test of this level.

- Suggested Positions -

Long Oct $65 call (HBI1319j65) entry $1.40

Entry on September 16 at $63.25
Average Daily Volume = 612 thousand
Listed on September 10, 2013


Magna Intl. - MGA - close: 84.41 change: +0.70

Stop Loss: 79.65
Target(s): 89.50
Current Option Gain/Loss: +37.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/19/13: MGA rallied this morning but shares struggled to get past potential round-number resistance near the $85.00 level. I am not suggesting new positions at this time.

- Suggested Positions -

Long Oct $85 call (MGA1319j85) entry $1.20

09/16/13 trade opened on gap higher at $82.76
trigger was $82.65

Entry on September 16 at $82.76
Average Daily Volume = 545 thousand
Listed on September 14, 2013


NetSuite Inc. - N - close: 107.77 change: +0.27

Stop Loss: 104.75
Target(s): 109.75
Current Option Gain/Loss: +78.1%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
09/19/13: N briefly traded above short-term resistance at $108.00 but pared its gains by the closing bell. I don't see any changes from my prior comments. We are not suggesting new positions at this time. More conservative traders may want to lock in gains now.

- Suggested Positions -

Long Oct $105 call (N1319j105) entry $2.75*

09/18/13 new stop loss @ 104.75, adjust exit target to $109.75
09/17/13 new stop loss @ 103.75
09/14/13 new stop loss @ 102.40
09/12/13 readers may want to take profits now
09/11/13 new stop loss @ 101.45
09/10/13 new stop loss @ 99.45
*option entry price is an estimate since the option did not trade at the time our play was opened.

Entry on September 09 at $101.05
Average Daily Volume = 294 thousand
Listed on September 03, 2013


Northrop Gruman - NOC - close: 98.05 change: -0.54

Stop Loss: 94.75
Target(s): 99.50
Current Option Gain/Loss: (Oct97.5c:+118.1%) & 2014j100c: +27.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/19/13: Defense-related names saw a pullback today and NOC was no exception. Shares retreated from the $99 level this morning and closed with a -0.5% decline . The stock looks poised for more profit taking. I am not suggesting new positions.

- Suggested Positions -

Oct $97.50 call (NOC1319j97.5) entry $1.10 exit $2.40*(+118.1%)

- or -

Long 2014 Jan $100 call (NOC1418a100) entry $2.16

09/18/13 closed the Oct. $97.50 calls @ the open
*option exit price is an estimate since the option did not trade at the time our play was closed.
09/17/13 prepare to exit the Oct. $97.50 calls at the open tomorrow
09/17/13 new stop loss @ 94.75, adjust exit target to $99.50
09/16/13 new stop loss @ 94.25
09/14/13 new stop loss @ 93.30

Entry on September 12 at $95.25
Average Daily Volume = 1.2 million
Listed on September 11, 2013


Red Robin Gourmet Burgers - RRGB - close: 69.57 change: -0.55

Stop Loss: 67.90
Target(s): 74.75
Current Option Gain/Loss: -26.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/19/13: RRGB erased yesterday's gains with a pullback this morning. Shares spent the rest of the day drifting sideways. I would wait for a new rally past $70.00 before considering new bullish positions (or more conservative traders could wait for a rally past $70.50 instead).

- Suggested Positions -

Long Oct $70 call (RRGB1319j70) entry $2.25

Entry on September 18 at $70.25
Average Daily Volume = 126 thousand
Listed on September 17, 2013


Starbucks Corp. - SBUX - close: 76.35 change: -0.98

Stop Loss: 73.90
Target(s): 79.00
Current Option Gain/Loss:(Oct75c:+ 93.2%) & 2014Jan75c: +41.5%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
09/19/13: SBUX felt some profit taking today with a -1.2% decline. This helps reinforce our decision to take profits on the October $75 calls yesterday morning. We still have the 2014 January calls.

SBUX could find some short-term support at the $76.00 level and the early August highs near $74.25. Yesterday we raised the stop to $73.40. Today I am raising our stop loss to $73.90.

- Suggested Positions -

Oct $75 call (SBUX1319j75) entry $1.18 exit $2.28 (+93.2%)

- or -

Long 2014 Jan $75 call (SBUX1418a75) entry $3.25

09/19/13 new stop loss @ 73.90
09/18/13 new stop loss @ 73.40, adjust exit to $79.00
this morning we closed the Oct. $75 calls at the open.
09/17/13 prepare to exit the October $75 calls at the open tomorrow
09/17/13 new stop loss @ 72.40
09/14/13 new stop loss @ 71.75
09/11/13 SBUX at new highs. Cautious traders may want to lock in some gains.

Entry on September 05 at $72.35
Average Daily Volume = 3.0 million
Listed on September 04, 2013


PUT Play Updates

The Fresh Market, Inc. - TFM - close: 48.75 change: -0.94

Stop Loss: 50.05
Target(s): 42.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
09/19/13: It looks like TFM's attempt to bounce is failing near round-number resistance at $50.00. There is no change from my prior comments.

Earlier Comments:
The September 4th low was $47.71. I am suggesting a trigger to buy puts at $47.50. If triggered our target is $42.00. I am suggesting we keep our position size small because TFM can be a little bit volatile. Plus the most recent data listed short interest at 13% of its small 40.1 million share float.

FYI: The Point & Figure chart for TFM is bearish with a $39 target.

Trigger @ 47.50

- Suggested Positions -

buy the Oct $45 PUT (TFM1319v45)

Entry on September -- at $---.--
Average Daily Volume = 591 thousand
Listed on September 16, 2013



Longer-Term Play Updates



Chicago Bridge & Iron - CBI - close: 66.71 change: +0.52

Stop Loss: 57.65
Target(s): 74.50
Current Option Gain/Loss: +80.3%
Time Frame: 4 to 6 months
New Positions: see below

Comments:
09/19/13: CBI extended its rally another day and hit another new all-time high. Broken resistance near $65.00 should be new support.

*Small Positions* - Suggested Positions -

Long 2014 Jan $65 call (CBI1418A65) entry $2.55

09/11/13 new stop loss @ 57.65
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


Vanguard FTSE Europe ETF - VGK - close: 55.49 change: -0.27

Stop Loss: 50.95
Target(s): 58.50
Current Option Gain/Loss: +30.5%
Time Frame: exit PRIOR to 2014 March option expiration
New Positions: see below

Comments:
09/19/13: After yesterday's big afternoon spike higher it's not surprising to see the VGK slowly drift lower today. I would not chase it here. Wait for a deeper pullback.

Earlier Comments:
We are taking a multi-month time frame with this trade. If we are triggered our target is $58.50 but we'll adjust it as the trade progresses. FYI: The Point & Figure chart for VGK is bullish with a $63 target.

- Suggested Positions -

Long 2014 Mar $55 call (VGK1422L55) entry $1.80*

09/11/13 trade opens. VGK @ 53.60
*option entry @ 1.80 is an estimate. Ask closed at $1.75 yesterday
09/10/13 entry trigger met. open positions tomorrow.
09/10/13 new stop loss @ 50.95
08/24/13 adjust the option strike from 2013 Dec $55 to $2014 Mar $55.

Entry on September 11 at $---.--
Average Daily Volume = 3.0 million
Listed on August 10, 2013


CLOSED BEARISH PLAYS

Diamond Offshore Drilling - DO - close: 64.27 change: -1.16

Stop Loss: 66.01
Target(s): 57.50
Current Option Gain/Loss: -74.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
09/19/13: Sometimes the trading gods are cruel. Last night we decided to close our DO trade because shares were not cooperating. Today the stock underperforms the market with a -1.77% bearish reversal lower. Our trade closed at the open this morning (65.49).

- Suggested Positions -

Oct $60 PUT (DO1319v60) entry $0.85 exit $0.22 (-74.1%)

09/19/13 scheduled exit at the open
09/18/13 prepare to exit at the open tomorrow
09/11/13 DO is not cooperating and traders may want to exit early now

chart:

Entry on September 03 at $63.75
Average Daily Volume = 1.0 million
Listed on August 28, 2013