Editor's Note:

Stocks rallied on news regarding the ECB's new bond-buying program. Several of our trades are at new multi-year or all-time highs.

We have updated several stop losses. Plus, EMN, SCHW, and SPRD have moved from the watch list to active trades.


Closed Plays


None. No closed plays this week.


Play Updates


Abbott Labs - ABT - close: 66.69

Comments:
09/08/12 update: ABT is challenging its highs set in early August but has yet to breakout. I would not launch new positions here. Nimble traders might want to consider buying a new bounce on a retest of what should be short-term support near $66.00 or its 50-dma.

Earlier Comments:
Before we continue I want to warn you that trading the drug makers or biotech stocks has an industry-specific danger. You never know when an FDA approval might get denied or delayed. Or some clinical trial data might disappoint. Headlines like these can send a stock gapping down. On the other hand positive news could send it soaring.

- Suggested Positions -
JUL 02, 2012 - entry price on ABT @ 64.22, option @ 1.91
symbol: ABT1319A65 2013 JAN $65 call - current bid/ask $ 3.05/ 3.15

- or -

JUL 02, 2012 - entry price on ABT @ 64.22, option @ 4.28
symbol: ABT1418A65 2014 JAN $65 call - current bid/ask $ 5.35/ 5.65

07/14/12 ABT is due to report earnings on July 18th
07/02/12 ABT opened at $64.22
06/29/12 ABT closed @ 64.47. Plan was to wait for a close over $63.50 and buy calls the next day. We will open positions on Monday, July 2nd.

Current Target:$74.00
Current Stop loss: 59.40
Play Entered on: 07/02/12
Originally listed on the Watch List: 06/23/12


American Intl. Group - AIG - close: 33.99

Comments:
09/08/12 update: Most of the major financial stocks posted gains last week. AIG was an exception. Investors were digesting news of AIG's plans to only sell $2 billion worth of its stake in Hong Kong-based insurer AIA Group. Many analysts had been expecting a bigger sale. For the week AIG has continued to churn sideways under resistance near the $35.00 level.

I would expect some more volatility on Monday morning. After the closing bell on Friday the U.S. Treasury announced another sale to sell off part of its stake in AIG. After the financial crash of 2008 the U.S. government bailed out AIG and bought up to 92% of the company's stock. Slowly the U.S. government has been selling off its stake in the company. On Friday the U.S. announced plans to sell another $18 billion of AIG stock. This should reduce the Treasury's stake from 53% of AIG to under 20%, reducing its position as a majority shareholder. AIG has promised to buy $5 billion worth of this sale but no price has been set for the sale but if I had to guess it will be in the $30-35 range.

Earlier Comments:
Our plan was to keep our initial position size small to limit our risk.

- Suggested Positions - (small positions @ first)
May 18, 2012 - entry price on AIG @ 28.25, option @ 3.40
symbol: AIG1319A30 2013 JAN $30 call - current bid/ask $ 5.10/ 5.25

- or -

May 18, 2012 - entry price on AIG @ 28.25, option @ 4.20
symbol: AIG1418A35 2014 JAN $35 call - current bid/ask $ 5.40/ 5.55

09/08/12 Treasury has announced an $18 billion sale of AIG stock
08/18/12 new stop loss @ 29.45
06/16/12 new stop loss @ 26.95
05/18/12 triggered at $28.25
05/05/12 The U.S. government is planning to sell 164 million shares at $30.50 and AIG will probably gap down on this news.
Move the trigger down to $28.25, and move the stop loss to $25.75.
04/28/12 adjust buy-the-dip trigger to $30.00 and stop to $27.40

Current Target:$ 39.00
Current Stop loss: 29.45
Play Entered on: 05/18/12
Originally listed on the Watch List: 04/07/12


Apache Corp. - APA - close: 89.90

Comments:
09/08/12 update: Many of the oil stocks were surging higher this past week. APA broke through short-term at its two-week trend of lower highs. Now the stock is testing stronger resistance at the $90.00 level.

I am not suggesting new positions at this time. Please note our new stop loss at $82.90.

- Suggested Positions -
Jun 18, 2012 - entry price on APA @ 87.10, option @ 3.45
symbol: APA1319A100 2013 JAN $100 call - current bid/ask $ 1.90/ 1.95

- or -

Jun 18, 2012 - entry price on APA @ 87.10, option @ 6.43
symbol: APA1418A100 2014 JAN $110 call - current bid/ask $ 5.20/ 5.45

09/08/12 new stop loss @ 82.90
08/18/12 new stop loss @ 81.40

Current Target: $109.00
Current Stop loss: 82.90
Play Entered on: 06/18/12
Originally listed in the New Plays 06/16/12


Bank of America - BAC - close: 8.80

Comments:
09/08/12 update: Financial stocks soared on the ECB news this past week. Shares of BAC are exploding higher with a +10% move in just the last two days. This breakout past the $8.00-8.25 level looks pretty bullish. So much so that I would consider buying 2014 calls on a dip back to the $8.50-8.40 area.

Earlier Comments:
Currently we do not have a specific exit target. The plan has been to exit in the $12.00-15.00 zone.

- Suggested Positions -

AUG 29, 2011 - entry price on BAC @ 8.10, option @ 1.50
symbol: BAC1319A10 2013 JAN $10 call - current bid/ask $ 0.30/ 0.31
(No stop loss on this position)

(2nd Position, bought the dip at $5.15)

NOV 23, 2011 - entry price on BAC @ 5.15, option @ 0.35
symbol: BAC1319A10 2013 JAN $10 call - current bid/ask $ 0.30/ 0.31
(no stop loss on this position)

09/08/12 BAC is breaking out. Consider buying 2014 calls on a dip near the $8.50-8.40 area
07/21/12 BAC reported earnings this past week and investors have decided to sell the news. The stock looks vulnerable here and readers may want to exit early!
05/19/12 BAC has pulled back to the 61.8% retracement
03/17/12 BAC has broken out from its multi-week trading range. Broken resistance near $8.30 should be new support.
...look for earlier comments in prior updates...

Current Target: $12.00-to-$15.00
Current Stop loss: see details above
Play Entered on: 08/29/11
Originally listed in the New Plays 08/27/11


Caterpillar Inc. - CAT - close: 88.10

Comments:
09/08/12 update: CAT came super close to hitting our stop loss on September 5th with a dip to $81.78 before bouncing. Shares have since rebounded sharply higher but there is still resistance in the $90.00 area. I am not suggesting new positions at this time.

Our long-term target is the $110-115 zone (although we'll exit the 2013 calls before CAT hits our final target).

- Suggested (small) Positions -
Aug 10, 2012 - entry price on CAT @ 88.26, option @ 3.81
symbol: CAT1319A95 2013 JAN $95 CALL - current bid/ask $ 2.82/ 2.87

- or -

Aug 10, 2012 - entry price on CAT @ 88.26, option @ 7.90
symbol: CAT1418A100 2014 JAN $100 CALL - current bid/ask $ 7.50/ 7.75

08/18/12 new stop loss at $81.75
08/10/12 trade opened on Friday morning @ $88.26
08/09/12 CAT closed above our trigger (which was 87.50)
08/06/12 adjust entry trigger to a close over $87.50
07/21/12 adjusted entry point to wait for a close over $88.00, stop loss 79.90

Current Target: $110.00-115.00
Current Stop loss: 81.75
Play Entered on: 08/10/12
Originally listed on the Watch List: 07/07/12


CH Robinson Worldwide - CHRW - close: 57.45

This is a bearish PUT option trade.

Comments:
09/08/12 update: Last week I mentioned my concerns that CHRW could be building a bull-flag consolidation pattern. Well this week's rise past the two-week trend of lower highs doesn't help. On a short-term basis the trend is up. CHRW still has a long-term down trend and I do see potential resistance near $58 and $60. However, most conservative traders will want to seriously consider an early exit right now. I am tweaking our stop loss down to $60.25. I am not suggesting new positions at this time.

Our multi-month target is a drop to $50.50. We want to keep our position size small to limit our risk.

- Suggested (small) Positions -
May 07, 2012 - entry price on CHRW @ 60.61, option @ 3.00
symbol:CHRW1319M55 2013 JAN $55 PUT - current bid/ask $ 2.30/ 2.45

09/08/12 adjust stop loss to $60.25
07/28/12 lowering the stop loss to $60.75.
07/14/12 raising the risk on this trade by adjusting the stop loss to $63.25.
06/02/12 new stop loss @ 62.25

Current Target: $50.50
Current Stop loss: 60.25
Play Entered on: 05/07/12
Originally listed in the New Plays 05/05/12


Discover Financial - DFS - close: 38.47

Comments:
09/08/12 update: DFS must be one of the few financial stocks that did not rally this past week. The action on September 5th has produced a short-term bearish reversal. I could not find any news behind the relative weakness. Thus far the stock has not confirmed the bearish reversal pattern. The larger trend is up but momentum has definitely stalled with a two-week move sideways.

I am surprised that DFS didn't hit new highs since there was speculation chatter that Wells Fargo (WFC) might decided to acquire DFS. I'm not suggesting new positions at this time.

NOTE: The $40.00 level could be round-number psychological resistance. I am suggesting we exit our 2013 calls when DFS hits $39.75. Our target to exit the 2014 calls is at $44.00.

- Suggested Positions -
JUL 05, 2012 - entry price on DFS @ 35.28, option @ 2.15
symbol: DFS1319A37 2013 JAN $37 call - current bid/ask $3.20/3.40

- or -

JUL 05, 2012 - entry price on DFS @ 35.28, option @ 3.40
symbol: DFS1418A40 2014 JAN $40 call - current bid/ask $4.40/4.70

08/25/12 new stop loss @ 34.75
08/25/12 adjusted targets to $39.75 (2013 calls), $44 (2014 calls)
08/18/12 new stop loss @ 33.45
08/11/12 new stop loss @ 32.40
07/05/12 trade opens with DFS at $35.28
07/03/12 DFS closes at $35.45, above our trigger @ 35.00
06/30/12 removed the buy-the-dip trigger.
06/23/12 adjusted entry point strategy to two different entries
06/16/12 DFS is scheduled to report earnings on June 19th.

Current Target: $39.75 for the 2013 call2, $44.00 for the 2014s
Current Stop loss: 34.75
Play Entered on: 07/05/12
Originally listed on the Watch List: 06/02/12


Eastman Chemical Co. - EMN - close: 57.37

Comments:
09/08/12 update: EMN is a watch list candidate that has graduated to our active trade list. EMN had major resistance in the $55-56 area. Our plan was to wait for EMN to close over $56.00 and then buy calls the next day. Shares met our requirement on Thursday thanks to the market-wide rally. EMN closed at $56.68 on Sept. 6th. Our trade opened on Friday morning with EMN at $56.64. I would still consider new positions now or you could wait for a new dip near $56.00 as your entry point. EMN is currently trading at record, all-time highs.

Our long-term target is to exit our 2014 calls when EMN hits $69.00.

- Suggested Positions -
SEP 07, 2012 - entry price on EMN @ 56.64, option @ 2.50
symbol: EMN1319a60 2013 JAN $60 call - current bid/ask $2.45/2.60

- or -

SEP 07, 2012 - entry price on EMN @ 56.64, option @ 5.55
symbol: EMN1418a65 2014 JAN $65 call - current bid/ask $5.20/5.70

Chart of EMN:

Current Target: $69.00
Current Stop loss: 52.40
Play Entered on: 09/07/12
Originally listed on the Watch List: 08/18/12


HollyFrontier Corp. - HFC - close: 39.53

Comments:
09/08/12 update: HFC underperformed the broader market and the energy sector with a slow fade lower this past week. Shares look poised to correct. I would expect a dip to short-term support near $38 and its 50-dma. If that level fails then we could see HFC hit our stop loss at $36.90. I am not suggesting new positions at this time.

Our long-term target is $44.50 for the 2013 calls and $48.50 for the 2014 calls. NOTE (option strike adjustment): HFC recently declared a special dividend of 50 cents a share payable on September 4th, 2012 to shareholders of record on August 27th. The option exchanges have adjusted some contracts by lowering the strike price by 50 cents. Our 2013 Jan $42 call is now a $41.50 call. The 2014 $45 call is now a $44.50 strike.

- Suggested Positions -
AUG 17, 2012 - entry price on HFC @ 40.50, option @ 2.75
symbol: HFC1319A41.5* 2013 JAN $41.5 call - current bid/ask $2.50/2.60

- or -

AUG 17, 2012 - entry price on HFC @ 40.50, option @ 5.00
symbol: HFC1418A44.5* 2014 JAN $44.50 call - current bid/ask $4.70/5.60

*The 2013 call was previously a $42 strike. Adjusted to $41.50 strike. The 2014 call was a $45 strike, now adjusted to a $44.50 strike (occurred in August 2012 due to a special dividend).

Current Target: $ 44.50(2013 calls), $48.50 (2014 call)
Current Stop loss: 36.90
Play Entered on: 08/17/12
Originally listed on the Watch List: 08/06/12


Lennar Corp. - LEN - close: 33.93

Comments:
09/08/12 update: Homebuilding stocks were showing relative strength this past week. LEN rallied to new multi-year highs and broke through resistance near $33.00. I am not suggesting new positions at this time. Readers may want to take profits early ahead of the company's earnings report. Unfortunately, I don't see a confirmed earnings date but LEN should announce within the next two weeks.

Earlier Comments:
Our long-term target is $36.00 for the 2013 calls and $39.50 for the 2014 calls. FYI: LEN is due to report earnings in mid September.

- Suggested Positions -
AUG 17, 2012 - entry price on LEN @ 32.72, option @ 2.07
symbol: LEN1319A35 2013 JAN $35 call - current bid/ask $2.72/2.78

- or -

AUG 17, 2012 - entry price on LEN @ 32.72, option @ 3.39
symbol: LEN1418A40 2014 JAN $40 call - current bid/ask $3.90/4.10

09/08/12 readers may want to take profits early ahead of LEN's upcoming earnings report (which is expected some time in the next two weeks)

Current Target: $ 36.00(2013 calls), $39.50 (2014 call)
Current Stop loss: 29.75
Play Entered on: 08/17/12
Originally listed on the Watch List: 08/11/12


Eli Lilly - LLY - close: 46.65

Comments:
09/08/12 update: LLY has been rushing higher these last three weeks with a surge to new three-year highs. The stock is very short-term overbought and due for a correction. Readers will want to seriously consider taking profits right here!

I am not suggesting new positions. We will raise our stop loss to $42.75.

Currently we want to exit our 2014 calls when LLY hits $48.50.

- Suggested (SMALL) Positions -
(exited on July 23rd at the open)
Jan 05, 2012 - entry price on LLY @ 39.50, option @ 1.19
symbol: LLY1319A45 2013 JAN $45 call - exit $2.09 (+75.6%)

- or -

(still active)
Jan 05, 2012 - entry price on LLY @ 39.50, option @ 2.75
symbol: LLY1418A45 2014 JAN $45 call - current bid/ask $ 4.35/ 4.55

09/08/12 readers may want to take profits right here after another strong week
09/08/12 new stop loss @ 42.75
08/24/12 LLY spikes on news regarding Alzheimer treatment study
07/23/12 closed the 2013 calls @ the open (+75.6%)
07/21/12 prepare to exit the 2013 Jan $45 calls on Monday morning
07/21/12 adjust exit target for 2014 calls to $48.50
06/30/12 new stop loss @ 39.75
06/23/12 LLY is hitting new multi-year highs.
06/09/12 new stop loss @ 38.75
04/25/12 LLY beat earnings estimates by 12c and raised guidance
03/17/12 LLY's close over $40.00 looks like a new bullish entry point
01/28/12 new stop loss @ 37.75

Current Target: $48.50 (2014)
Current Stop loss: 42.75
Play Entered on: 01/05/12

Originally listed on the Watch List: 12/17/11


Monsanto Co. - MON - close: 89.39

Comments:
09/08/12 update: The broad-based market rally helped push MON past its three-week trend line of lower highs. This is a bullish breakout but MON is still facing resistance at the $90.00 level. I am not suggesting new positions at this time. We will raise our stop loss to $83.75.

- Suggested Positions -
Jul 17, 2012 - entry price on MON @ 85.84, option @ 4.35
symbol: MON1319A90 2013 JAN $90 call - current bid/ask $ 4.80/ 4.90

- or -

Jul 17, 2012 - entry price on MON @ 85.84, option @ 6.50
symbol: MON1418A100 2014 JAN $100 call - current bid/ask $ 6.95/ 7.05

09/08/12 new stop loss @ 83.75
08/25/12 adjust expectations, look for a dip toward $82
08/11/12 look for a pullback toward $84 soon
07/17/12 trade opens with MON at $85.84
07/16/12 MON closes above our entry requirement ($85.25)

Current Target: $99.50
Current Stop loss: 83.75
Play Entered on: 07/17/12
Originally listed on the Watch List: 07/14/12


Merck & Co - MRK - close: 44.05

Comments:
09/08/12 update: The pullback on Friday left MRK to settle with a one-dollar gain for the week. Traders have been buying the dip near MRK's rising 50-dma. The breakout on Thursday is definitely short-term bullish but I would not launch new long-term positions here. Our long-term target remains the $47.50 level since we have the 2014 options.

- Suggested Positions -
Jun 25, 2012 - entry price on MRK @ 39.91, option @ 3.14
symbol: MRK1418A40 2014 JAN $40 call - current bid/ask $ 5.70/ 5.80

08/11/12 new stop loss @ 40.90
07/14/12 new stop loss @ 39.49
07/14/12 Readers will want to seriously consider taking profits now.
MRK is at $43.47, option @ 5.15 (+93.9%)
06/25/12 MRK gap down at $39.91
06/22/12 MRK met our entry point requirement with a close over $40.00. Launch positions on Monday morning (conservative traders can wait for a dip to the 10-dma instead).

Current Target: $47.50
Current Stop loss: 40.90
Play Entered on: 06/25/12

Originally listed on the Watch List: 05/05/12


Microsoft - MSFT - close: 30.95

Comments:
09/08/12 update: MSFT saw a bullish breakout past resistance at $31.00 on Thursday. Unfortunately the stock gave back -1.2% on Friday thanks in part to an earnings warning from Intel (INTC). Intel said PC sales are not meeting expectations and that could foreshadow trouble for MSFT. Of course investors have been betting on the new Windows 8 operating system, set to be released later this year, to start the next upgrade cycle for MSFT's revenues.

The tablet PC is having a big impact on computer use both at work and at home. MSFT has not launched its Surface (tablet pc) product yet but the company is betting on a surge for tablet sales. A recent article on the subject said MSFT believes tablets will outsell desktop PCs in 2013.

I would be tempted to buy 2014 calls if MSFT can close over $31.35 again.

- Suggested Positions -
Jun 01, 2012 - entry price on MSFT @ 28.50, option @ 1.69
symbol:MSFT1319A30 2013 JAN $30 call - current bid/ask $ 2.09/ 2.12

- or -

Jun 01, 2012 - entry price on MSFT @ 28.50, option @ 3.05
symbol:MSFT1418A30 2014 JAN $30 call - current bid/ask $ 3.85/ 3.90

07/28/12 raise stop loss to $28.45
06/18/12 MSFT announces the "surface" line of tablets
06/01/12 triggered at $28.50
05/19/12 adjust the trigger to $28.50, stop to $26.45
05/05/12 adjust the trigger to $29.00
04/28/12 adjust buy-the-dip trigger to $29.50, stop to $26.75

Current Target: $32.75 & 34.75
Current Stop loss: 28.45
Play Entered on: 06/01/12
Originally listed on the Watch List: 04/14/12


Pepsico, Inc. - PEP - close: 72.10

Comments:
09/08/12 update: PEP underperformed the market this past week but traders bought the dip at technical support. The stock has been bouncing at its rising 50-dma for months now and investors just bought the dip again. I do see very short-term resistance near the $72.50 level.

I am not suggesting new positions at this time.

- Suggested Positions -
Jul 02, 2012 - entry price on PEP @ 70.34, option @ 2.85
symbol: PEP1418A75 2014 JAN $75 call - current bid/ask $ 3.40/ 3.55

08/18/12 new stop loss @ 68.75
08/06/12 new stop loss @ 67.75
07/02/12 PEP opened at $70.34
07/02/12 launch positions at the open
06/29/12 PEP meets our entry requirement with a close above $70.25.

Current Target: $79.00
Current Stop loss: 68.75
Play Entered on: 07/02/12
Originally listed on the Watch List: 05/26/12


Pfizer Inc. - PFE - close: 24.24

Comments:
09/08/12 update: The stock market's breakout on Thursday helped PFE breakout from its four-week consolidation pattern. The stock is closing in on its multi-year high set in late July near $24.50.

I am raising our stop loss to $21.90. More conservative traders may want to use a stop closer to $22.50 or even $23.00 instead. I am not suggesting new positions at this time.

- Suggested Positions -
Jul 18, 2012 - entry price on PFE @ 23.53, option @ 1.30
symbol: PFE1418A25 2014 JAN $25 call - current bid/ask $ 1.69/ 1.73

09/08/12 new stop loss @ 21.90
08/06/12 new stop loss @ 21.35
07/18/12 trade opens. PFE @ 23.53
07/17/12 PFE meets our entry requirements (close over $23.40)
06/23/12 removed the 2013 call. We'll only play the 2014s
04/28/12 do not launch positions prior to the earnings report on May 1st.

Current Target: $28.00
Current Stop loss: 21.35
Play Entered on: 07/18/12
Originally listed on the Watch List: 04/21/12


QUALCOMM Inc. - QCOM - close: 61.93

Comments:
09/08/12 update: Thursday's big bounce in QCOM helped snap a two-week losing streak. Yet QCOM underperformed on Friday, possibly in reaction to Intel's earnings warning. QCOM could see some volatility following Apple's event (AAPL) on Sept. 12th. Shares of AAPL typically see a sell-off after a big product launch and QCOM could follow it lower. Look for support near $60.00. I am not suggesting new positions at this time.

- Suggested Positions -
Aug 10, 2012 - entry price on QCOM @ 61.71, option @ 2.56
symbol:QCOM1319A65 2013 JAN $65 call - current bid/ask $ 2.44/ 2.48

- or -

Aug 10, 2012 - entry price on QCOM @ 61.71, option @ 4.75
symbol:QCOM1418A70 2014 JAN $70 call - current bid/ask $ 4.95/ 5.10

Current Target: $68.50
Current Stop loss: 57.40
Play Entered on: 08/10/12
Originally listed on the Watch List: 08/06/12


Charles Schwab Corp. - SCHW - close: 14.03

Comments:
09/08/12 update: SCHW is a watch list candidate that has made the leap to our active trade list. We have been waiting for shares to close over $13.60. The plan was to buy calls the next day. SCHW had been consolidating sideways under resistance near $13.50 and was building up steam for a breakout higher. Then the market exploded higher on the ECB news this Thursday and SCHW shot a lot higher than we expected. The stock closed at $13.96 on the 6th. Our trade opened on Sept. 7th at $13.97. SCHW looks bullish here but I would wait for a dip back toward the $13.65 area before launching new positions.

I am raising our stop loss to $12.90. Our long-term target is $15.50 (exit the 2014 calls when SCHW hits $15.50).

- Suggested Positions -
Sep 07, 2012 - entry price on SCHW @ 13.97, option @ 1.90
symbol:SCHW1319a12.5 2013 JAN $12.5 call - current bid/ask $ 1.85/ 1.95

- or -

Sep 07, 2012 - entry price on SCHW @ 13.97, option @ 1.60
symbol:SCHW1418a15 2014 JAN $15 call - current bid/ask $ 1.35/ 1.55

Chart of SCHW:

Current Target: $15.50
Current Stop loss: 12.90
Play Entered on: 09/07/12
Originally listed on the Watch List: 08/18/12


Spreadtrum Communications - SPRD - close: 21.78

Comments:
09/08/12 update: SPRD was a big move this past week with a breakthrough key resistance near $20.00. SPRD was a watch list candidate that met our entry requirements with Thursday's close above $20.50 (actual close was $20.59). Our trade opened on Friday morning when shares opened at $20.59 and surged another +5.7%.

I am not suggesting new positions after Friday's rally. Wait for a dip back toward $21.00 or $20.50 before considering new positions.

Our stop loss is still at $18.90. Our target is $24.00.

- Suggested Positions -
Sep 07, 2012 - entry price on SPRD @ 20.59, option @ 1.95
symbol:SPRD1319a22.5 2013 JAN $22.5 call - current bid/ask $ 2.15/ 2.50

Chart of SPRD:

Current Target: $24.00
Current Stop loss: 18.90
Play Entered on: 09/07/12
Originally listed on the Watch List: 08/25/12


Skyworks Solutions - SWKS - close: 31.16

Comments:
09/08/12 update: SWKS rallied to another new 52-week high and confirmed the breakout past resistance at $30.00. Our trade opened on Tuesday morning when SWKS gapped down at $29.85. Traders bought the dip twice near its rising 30-dma and then SWKS rallied with the market on Thursday. I would still consider new positions on a dip near $30.50.

We want to exit the 2013 calls when SWKS hits $34.00 and exit the 2014 calls when SWKS hits $37.50.

FYI: The point & figure chart is bullish with a $40 target.

- Suggested Positions -
Sep 04, 2012 - entry price on SWKS @ 29.85, option @ 3.10
symbol:SWKS1319A32 2013 JAN $32 call - current bid/ask $ 3.30/ 3.40

- or -

Sep 04, 2012 - entry price on SWKS @ 29.85, option @ 5.85*
symbol:SWKS1418a35 2014 JAN $35 call - current bid/ask $ 5.80/ 6.10

09/04/12 trade opened with SWKS' gap down at $29.85
09/01/12 SWKS hit our entry conditions on Friday 08/31/12, open positions on Tuesday morning (09/04/12).

Current Target: $34.00 (2013 calls) & 37.50 (2014 calls)
Current Stop loss: 27.40
Play Entered on: 09/04/12
Originally listed on the Watch List: 08/11/12


The TJX Companies - TJX - close: 45.85

Comments:
09/08/12 update: TJX's performance this past week was pretty disappointing. The market is surging higher and TJX did not participate. Shares just continued to drift sideways. That doesn't bode well. Granted the stock is at all-time highs. It's probably due for a correction. Due to TJX's lack of movement this past week more conservative traders with the 2013 calls may want to seriously consider an early exit right now.

I am raising our stop loss up to $42.40. I am not suggesting new positions at this time.

- Suggested Positions -
Jun 20, 2012 - entry price on TJX @ 43.62, option @ 2.53
symbol: TJX1319A45 2013 JAN $45 call - current bid/ask $ 2.95/ 3.10

- or -

Jun 20, 2012 - entry price on TJX @ 43.62, option @ 5.10
symbol: TJX1418A45 2014 JAN $45 call - current bid/ask $ 5.80/ 6.10

09/08/12 new stop loss @ 42.40, readers with the 2013 calls may want to exit early now
08/18/12 new stop loss @ 40.85
07/05/12 TJX beats June same-store sales estimates and raises guidance
06/20/12 trade opens
06/19/12 TJX closed above our entry requirement (above $43.25)

Current Target: $49.75
Current Stop loss: 40.85
Play Entered on: 06/20/12

Originally listed on the Watch List: 06/16/12


Time Warner - TWX - close: 43.64

Comments:
09/08/12 update: Shares of TWX are sprinting higher again. This past week the stock garnered an upgrade. Combine that with the market's rally and TWX has advanced to a new multi-year high. I am raising our stop loss to $39.85. More conservative traders may want to adjust their stop closer to $41.00 instead. I am not suggesting new positions.

- Suggested Positions -
Aug 03, 2012 - entry price on TWX @ 40.66, option @ 1.79
symbol: TWX1319A42 2013 JAN $42 call - current bid/ask $ 3.05/ 3.15

- or -

Aug 03, 2012 - entry price on TWX @ 40.66, option @ 2.85
symbol: TWX1419A45 2014 JAN $45 call - current bid/ask $ 4.05/ 4.20

09/08/12 new stop loss @ 39.85
08/11/12 readers might want to lock in gains now (+49% on the 2013 calls) in just two weeks and then jump back in on a correction in the stock.
08/03/12 TWX opens at $40.66 (trade opens)
08/02/12 TWX meets our entry requirement with a close over $40.50

Current Target: $49.00
Current Stop loss: 39.85
Play Entered on: 08/03/12
Originally listed on the Watch List: 07/21/12


Union Pacific Corp. - UNP - close: 122.25

Comments:
09/08/12 update: The transportation sector is still underperforming the market but the group did see a big bounce Thursday and Friday. UNP broke down under support near $120 and its 50-dma on Wednesday only to reverse higher with the market's rally. UNP still has a short-term, three-week bearish trend of lower highs. I am not suggesting new positions at the moment.

- Suggested Positions -
Jul 20, 2012 - entry price on UNP @ 122.10, option @ 3.80
symbol: UNP1319A130 2013 JAN $130 call - current bid/ask $ 2.91/ 3.05

- or -

Jul 20, 2012 - entry price on UNP @ 122.10, option @ 6.40
symbol: UNP1418A140 2014 JAN $140 call - current bid/ask $ 6.45/ 7.00

08/18/12 new stop loss at $114.75
08/11/12 that looks like a brand new bearish engulfing candlestick reversal pattern on the weekly chart today. Let's see if there is any follow through.

Current Target: $139.00
Current Stop loss: 114.75
Play Entered on: 07/20/12
Originally listed on the Watch List: 06/30/12


Urban Outfitters - URBN - close: 38.73

Comments:
09/08/12 update: URBN continues to show strength. The stock is nearing its February 2011 highs and hit $39.08 on Friday. Readers may want to go ahead and take profits now. Our exit target is $39.50. I am raising our stop loss to $36.40. I am not suggesting new positions at this time.

- Suggested Positions -
Aug 21, 2012 - entry price on URBN @ 36.82, option @ 4.25*
symbol:URBN1319A35 2013 JAN $35 call - current bid/ask $ 5.30/ 5.50

- or -

Aug 21, 2012 - entry price on URBN @ 36.82, option @ 5.20*
symbol:URBN1319C35 2013 MAR $35 call - current bid/ask $ 6.00/ 6.20

09/08/12 new stop loss @ 36.40. readers may want to exit now to lock in a gain
08/25/12 adjusted our entry, stop, and exit target
stop loss 35.80, exit target 39.50
*option entry prices are an estimate. neither traded at the time of our entry

Current Target: $39.50
Current Stop loss: 36.40
Play Entered on: 08/21/12
Originally listed on the Watch List: 08/18/12


U.S. Bancorp - USB - close: 33.98

Comments:
09/08/12 update: The rally in financials last week pushed USB toward resistance near $34.00 and its July 2012 highs. The stock looks poised to breakout. I would be tempted to use a close over $34.00 as a new entry point to buy the 2014 calls.

- Suggested Positions -
Jul 20, 2012 - entry price on USB @ 33.62, option @ 1.39
symbol: USB1319A35 2013 JAN $35 call - current bid/ask $ 1.08/ 1.11

- or -

Jul 20, 2012 - entry price on USB @ 33.62, option @ 3.10
symbol: USB1418A35 2014 JAN $35 call - current bid/ask $ 3.15/ 3.25

07/20/12 trade opens Friday morning
07/19/12 USB closes above our trigger <33.50
07/14/12 adjusted strategy: wait for a close over $33.50, stop 29.90
06/30/12 readers might want to consider an alternative entry point
06/23/12 adjust entry trigger to $29.00, stop to 26.40
06/02/12 adjust entry trigger to $28.00

Current Target: $39.50
Current Stop loss: 29.90
Play Entered on: 07/20/12
Originally listed on the Watch List: 05/19/12


Visa, Inc. - V - close: 129.71

Comments:
09/08/12 update: Visa suffered a slow, three-week correction in August. Then traders started buying the dips at its rising 50-dma. Now Visa appears to be on the advance again. This recent move higher looks like a new bullish entry point.

Earlier Comments:
Our long-term target is $149.00 (although we'll likely exit our 2013 calls before V reaches our target).

- Suggested Positions -
JUL 03, 2012 - entry price on V @ 126.49, option @ 5.85
symbol: V1319A135 2013 JAN $135 call - current bid/ask $ 4.80/ 4.95

- or -

JUL 03, 2012 - entry price on V @ 126.49, option @ 11.95
symbol: V1418A140 2014 JAN $140 call - current bid/ask $12.25/12.75

08/06/12 new stop loss @ 119.75
07/16/12 V pops on news of a settlement in 7-year lawsuit
07/03/12 trade opens with Visa at $126.49
07/02/12 Visa closes above our trigger @ 125.50

Current Target: $149.00
Current Stop loss: 119.75
Play Entered on: 07/03/12
Originally listed on the Watch List: 06/30/12