Editor's Note:

Stocks continue to advance higher. Several of our plays are at new multi-year highs.

URBN hit our exit target. LEN hit our exit target for the 2013 calls. CVX and WFC have graduated from the watch list to our active play list.


Closed Plays


URBN hit our target.


Play Updates


Abbott Labs - ABT - close: 68.27

Comments:
09/15/12 update: ABT rallied to new all-time highs with Thursday's advance to $69.27. Shares hit some profit taking on Friday. More conservative traders may want to start taking profits if you are holding the 2013 calls, which have virtually doubled for us.

On a short-term basis I would expect ABT to pull back toward the $67-66 area. Please note that I am raising our stop loss up to $62.75.

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 $ 3.95/ 4.05

- or -

JUL 02, 2012 - entry price on ABT @ 64.22, option @ 4.28
symbol: ABT1418A65 2014 JAN $65 call - current bid/ask $ 5.80/ 6.25

09/15/12 new stop loss @ 62.75
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: 62.75
Play Entered on: 07/02/12
Originally listed on the Watch List: 06/23/12


American Intl. Group - AIG - close: 35.02

Comments:
09/15/12 update: Not surprisingly there was some volatility in AIG's stock surrounding the U.S. Treasury Department's sale of $18 billion in stock. The U.S. government has reduced its stake from a majority stake to just 16% of AIG's outstanding shares. AIG saw a spike down toward technical support at the 50-dma and then bounced. The stock is currently poised to breakout past resistance near the $35.00 level. This past week rallies have been failing under the $35.50 level. A close over $35.50 could be used as a new bullish entry point or a level to add to positions.

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 $ 5.75/ 5.80

- or -

May 18, 2012 - entry price on AIG @ 28.25, option @ 4.20
symbol: AIG1418A35 2014 JAN $35 call - current bid/ask $ 5.65/ 5.85

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: 92.48

Comments:
09/15/12 update: It was a bullish week for APA. The stock has broken through resistance near $90.00 and powered through a cloud of moving averages in the $92-93 area. APA spiked toward the next level of resistance near $95 and its 300-dma on Friday. I would expect some profit taking but we can look for new support near the $90.00 level now. I am raising our stop loss to $84.90.

- Suggested Positions -
Jun 18, 2012 - entry price on APA @ 87.10, option @ 3.45
symbol: APA1319A100 2013 JAN $100 call - current bid/ask $ 2.39/ 2.45

- or -

Jun 18, 2012 - entry price on APA @ 87.10, option @ 6.43
symbol: APA1418A100 2014 JAN $110 call - current bid/ask $ 5.65/ 5.85

09/15/12 new stop loss @ 84.90
09/08/12 new stop loss @ 82.90
08/18/12 new stop loss @ 81.40

Current Target: $109.00
Current Stop loss: 84.90
Play Entered on: 06/18/12
Originally listed in the New Plays 06/16/12


Bank of America - BAC - close: 9.55

Comments:
09/15/12 update: Financial stocks have been big winners with all the QE news from Europe and the U.S. Shares of BAC have been rocketing higher with a move from $8.00 several days ago to hit $9.79 intraday on Friday (+22%). BAC is short-term overbought here and I would look for a pullback.

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 $ 0.58/ 0.59
(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 $ 0.58/ 0.59
(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: 93.17

Comments:
09/15/12 update: Shares of CAT have seen a strong comeback. The stock is up about five points for the week and hitting new higher highs. The rally did stall at its 300-dma on Friday and CAT is short-term overbought here. I would look for another dip back toward the $90.00 level before it moves much higher. I am not suggesting new positions at this time.

Please note our new stop loss at $84.75.

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 $ 4.60/ 4.75

- or -

Aug 10, 2012 - entry price on CAT @ 88.26, option @ 7.90
symbol: CAT1418A100 2014 JAN $100 CALL - current bid/ask $ 9.25/ 9.45

09/15/12 new stop loss @ 84.75
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: 84.75
Play Entered on: 08/10/12
Originally listed on the Watch List: 07/07/12


CH Robinson Worldwide - CHRW - close: 57.27

This is a bearish PUT option trade.

Comments:
09/15/12 update: The stock market's major indices are breaking out to new highs. The transportation sector has seen a huge bounce. Yet CHRW has not budged. The fact that CHRW has failed to breakout over resistance near $58 and its 100-dma and its long-term trend line of lower highs is good news for the bears. However, I remain cautious here. 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 $ 2.25/ 2.35

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


Chevron Corp. - CVX - close: 117.25

Comments:
09/15/12 update: CVX is a watch list candidate that has graduated to our play list. We wanted to wait for shares to breakout higher. The trigger was for CVX to close over $114.00. The stock closed at $114.18 on September 11th. Our trade opened the next day with CVX at $114.23. CVX has since shot higher. I would expect a pullback soon. Please note that I am raising our stop loss to $109.75.

Our long-term target is $129.00.

- Suggested (small) Positions -
Sep 12, 2012 - entry price on CVX @ 114.23, option @ 5.60
symbol: CVX1418a125 2014 JAN $125 Call - current bid/ask $ 6.15/ 6.50

09/15/12 new stop loss at $109.75
09/12/12 trade opened with CVX at $114.23
09/11/12 CVX closed over $114.00
09/07/12 CVX closed at $114.00. Wait for a close over $114.00.
Current bid/ask on our option is $5.75/5.90.

Chart of CVX:

Current Target: $129.00
Current Stop loss: 109.75
Play Entered on: 09/12/12
Originally listed on the Watch List: 09/01/12


Discover Financial - DFS - close: 39.31

Comments:
09/15/12 update: I am a little surprised that DFS did not perform better last week. Shares did hit new highs on Thursday and Friday but DFS has not produced a convincing breakout from its $38-39 trading range. The trend is up but I am not suggesting new positions.

Please note that DFS is due to report earnings on September 27th, before the opening bell. I'm not suggesting new positions at this time.

DFS almost hit our exit target of $39.75 for the 2013 calls.

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 $3.50/3.70

- or -

JUL 05, 2012 - entry price on DFS @ 35.28, option @ 3.40
symbol: DFS1418A40 2014 JAN $40 call - current bid/ask $4.40/5.00

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: 58.64

Comments:
09/15/12 update: EMN rallied to new highs but shares were paring their gains on Friday. I don't see any real changes from my prior comments. The $55-56 area should be support. I would look for dips near $56.00 as a new entry point.

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 $3.00/3.20

- or -

SEP 07, 2012 - entry price on EMN @ 56.64, option @ 5.55
symbol: EMN1418a65 2014 JAN $65 call - current bid/ask $5.70/6.00

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: 41.97

Comments:
09/15/12 update: Shares of HFC soared to new highs thanks to a bullish market and an analyst upgrade on Friday. The stock has broken out past resistance near the $41.00 level. I would use a dip near $41.00 as a new bullish entry point.

In the news this past week HFC announced a special dividend of 50 cents a share payable on October 2nd to shareholders of record on September 25th.

Our 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 $3.50/3.70

- or -

AUG 17, 2012 - entry price on HFC @ 40.50, option @ 5.00
symbol: HFC1418A44.5* 2014 JAN $44.50 call - current bid/ask $5.70/6.20

*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: 36.47

Comments:
09/15/12 update: Target achieved.

LEN rallied to new multi-year highs on Friday and hit our exit target of $36.00 for the 2013 calls.

Our target for the 2014 calls is still $39.50. Please note that I am raising our stop loss to $31.40.

I am not suggesting new positions at this time. More conservative traders will want to consider an exit prior to LEN's next earnings report on September 24th.

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 -
(target for 2013 calls was hit at $36.00 on 09/14/2012)
AUG 17, 2012 - entry price on LEN @ 32.72, option @ 2.07
symbol: LEN1319A35 2013 JAN $35 call - exit $3.70 (+78.7%)

- or -

AUG 17, 2012 - entry price on LEN @ 32.72, option @ 3.39
symbol: LEN1418A40 2014 JAN $40 call - current bid/ask $5.05/5.20

09/15/12 new stop loss @ 31.40
09/14/12 2013 call target hit at $36.00, option @ 3.70 (+78.7%)
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)

Chart of LEN:

Current Target: $ 36.00(2013 calls), $39.50 (2014 call)
Current Stop loss: 31.40
Play Entered on: 08/17/12
Originally listed on the Watch List: 08/11/12


Eli Lilly - LLY - close: 46.72

Comments:
09/15/12 update: LLY did not make much progress this week. Shares rallied on Thursday only to see LLY give back most of those gains on Friday. I don't see any changes from my prior comments. Readers may want to exit early. Our final target for the 2014 calls is $48.50.

I am not suggesting new positions.

- 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 $ 4.15/ 4.30

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: 88.97

Comments:
09/15/12 update: MON is still having trouble with resistance at the $90.00 level. The larger trend is still bullish with a trend of higher lows. Investors could use a close over $90.50 as a new bullish entry point but if you do I would raise your stop loss significantly.

- Suggested Positions -
Jul 17, 2012 - entry price on MON @ 85.84, option @ 4.35
symbol: MON1319A90 2013 JAN $90 call - current bid/ask $ 4.10/ 4.25

- or -

Jul 17, 2012 - entry price on MON @ 85.84, option @ 6.50
symbol: MON1418A100 2014 JAN $100 call - current bid/ask $ 6.20/ 6.40

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: 43.62

Comments:
09/15/12 update: MRK spent the week drifting higher and then reversed with profit taking on Friday. The stock lost -2.3% and closed on technical support at the 50-dma. This could be a new lower high for MRK. I suspect shares could see a deeper correction soon. Look for a dip toward the $41 area. We have a stop loss at $40.90. More aggressive traders will want to place their stop under the $40.00 mark instead.

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 $ 5.30/ 5.40

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: 31.21

Comments:
09/15/12 update: Shares of MSFT are holding up pretty well considering all the news out recently about slowing PC demand. The stock has been struggling with resistance near $31.00 but closed up strongly on Friday.

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 $ 2.10/ 2.13

- or -

Jun 01, 2012 - entry price on MSFT @ 28.50, option @ 3.05
symbol:MSFT1418A30 2014 JAN $30 call - current bid/ask $ 3.80/ 3.85

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: 70.46

Comments:
09/15/12 update: It was not a good week for PEP. Shares plunged on Wednesday on news the company's president was leaving to become the CEO of another company. Wednesday's drop broke through technical support at the 50-dma. Traders bought the dip near $70 but the short-term trend is down.

We have a stop loss at $68.75. More conservative traders may want to raise their stops closer to $70 or the 100-dma. 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 $ 2.48/ 2.59

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: 23.80

Comments:
09/15/12 update: The recent action in PFE is troubling. The stock underperformed the market on Friday with a plunge to its 50-dma. You could also argue that the rally on September 6th is either a new lower high or the second half to a potential bearish double top.

I would not be surprised to see a correction toward $23.00, which should be support. 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 $ 1.31/ 1.38

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: 64.88

Comments:
09/15/12 update: Shares of QCOM are surging higher thanks to strength in tech stocks and leadership from AAPL. After a four-day rally in QCOM I would expect a little pullback soon. We can raise our stop loss to $59.40 since the $60.00 level should be new support. 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 $ 3.65/ 3.75

- or -

Aug 10, 2012 - entry price on QCOM @ 61.71, option @ 4.75
symbol:QCOM1418A70 2014 JAN $70 call - current bid/ask $ 6.10/ 6.25

09/15/12 new stop loss @ 59.40

Current Target: $68.50
Current Stop loss: 59.40
Play Entered on: 08/10/12
Originally listed on the Watch List: 08/06/12


Charles Schwab Corp. - SCHW - close: 14.43

Comments:
09/15/12 update: SCHW is up almost three percent for the week. Shares are challenging potential resistance near $14.50. I would look for a short-term dip back toward $14.00 before SCHW moves higher. I am not suggesting new positions at current levels.

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 $ 2.10/ 2.25

- or -

Sep 07, 2012 - entry price on SCHW @ 13.97, option @ 1.60
symbol:SCHW1418a15 2014 JAN $15 call - current bid/ask $ 1.50/ 1.70

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: 20.99

Comments:
09/15/12 update: SPRD is a Chinese semiconductor company. A big drop in the Chinese market on Monday produced a sharp reversal in shares of SPRD on September 10th. Thankfully there was no follow through and SPRD has been drifting higher since then. I remain bullish here but given the volatility readers may want to limit their position size in SPRD.

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 $ 1.80/ 2.05

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: 29.61

Comments:
09/15/12 update: I am worried about SWKS. Shares were down four days in a row and only bounced on Friday. That bounce failed to close back above resistance at $30.00. The rally on September 6th, the lack of follow through on September 7th and the decline on Sept. 10th has created a bearish reversal pattern that also doubles as a bull-trap pattern.

More conservative traders may want to raise their stops. I am not suggesting new positions at this time.

Earlier Comments:
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 $ 2.35/ 2.45

- or -

Sep 04, 2012 - entry price on SWKS @ 29.85, option @ 5.85*
symbol:SWKS1418a35 2014 JAN $35 call - current bid/ask $ 4.70/ 5.00

09/15/12 SWKS's recent performance looks bearish. Investors should turn defensive on SWKS
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: 46.46

Comments:
09/15/12 update: The recent performance in TJX is very underwhelming. The overall trend is still up. TJX is still trading near its highs. Yet the stock just isn't moving very fast. I am raising our stop loss again, this time to $43.40. 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 $ 3.10/ 3.30

- or -

Jun 20, 2012 - entry price on TJX @ 43.62, option @ 5.10
symbol: TJX1418A45 2014 JAN $45 call - current bid/ask $ 5.90/ 6.10

09/15/12 new stop loss @ 43.40
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: 43.40
Play Entered on: 06/20/12

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


Time Warner - TWX - close: 44.71

Comments:
09/15/12 update: It's been a good week for TWX with the stock advancing to new multi-year highs. Shares also garnered some positive analyst comments and a new, higher price target. It's possible the $45.00 level is round-number resistance. Therefore more conservative traders, especially if you're holding the 2013 calls, may want to go ahead and take profits now. 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 $ 3.75/ 3.85

- or -

Aug 03, 2012 - entry price on TWX @ 40.66, option @ 2.85
symbol: TWX1419A45 2014 JAN $45 call - current bid/ask $ 4.40/ 4.55

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: 128.43

Comments:
09/15/12 update: It looks like the railroad are leading the transportation sector higher. Shares of UNP are soaring with a seven-day rally. The stock added more than six points for the week and closed at new all-time record highs. After non-stop seven-day run we should expect some profit taking soon. I am raising our stop loss to $117.75. I am not suggesting new positions at current levels.

- Suggested Positions -
Jul 20, 2012 - entry price on UNP @ 122.10, option @ 3.80
symbol: UNP1319A130 2013 JAN $130 call - current bid/ask $ 5.15/ 5.25

- or -

Jul 20, 2012 - entry price on UNP @ 122.10, option @ 6.40
symbol: UNP1418A140 2014 JAN $140 call - current bid/ask $ 8.35/ 9.00

09/15/12 new stop loss @ 117.75
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: 117.75
Play Entered on: 07/20/12
Originally listed on the Watch List: 06/30/12


U.S. Bancorp - USB - close: 34.93

Comments:
09/15/12 update: Financial stocks have been performing well this past week. USB has rallied to new multi-year highs. Broken resistance near $34.00 should offer some new short-term support. I am raising our stop loss to $31.40.

- Suggested Positions -
Jul 20, 2012 - entry price on USB @ 33.62, option @ 1.39
symbol: USB1319A35 2013 JAN $35 call - current bid/ask $ 1.35/ 1.39

- or -

Jul 20, 2012 - entry price on USB @ 33.62, option @ 3.10
symbol: USB1418A35 2014 JAN $35 call - current bid/ask $ 3.25/ 3.40

09/15/12 new stop loss @ 31.40
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: 31.40
Play Entered on: 07/20/12
Originally listed on the Watch List: 05/19/12


Visa, Inc. - V - close: 134.25

Comments:
09/15/12 update: Visa was showing relative strength this past week. The stock garnered positive comments and higher price targets from two different analysts. Shares rallied to new all-time, record highs. When the market sees a pullback I would look for short-term support near $130.

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 $ 6.40/ 6.45

- or -

JUL 03, 2012 - entry price on V @ 126.49, option @ 11.95
symbol: V1418A140 2014 JAN $140 call - current bid/ask $13.95/14.60

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


Wells Fargo & Co - WFC - close: 36.13

Comments:
09/15/12 update: WFC is a new trade. The stock was on our watch list with a trigger to buy calls when shares closed above $35.00. WFC met that entry requirement on Thursday with a close at $35.55. Our trade opened on Friday morning at $35.60. The $34-35 area has been major resistance for years so this breakout should signal the beginning of a big move higher.

If you're looking for an entry point I would wait for a pullback toward the $35.50 area. Odds are good that stocks will see some profit taking. Broken resistance near $35.00 should be significant support.

I am adjusting our long-term target to $44.00 but I would expect some resistance near the $40 level. FYI: The point & figure chart is bullish with a $57 target.

- Suggested Positions -
SEP 14, 2012 - entry price on WFC @ 35.60, option @ 2.26
symbol: WFC1418a40 2014 JAN $40 call - current bid/ask $ 2.16/ 2.21

Chart of WFC:

Current Target: $44.00
Current Stop loss: 32.75
Play Entered on: 09/14/12
Originally listed on the Watch List: 08/06/12


CLOSED Plays


Urban Outfitters - URBN - close: 39.71

Comments:
09/15/12 update: Target achieved.

Even though we were triggered on the gap higher back in August our trade worked out okay. URBN hit our exit target of $39.50 on September 10th.

- Suggested Positions -
Aug 21, 2012 - entry price on URBN @ 36.82, option @ 4.25*
symbol:URBN1319A35 2013 JAN $35 call - exit $5.90 (+38.8%)

- or -

Aug 21, 2012 - entry price on URBN @ 36.82, option @ 5.20*
symbol:URBN1319C35 2013 MAR $35 call - exit $6.50 (+25%)

09/10/12 target hit at $39.50
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

Chart of URBN:

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