Editor's Note:

I am suggesting an early exit for part of our positions in ABT and TWX. See play updates for details. I've also updated several stop losses tonight.


Closed Plays


SWKS hit our stop loss.


Play Updates


Abbott Labs - ABT - close: 69.62

Comments:
09/22/12: Another week, another new high for ABT. Shares are nearing potential round-number resistance at $70.00. After three weeks of gains I suspect this stock is due for a pullback but that may not happen if window dressing keeps the rally going. I am raising our stop loss to $63.75.

The 2013 Jan 65 call has a bid/ask spread of $5.15/5.25. I am suggesting we go ahead and exit our 2013 calls at the opening bell on Monday.

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 $ 5.15/ 5.25

- or -

JUL 02, 2012 - entry price on ABT @ 64.22, option @ 4.28
symbol: ABT1418A65 2014 JAN $65 call - current bid/ask $ 6.85/ 7.15

09/22/12 new stop loss @ 63.75
Prepare to exit our 2013 calls on Monday. current bid is $5.15
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


Analog Devices, Inc. - ADI - close: 40.32

Comments:
09/22/12: ADI is our new trade from last weekend. Unfortunately the semiconductor stocks underperformed all week and ADI followed the sector lower. Shares of ADI are nearing what should be round number support at $40.00. I would wait for a new bounce off the $40 area before considering new bullish positions.

- Suggested Positions -
SEP 17, 2012 - entry price on ADI @ 41.46, option @ 2.80
symbol: ADI1418a45 2014 JAN $45 call - current bid/ask $ 2.30/ 2.50

Current Target: $49.75
Current Stop loss: 38.75
Play Entered on: 09/17/12
Originally listed in the New Plays 09/15/12


American Intl. Group - AIG - close: 33.63

Comments:
09/22/12: It was not a good week for AIG. The stock is down five days in a row with a move toward the bottom of its prior trading range. The stock should have some support near $31. I am not suggesting new positions at this time. The key level to watch is a breakout and close past the $35.00-35.50 area.

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 $ 4.55/ 4.70

- or -

May 18, 2012 - entry price on AIG @ 28.25, option @ 4.20
symbol: AIG1418A35 2014 JAN $35 call - current bid/ask $ 4.80/ 5.00

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: 88.59

Comments:
09/22/12: Ouch! Shares of APA lost almost four points for the week. The stock reversed at the $95 level and the recent close back under $90.00 is bearish. The $90.00 level should have been new support. A sell-off in the price of crude oil probably played a part in APA's pullback. I warned readers to expect some profit taking but this was more than I was expecting.

I am not suggesting new positions at this time.

- Suggested Positions -
Jun 18, 2012 - entry price on APA @ 87.10, option @ 3.45
symbol: APA1319A100 2013 JAN $100 call - current bid/ask $ 1.25/ 1.29

- or -

Jun 18, 2012 - entry price on APA @ 87.10, option @ 6.43
symbol: APA1418A100 2014 JAN $110 call - current bid/ask $ 4.30/ 4.45

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: 9.11

Comments:
09/22/12: After a very sharp, two-week, +22% rally, shares of BAC hit some profit taking. I'd say that's pretty normal and told readers to expect a pullback last week. The dip may not be over yet. I am not suggesting new positions at this time.

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 $ 0.39/ 0.40
(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 $ 0.39/ 0.40
(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: 91.72

Comments:
09/22/12: CAT spent the week churning sideways in a $3 range and closed near the bottom of that range on Friday. I suspect the stock is poised to dip back toward the $90-89 area again. 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 $ 3.85/ 3.95

- or -

Aug 10, 2012 - entry price on CAT @ 88.26, option @ 7.90
symbol: CAT1418A100 2014 JAN $100 CALL - current bid/ask $ 8.45/ 8.65

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: 57.62

This is a bearish PUT option trade.

Comments:
09/22/12: Hmm... CHRW added about 35 cents for the week. While the gain is not very much CHRW should not be gaining at all. The transportation sector is plunging with the Dow Jones transportation average down more than -5% for the week. If CHRW is not going to decline with the sector on the way down then when is CHRW going to decline?

More conservative traders may want to exit early right now. I am not suggesting new positions. We will try and limit our risk by moving the stop loss down to $58.50.

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 $ 2.05/ 2.20

09/22/12 new stop loss @ $58.50, readers may want to just exit early now
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: 58.50
Play Entered on: 05/07/12
Originally listed in the New Plays 05/05/12


Chevron Corp. - CVX - close: 117.80

Comments:
09/22/12: CVX held up pretty well for the week and closed at another new high. It is worth noting that $118.50 was resistance twice last week. Even though CVX displayed relative strength compared to the rest of the oil sector I am a little cautious on launching new positions. Nimble traders could try buying calls on a new bounce off the $114 level, which should be support.

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 $ 6.25/ 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.

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: 38.62

Comments:
09/22/12: Uh-oh! There was no follow through on DFS' breakout higher two weeks ago. Instead shares faded lower and moved back into the $38-39 trading range. I am worried DFS is setting up for a larger correction lower.

More conservative traders may want to take profits now or consider an early exit prior to DFS' earnings announcement on September 27th. The company is due to announce before the opening bell. Wall Street expects a profit of $1.03 a share.

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 $3.00/3.10

- or -

JUL 05, 2012 - entry price on DFS @ 35.28, option @ 3.40
symbol: DFS1418A40 2014 JAN $40 call - current bid/ask $4.10/4.40

09/22/12 more conservative traders may want to exit right now or before DFS reports earnings on Sep 27th.
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: 57.18

Comments:
09/22/12: EMN retreated from its new high set two weeks ago. I will repeat my prior comments that broken resistance in the $55-56 area should be new support. A dip into this area should be a new entry point to buy calls. More conservative traders could wait for a bounce off this level before initiating positions.

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 $2.20/2.30

- or -

SEP 07, 2012 - entry price on EMN @ 56.64, option @ 5.55
symbol: EMN1418a65 2014 JAN $65 call - current bid/ask $4.90/5.20

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: 41.62

Comments:
09/22/12: HFC lost about 35 cents for the week. I would expect another dip toward the $41 or $40 levels. A bounce off either level can be used as a new bullish entry point.

Earlier Comments:
In the news HFC recently announced a special dividend of 50 cents a share payable on October 2nd to shareholders of record on September 25th. The ex-dividend date was Friday, Sept. 21st, 2012. Once again, the option exchanges have adjusted the strike prices again. They have decreased the strike price by 50 cents. Our 2013 Jan $41.50s are now $41.00s. The 2014 $44.50s are now $44.00s.

Our target is $44.50 for the 2013 calls and $48.50 for the 2014 calls.

- Suggested Positions -
AUG 17, 2012 - entry price on HFC @ 40.50, option @ 2.75
symbol: HFC1319A41** 2013 JAN $41.00 call - current bid/ask $3.50/4.00

- or -

AUG 17, 2012 - entry price on HFC @ 40.50, option @ 5.00
symbol: HFC1418A44** 2014 JAN $44.00 call - current bid/ask $5.50/6.70

** 09/22/12 this past week the option exchanges have adjusted the strike prices again by lowering them another 50 cents to account for HFC's special dividend.
Our 2013 Jan $41.50s are now $41.00s and the 2014 $44.50 calls are now $44.00s.
*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: 37.51

Comments:
09/22/12: LEN's rival KB Home (KBH) just reported earnings. Bullish comments and a better than expected report from KBH helped fuel gains across the sector. LEN has rallied to new multi-year highs. Now the pressure is on for LEN to deliver a bullish report. Lennar is due to announce earnings on Sept. 24th, before the opening bell. Wall Street expects a profit of 27 cents a share. If LEN disappoints we can expect this stock to correct lower.

I am not suggesting new positions at this time. Please note that I am raising the stop loss on this play to $33.40.

Our target for the 2014 calls is still $39.50.

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 $5.65/5.85

09/22/12 new stop loss @ 33.40
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)

Current Target: $ 36.00(2013 calls), $39.50 (2014 call)
Current Stop loss: 33.40
Play Entered on: 08/17/12
Originally listed on the Watch List: 08/11/12


Eli Lilly - LLY - close: 47.46

Comments:
09/22/12: LLY is still marching higher and shares hit another multi-year high on Friday at $47.76. More conservative traders may want to exit now. Currently our final target for the 2014 calls is $48.50.

I am raising our stop loss to $43.75.

- 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 $ 4.50/ 4.65

09/22/12 new stop loss @ 43.75
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: 43.75
Play Entered on: 01/05/12

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


McDermott Intl. - MDR - close: 12.70

Comments:
09/22/12: As expected shares of MDR produced a pullback. The stock retreated to the $12.50 level and its simple 10-dma. Our trigger to buy calls was hit at $12.55. I would still consider new positions now or you could wait for a new rally past Friday's high at $12.86.

Currently we have a stop loss at $11.45. More conservative traders may want to use a stop loss closer to the $12.00 mark, which should also provide some support. Our target is $14.90. More aggressive traders could aim higher.

- Suggested Positions -
SEP 20, 2012 - entry price on MDR @ 12.55, option @ 2.00
symbol: MDR1418A15 2014 JAN $15 call - current bid/ask $1.80/2.00

Chart of MDR:

Current Target: $14.90
Current Stop loss: 11.45
Play Entered on: 09/20/12
Originally listed on the Watch List: 09/15/12


Monsanto Co. - MON - close: 90.92

Comments:
09/22/12: It was a bullish week for MON. If you were waiting for MON to break through resistance at $90.00 then you got your wish. The move could be used as a new bullish entry point. I am raising our stop loss to $84.75.

FYI: MON is due to report earnings on October 3rd.

- Suggested Positions -
Jul 17, 2012 - entry price on MON @ 85.84, option @ 4.35
symbol: MON1319A90 2013 JAN $90 call - current bid/ask $ 5.10/ 5.20

- or -

Jul 17, 2012 - entry price on MON @ 85.84, option @ 6.50
symbol: MON1418A100 2014 JAN $100 call - current bid/ask $ 6.90/ 7.15

09/22/12 new stop loss @ 84.75
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: 84.75
Play Entered on: 07/17/12
Originally listed on the Watch List: 07/14/12


Merck & Co - MRK - close: 44.91

Comments:
09/22/12: Traders have continued to buy the dips at MRK's 50-dma. Now the stock is testing its 2012 highs near $45.00. Will MRK breakout or will it reverse into a bearish double top pattern? We don't know yet and more conservative traders may want to go ahead and take profits right now, especially with the bid on our call at $6.25 (+99%).

I am raising our stop loss to $41.85.

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 $ 6.25/ 6.35

09/22/12 new stop loss @ 41.85
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: 41.85
Play Entered on: 06/25/12

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


Microsoft - MSFT - close: 31.19

Comments:
09/22/12: MSFT is virtually unchanged for the week. Thursday's rally to new relative highs was followed with Friday's reversal lower. I am not suggesting new positions at this time. Please note our new stop loss at $29.45.

- 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/ 2.12

- or -

Jun 01, 2012 - entry price on MSFT @ 28.50, option @ 3.05
symbol:MSFT1418A30 2014 JAN $30 call - current bid/ask $ 3.75/ 3.85

09/22/12 new stop loss @ 29.45
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: 29.45
Play Entered on: 06/01/12
Originally listed on the Watch List: 04/14/12


Pepsico, Inc. - PEP - close: 70.55

Comments:
09/22/12: PEP is up fractionally for the week. Unfortunately, Friday's performance looks like another bearish reversal on the stock. Actually the recent sideways move and bounce attempt looks like a bear-flag pattern. I am worried about PEP and more conservative traders may want to exit early now.

Please note that I am raising our stop loss to $69.40. 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 $ 2.46/ 2.58

09/22/12 new stop loss @ 69.40, more conservative traders may want to exit early now.
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: 69.40
Play Entered on: 07/02/12
Originally listed on the Watch List: 05/26/12


Pfizer Inc. - PFE - close: 24.51

Comments:
09/22/12: PFE is still bouncing after rebounding off technical support at its 50-dma a few days ago. Shares appear to be breaking out past resistance near $24.50 and its July highs. The long-term trend is up but I would not chase the stock here. I am raising our stop loss to $22.45.

- Suggested Positions -
Jul 18, 2012 - entry price on PFE @ 23.53, option @ 1.30
symbol: PFE1418A25 2014 JAN $25 call - current bid/ask $ 1.61/ 1.66

09/22/12 new stop loss @ 22.45
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: 22.45
Play Entered on: 07/18/12
Originally listed on the Watch List: 04/21/12


QUALCOMM Inc. - QCOM - close: 64.26

Comments:
09/22/12: QCOM followed shares of AAPL higher on the iPhone 5 excitement. Now they are following AAPL sideways. Traders were quick to buy the dip on Thursday. If QCOM can breakout past resistance near $65.50 the next challenge is probably the 2012 highs near $68.75. Our exit target is $68.50.

- Suggested Positions -
Aug 10, 2012 - entry price on QCOM @ 61.71, option @ 2.56
symbol:QCOM1319A65 2013 JAN $65 call - current bid/ask $ 3.20/ 3.30

- or -

Aug 10, 2012 - entry price on QCOM @ 61.71, option @ 4.75
symbol:QCOM1418A70 2014 JAN $70 call - current bid/ask $ 5.80/ 5.90

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: 13.58

Comments:
09/22/12: Ouch! SCHW produced a sharp, four-day plunge that ended with a bounce on Friday. The stock was downgraded twice throughout the week. Short-term the trend is down but bigger picture this just looks like a correction following a multi-week rally.

I am not suggesting new positions at this time.

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 $ 1.45/ 1.55

- or -

Sep 07, 2012 - entry price on SCHW @ 13.97, option @ 1.60
symbol:SCHW1418a15 2014 JAN $15 call - current bid/ask $ 1.10/ 1.35

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: 21.25

Comments:
09/22/12: Traders bought the dip near support at $20.00 again. Yet SPRD is starting to see a trend of lower highs over the last couple of weeks. I am cautiously bullish here.

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 $ 1.70/ 2.10

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


The TJX Companies - TJX - close: 44.55

Comments:
09/22/12: Warning! Investors need to buckle their seat belts and more conservative traders may want to hit the eject button. TJX has been in a long-term up trend since 2011. The stock has not spent more than one day under its simple 50-dma over the past several months. TJX just broke that trend this week. It flirted with technical support at the 50-dma on Wednesday. It closed under it on Thursday and then failed at this moving average on Friday.

More conservative traders will want to exit early on Monday. We will leave our stop loss at $43.40 for now. 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 $ 2.00/ 2.10

- or -

Jun 20, 2012 - entry price on TJX @ 43.62, option @ 5.10
symbol: TJX1418A45 2014 JAN $45 call - current bid/ask $ 4.70/ 4.90

09/22/12 TJX looks vulnerable with a close under the 50-dma
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: 45.90

Comments:
09/22/12: TWX rallied to another multi-year high this week. Shares did pullback from their intraday high on Friday of $46.56. It's possible that TWX is starting to get short-term overbought here after a strong three-week rally. I would anticipate a pullback soon. We will raise our stop loss to $40.75.

Plus, we will exit our 2013 Jan $42.00 calls on Monday morning at the open. They currently have a bid of $4.65.

- Suggested Positions -
Aug 03, 2012 - entry price on TWX @ 40.66, option @ 1.79
symbol: TWX1319A42 2013 JAN $42 call - current bid/ask $ 4.65/ 4.75

- or -

Aug 03, 2012 - entry price on TWX @ 40.66, option @ 2.85
symbol: TWX1419A45 2014 JAN $45 call - current bid/ask $ 5.10/ 5.25

09/22/12 new stop loss @ 40.75.
Plan on exiting our 2013 calls on Monday morning at the open
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: 40.75
Play Entered on: 08/03/12
Originally listed on the Watch List: 07/21/12


Union Pacific Corp. - UNP - close: 119.37

Comments:
09/22/12: Transportation stocks crumbled this week. The Dow Jones Transportation average lost more than -5%. UNP is down five days in a row and off -7.0% for the week. Fueling this sell-off is another earnings warning from FDX and a new warning from railroad company Norfolk Southern (NSC).

If there is any follow through lower then UNP will likely hit our stop loss at $117.75 pretty soon. More conservative traders may want to just abandon ship right now. 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 $ 1.74/ 1.83

- or -

Jul 20, 2012 - entry price on UNP @ 122.10, option @ 6.40
symbol: UNP1418A140 2014 JAN $140 call - current bid/ask $ 5.15/ 5.60

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: 33.85

Comments:
09/22/12: Many of the financial stocks corrected lower this week following a three-week rally and USB was no exception. The stock is currently breaking through what should be short-term support at $34.00. If this level fails then the next level of support is the $32.50 area. I will point out that USB's performance on September 13th, 14th and the 17th has created a bearish three-candlestick reversal pattern.

I am not suggesting new positions at this time.

- Suggested Positions -
Jul 20, 2012 - entry price on USB @ 33.62, option @ 1.39
symbol: USB1319A35 2013 JAN $35 call - current bid/ask $ 0.82/ 0.85

- or -

Jul 20, 2012 - entry price on USB @ 33.62, option @ 3.10
symbol: USB1418A35 2014 JAN $35 call - current bid/ask $ 2.69/ 2.78

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: 135.00

Comments:
09/22/12: It was a quiet week for Visa with the stock only gaining 75 cents but shares remain near their all-time highs. There is short-term support near $132.50 and near $130.00. I am not suggesting new positions at current levels.

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 $ 6.50/ 6.70

- or -

JUL 03, 2012 - entry price on V @ 126.49, option @ 11.95
symbol: V1418A140 2014 JAN $140 call - current bid/ask $14.35/14.65

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: 34.97

Comments:
09/22/12: WFC is another banking stock that is seeing a pullback following the QE-inspired spike higher. Broken resistance in the $34-35 area should be new support. Readers can use this pullback now as an entry point. More conservative traders may want to use a dip near $34.00 or a bounce off the $34 level as a new entry point to buy calls.

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 $ 1.79/ 1.85

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


Skyworks Solutions - SWKS - close: 24.81

Comments:
09/22/12: SWKS is the big disappointment for the week. The company updated its earnings guidance and actually raised it to the high-end of its previous range near $420 million for the quarter. That should have been good news but investors were obviously expecting more. SWKS gapped open lower on Thursday and then plunged all the way from $29.50 (the prior day's close) to $23.27. That's a -21% drop on positive earnings guidance.

Our trade was stopped out on Thursday at $27.40.

- Suggested Positions -
Sep 04, 2012 - entry price on SWKS @ 29.85, option @ 3.10
symbol:SWKS1319A32 2013 JAN $32 call - exit $1.20 (-61.2%)

- or -

Sep 04, 2012 - entry price on SWKS @ 29.85, option @ 5.85*
symbol:SWKS1418a35 2014 JAN $35 call - exit $3.30 (-43.5%)

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).

Chart of SWKS:

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