Editor's Note:

The Q3 earnings season is about to pick up speed in a big way. Expectations are low and investors will likely punish any company that misses or is too cautious with their guidance. More conservative investors might want to consider some sort of hedge with short-term options to protect your longer-term positions.


Closed Plays


A very volatile week for the stock market produced some sharp sell-offs on our active play list.

KMX, MDVN, and UNP were stopped out.



Play Updates


American Intl. Group - AIG - close: 50.00

Comments:
10/13/13: AIG temporarily traded below support near $48 and its 50-dma. The market's two-day bounce has pushed shares above the short-term trend of lower highs. Shares are currently hovering near round-number resistance at $50.00.

Please note that I am adjusting our exit strategy. We want to exit our 2014 calls when AIG hits $54.50. We'll plan to exit our 2015 calls when AIG hits $59.00.

FYI: AIG is scheduled to report earnings on October 31st.

- Suggested Positions -
JUL 15, 2013 - entry price on AIG @ 46.99, option @ 2.50
symbol: AIG1418a50 2014 JAN $50 call - current bid/ask $2.42/2.47

- or -

JUL 15, 2013 - entry price on AIG @ 46.99, option @ 4.05
symbol: AIG1517a55 2015 JAN $55 call - current bid/ask $3.75/3.85

10/13/13 exit strategy update: exit 2014 calls at $54.50
adjust the exit target for the 2015 calls to $59.00
09/15/13 new stop loss @ 44.65
08/04/13 new stop loss @ 43.75
07/15/13 trade opens. AIG opens at $46.99
07/14/13 AIG came within a penny of hitting our new entry trigger (closing above $46.75). We are adding it as a new play tonight. Buy calls on Monday morning. Move the stop loss up to $42.40.
07/07/13 adjust entry strategy: wait for shares to close above $46.75 and then buy calls the next day. Stop loss at $41.40. Target 55.00.
06/16/13 adjust entry strategy: move the buy-the-dip trigger to $40.00, from 38.50. Move the stop loss to $36.35 from 34.75.

Current Target:$ exit 2014 calls @ 54.50, exit 2015 calls @ 59.00
Current Stop loss: 44.65
Play Entered on: 07/15/13
Originally listed on the Watch List: 06/01/13


Bank of America - BAC - close: 14.19

Comments:
10/13/13: BAC eked out a small gain for the week. Shares did not move much following the earnings reports from WFC and JPM on Friday. On a positive note BAC does appear to have formed a possible bullish double bottom near 13.70 over the last couple of weeks. Yet short-term the stock is still struggling with resistance at its 50-dma and the 14.25 area.

I would expect BAC to drift sideways into its earnings report on October 16th. BAC will announce before the opening bell. More conservative investors may want to raise their stop loss prior to the report.

- Suggested Positions -
(exit target hit on 07/23/13 @ $15.00)
MAR 18, 2013 - entry price on BAC @ 12.29, option @ 0.44
symbol: BAC1418a15 2014 JAN $15 call - exit $1.04 (+136.3%)

- or -

MAR 18, 2013 - entry price on BAC @ 12.29, option @ 1.13
symbol: BAC1517a15 2015 JAN $15 call - current bid/ask $1.43/1.45

07/23/13 $15.00 exit target hit for the 2014 Jan. $15 calls.
07/20/13 new stop loss @ 12.75. Adjust the exit target for the 2014 calls to exit when BAC hits $15.00. Our exit for the 2015 calls is $18.00 on BAC
07/07/13 new stop loss @ 11.35
05/04/13 BAC did not participate in the market's rally this past week. Investors should turn more defensive here.

Current Target: BAC @ 15.00 for 2014 calls. BAC @ $18 for 2015 call
Current Stop loss: 12.75
Play Entered on: 03/18/13

Originally listed on the Watch List: 03/09/13


Deckers Outdoor Corp. - DECK - close: 61.12

Comments:
10/13/13: Ouch! It was a painful week for shares of DECK. Monday, October 7th, saw shares plunge from almost $68 to $63. The sell-off continued on Tuesday but DECK found support near $60.00 and its simple 50-dma. Unfortunately, DECK did not participate in the stock market's broad-based two-day bounce on Thursday and Friday and that's worrisome.

Currently our stop loss is at $57.40 but investors might want to raise their stop closer to the $60.00 level instead. I am not suggesting new positions at this time.

Earlier Comments:
Our target is $74.00. FYI: The point & figure chart is forecasting a bullish target of $87.00. We want to keep our position size small to limit our risk. DECK can be a volatile stock.

- Suggested Positions -
SEP 05, 2013 - entry price on DECK @ 61.47, option @ 4.30
symbol: DECK1418a65 2014 JAN $65 call - current bid/ask $3.90/4.10

- or -

SEP 05, 2013 - entry price on DECK @ 61.47, option @ 8.15*
symbol: DECK1517a70 2015 JAN $70 call - current bid/ask $8.00/ 8.30

09/29/13 new stop loss @ 57.40
*entry price on the 2015 call is an estimate as it did not trade at the time our play was opened.

Current Target: 74.00
Current Stop loss: 57.40
Play Entered on: 09/05/13
Originally listed on the Watch List: 08/25/13


Dollar General Corp. - DG - close: 57.83

Comments:
10/13/13: Many of the retail-related names struggled last week. DG dipped to short-term support near $56 and its 50-dma before bouncing. Investors may want to wait for DG to close at a new high before considering new bullish positions.

Earlier Comments:
Our long-term target is $64.00 for the 2014 calls. Our target is $69.00 for the 2015 calls. FYI: The point & figure chart is bullish with a $78.00 target.

- Suggested Positions -
SEP 06, 2013 - entry price on DG @ 57.61, option @ 2.58
symbol: DG1418a60 2014 JAN $60 call - current bid/ask $2.50/2.70

- or -

SEP 06, 2013 - entry price on DG @ 57.61, option @ 3.48
symbol: DG1517a70 2015 JAN $70 call - current bid/ask $2.55/3.20

09/22/13 new stop loss @ 53.60

Current Target: 64.00 for the 2014s, 69.00 for the 2015s
Current Stop loss: 53.60
Play Entered on: 09/06/13
Originally listed on the Watch List: 08/04/13


Eastman Chemical Co. - EMN - close: 77.98

Comments:
10/13/13: It was a volatile week for EMN. The stock ricocheted from resistance near $80 back down to support near $75 before bouncing. I am not suggesting new positions at current levels.

FYI: EMN is due to report earnings on October 24th.

Earlier Comments:
Our long-term target for the 2014 call is $84. Our long-term target for the 2015 call is $95.00. FYI: The Point & Figure chart is bullish with a $91 target.

- Suggested Positions -
JUL 18, 2013 - entry price on EMN @ 75.34, option @ 3.60*
symbol: EMN1418a80 2014 JAN $80 call - current bid/ask $ 3.20/3.40

- or -

JUL 18, 2013 - entry price on EMN @ 75.34, option @ 4.90*
symbol: EMN1517a90 2015 JAN $90 call - current bid/ask $ 5.10/5.30

08/04/13 new stop loss @ 74.40
07/18/13 Trade opened. EMN opens at $75.34
*option entry price is an estimate since the option did not trade at the time our play was opened.
07/17/13 EMN meets our entry requirement with a close above $75.25

Current Target: 2014 calls: target $84 on EMN. 2015 calls: target $95
Current Stop loss: 74.40
Play Entered on: 07/18/13
Originally listed on the Watch List: 07/14/13


Ford Motor Co. - F - close: 17.11

Comments:
10/13/13: Ford dipped to technical support at its 100-dma before bouncing. Shares closed virtually unchanged on the week. Yet the rebound does appear to have broken through the three-week trend of lower highs. I am not suggesting new positions at this time.

Ford is due to report earnings on October 24th.

- Suggested Positions -
(closed the 2014 calls on May 20th, at the open)
APR 29, 2013 - entry price on F @ 13.73, option @ 0.60
symbol: F1418a15 2014 JAN $15 call - exit $1.18 (+96.6%)

- or -

APR 29, 2013 - entry price on F @ 13.73, option @ 1.22
symbol: F1517a15 2015 JAN $15 call - current bid/ask $ 3.10/3.20

09/15/13 adjust exit target on 2015 calls to $19.50 (on Ford stock)
09/08/13 new stop loss @ 15.35
08/04/13 new stop loss @ 14.85
07/07/13 new stop loss @ 14.25
06/01/13 investors may want to exit our 2015 calls now with a bid at $2.34 (+91.8%)
06/01/13 adjust long-term target to $17.75
05/20/13 closed the 2014 calls at the open. Option @ +96.6%
05/18/13 prepare to exit the 2014 calls on Monday, May 20th
05/18/13 new stop loss @ 13.40

Current Target:$ 19.50
Current Stop loss: 15.35
Play Entered on: 04/29/13
Originally listed on the Watch List: 04/20/13


Fluor Corp. - FLR - close: 72.98

Comments:
10/13/13: The stock market's midweek sell-off pushed FLR below short-term support near $70.00. Fortunately FLR did participate in the market's bounce and shares are up for the week. The next level of resistance is the $74-75 area.

FYI: FLR is scheduled to report earnings on October 31st.

- Suggested Positions -
SEP 12, 2013 - entry price on FLR @ 67.14, option @ 2.90
symbol: FLR1418a70 2014 JAN $70 call - current bid/ask: 5.70/5.90

- or -

SEP 12, 2013 - entry price on FLR @ 67.14, option @ 5.70*
symbol: FLR1517a75 2015 JAN $75 call - current bid/ask: 8.50/8.70

09/22/13 new stop loss @ 64.75
09/22/13 adjust exit target from $74.75 to $79.50
09/20/13 high for the day was $74.72
*option entry price is an estimate since the option did not trade at the time our play was opened.

Current Target:$ 79.50
Current Stop loss: 64.75
Play Entered on: 09/12/13
Originally listed on the Watch List: 08/11/13


Halliburton Company - HAL - close: 50.67

Comments:
10/13/13: It proved to be a bullish week for HAL. The stock market sliced through short-term support but not HAL. The stock held support near its rising 50-dma. Then when the market bounced shares outperformed and broke out to a new 52-week high.

FYI: HAL is scheduled to report earnings on Oct. 21st.

- Suggested Positions -
AUG 21, 2013 - entry price on HAL @ 47.22, option @ 1.82
symbol: HAL1418a50 2014 JAN $50 call - current bid/ask $ 2.99/3.00

- or -

AUG 21, 2013 - entry price on HAL @ 47.22, option @ 4.80
symbol: HAL1517a50 2015 JAN $50 call - current bid/ask $ 6.50/6.65

09/08/13 new stop loss @ 44.75

Current Target:$ 52.50 for the 2014 calls, $56.0 for the 2015 calls
Current Stop loss: 44.75
Play Entered on: 08/21/13
Originally listed on the Watch List: 08/18/13


Harley-Davidson - HOG - close: 65.75

Comments:
10/13/13: HOG managed to motor through the market's volatility and deliver another gain. The stock is now up eight weeks in row and poised to breakout past short-term resistance near $66.00.

FYI: HOG is scheduled to report earnings on October 22nd.

- Suggested Positions -
SEP 04, 2013 - entry price on HOG @ 61.01, option @ 2.36
symbol: HOG1418a65 2014 JAN $65 call - current bid/ask $ 3.65/3.80

- or -

SEP 04, 2013 - entry price on HOG @ 61.01, option @ 4.35*
symbol: HOG1517a70 2015 JAN $70 call - current bid/ask $ 5.80/5.95

09/22/13 new stop loss @ 59.00
*note the entry price on our 2015 call is an estimate since the option did not trade at the time our play opened.

Current Target: 69.00
Current Stop loss: 59.00
Play Entered on: 09/04/13
Originally listed on the Watch List: 08/25/13


Honeywell Intl. - HON - close: 86.46

Comments:
10/13/13: HON displayed relative strength with a big gain for the week. Shares held support near its 100-dma during the market's decline. When stocks bounced HON raced higher. Shares are arguably short-term overbought and I would not be surprised to see a brief dip although HON might just drift sideways until the company reports earnings on October 18th.

NOTE: Our 2015 call options have doubled in value. More conservative investors will want to seriously consider taking profits now ahead of HON's earnings report on October 18th.

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

- Suggested Positions -
(closed the 2014 calls on May 20th at the open)
MAY 07, 2013 - entry price on HON @ 76.20, option @ 2.68
symbol: HON1418a80 2014 JAN $80 call - exit $5.10 (+90.2%)

- or -

MAY 07, 2013 - entry price on HON @ 76.20, option @ 4.10
symbol: HON1517a85 2015 JAN $85 call - current bid/ask $ 8.35/8.50

10/13/13 investors might want to take profits on our 2015 calls, which have doubled in value.
08/25/13 new stop loss @ 78.40
08/04/13 new stop loss @ 77.45
07/14/13 new stop loss at $75.75
05/20/13 closed the 2014 calls at the open. option @ +90.2%
05/18/13 prepare to exit 2014 Jan. calls immediately on Monday, May 20th
05/18/13 new stop loss @ 74.50
05/07/13 Our trade opens
05/06/13 HON meets our entry requirement with a close above $76.00

Current Target:$ 95.00
Current Stop loss: 78.40
Play Entered on: 05/07/13
Originally listed on the Watch List: 05/04/13






Intel Corp. - INTC - close: 23.25

Comments:
10/13/13: INTC managed to hold support near the $22.50 level in spite of the stock market's sharp decline last week. When the market bounced INTC followed and ended the week with a +1.9% gain.

INTC is due to report earnings on Tuesday evening, October 15th, after the closing bell. If the company disappoints we could see shares breakdown below its long-term (one-year) trend of higher lows. More conservative investors may want to raise their stop loss prior to the earnings announcement.

- Suggested Positions -
SEP 16, 2013 - entry price on INTC @ 23.63, option @ 0.93
symbol: INTC1418a24 2014 JAN $24 call - current bid/ask $0.65/0.67

- or -

SEP 16, 2013 - entry price on INTC @ 23.63, option @ 1.75
symbol: INTC1517a25 2015 JAN $25 call - current bid/ask $1.36/1.40

Current Target: $26-29 zone
Current Stop loss: 21.75
Play Entered on: 09/16/13
Originally listed on the Watch List: 09/08/13


JPMorgan Chase & Co. - JPM - close: 52.51

Comments:
10/13/13: JPM made headlines on Friday (Oct. 11th) as the market digested the company's Q3 earnings report. Wall Street was expecting a profit of $1.29 a share. The company announced $1.42 a share but revenues were a miss at $23.12 billion for the quarter. However, if you take into account JPM's massive legal expenses of $7.2 billion then JPM actually lost $380 million or 17 cents a share. That's the first quarterly loss since 2004.

Investors were sanguine on the report. JPM initially rallied on the earnings news before settling almost unchanged on Friday. Investors may want to wait for JPM to close above resistance at $54.00 before considering new bullish positions.

Earlier Comments:
I will point out that bears could argue JPM has created a bearish head-and-shoulders pattern with the neckline (support) at the $50 level. A breakdown under $50.00 would suggest a correction lower toward the $44-43 area.

- Suggested Positions -
JUN 24, 2013 - entry price on JPM @ 50.25, option @ 1.60
symbol: JPM1418a55 2014 JAN $55 call - current bid/ask $ 1.17/1.19

- or -

JUN 24, 2013 - entry price on JPM @ 50.25, option @ 3.80
symbol: JPM1517a55 2015 JAN $55 call - current bid/ask $ 3.80/3.90

09/01/13 adjust stop loss to $48.99
07/21/13 new stop loss @ 49.65
07/14/13 new stop loss @ 48.75
Current Target: $64.00
Current Stop loss: 48.99
Play Entered on: 06/24/13
Originally listed on the Watch List: 05/25/13


NetApp, Inc. - NTAP - close: 41.57

Comments:
10/13/13: The correction lower in shares of NTAP continues. After peaking in mid September (with the broader market) NTAP is now down four weeks in a row. The fact that NTAP did not participate in the market's broad-based rally on Thursday and Friday is troubling. More conservative investors may want to abandon ship right now. I am not suggesting new positions.

Please note our new stop loss at $39.80.

Earlier Comments:
The target to exit our 2014 calls is $44.75. The target to exit our 2015 calls will be $49.50. FYI: NTAP's point & figure chart is bullish with a $64 target.

- Suggested *Small* Positions -
MAY 17, 2013 - entry price on NTAP @ 38.93, option @ 3.35
symbol: NTAP1418a40 2014 JAN $40 call - current bid/ask $3.15/3.25

- or -

MAY 17, 2013 - entry price on NTAP @ 38.93, option @ 5.20
symbol: NTAP1517a40 2015 JAN $40 call - current bid/ask $6.05/6.20

10/13/13 new stop loss @ 39.80, more conservative investors may want to exit early right now
09/15/13 Exit strategy update:
target to exit the 2014 calls is $44.75.
target to exit the 2015 calls is $49.50.
08/11/13 new stop loss @ 39.25
08/04/13 new stop loss @ 38.75
07/21/13 new stop loss @ 36.85
05/18/13 adjust stop loss to $34.90
05/17/13 trade opens on NTAP's gap open higher at $38.93
05/16/13 NTAP met our entry requirement with a close above $37.15

Current Target: exit for 2014 calls is $44.75, exit for 2015s is $49.50
Current Stop loss: 39.80
Play Entered on: 05/17/13
Originally listed on the Watch List: 05/11/13


NVIDIA Corp. - NVDA - close: 15.26

Comments:
10/13/13: I am worried about NVDA as well. Shares are still slowly drifting lower and threatening to breakdown below their simple 50-dma. The stock did not really participate in the stock market's widespread two-day bounce this past week. I suspect we will see NVDA test round-number support near $15.00 soon. More conservative investors may want to raise their stop loss. Nimble traders might want to consider buying dips near $15.00 but I would hesitate until we see a deal in Washington D.C.

Earlier Comments:
Due to NVDA's recent volatility I am labeling this a more aggressive, higher-risk trade and thus suggest we use smaller positions to limit our risk. Our target to exit the 2014 calls is $18.00. Our target to exit the 2015 calls is $19.75. Currently the point & figure chart is bullish and forecasting at $23 target.

- Suggested *Small* Positions -
SEP 12, 2013 - entry price on NVDA @ 15.63, option @ 0.88
symbol: NVDA1418a16 2014 JAN $16 call - current bid/ask $0.56/0.58

- or -

SEP 12, 2013 - entry price on NVDA @ 15.63, option @ 1.54
symbol: NVDA1517a17 2015 JAN $17 call - current bid/ask $1.24/1.28

09/22/13 new stop loss @ 14.45

Current Target: exit for 2014 calls is $18.00, exit for 2015s is $19.75
Current Stop loss: 14.45
Play Entered on: 09/12/13
Originally listed on the Watch List: 08/18/13


Old Dominion Freight Line - ODFL - close: 47.21

Comments:
10/13/13: The transportation sector helped lead the market higher during the two-day bounce. Shares of ODFL didn't quite keep pace with the bounce but then again shares didn't see as sharp of a sell-off either. ODFL is actually close to a new all-time high. More conservative investors might want to raise their stop loss. I am not suggesting new positions at this time.

FYI: ODFL is scheduled to report earnings on October 24th.

- Suggested Positions -
AUG 14, 2013 - entry price on ODFL @ 45.62, option @ 1.25
symbol: ODFL1418a50 2014 JAN $50 call - current bid/ask $1.20/1.50

09/15/13 What a difference two weeks can make.
09/01/13 conservative traders may want to cut their losses now
08/14/13 trade opens. ODFL opens at $45.62.
08/13/13 ODFL meets our entry requirement with close at $45.65
08/11/13 adjust the entry trigger. Wait for ODFL to close above $45.50 instead of $45.25.

Current Target: $54.00
Current Stop loss: 41.95
Play Entered on: 08/14/13
Originally listed on the Watch List: 07/28/13


Constellation Brands - STZ - close: 62.99

Comments:
10/13/13: STZ continues to show relative strength. Traders bought the dip near short-term support at its 10-dma (and near $60). Friday's outperformance (+3.3%) left STZ at a new all-time, record high. I am raising our stop loss to $55.90.

- Suggested Positions -
SEP 06, 2013 - entry price on STZ @ 57.56, option @ 2.00
symbol: STZ1418a60 2014 JAN $60 call - current bid/ask $5.10/5.30

- or -

SEP 06, 2013 - entry price on STZ @ 57.56, option @ 4.35*
symbol: STZ1517a65 2015 JAN $65 call - current bid/ask $7.40/7.60

10/13/13 new stop loss @ 55.90
10/06/13 new stop loss @ 54.90
adjust exit target to 64.00 for the 2014 calls
adjust exit target to 69.00 for the 2015 calls
09/29/13 new stop loss @ 52.90
09/22/13 new stop loss @ 52.45
09/08/13 new stop loss @ 51.75
*option entry price is an estimate since the option did not trade at the time our play was opened.

Current Target: Exit 2014 calls @ 64.00, exit 2015 calls @ 69.00
Current Stop loss: 55.90
Play Entered on: 09/06/13
Originally listed on the Watch List: 08/25/13


VeriSign, Inc. - VRSN - close: 51.31

Comments:
10/13/13: The stock market's weakness pushed VRSN below support near $50.00 and below its 50-dma before shares bounced back. If you missed buying calls on the dip then investors might want to wait for a close above resistance near $52.00. More conservative investors may want to wait until after we see VRSN's earnings report on October 24th before considering new positions.

FYI: VRSN is due to report earnings on October 24th.

Earlier Comments:
Our target to exit the 2014 calls is $57.50. Our target to exit the 2015 calls is $64.50. Currently the point & figure chart is bullish with a $76 target.

- Suggested Positions -
SEP 19, 2013 - entry price on VRSN @ 51.40, option @ 1.16
symbol:VRSN1418a55 2014 JAN $55 call - current bid/ask $ 1.00/1.04

- or -

SEP 19, 2013 - entry price on VRSN @ 51.40, option @ 4.25*
symbol:VRSN1517a55 2015 JAN $55 call - current bid/ask $ 4.10/4.25

*option entry price is an estimate since the option did not trade at the time our play was opened.
09/15/13 adjust entry trigger: wait for a close over $50.50 instead of $50.25

Current Target:
Exit 2014 calls when VRSN hits $57.50, 2015 calls @ $64.50
Current Stop loss: 47.40
Play Entered on: 09/19/13
Originally listed on the Watch List: 08/18/13


Whole Foods Market - WFM - close: 61.18

Comments:
10/13/13: WFM held up reasonably well last week. Traders bought the dip at recent support in the $57.70 area. The market's big two-day bounce lifted WFM to a new all-time high.

CORRECTION: WFM actually hit our exit target of $59.75 on October 2nd, 2013. The high that day was $59.99. Our plan was to exit our 2014 January $60 calls at $59.75. We still have our 2015 call position and I am adjusting our long-term exit target to $69.00.

Tonight we are raising the stop loss to $55.75.

- Suggested Positions -
(2014 calls closed on Oct. 2nd @ 59.75 target)
JUL 10, 2013 - entry price on WFM @ 54.53, option @ 2.10
symbol: WFM1418a60 2014 JAN $60 call - exit $2.85 (+35.7%)

- or -

JUL 10, 2013 - entry price on WFM @ 54.53, option @ 6.20
symbol: WFM1517a60 2015 JAN $60 call - current bid/ask $ 8.50/8.65

10/13/13 new stop loss @ 55.75,
adjust exit target for 2015 calls to $69.00
10/06/13 new stop loss @ 53.85
10/02/13 correction: WFM hit our $59.75 exit target for the 2014 calls.
exit 2014 Jan. $60 call @ 09/22/13 new stop loss @ 52.40

Current Target: $59.75 for the 2014 calls, $69.00 for the 2015 calls
Current Stop loss: 55.75
Play Entered on: 07/10/13
Originally listed on the Watch List: 07/07/13


CLOSED Plays


CarMax Inc. - KMX - close: 47.93

Comments:
10/13/13: KMX is off less than 40 cents for the week but that doesn't tell the whole story. The stock market's sharp decline pushed KMX below support $47.50 area and below its 150-dma. Our stop loss was hit at $46.40 on October 8th.

- Suggested Positions -
SEP 23, 2013 - entry price on KMX @ 50.00, option @ 1.40
symbol: KMX1418a55 2014 JAN $55 call - exit $0.45 (-67.8%)

10/08/13 stopped out
09/23/13 KMX hit our buy-the-dip entry at $50.00

Chart of KMX:
Current Target: $59.00
Current Stop loss: 46.40
Play Entered on: 09/23/13
Originally listed on the Watch List: 09/08/13


Medivation - MDVN - close: 50.97

Comments:
10/13/13: It was an exceptionally ugly week for MDVN with shares falling almost -14%. The stock collapsed on Monday, October 8th and continued to plunge on Tuesday. Our stop loss at $54.90 was hit on Monday. Unfortunately, I could not find any specific news to account for the sudden drop in MDVN.

Earlier Comments:
MDVN's options look a little expensive. I am suggesting smaller positions to limit our exposure.

- Suggested Positions -
SEP 06, 2013 - entry price on MDVN @ 61.00, option @ 7.80*
symbol:MDVN1418a65 2014 JAN $65 call - exit $3.10** (-60.2%)

10/08/13 stopped out @ 54.90
**option exit price is an estimate since the option did not trade at the time our play was closed.
*option entry price is an estimate since the option did not trade at the time our play was opened.

Chart of MDVN:
Current Target: $75.00
Current Stop loss: 54.90
Play Entered on: 09/06/13
Originally listed on the Watch List: 09/01/13


Union Pacific Corp. - UNP - close: 153.90

Comments:
10/13/13: UNP has been a troubled trade for us. The market's sell-off from its September peak helped push UNP back down toward its August lows. Then the market weakness this past week actually dragged UNP to a new relative low and shares tagged our stop loss at $152.00. Naturally UNP rallied the very next day as the market rebounded.

If you are interested in a bullish play in the railroad industry I would look more closely at shares of CP or CNI, both of which have been showing more relative strength.

- Suggested Positions -
JUL 22, 2013 - entry price on UNP @ 163.80, option @ 3.10
symbol: UNP1418a180 2014 JAN $180 call - exit $0.29 (-90.6%)

- or -

JUL 22, 2013 - entry price on UNP @ 163.80, option @ 4.75
symbol: UNP1517a200 2015 JAN $200 call - exit $2.05 (-56.8%)

10/08/13 stopped out
09/08/13 warning! UNP looks like the bounce is reversing!
08/18/13 adjust stop loss to $152.00.
07/22/13 trade will open.
07/19/13 UNP closed above our trigger
07/14/13 adjust entry trigger to $162.00, adjust stop loss to $153.00

Chart of UNP:

Current Target:
Exit 2014 calls when UNP hits $185.00, 2015 calls @ $200
Current Stop loss: 152.00
Play Entered on: 07/22/13
Originally listed on the Watch List: 06/08/13