Editor's Note:

Stocks suffered a little China Syndrome last week. No, I'm not referring to the 1979 American movie with Jane Fonda, Jack Lemmon, and Michael Douglas. Instead the market suffered from increasing worries that the Chinese economy is slowing down a lot faster than expected.

The big sell-off triggered several stop losses but it also triggered a few buy-the-dip trades.

CELG, DHR, and STZ have all graduated to our active play list.


Closed Plays


It was a very ugly week for stocks. Actually the worst week for the U.S. market in four years.

ADBE, CVS, FB, HSIC, MA, MSFT, NKE, SBUX, and UA were all stopped out.



Play Updates


Activision Blizzard, Inc. - ATVI - close: 27.22

Comments:
08/23/15: ATVI fell more than $2.00 from its recent highs. If the market sell-off continues we could see ATVI fill the gap from early August. More conservative investors may want to raise their stop loss. I am looking for short-term support at the 50-dma near $26.24.

No new positions at this time.

Trade Description: May 24, 2015:
Consumer spend more money on video games than they do at the movie theater. ATVI is the biggest with annual sales of $4.58 billion. Electronic Arts (EA) is hot on its heels with revenues of $4.52 billion a year.

ATVI is home to some of the biggest franchises in video game history. According to the company, "Activision Blizzard, Inc. is the largest and most profitable western interactive entertainment publishing company. It develops and publishes some of the most successful and beloved entertainment franchises in any medium, including Call of Duty , Call of Duty Online, Destiny , Skylanders, World of Warcraft , StarCraft , Diablo, and Hearthstone: Heroes of Warcraft. Headquartered in Santa Monica, California, it maintains operations throughout the United States, Europe, and Asia. Activision Blizzard develops and publishes games on all leading interactive platforms and its games are available in most countries around the world."

Investors have been pretty forgiving when it comes to ATVI's recent earnings reports. On February 5th they beat the bottom line estimate but missed the revenue number. Revenues were down -2.6% from a year ago. ATVI blamed currency headwinds for the revenue miss since half of their sales are outside the U.S. and represent a significant chunk of their profits. Plus, the video game business is prone to lumpy quarters as sales rise and fall on new releases and expansions. Management lowered their Q1 and 2015 guidance.

ATVI just reported its Q1 results on May 6th. Earnings per share fell -15.7% from a year ago to $0.16 but that was actually 9 cents better than expected. Revenues fell again, this time down -8.9%. Management lowered their Q2 guidance but they raised their fiscal 2015 earnings guidance above Wall Street estimates. That was enough to send shares of ATVI higher. A few analysts have commented that ATVI's 2015 guidance is too conservative.

Bobby Kotick, Chief Executive Officer of Activision Blizzard, commented on his company's quarterly results, "...This deepening level of engagement with a widening base of players across our franchises is what drove another successful quarter. We delivered better-than-expected Q1 results, increased our 2015 non-GAAP revenue outlook to $4.425 billion and earnings per share outlook to $1.20. Last quarter, on a non-GAAP basis, we delivered record higher-margin digital revenues of over half a billion dollars a Q1 record on an absolute basis and an all-time high on a percentage basis."

There were a number of headlines about how ATVI's Warcraft MMORPG saw its subscriber numbers fall from 10 million to 7.1 million in the last quarter. Investors don't seem to care. The Warcraft game is a cash cow but it's 11 years old. Investors could be looking forward.

ATVI said their new Destiny sci-fi shooter game and the Blizzard's fantasy card game have more than 50 million registered players (between them) with over $1 billion in sales.

ATVI also has several new titles coming out. They're on the verge of releasing "Heroes of the Storm", which will take on the current category champion "League of Legends" for the MOBA-style video game. More than ten million people have already signed up for the Heroes beta. ATVI has announced the next iteration of their Call of Duty franchise (CoD), which will be "Call of Duty: Black Ops III", which is another major cash-generating franchise. ATVI is also launching a new game called "Overwatch" and they'll release a new version of "Guitar Hero", which had 40 million players at its peak.

Currently shares of ATVI are up three weeks in a row and look a little bit overbought. Broken resistance near $24.00 should be significant support. Tonight I am suggesting a buy-the-dip trigger at $24.25 with a stop loss at $21.85.

- Suggested Positions -
JUL 21, 2015 - entry price on ATVI @ 26.25, option @ 2.23
symbol: ATVI170120C30 2017 JAN $30 call - current bid/ask $2.58/2.78

08/09/15 new stop @ 24.90
08/04/15 ATVI beats estimates on both the top and bottom line and raises guidance.
07/21/15 Trade begins. ATVI opens at $26.25
07/20/15 ATVI closed @ $26.25, above our trigger of $26.15
07/12/15 new entry strategy: Wait for a close above $26.15, then buy calls
Use the 2017 Jan $30 call
06/28/15 adjust the entry trigger to $23.75 and the stop to $21.85.
06/21/15 move the stop loss to $22.85
Option Format: symbol-year-month-day-call-strike

Current Target: To Be Determined
Current Stop loss: 24.90
Play Entered on: 07/21/15
Originally listed on the Watch List: 05/24/15


Celgene Corp. - CELG - close: 119.05

Comments:
08/23/15: Biotech stocks were hit hard last week with significant profit taking. Shares of CELG plunged toward support in the $120 area. We had CELG on the watch list with a buy-the-dip trigger at $121.00, which the stock hit on Friday.

At this time I would wait for signs of a bounce, maybe a rally back above $121.00, before considering new positions. Nimble traders could cross their fingers and hope for a dip in the $115-116 range and try to buy calls there. Our stop loss is at $114.75.

Trade Description: August 9, 2015:
Love them or hate them the biotech stocks get a lot of attention. Investors are always looking for the next big thing. When the right biotech story comes along these stocks can sprint higher. Unfortunately a lot of the smaller biotech stocks are binary trades. You either win big or lose big. There is no middle ground. Instead of rolling the dice on a smaller biotech you could choose an established company with real revenues like CELG.

According to their press release, "Celgene Corporation, headquartered in Summit, New Jersey, is an integrated global biopharmaceutical company engaged primarily in the discovery, development and commercialization of novel therapies for the treatment of cancer and inflammatory diseases through gene and protein regulation."

What makes CELG so attractive is the company's pipeline. Developing drugs is an expensive business. A lot of older firms are buying other companies for their pipeline. Meanwhile CELG is developing a very strong pipeline. You can view the company's current progress on this webpage.

Earnings results have generally been strong although there was a hiccup earlier this year. Looking at CELG's recent earnings history they beat estimates on both the top and bottom line last October and management guided higher. Then in January 2015 CELG issued a positive earnings warning and guided higher two weeks before their next report. When they did report in late January CELG still beat estimates on the bottom line.

On April 30th CELG beat estimates again but their revenue number came in below estimates. That's because analysts were expecting revenues to be better than the +20% growth CELG reported with sales of $2.08 billion. Management also guided lower and the stock plunged toward technical support at its 200-dma. That proved to be a buying opportunity as CELG rallied off its moving average a few days later.

In mid July CELG issued another positive earnings surprise two weeks before its scheduled announcement. The stock soared (gapped higher) on this news. When they reported their Q2 results on July 23rd CELG still beat estimates by two cents. Revenues were up +21.6% to $2.28 billion.

According to Investors.com, CELG's long-term forecasts suggest sales and profits will grow at strong double-digit percentages through 2019. According to analyst firm Piper Jaffray, CELG is "positioned to be the next major mover among the large-cap biotech stocks." Out of seventeen analysts, the median price target on CELG is $155.00. Currently the highest estimate is $190. The point & figure chart is forecasting a long-term target of $201.00.

This past week traders were selling biotech stocks. CELG followed them lower and is now more than $10.00 off its closing high. I suspect this correction continues and we want to be ready to take advantage of the pullback.

Broken support near $120-121 should be support. Tonight we are suggesting an intraday, buy-the-dip trigger at $121.00. If triggered we will start with a stop loss at $114.75.

- Suggested Positions -
AUG 21, 2015 - entry price on CELG @ 121.00, option @ 7.15
symbol: CELG160115C130 2016 JAN $130 call - current bid/ask $6.10/6.45

08/21/15 triggered. Buy-the-dip entry point at $121.00
Option Format: symbol-year-month-day-call-strike

Chart

Current Target: To Be Determined
Current Stop loss: 114.75
Play Entered on: 08/21/15
Originally listed on the Watch List: 08/09/15


Danaher Corp. - DHR - close: 86.95

Comments:
08/23/15: DHR is another watch list candidate that has graduated to an active play. We had DHR listed with a buy-the-dip trigger at $88.50. Our trade was opened with Friday's gap down at $88.25. If this market weakness continues we could see DHR test support near $86.00 and its 200-dma. Nimble traders could try and buy calls on a bounce near its 200-dma.

Trade Description: August 16, 2015
DHR is outperforming most of its peers in the industrial sector with a +6% gain in 2015. The stock is only a couple of points away from a new all-time high. The company is undergoing significant changes that should propel the stock higher over the next 12 months.

Officially DHR is in the industrial goods sector but that will eventually change. According to the company, "Danaher is a global science and technology innovator committed to helping its customers solve complex challenges and improving quality of life around the world. Its family of world class brands have leadership positions in some of the most demanding and attractive industries, including health care, environmental and industrial. The Company's globally diverse team of 71,000 associates is united by a common culture and operating system, the Danaher Business System. In 2014, Danaher generated $19.9 billion in revenue and its market capitalization exceeded $60 billion."

That's the company today. By the end of 2016 the company is splitting itself in two. First we have to discuss DHR's acquisition of Pall Corp. (PLL). On May 13th DHR announced they were acquiring PLL for $13.6 billion in cash. The company claims this will save $300 million in synergies over the next five years. DHR is also buying a company with very strong margins (above 50%). Critics claim that DHR is paying too much for PLL but Wall Street seems mostly pleased with the news and some analysts are calling it a "transformational" deal.

Speaking of transformations, at the same time DHR announced they were splitting in two. The new Danaher will be a "A science and technology growth company united by common business model characteristics, including significant recurring revenue and an attractive margin profile. The company will retain the Danaher name. Collectively, its businesses generated approximately $16.5 billion in revenues (including Pall Corporation, which Danaher has signed an agreement to acquire), in their most recently completed fiscal years."

The spin-off company will be called "NewCo". This will be a "diversified industrial growth company with market leading positions, strong brand names and tremendous free cash flow generation. NewCo's businesses generated approximately $6.0 billion in revenues in the most recently completed fiscal year."

You can read more details about the spin-off here on the DHR website.

Wall Street loves M&A and they love spin-offs. Any plan that might unlock shareholder value is normally applauded. Shares of DHR could see a run up into the event, which should happen by the end of 2016.

Technically the stock has been showing relative strength and holding up well considering the market's recent volatility. Tonight I am suggesting a buy-the-dip trigger to buy the 2017 calls if DHR trades down to $88.50. We'll start this play with a stop loss at $84.50. This is a long-term trade but we'll plan on exiting the calls before DHR actually splits into two companies. I am not setting a target tonight but I noticed the point & figure chart is forecasting a $121.00 target.

- Suggested Positions -
AUG 21, 2015 - entry price on DHR @ 88.25, option @ 5.50
symbol: DHR170120C100 2017 JAN $100 call - current bid/ask $3.80/5.90

08/21/15 Triggered on gap down at $88.25, suggested entry was a dip at $88.50
Option Format: symbol-year-month-day-call-strike

Chart

Current Target: To Be Determined
Current Stop loss: 84.50
Play Entered on: 08/21/15
Originally listed on the Watch List: 08/16/15


General Dynamics - GD - close: 145.17

Comments:
08/23/15: The Thursday-Friday market crash erased all of GD's gains for the week. Actually it erased the last 2 1/2 week's worth of gains. The close below $146.00 and its 50-dma is short-term bearish. I'm worried that GD will hit our stop loss at $144.75 on Monday morning.

No new positions at this time.

Trade Description: July 12, 2015:
The last time we had GD in the newsletter was back in November 2014. Shares have spent the last seven months building a massive consolidation in the $130-146 range. The stock could be poised for a major breakout higher.

GD is considered part of the industrial goods sector. The company is a huge aerospace and defense company. They have four significant segments: aerospace, combat systems, information systems, and marine systems (ships and submarines). The defense industry in the U.S. has been saddled with significant budget cuts due to the 2011 sequestration deal that will shave $500 billion from U.S. defense spending from 2012 through 2021. The industry has managed to thrive in spite of these budget cuts.

GD has beaten Wall Street's earnings estimates seven quarters in a row. They're also beating analysts revenue estimates as well. Margins have been steadily improving.

The world isn't getting any safer and the major defense contractors have been working on boosting their overseas sales just in case the U.S. decides to cut defense spending again. Considering the current state of world affairs with a growing military rival in China, a new cold war brewing with Russia, and an openly hostile ISIS, defense spending should stay healthy.

I mentioned earlier that GD had consolidated sideways for the last seven months. Today it's on the verge of a bullish breakout higher. The point & figure chart is already bullish and forecasting at $175.00 target.

Friday's intraday high was $146.98. I am suggesting we wait for GD to close above $147.00 and then buy calls the next morning with a stop loss at $141.75.

- Suggested Positions -
JUL 16, 2015 - entry price on GD @ 148.00, option @ 2.85
symbol: GD160115C160 2016 JAN $160 call - current bid/ask $2.20/2.50

08/23/15 Caution - GD could hit our stop at $144.75 on Monday morning
08/16/15 new stop @ 144.75
07/16/15 trade begins. GD opens at $148.00
07/15/15 Triggered. GD closed at $147.25, above our $147.00 trigger
Option Format: symbol-year-month-day-call-strike

Current Target: To Be Determined
Current Stop loss: 144.75
Play Entered on: 07/16/15
Originally listed on the Watch List: 07/12/15



iShares US Home Construction ETF - ITB - close: 28.55

Comments:
08/23/15: Homebuilders were in rally mode last week, prior to the market's big drop. The main homebuilder ETFs like the ITB and XHB had broken out to new multi-year highs. The ITB is only down about 16 cents for the week and shares found support near its prior highs. That's the good news. However, if the market continues to sink I expect the ITB to follow. Look for support in the $27.50 region. A dip or a bounce near $27.50 could be a new entry point.

Earlier Comments: January 11, 2015:
The ITB is an exchange traded fund that mimics the Dow Jones U.S. Select Home Construction Index. The top 12 holdings are DHI, LEN, PHM, TOL, NVR, HD, TPH, LOW, RYL, SHW, KBH and MTH.

This index has been stuck in a trading range for years. That looks like it's about to change. Have you looked at a chart of the 10-year bond yield lately? Bond yields are going lower. That's going to pressure mortgage rates lower and that's bullish for home sales. This past week saw 30-year mortgage rates dip below 3.6%. That's a 19-month low.

If that wasn't enough of a tailwind President Obama wants to help. On January 7th the White House announced plans to reduce the government mortgage insurance premiums in an effort to boost home ownership. Another positive for the homebuilders is the U.S. Federal Reserve. We just had two fed governors come out last week saying they think the Fed should hold off on raising rates. The longer the Fed waits to start raising rates the better it will be for homebuilders.

Currently the ITB appears to be breaking out past major resistance and closed at multi-year highs. I'd like to see a little bit more follow through. Tonight I'm suggesting we wait for the ITB to close above $27.00 and then buy calls the next morning with a stop loss at $23.95.

- Suggested Positions -
FEB 11, 2015 - entry price on ITB @ 27.09, option @ 1.70
symbol: ITB160115C30 2016 JAN $30 call - current bid/ask $1.00/1.20

08/02/15 new stop @ 26.75
07/12/15 new stop @ 25.90
06/28/15 last week new home sales surged to their best levels since early 2008
06/15/15 the NAHB confidence survey hits 9-month highs
05/31/15 the ITB is not performing well. Investors may want to consider an early exit.
03/01/15 new stop @ $25.45
02/11/15 trade begins. ITB opens at $27.09
02/10/15 ITB closes at $27.10, above our trigger at $27.00
Option Format: symbol-year-month-day-call-strike

Current Target: ITB @ TBD
Current Stop loss: 26.75
Play Entered on: 02/11/15
Originally listed on the Watch List: 01/11/15


Constellation Brands Inc. - STZ - close: 123.11

Comments:
08/23/15: When traders panicked on Friday they sold everything including their winners. STZ had spent the prior three weeks surging from one new high to another. Friday's drop (-4.3%) erased the prior week's worth of gains.

We had STZ on the watch list with a buy-the-dip trigger at $123.50, which was tagged on Friday. If you're still looking for an entry point the $122.00 level should be support. I would be tempted to buy calls on a dip or a bounce near $122.00.

Trade Description: August 9, 2015:
We recently had STZ on our watch list but the trade never opened. Shares were stuck in a trading range from $115 to $122. STZ has finally broken out and we are adding it back to the watch list.

Here's my previous play description:
Major beer brands have suffered from the boom in craft beers. Yet STZ's Corona and Modelo have seen significant growth, especially in the U.S. The company's earnings and revenue growth has fueled a rally in the stock that has outpaced the major marker indices.

STZ is in the consumer goods sector. According to the company, "Constellation Brands (NYSE:STZ and STZ.B) is a leading international producer and marketer of beer, wine and spirits with operations in the U.S., Canada, Mexico, New Zealand and Italy. In 2014, Constellation was one of the top performing stocks in the S&P 500 Consumer Staples Index. Constellation is the number three beer company in the U.S. with high-end, iconic imported brands including Corona Extra, Corona Light, Modelo Especial, Negra Modelo and Pacifico. Constellation is also the world`s leader in premium wine, selling great brands that people love including Robert Mondavi, Clos du Bois, Kim Crawford, Rex Goliath, Mark West, Franciscan Estate, Ruffino and Jackson-Triggs. The company`s premium spirits brands include SVEDKA Vodka and Black Velvet Canadian Whisky.

Based in Victor, N.Y., the company believes that industry leadership involves a commitment to brand-building, our trade partners, the environment, our investors and to consumers around the world who choose our products when celebrating big moments or enjoying quiet ones. Founded in 1945, Constellation has grown to become a significant player in the beverage alcohol industry with more than 100 brands in its portfolio, sales in approximately 100 countries, about 40 facilities and approximately 7,200 talented employees."

This past January STZ reported their fiscal year 2015 Q3 results that beat analysts' estimates on both the top and bottom line. Management raised their 2015 guidance. Their Q4 results were announced on April 9th. Earnings were up +37% from a year ago to $1.03 per share. That was 9 cents above estimates. Revenues were up +5% to $1.35 billion. Gross margins improved to 44%.

STZ said they're seeing strong demand for their Mexican beer brands Corona and Modelo. They're gaining market share in both the spirits and wine categories as well.

The company said 2015 sales were up +24% from the prior year to $6.03 billion. STZ's management guided in-line for fiscal 2016 and forecast earnings of $4.70 to $4.90 per share. That compares to 2015's profit of $4.17 per share (essentially +12% to +17.5% earnings growth).

STZ's most recent report was July 1st. Wall Street was looking for a profit of $1.24 per share on revenues of $1.62 billion. STZ beat estimates with a profit of $1.26 per share. Sales were up +6.9% to $1.63 billion. If you account for currency headwinds their revenues were up +8%. Management raised their fiscal year 2016 earnings guidance from $4.70-4.90 to $4.80-5.00.

After languishing near the bottom half of its trading range for the majority of July shares of STZ finally resumed its long-term up trend. The stock has recently broken out past major resistance near $122.00. Tonight I am suggesting a buy-the-dip trigger at $122.00 since broken resistance should be new support.

- Suggested Positions -
AUG 21, 2015 - entry price on STZ @ 123.50, option @ 11.60
symbol: STZ170120C130 2017 JAN $130 call - current bid/ask $9.10/11.40

08/21/15 triggered at $123.50
08/16/15 adjust the buy-the-dip trigger from $122.00 to $123.50
Option Format: symbol-year-month-day-call-strike

Chart

Current Target: To Be Determined
Current Stop loss: 117.75
Play Entered on: 00/00/15
Originally listed on the Watch List: 08/09/15




CLOSED Plays


Adobe Systems - ADBE - close: 78.87

Comments:
08/23/15: The two-day market plunge saw ADBE Fall from $85 to under $79.00. Shares hit our stop loss at $79.00 on Friday. The next level of support could be the 200-dma near $77.00.

- Suggested Positions -
MAY 15, 2015 - entry price on ADBE @ 80.00, option @ 4.60
symbol: ADBE160115C85 2016 JAN $85 call - exit $3.45 (-25.0%)

08/21/15 stopped out
08/16/15 new stop @ 79.00
08/02/15 new stop @ 77.65
06/28/15 new stop @ 74.75
06/20/15 new stop @ 73.90
05/15/15 trade begins. ADBE opens at $80.00
05/14/15 triggered. ADBE closed @ $79.43, above our trigger of $77.75
Option Format: symbol-year-month-day-call-strike

Chart

Current Target: To Be Determined
Current Stop loss: 79.00
Play Entered on: 05/15/15
Originally listed on the Watch List: 05/03/15


CVS Health - CVS - close: 102.21

Comments:
08/23/15: CVS sliced through multiple layers of support with a -3.6% plunge on Friday. Shares finally bounced after tagging their 200-dma. Our stop loss was hit at $103.40.

- Suggested Positions -
AUG 04, 2015 - entry price on CVS @ 107.00, option @ 2.45
symbol: CVS160115C115) 2016 JAN $115 call - exit $1.53 (-37.5%)

08/21/15 stopped at $103.40
08/04/15 CVS hit our buy-the-dip trigger at $107.00
Option Format: symbol-year-month-day-call-strike

Chart

Current Target: To Be Determined
Current Stop loss: 103.40
Play Entered on: 08/04/15
Originally listed on the Watch List: 07/19/15


Facebook, Inc. - FB - close: 86.06

Comments:
08/23/15: FB was unable to escape the market's widespread sell-off. Our stop loss was $88.85. Unfortunately shares gapped open lower at $87.52 on Friday morning.

I would keep FB on your watch list. The $82-85 area should offer some support.

- Suggested Positions -
APR 01, 2015 - entry price on FB @ 81.00, option @ 4.92
symbol: FB160115C90 2016 JAN $90 call - exit $6.35 (+29.0%)

08/21/15 stopped out on gap down at $87.52
07/26/15 new stop @ 88.85
07/20/15 Planned exit to sell half. FB opened @ $95.85.
Our 2016 call option opened at $11.01 (+123.7%)
07/19/15 plan on exiting half of our FB call option on Monday (July 20th) to lock in potential gains.
07/19/15 new stop @ 87.45
06/28/15 new stop @ 78.45
04/23/15 Q1 earnings report
04/01/15 triggered @ 81.00
03/29/15 move the buy-the-dip trigger from $82.00 down to $81.00
Option Format: symbol-year-month-day-call-strike

Chart

Current Target: To Be Determined
Current Stop loss: 88.85
Play Entered on: 04/01/15
Originally listed on the Watch List: 03/22/15


Henry Schein, Inc. - HSIC - close: 138.10

Comments:
08/23/15: HSIC was another victim to the market's two-day plunge. Shares cut through support near $140 and its 200-dma. We actually had our stop at $141.75. HSIC gapped down on Friday at $140.82. The next support level appears to be the $135-136 area.

- Suggested Positions -
JUL 14, 2015 - entry price on HSIC @ 147.00, option @ 3.90
symbol: HSIC160115C155 2016 JAN $155 call - exit $1.65 (-57.6%)

08/21/15 stopped out on gap down at $140.82
08/02/15 new stop @ 141.75
07/14/15 trade begins. HSIC opens at $147.00
07/13/15 HSIC closed @ $146.53, above our trigger of $146.50
Option Format: symbol-year-month-day-call-strike

Chart

Current Target: To Be Determined
Current Stop loss: 141.75
Play Entered on: 07/14/15
Originally listed on the Watch List: 07/12/15


MasterCard Inc. - MA - close: 90.68

Comments:
08/23/15: Ouch! Last week's decline in MA erased the prior three month's worth of gains. Shares fell through several layers of support. Our stop loss was hit at $91.75.

- Suggested Positions -
MAY 11, 2015 - entry price on MA @ 93.48, option @ 5.95
symbol: MA160115C95 2016 JAN $95 call - exit $3.80 (-36.1%)

08/21/15 stopped out
08/09/15 new stop @ 91.75
07/10/15 EU files charges against MA regarding excessive fees
06/21/15 new stop @ 89.75
05/11/15 trade begins. MA opens at $93.48
05/08/15 triggered with a close @ $93.51 (above $93.25)
Option Format: symbol-year-month-day-call-strike

Chart

Current Target: MA @ TBD
Current Stop loss: 91.75
Play Entered on: 05/11/15
Originally listed on the Watch List: 05/03/15


Microsoft Corp. - MSFT - close: 43.07

Comments:
08/23/15: Big cap stocks were crushed on Friday and MSFT underperformed with a -5.6% decline. Shares hit our stop loss at $43.75. If this market weakness continues it could push MSFT down toward support near $40.00.

- Suggested Positions -
AUG 05, 2015 - entry price on MSFT @ 47.98, option @ 4.00
symbol:MSFT170120C50 2017 JAN $50 call - exit $2.28 (-43.0%)

08/21/15 stopped out @ 43.75
08/05/15 trade begins. MSFT opens at $47.98
08/04/15 MSFT closed at $47.54, inside our $47.50-48.50 entry range
Option Format: symbol-year-month-day-call-strike

Chart

Current Target: MSFT @ TBD
Current Stop loss: 43.75
Play Entered on: 08/05/15
Originally listed on the Watch List: 08/02/15


Nike, Inc. - NKE - close: 106.87

Comments:
08/23/15: The profit taking last week hit NKE especially hard on Friday with a -4.8% plunge. Shares sliced through support levels and hit our stop at $109.40 on Friday.

I'd keep NKE on your radar screen. The $105 and $100 levels could be support.

FYI: We sold half our NKE position on Aug. 10th to lock in a potential gain.

- Suggested Positions -
MAY 11, 2015 - entry price on NKE @ 102.42, option @ 4.20
symbol: NKE160115C110 2016 JAN $110 call - exit $6.05 (+44.0%)

08/21/15 stopped out @ 109.40
08/10/15 Planned exit to sell half. NKE opened @ $115.39
Sold half: 2016 Jan $110 call (bid) $8.95 (+113.0%)
08/09/15 new stop @ 109.40, Exit HALF of our position on Monday, Aug. 10th to lock in a potential gain
07/19/15 new stop @ 107.75
07/12/15 new stop @ 104.25
07/05/15 new stop @ 103.25
06/28/15 new stop @ 102.25
06/25/15 NKE beats earnings and revenue estimates
06/21/15 new stop @ 99.50
06/07/15 new stop @ 97.85
05/31/15 NKE down last week on rumors it might be involved in the FIFA scandal
05/11/15 trade begins. NKE opens at $102.42
05/08/15 Triggered with a close @ $102.44 (above 102.00)
05/03/15 move the stop loss from 95.75 to 97.45
04/12/15 Strategy update: adjust the trigger to a close above $102.00 and the stop loss to $95.75 (from a close above $101.00 and a stop at $94.45)
Option Format: symbol-year-month-day-call-strike

Chart

Current Target: NKE @ TBD
Current Stop loss: 109.40
Play Entered on: 05/11/15
Originally listed on the Watch List: 03/29/15


Starbucks Corp. - SBUX - close: 52.84

Comments:
08/23/15: SBUX has been one of the best performing stocks in the S&P 500 this year. Naturally when investors panicked and started selling stocks SBUX was on their list. Shares fell from $58 to $52.60 in three days. Our stop loss was hit on Friday at $53.75.

I would keep SBUX on your radar screen. The $50.00 level might offer some round-number support.

FYI: We sold half of our SBUX trade on June 29th to lock in a potential gain.

- Suggested Positions -
APR 28, 2015 - entry price on SBUX @ 50.00, option @ 1.59
symbol:SBUX160115C55 2016 JAN $55 call - exit $2.80 (+76.1%)

08/21/15 stopped out
08/02/15 new stop @ 53.75
07/26/15 new stop at $53.25
Investors may want to exit now and lock in potential gains
07/23/15 SBUX reports earnings above estimates.
07/19/15 new stop @ 51.85
06/29/15 Sold half, SBUX gapped down. Option exit $2.67 (+67.9%)
06/28/15 Sell half of our call position on Monday, June 29, to lock in a potential gain
06/21/15 new stop @ 49.65
06/07/15 new stop @ 49.25
05/31/15 new stop @ 48.25
04/28/15 triggered @ 50.00
Option Format: symbol-year-month-day-call-strike

Chart

Current Target: SBUX @ TBD
Current Stop loss: 53.75
Play Entered on: 04/28/15
Originally listed on the Watch List: 04/26/15


Under Armour, Inc. - UA - close: 90.03

Comments:
08/23/15: It was a rough week for UA. The last two sessions erased $10 or -10% from the stock price. Our stop loss was hit at $93.25 on Friday.

I would definitely keep UA on your radar screen. The $80-85 area should offer some support and might be a new entry point for bullish positions.

FYI: We sold half of our UA trade on July 27th to lock in a potential gain.

- Suggested Positions -
JUN 17, 2015 - entry price on UA @ 83.06, option @ 4.50
symbol: UA160115C90 2016 JAN $90 call - exit $9.63 (+114.0%)

08/21/15 stopped out
08/09/15 new stop @ 93.25
07/27/15 Sold half @ the open. Option exit $10.50 (+133.3%)
07/26/15 new stop @ 89.00, EXIT half or our UA calls on Monday, July 27th, to lock in a potential gain
07/19/15 new stop @ 82.40
07/12/15 new stop @ 79.75
06/28/15 new stop @ 78.90
06/17/15 trade begins: UA opens at $83.06
06/16/15 Triggered: UA closed at $82.78, above our trigger at $82.25
Option Format: symbol-year-month-day-call-strike

Chart

Current Target: UA @ TBD
Current Stop loss: 93.25
Play Entered on: 06/17/15
Originally listed on the Watch List: 06/14/15