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Daily Newsletter, Tuesday, 10/13/2015

Table of Contents

  1. Market Wrap
  2. New Plays
  3. In Play Updates and Reviews

Market Wrap

Earnings Expectations Weigh on Markets

by Jim Brown

Click here to email Jim Brown

Worries over potentially weak Q3 earnings weighed on the market ahead of reports from Intel and JP Morgan after the bell. The opening dip was bought but resistance held and sellers appeared almost immediately.

Market Statistics

The largest acquisition in 2015 could not hold up the markets at the open. Anheuser Busch InBev (BUD) finally convinced SABmiller to merge. The acquisition is valued at $106 billion and will merge the two largest beer brands in the world. Having Budweiser and Miller under the same roof may not happen. Analysts believe the companies will have to divest the Miller brand and Molson Coors (TAP) will be the beneficiary of that divestment. BUD shares only rose +2% on the news but Molson Coors shares spiked +10% on the potential to acquire the Miller brand.


There were no economic reports to move the market at the open. Wednesday will be different with the Fed Beige Book, Retail Sales and the Producer Price Index. The Beige Book is likely to show that the economy is still growing at a "moderate pace" in the 12 Fed regions. This is probably not going to be a market mover unless it is significantly more negative than in the past.


Dow component Johnson & Johnson (JNJ) reported adjusted earnings of $1.49 compared to estimates for $1.44. Revenue of $17.1 billion missed estimates for $17.41 billion. The company blamed the strong dollar for knocking -16% off international revenues. Drug sales declined -7.4% to $7.7 billion after sales of Hep-C drug Olysio declined -90%. Sales of Motrin and Zyrtec declined -7.7% to $3.3 billion. Sales of medical devices declined -7.3% to $6.1 billion.

JNJ announced a $10 billion stock buyback program and that probably helped shares avoid a sharper decline.


After the bell, Intel (INTC) reported earnings of 64 cents that beat estimates for 59 cents. Revenue of $14.47 billion beat estimates of $14.22 billion. Shares spiked on the initial news but then declined after the company guided mostly in line with analyst estimates for Q4. They guided to revenue of $14.3-$15.3 billion with analysts expecting $14.83 billion. Analysts believe Intel is going to face some competition from Qualcomm, which just announced a "datacenter on a chip" for enterprise servers. Qualcomm is thought to be targeting massive server users including Facebook, Google, Amazon and Alibaba. Shares of Intel dropped more than $1 in afterhours.


JP Morgan (JPM) reported earnings of $1.32 compared to estimates for $1.37. Revenue of $23.54 billion missed estimates for $23.69 billion. The bank is struggling to cut costs as much as possible with the employee count down more than -10,000 year-to-date. The CFO said the summer conditions were "generally quite challenging" and led to a decline in trading revenue. Lower commodity prices forced the bank to raise loan loss reserves to cover loans to oil and gas companies. Shares declined more than $1 in afterhours.


CSX Corp (CSX) reported earnings of 52 cents that beat estimates for 50 cents. Revenue of $2.94 billion missed estimates for $3.04 billion. The railroad said low commodity prices were the biggest challenge causing fewer shipments. Coal demand continues to decline as coal fired plants are closed because of the new EPA rules. Shipments declined -10% in 2015 and are expected to continue declining in 2016. The company also reported significant declines in fertilizers, industrial metals and housing construction materials. Shares of CSX rose fractionally after the report.


Earnings for Wednesday are highlighted by Netflix, Wells Fargo and Bank of America. The banking trend continues on Thursday with Citigroup, Goldman Sachs, US Bank and Schwab.


Twitter (TWTR) shares rose sharply at the open to $30.68 after the company said it planned on cutting 8% of its workforce in order to become more streamlined. That equates to about 336 workers and the news had been leaked. The late afternoon Nasdaq decline pulled shares back to $29.

The company also said it saw revenue in Q3 at the high end of prior guidance of $545-$560 million. Analysts were expecting $559.46 million.


After the bell, Bloomberg reported that SanDisk (SNDK) had hired bankers to explore a potential sale after it received interest from Micron (MU) and Western Digital (WDC). Since SanDisk shares manufacturing plants with Toshiba it would need Toshiba's approval to enter into an acquisition. Micron is a current competitor to SanDisk flash technology. Western Digital may want to add flash memory to its disk drives to speed up access. Shares rallied about 10% on the news.


Crude prices continued to decline even though Tuesday is normally a short covering day ahead of inventories on Wednesday. However, that report has been delayed until Thursday by the holiday. Driving them lower was the fading headlines from Syria and news that the IEA has lowered its demand growth forecast again. The IEA said demand growth will slow from its five-year high of 1.8 million barrels a day (MBPD) in 2015 to 1.2 mbpd in 2016. The agency said long-term price support was likely to fade in 2016 despite a drop of -500,000 bpd in non-OPEC supply. At the same time OPEC supply is expected to grow by 1.0 mbpd as Iranian sanctions are removed. Global supply was 96.6 mbpd in September.


Markets

With the democratic debates tonight there is a good chance Hillary will again repeat her plan to have the government control drug prices. That worry caused the biotech sector to crash again with a -3.1% decline ahead of the debate. That decline tanked the Nasdaq and pulled the Russell and S&P lower.


The Nasdaq lost nearly -1% or -42 points to close at a three-day low thanks to the biotech decline. However, there is significant worry over the Netflix earnings due out after the close on Wednesday. The market will likely follow whatever happens to Netflix shares post earnings as that will be a sentiment indicator.

The Nasdaq chart did not change much despite the drop. The mid morning recovery spiked the index to a three week high but resistance held and the decline began at 11:AM. Support remains 4,740 and 4,715.



The S&P tried to break through resistance at 2,020 this morning but despite a +2 point move over that level it was only a temporary gain. The selling began at 11:AM and we closed right at the low of the day and right back at prior resistance. We should see that 1990-2005 level now serve as support but a decline under 1,990 could set off some chain reaction selling.



The Dow tried to extend its gains this morning but the seven-day streak ended with a minor -49 point loss. With JNJ, INTC and JPM expected to open lower on Wednesday the Dow will start off in a decline. Depending on comments in the debate tonight, the healthcare sector could also be a drag on Wednesday. Lower drug prices would be positive for them but there may also be comments about lowering insurance premiums as well.

The Dow closed well over 17,000 and above what should be support at 17,050. The low for the day came at the open at 17,034 and it was quickly bought. Let's hope the same is true on Wednesday.



The Dow Transports ($TRAN) collapsed with a -2.2% decline after Ryder Systems (R) posted a big earnings warning on Monday evening. The transports fell back below their long-term downtrend resistance despite falling oil prices for the last two days. This is a negative sentiment indicator for the market if the sector does not improve.


The Russell 2000 small cap index gave back -1.4% and the third largest index decline after the Biotech and Transport indexes. Resistance at 1,165 held firm and the index closed under prior support at 1,150. This was most likely related to the crash in the biotechs because the Russell has a significant number of biotech components.


Is there a Black Swan event in our near future? Option traders definitely expect something in the next 30 days. The CBOE Skew Index ($SKEW) measures far out of the money options on the S&P-500. The concept is to watch the tail risk from heavy buying of options well out of the money in order to determine market sentiment and the likelihood of a major market move.

The Skew Index has risen 30% just in October and spiked +10% on Monday alone. The index closed at 148.92 on Monday and that is the highest level since the index was created in 1990.

That is higher than the run-up to the 2008 financial crisis, higher than the Ebola crisis, higher than the budget crisis in 2011 and higher than the 1998 Long Term Capital Management crisis that nearly crashed the financial system.

Currently the Skew Index is pricing in a 15% chance of a two standard deviation move in the S&P over the next 30 days. Using the SPY as a proxy for the S&P a 2SD move would be roughly -20 to -23 points. The S&P closed at 200 today so that suggests a potential drop to 177-180.

This corresponds to the massive put buying in the S&P that I wrote about a couple weeks ago. At the time, the trade discussed was the purchase of 90,000 June $184 puts for roughly $1,100 per contract. I checked again today and now there are many more at various June strikes.

180 = 21,000
182 = 46,000
184 = 92,000
185 = 56,000
190 = 29,000
195 = 13,000
200 = 16,000

There are similar quantities in the March and January strikes with a huge increase in the December strikes with some having well over 100,000 in open interest. The December $185 put has nearly 150,000 active contracts.

As I discussed in my prior commentary I thought the large put buys in June were portfolio insurance against a Q4 decline. Premiums would not decline rapidly in case of a rally and portfolio managers could exit with minimum expense.

The large open interest in the December strikes is likely more of the same but with a lot of speculation buys from traders who expected a new market low in October. Remember, just two weeks ago on September 29th the indexes were trading back at their August lows and the sentiment was very bearish.

Planning for a black swan event would be the equivalent of betting on a specific number on the roulette table. Your chances of success would be exceedingly low. The definition of a black swan event is something "unexpected or unpredictable" that rocks the markets. To claim those large put positions were predicting a black swan event would mean it was expected. Obviously, traders and portfolio managers can expect a market decline without it being a black swan event. Markets decline for dozens of reasons and buying a lot of puts does not mean Russia is about to launch an attack on the USA.

While we cannot rule out an "unpredictable" market event over the next couple of months, I think we need to assume the majority of those high open interest puts on the S&P are simply hedges as a form of portfolio insurance.


The market is facing a lot of weakness in the upcoming earnings reports. Intel and JP Morgan both traded lower tonight but not that much lower. In both cases, the damage was limited to about $1. If that continues to be the trend, the earnings cycle will turn out ok and investors could but the dip. However, in both of those reports the bad news was expected and priced into the stocks.

We may find out that most of the negative earnings are already priced in and/or the bad news may not be as bad as analysts expect.

I am in the buy the dip camp until proven wrong. If the S&P does dip back below 1,990 I would probably refrain from an instant buy and wait to see what the market gives us. There are two weeks left for fund managers to window dress their portfolios for the end of their fiscal year. They "should" be buying performance in hopes of adding a few dollars to their gains before the end of October. Time will tell if that is going to happen this year.

Sometimes the best trade is the one you do not make.

Enter passively, exit aggressively!

Jim Brown

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New Plays

Tougher Competition Hurting Outlook

by James Brown

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NEW BEARISH Plays

GNC Holdings - GNC - close: 40.78 change: -0.59

Stop Loss: 42.55
Target(s): To Be Determined
Current Gain/Loss: Unopened
Entry on October -- at $---.--
Listed on October 13, 2015
Time Frame: Exit prior to earnings at the very end of October (or early November)
- We will adjust the time frame when GNC publishes its earnings date -
Average Daily Volume = 1.2 million
New Positions: Yes, see below

Company Description

Trade Description:
We want to take another swing at GNC. The bearish story for the stock has not changed and the oversold bounce has reversed.

Here's an updated trade description:
Tougher competition, increased government scrutiny, and changing consumer habits have not been a good recipe for shares of GNC. The stock is down -13.1% in 2015 and poised to hit new lows.

GNC is in the services sector. According to the company, "GNC Holdings, Inc. - headquartered in Pittsburgh, PA - is a leading global specialty health, wellness and performance retailer. The Company's foundation is built on 80 years of superior product quality and innovation. GNC connects customers to their best by offering a premium assortment of vitamins, minerals, herbal supplements, diet, sports nutrition and protein products. This assortment features proprietary GNC - including Mega Men®, Ultra Mega®, Total Lean®, Pro Performance®, Pro Performance® AMP, Beyond Raw®, GNC Puredge®, GNC GenetixHD®, Herbal Plus® - and nationally recognized third party brands.

GNC's diversified, multi-channel business model generates revenue from product sales through company-owned retail stores, domestic and international franchise activities, third party contract manufacturing, e-commerce and corporate partnerships. As of June 30, 2015, GNC had more than 9,000 locations, of which more than 6,700 retail locations are in the United States (including 1,067 franchise and 2,304 Rite Aid franchise store-within-a-store locations) and franchise operations in more than 50 countries."

GNC faces multiple issues. This year there have been negative headlines for the supplement industry. Testing showed that multiple supplements at various retailers were filled with bogus ingredients. Companies like Wal-mart, Target, Walgreens, and GNC have all come under fire for selling the fraudulent products. This will likely increase government scrutiny for supplements in general.

GNC also faces an issue with changing consumer habits. While most of Americans are overweight and out of shape there is a growing trend of healthier eating. Consumers want to know what they are putting in their bodies. That means less pills and more raw fruits and veggies, especially organic ones.

The biggest challenge could be tough competition. Online rivals can provide supplements at cheaper prices than GNC's retail stores. Best Buy (BBY), the consumer electronics store, has faced this issue for years with consumers coming into a Best Buy store, shopping around, and then going home and buying the product online from Amazon.com for less money and getting it delivered. GNC faces the same issue.

GNC's earnings have struggled. Their Q1 report, announced April 30th, missed estimates. GNC missed on both the bottom line profit estimates and the revenue estimate. Revenues were down -0.6% and same-store sales plunged -4.1%. Management lowered their 2015 guidance following this report.

GNC's Q2 results were not much better. They missed on both the top and bottom line again. Earnings only grew +2.6% from a year ago. Revenues were virtually flat with a +0.5% gain. Same-store sales fell -2.8%.

The stock rallied anyway because management said they would focus on more franchised stores. This news seemed to have sparked some short covering. Shares of GNC soared from $42 to $50 in just a few days but the rally reversed. Now the stock is trading at new 2015 lows. The company's announcement on August 4th to boost their stock buyback program by an additional $500 million did not help the stock very much.

GNC is in a bear market and the oversold bounce just failed near resistance in the $43.00 area. The point & figure chart is bearish and forecasting at $33.00 target. Tonight I am suggesting a trigger to launch bearish positions at $39.90.

This is a short-term trade. GNC has earnings coming up at the very end of October or early November. We plan to exit prior to the announcement.

Trigger @ $39.90

- Suggested Positions -

Short GNC stock @ $39.90

- (or for more adventurous traders, try this option) -

Buy the NOV $40 PUT (GNC151120P40) current ask $2.10
option price is a current quote and not a suggested entry price.

Entry disclaimer: To avoid an unfavorable entry point, we will not launch a new play if the stock gaps open more than $1.00 past our suggested entry point.

Option Format: symbol-year-month-day-call-strike

Daily Chart:

Weekly Chart:



In Play Updates and Reviews

The Intraday Rally Failed

by James Brown

Click here to email James Brown

Editor's Note:
Traders bought the dip this morning but the intraday rally failed around lunchtime. The U.S. market followed the European and Asian markets lower with widespread declines.

BITA hit our entry trigger.


Current Portfolio:


BULLISH Play Updates

Bitauto Holdings - BITA - close: 32.96 change: +0.10

Stop Loss: 29.90
Target(s): To Be Determined
Current Gain/Loss: -2.3%
Entry on October 13 at $33.75
Listed on October 07, 2015
Time Frame: Exit prior to earnings in mid November
Average Daily Volume = 946 thousand
New Positions: see below

Comments:
10/13/15: BITA produced a +0.3% gain today but its performance actually looks bearish. The stock dipped toward $32 this morning and then shot higher to hit new eight-week highs. BITA hit our entry trigger at $33.75. Unfortunately the rally reversed and gains faded by the closing bell.

I am suggesting caution here. This could be a bull-trap move with the failed breakout higher. No new positions at this time. Let's see if BITA can close above $33.50 before considering new positions.

Trade Description: October 7, 2015:
After a -75% plunge in BITA's stock price is all the bad news baked in? The stock hit a high of $95.00 in January 2015. When the U.S. stock market corrected in late August and spiked lower on August 24th, shares of BITA hit a low of $22.00. That's a -76% drop. Since then BITA appears to have found a bottom.

If you're not familiar with BITA they are a Chinese company. BITA is considered part of the technology sector. According to the company, "Bitauto Holdings Limited (BITA) is a leading provider of internet content and marketing services for China's fast-growing automotive industry. Bitauto manages its businesses in three segments: its advertising business, EP platform business, and digital marketing solutions business.

The Company's bitauto.com advertising business offers automakers and dealers a variety of advertising services through its bitauto.com website, which provides consumers with up-to-date new automobile pricing and promotional information, specifications, reviews and consumer feedback.

The Company's EP platform business provides web-based integrated digital marketing and customer relationship management (CRM) applications to new automobile dealers in China. The platform enables dealer subscribers to create their own online showrooms, list pricing and promotional information, provide dealer contact information, place advertisements and manage customer relationships to help them effectively market their automobiles to consumers.

The Company's taoche.com business provides listing services to used automobile dealers that enable them to display used automobile inventory information on the taoche.com website and partner websites. The Company provides advertising services to used automobile dealers and automakers with certified pre-owned automobile programs on its taoche.com website. The Company's digital marketing solutions business provides automakers with one-stop digital marketing solutions, including website creation and maintenance, online public relations, online marketing campaigns and advertising agent services."

The economic slowdown in China is major news and has been a market-moving headline for months. What investors might forget is that China is still growing. It's just the pace of growth is slowing down. That slowdown is very evident in the auto market. According to McKinsey & Company the Chinese auto market grew +24% between 2005 and 2011. Last year (2014) Chinese consumers bought 19.7 million cars. That looks like a short-term peak. After years of consistent growth the Chinese auto market will be lucky to hit low single-digit growth and might actually post a decline in sales.

Through August 2015 the Chinese auto market has only sold 12.78 million vehicles. September's numbers continued to sink with sales down -3.4% from a year ago. The full-year 2015 sales are on pace for a -2.6% decline. However, analysts are expecting growth in the Chinese auto market to slow down to +8% annually between now and 2020. That's still healthy, just slower than previous years.

Consumers are feeling the pinch with China's slowdown. Unfortunately an extremely volatile Chinese stock market this year has not helped consumer confidence. The good news is that the Chinese government is trying to stimulate their economy. Last month the government slashed their purchase tax on cars by 50% down to 5%. This new discount applies to cars with engines 1.6 liters or smaller. According to Bank of America that accounts for almost 70% of cars sold in China. Credit Suisse analysts believe this tax cut by the government could boost sales by three million units a year. The tax cut started on October 1st and lasts through the end of 2016.

Bearish investors on BITA could argue the stock is expensive. BITA does have a trailing P/E of 40. Yet bullish investors could argue that BITA is cheap with a forward P/E of 2.6. The company continues to see strong revenue growth.

BITA's last couple of quarters saw revenues surge +99.5% in Q1 and +92.5% in Q2. Management has been beating estimates on both the top and bottom line the last three quarters. The company is growing but they are trying to adjust to the economic slowdown. Management has lowered their guidance in two out of the last three quarters. Part of the problem is that last year was so good for the auto market the company faces really tough comparisons.

Their most recent earnings report was August 6th and BITA management lowered their earnings and revenue guidance. The company expects earnings per share to decline -25% to -32% from a year ago. They also expect sales growth to slow from the +92-95% range down to the +64-73% range. Yes, that's a big drop but it's still strong growth. Shares have already been punished for the lowered guidance. BITA fell -18% the very next day (August 7th).

The question I asked earlier was if all the bad news had already been priced into BITA's stock price? After spiking down to $22 in late August shares spent weeks consolidating sideways in the $25.00-28.00 region. This appears to have built a base which the stock is now bouncing from. The last several days has seen a change in the tone of trading with traders buying the dips. The point & figure chart is now bullish and forecasting at $49.00 target.

Today's intraday high was $33.59. Tonight we are suggesting a trigger to launch bullish positions at $33.75. Make no mistake, this is a higher-risk, more aggressive trade. Chinese stocks can be volatile. If this rally continues BITA could see some short covering. The most recent data listed short interest at nearly 10% of the small 20.3 million share float. I am suggesting small positions to limit risk or use the call option to limit risk.

*small positions to limit risk*- Suggested Positions -

Long BITA stock @ $33.75

- (or for more adventurous traders, try this option) -

Long NOV $35 CALL (BITA151120C35) entry $2.50

10/13/15 triggered @ $33.75
Option Format: symbol-year-month-day-call-strike


Ingram Micro Inc. - IM - close: 29.01 change: +0.08

Stop Loss: 27.45
Target(s): To Be Determined
Current Gain/Loss: +4.2%
Entry on September 09 at $27.85
Listed on September 8, 2015
Time Frame: Exit prior to earnings in late October
Average Daily Volume = 1.0 million
New Positions: see below

Comments:
10/13/15: Traders bought the dip in IM this morning but the rally didn't get very far before it started to fade. IM still managed to outperform the broader market with a +0.27% gain.

No new positions at this time. More conservative investors may want to raise their stop loss again.

Trade Description: September 8, 2015:
IM looks like it is about to break out from a huge consolidation pattern.

The company operates in the services sector. According to the company, "Ingram Micro helps businesses fully realize the promise of technology® - helping them maximize the value of the technology that they make, sell or use. With its vast global infrastructure and focus on cloud, mobility, supply chain and technology solutions, Ingram Micro enables business partners to operate more efficiently and successfully in the markets they serve.

No other company delivers as broad and deep a spectrum of technology and supply chain services to businesses around the world. Founded in 1979, Ingram Micro's role as a leader and innovator in technology and supply chain services has fueled its rise to the 69th ranked corporation in the FORTUNE 500.

Ingram Micro amplifies the value of its position at the intersection of thousands of vendor, reseller and retailer partners by customizing and delivering highly targeted applications for industry verticals, business to business customers and commercial needs. From provisioning solutions for system integrators working at the heart of the network to offerings through the full lifecycle of mobile devices, SMB to global enterprise software and computing, point of sale to cloud services, professional AV to physical security-Ingram Micro is trusted by customers to have the expertise and resources to help them define and push the boundaries of what's possible.

The company supports global operations by way of an extensive sales and distribution network throughout North America, Europe, Middle East and Africa, Latin America and Asia Pacific."

The company's most recent earnings report was July 30th. Wall Street was expecting a profit of $0.54 per share on revenues of $10.9 billion. IM delivered $0.55 cents. Revenues were down -3.3% to $10.55 billion. However, if you back out the impact of currency headwinds then IM's results look a lot better. Negative currency translations shaved off -8% from their revenues.

IM management's guidance was a little soft but they announced the initiation of a $0.10 per share dividend and that they were boosting their stock buyback program by $300 million. The stock soared on this news. Shares rallied from $24.50 to $27.25 the next day.

IM was not immune to the market's late-August crash but investors bought the dip at support near its July lows. Shares have since erased the sell-off. Now IM is poised to breakout past resistance and what looks like a consolidation that started in early 2014.

A rally past $28.00 would generate a new buy signal on the point & figure chart. We want to jump in a little earlier. Tonight we are suggesting a trigger to open bullish positions at $27.85.

NOTE: I want to caution readers about the options. The spreads on most of IM's options are a little bit wide. Actually some of them are probably too wide. Be careful with the options.

- Suggested Positions -

Long IM stock @ $27.85

- (or for more adventurous traders, try this option) -

Long DEC $30 CALL (IM151218C30) entry $1.15

10/07/15 new stop @ 27.45
09/15/15 Caution - IM did not participate in the market's rally today
09/09/15 triggered @ $27.85
Option Format: symbol-year-month-day-call-strike


Intra-Cellular Therapies, Inc. - ITCI - close: 41.69 change: -2.96

Stop Loss: None, no stop at this time.
Target(s): To Be Determined
Current Gain/Loss: -7.6%
Entry on October 12 at $45.10
Listed on October 10, 2015
Time Frame: Exit prior to earnings in November
Average Daily Volume = 850 thousand
New Positions: see below

Comments:
10/13/15: Biotech stocks suffered a rough day with the IBB biotech ETF plunging -3.1%. It appears that investors are nervous ahead of tonight's Democrat presidential debate. If you recall it was a tweet from Hillary Clinton that sparked a sharp sell-off in biotechs a few weeks ago. Who knows what the candidates might say tonight.

Shares of ITCI reversed lower with a -6.6% plunge toward short-term support at the 10-dma.

No new positions at this time.

Trade Description: October 10, 2015:
Biotech stocks had a terrible third quarter with the group down almost -18%. ITCI was an exception with shares up +25% and that's after some serious profit taking from its mid-September highs. The story for ITCI might be strong enough that shares could ignore further weakness in the group.

You may not be familiar with ITCI since they have been a public company for less than two years. Here's a brief description of the company, "Intra-Cellular Therapies is developing novel drugs for the treatment of neuropsychiatric and neurodegenerative diseases and diseases of the elderly, including Parkinson's and Alzheimer's disease. The Company is developing its lead drug candidate, ITI-007, for the treatment of schizophrenia, bipolar disorder, behavioral disturbances in dementia, depression, and other neuropsychiatric and neurological disorders. ITI-007, a first-in-class molecule, is in Phase 3 clinical development for the treatment of schizophrenia. The Company is also utilizing its phosphodiesterase platform and other proprietary chemistry platforms to develop drugs for the treatment of Central Nervous System (CNS) disorders and other disorders."

It is their lead drug candidate, ITI-007, that fueled huge gains in the stock last month. Here's an excerpt from ITCI's website, "ITI-007 is in Phase 3 clinical trials as a first-in-class treatment for schizophrenia. Current medications available for the treatment of schizophrenia do not adequately address the broad array of symptoms associated with this CNS disorder. In addition, use of these current medications is limited by their substantial side effects. ITI-007 is designed to be effective across a wider range of symptoms, treating both the acute and residual phases of schizophrenia, with improved safety and tolerability." (If you would like more details check out their press release here.

Schizophrenia is a serious mental illness that affects more than 70 million people worldwide. The stock more than doubled on news of its successful Phase 3 clinical trial with shares surging from $26 to almost $60 in two days. That's because ITI-007 would be the first treatment for schizophrenia without significant side effects. Analysts are estimating that potential sales for ITI-007 could reach $6 billion a year in the U.S. and EU if approved by the FDA (and its European counterpart).

ITCI is also investigating if the treatment could help other mental illnesses like dementia, depression, and bipolar disorders.

The company's management was quick to capitalize on the good news. They issued a secondary offering of 6.9 million shares at $43.50 a share (about $300 million). Demand was strong enough that they sold 7.93 million shares and raised $345 million. They already had $204 million in cash. Together that bumps their war chest up to more than $500 million.

Gravity eventually took over and shares of ITCI retreated from $60 to $35 but investors have started buying the dips. Now ITCI is building on a bullish trend of higher lows. Shares appear to have short-term resistance at the $45.00 level. A breakout above $45.00 could be our entry point to hop on board the next leg higher.

Regular readers know that we consider biotech stocks aggressive, higher-risk trades. The right or wrong headline can send a stock soaring. ITCI is a great example with shares exploding higher on positive headlines in September. Tonight we are suggesting small bullish positions if ITCI can trade at $45.10. We will tentatively plan on exiting prior to ITCI's earnings report in early November.

(small positions to limit risk) - Suggested Positions -

Long ITCI stock @ $45.10

- (or for more adventurous traders, try this option) -

Long NOV $50 CALL (ITCI151120C50) entry $3.80

10/12/15 triggered @ $45.10
Option Format: symbol-year-month-day-call-strike


Kate Spade & Co. - KATE - close: 21.38 change: -0.44

Stop Loss: $19.85
Target(s): To Be Determined
Current Gain/Loss: Unopened
Entry on October -- at $---.--
Listed on October 12, 2015
Time Frame: Exit prior to earnings on November 5th
Average Daily Volume = 2.2 million
New Positions: Yes, see below

Comments:
10/13/15: The two-day rally in shares of KATE just failed at resistance near the $22.00 mark. After its reversal at $22 KATE fell to a -2.0% decline.

Currently we are on the sidelines with a suggested entry to launch bullish positions at $22.05.

Trade Description: October 12, 2015:
The luxury goods and accessories industry has been crushed this year. Look at charts for Coach (COH), Michael Kors (KORS), and Kate Spade (KATE). The good news is that the group may have found a bottom. KATE looks poised to leave its rivals in the dust.

KATE is in the consumer goods sector. According to the company, "Kate Spade & Company (KATE) designs and markets accessories and apparel principally under two global, multichannel lifestyle brands: kate spade new york and Jack Spade. With collections spanning demographics, genders and geographies, the brands are intended to accent customers' interesting lives and inspire adventure at each turn. The Company also owns the Adelington Design Group, a private brand jewelry design and development group that markets brands through department stores and serves jcpenney via exclusive supplier agreements for the Liz Claiborne and Monet jewelry lines. The Company has a license for the Liz Claiborne New York brand, available at QVC, and Lizwear, which is distributed through the club store channel."

KATE's most recent earnings report was August 5th. The company announced its Q2 results were $0.08 a share. That missed estimates by three cents. Revenues were only up +5.6% at $281 million. That also missed estimates. The company pointed out their Q2 results still represents several businesses they are winding down. Their core sales of the KATE brand actually rose +20%. Management bumped their guidance and the stock popped on the news.

Traditionally the fourth quarter is the time to own retail-related stocks as investors key in on the holiday shopping season. After shares of KATE were almost cut in half from their 2015 highs near $35.00, Wall Street analysts have turned bullish on the stock. Stephens upped their rating to an overweight and put a $31 price target on the stock. Wunderlich offered a bullish perspective and has a $39 target for KATE. Citigroup named KATE one of their top picks for the rest of the year and issued a $33 price target.

If this rally continues KATE could see more short covering. The most recent data listed short interest at 10% of the 127 million share float. Technically KATE has been consolidating sideways below resistance at its 100-dma and the $22.00 level. Today's display of relative strength (+1.5%) also produced a close above the 100-dma. We want to hop on board if shares breakthrough the $22.00 level. Tonight we are suggesting an entry trigger at $22.05.

Trigger @ $22.05

- Suggested Positions -

Buy KATE stock @ $22.05

- (or for more adventurous traders, try this option) -

Buy the NOV $23 CALL (KATE151120C23)

Entry disclaimer: To avoid an unfavorable entry point, we will not launch a new play if the stock gaps open more than $1.00 past our suggested entry point.

Option Format: symbol-year-month-day-call-strike


Mobileye N.V. - MBLY - close: 48.25 change: -0.05

Stop Loss: $46.45
Target(s): To Be Determined
Current Gain/Loss: -3.0%
Entry on October 05 at $49.75
Listed on October 03, 2015
Time Frame: Exit prior to earnings in mid November
Average Daily Volume = 4.6 million
New Positions: see below

Comments:
10/13/15: MBLY experienced some volatility this morning but closed virtually unchanged on the session, near technical support at its 10-dma.

Wait for a rally above $50.00 before considering new bullish positions. More conservative traders may want to wait for a close above $50.00 before launching positions.

Trade Description: October 3, 2015:
The future of hands free driving is a lot closer than you might think. MBLY is leading the charge. Their technology is already in more than three million cars made by companies like BMW, General Motors, and Tesla.

What exactly does this technology do? DAS stands for driver assistance systems. Sometimes you might see it called ADAS for advanced driver assistance systems. This new technology helps drivers avoid collisions with other vehicles, pedestrians, bicyclists, and more while also alerting the driver to road signs and traffic lights.

The company website describes Mobileye as "a technological leader in the area of software algorithms, system-on-chips and customer applications that are based on processing visual information for the market of driver assistance systems (DAS). Mobileye's technology keeps passengers safer on the roads, reduces the risks of traffic accidents, saves lives and has the potential to revolutionize the driving experience by enabling autonomous driving."

MBLY said their technology will be available in 160 car models from 18 car manufacturers (OEMs). Further, Mobileye's technology has been selected for implementation in serial production of 237 car models from 20 OEMs by 2016.

The company is already developing a system for autonomous driving or hands free driving. They currently plan to launch an autonomous system in 2016 that will work at highway speeds and in congested traffic situations.

MBLY stock came to market in August 2014. Demand was strong enough that they upped the number of shares available from around 27 million to 35.6 million shares. They raised the IPO price from the $22 range to $25. This valued MBLY at $5.3 billion. The first day of trading saw MBLY opened at $36.00. Two months later MBLY traded at $60.00.

It's easy to see why investors are optimistic on MBLY. Annual revenues have soared from $19.2 million in 2011 to $143.6 million in 2014. Their revenues last year rose +77% from 2013. Currently a poll of analysts by Thomson Reuters is forecasting sales to rise +50% in 2015 to $218.3 million. Earnings are forecasted to surge +95%.

MBLY's Q1 report was announced in May. Their Q1 earnings were $0.08 per share, which was a penny above estimates. Revenues were up +28% to $45.6 million, also above estimates.

Q2 results, announced August 6th, were better. Earnings were $0.10 a share, which was two cents better than expected. Revenues were up +56.7% to $52.8 million, above expectations.

Last year the New York Post ran an article discussing how the White House might generate a bullish tailwind for MBLY. The National Highway Traffic Safety Administration issued a research report that estimated ADAS type of technology could eliminate almost 600,000 left-turn and intersection crashes a year. They report also suggested that adding FCAM and lane departure technology on big vehicles like over the road trucks could reduce accidents with these huge vehicles by up to 25%. Following this report the White House said they would draft new rules that required this sort of tech in new vehicles.

A couple of weeks ago the U.S. Department of Transportation and IIHS announced that ten auto manufacturers had agreed to add autonomous emergency breaking to all new U.S. models as a standard feature. This should be a huge bonus for MBLY. The basic autonomous breaking system ranges from $120 to $350 per vehicle (FYI: the U.S. auto market is on pace to sell more than 18 million vehicles this year). MBLY has a history of winning 80 to 90 percent of ADAS contracts so this new push by the government and the auto industry's acceptance could mean billions to MBLY's bottom line going forward.

Naturally, with a high-profile, high-growth stock like MBLY there are critics. Bears point out that MBLY's valuations are sky high and they would be right. MBLY's trailing P/E is over 1,000 while it's forward P/E is about 65. Most of Wall Street seems bullish on MBLY as they can see the long-term growth outlook for MBLY. If this rally continues some of those shorts could panic and fuel a short squeeze. The most recent data listed short interest at 18% of the 163 million share float.

The stock looks ready to sprint higher after a healthy bounce off support. Tonight we are suggesting a trigger to launch bullish positions at $49.75. If triggered I would target a run into the $58-62 region. I am suggesting small positions as this is an aggressive, higher-risk trade. MBLY is a volatile stock. You may want to use the call options to limit your risk. More conservative traders may want to wait for MBLY to rally past $50.00 before initiating positions. Normally the $50.00 level would be round-number, psychological resistance. We're suggesting a trigger just below it since MBLY could move fast once it breaks out. It's worth noting that a rally past $50.00 will generate a new buy signal on the point & figure chart.

*small positions to limit risk* - Suggested Positions -

Long MBLY stock @ $49.75

- (or for more adventurous traders, try this option) -

Long NOV $55 CALL (MBLY151120C55) entry $2.30

10/12/15 new stop @ 46.45
10/05/15 triggered @ $49.75
Option Format: symbol-year-month-day-call-strike


Matrix Service Company - MTRX - close: 24.02 change: -1.91

Stop Loss: 22.45
Target(s): To Be Determined
Current Gain/Loss: -4.1%
Entry on October 09 at $25.10
Listed on October 08, 2015
Time Frame: Exit PRIOR to earnings in early November
Average Daily Volume = 272 thousand
New Positions: see below

Comments:
10/13/15: Thankfully there was not a lot of follow through on yesterday's drop on MTRX. Shares did dip to $23.84 but quickly rebounded. Unfortunately MTRX followed most of the market lower this afternoon.

More conservative traders may want to raise their stop loss. If you are looking for an entry point consider waiting for a bounce back above $24.75.

Trade Description: October 8, 2015:
After years of double-digit earnings and revenue growth MTRX ran into trouble last year. The stock peaked in June 2014 and plunged from $38 down to $17. It looks like MTRX's earnings trouble and stock price declines may have turned the corner.

MTRX is in the basic materials sector. According to the company, "Ranked as a Top 100 Contractor by Engineering News-Record, Matrix Service Company provides sophisticated design, engineering, and construction services to a diverse client base throughout North America. We offer a comprehensive EPC solution to a variety of end-markets with a focus on safety and superior service and quality." They service the "Electrical Infrastructure, Oil Gas & Chemical, Storage Solutions and Industrial markets." The Company is headquartered in Tulsa, Oklahoma, with regional operating facilities in the United States and Canada.

MTRX's earnings results have struggled. They missed Wall Street estimates with their Q2 results (announced April 4th) and their Q3 results (May 7th). Management lowered their guidance with both reports. Fortunately the outlook improved in July.

On July 13th MTRX updated their guidance with numbers slightly above expectations. The stock soared on this news. Yet the stock did not see a lot of follow through higher. It wasn't until MTRX reported earnings on August 31st that the stock began to see any serious improvement.

MTRX's Q4 2015 results, announced August 31st, were $0.40 a share. That was 13 cents above estimates. Revenues were up +7.6% to $370.5 million. Guidance was good enough that the stock rallied past resistance. Shares spent the rest of September consolidating these gains.

Today it looks like the consolidation is over. After months of building a base in the $16-23 range MTRX is finally breaking out. Technically shares look better with the 50-dma and 200-dma beginning to curve upward as well. The point & figure chart is bullish and forecasting at $36.00 target.

MTRX just broke through resistance at the $24.00 level this week on above average volume. The $25.00 level is potential round-number resistance. Therefore we are suggesting a trigger to launch bullish positions at $25.10. Plan on exiting prior to MTRX earnings report in early November.

- Suggested Positions -

Long MTRX stock @ $25.10

- (or for more adventurous traders, try this option) -

Long NOV $25 CALL (MTRX151120C25) entry $2.05

10/12/15 MTRX plunges -7% on no news
10/09/15 triggered @ $25.10
Option Format: symbol-year-month-day-call-strike


Starbucks Corp. - SBUX - close: 60.16 change: -0.38

Stop Loss: 54.75
Target(s): To Be Determined
Current Gain/Loss: +1.0%
Entry on October 08 at $59.55
Listed on October 05, 2015
Time Frame: Exit prior to earnings in very late October
Average Daily Volume = 8.5 million
New Positions: see below

Comments:
10/13/15: SBUX dipped to short-term support at the $60.00 level today. I don't see any changes from yesterday's comments and would consider new positions at current levels. Or if you're worried the market is headed lower tomorrow then consider watching for SBUX to dip toward the prior highs near $59.30 as a potential entry point.

Trade Description: October 5, 2015:
SBUX has delivered a strong rebound off last week's lows. Once again the stock looks like a bullish candidate.

We recently traded SBUX as a bullish candidate. What follows is an updated play description:

The world seems to have an insatiable appetite for coffee. Starbucks is more than happy to help fill that need. The first Starbucks opened in Seattle back in 1971. Today they are a global brand with locations in 66 countries. SBUX operates more than 21,000 retail stores with more than 300,000 workers.

A few years ago Business Insider published some facts on SBUX. The average SBUX customer stops by six times a month. The really loyal, top 20% of customers, come in 16 times a month. There are nearly 90,000 potential drink combinations at your local Starbucks. The company spends more money on healthcare for its employees than it does on coffee beans.

The company's earnings results were only mediocre most of 2014 year. You can see the results in SBUX's long-term chart below. After incredible gains in 2013 SBUX has essentially consolidated sideways in 2014. SBUX broke out of that sideways funk after it reported earnings in January 2015.

Five-Year Plan

In late 2014 SBUX announced their five-year plan to increase profitability. Here's an excerpt from a company press release:

"The seismic shift in consumer behavior underway presents tremendous opportunity for businesses the world over that are prepared and positioned to seize it," Schultz said (Howard Schultz is the Founder, Chairman, President, and CEO of Starbucks). "Over the next five years, Starbucks will continue to lean into this new era by innovating in transformational ways across coffee, tea and retail, elevating our customer and partner experiences, continuing to extend our leadership position in digital and mobile technologies, and unlocking new markets, channels and formats around the world. Investing in our coffee, our people and the communities we serve will remain at our core as we continue to redefine the role and responsibility of a public company in today's disruptive global consumer, economic and retail environments."

"Starbucks business, operations and growth trajectory around the world have never been stronger, and we are more confident than ever in our ability to continue to drive significant growth and meet our long term financial targets," said Troy Alstead, Starbucks chief operating officer. "We have more customers visiting more stores more frequently, both in the U.S. and around the world, than at any time in our history. And we expect both the number of customers visiting our stores and the amount they spend with us to accelerate in the years ahead. With a robust pipeline of mobile commerce innovations that will drive transactions and unprecedented speed of service, Starbucks is ushering in a new era of customer convenience. We believe the runway of opportunity for Starbucks inside and outside of our stores is both vast and unmatched by any other retailer on the planet."

The company believes they can grow revenues from $16 billion in FY2014 to almost $30 billion by FY2019. To do that they will expand deeper into regions like China, Japan, India, and Brazil. SBUX expects to nearly double its stores in China to over 3,000 locations in the next five years

They're also working hard on their mobile ordering technology to speed up the experience so customers don't have to wait in line so long at their busiest locations. This will also include a delivery service.

Part of the five-year plan is a new marketing campaign called Starbucks Evening experience. The company wants to be the "third place" between home and work. After 4:00 p.m. they will start offering alcohol, mainly wine and beer, in addition to new tapas-like smaller plates.

The company recently launched its first ever Starbucks Reserve Roastery and Tasting Room in Seattle, near their iconic first retail store. The new roastery is supposed to be the ultimate coffee lovers experience. CEO Schultz said they will eventually open up about 100 of these Starbucks Reserve locations.

Earnings results:

It was a very strong holiday period for SBUX thanks in part to astonishing gift card sales. The amount of money loaded onto SBUX gift cards during the holidays surged +17% to a record $1.6 billion. One out of every seven Americans received a SBUX gift card. The company also saw significant growth overseas with its China and Asia-Pacific business soaring +85% to sales of $495 million. Their mobile transactions have reached seven million transactions a week.

SBUX reported its Q2 (2015) on April 23rd. Earnings of $0.33 a share were in-line with estimates. Revenues were up +17.8% to $4.56 billion, slightly above expectations. It was their strongest growth in four years. Customers are responding well to new drink options and an updated food menu. They're also developing new delivery options, mobile pay options, and alcoholic drinks available at select locations.

Worldwide same-store sales grew +7%. This was significantly above estimates. It also marked the 21st consecutive quarter where SBUX's comparable store sales were +5% or more.

The company issued mixed guidance. The stronger dollar is having an impact. They see fiscal 2015 results in the $1.55-1.57 range. That compares to Wall Street estimates for $1.57 per share. However, the company's revenue estimates are more optimistic. They're forecasting +16-18% sales growth into the $19.1-19.4 billion zone compares to analysts' estimates of $19.1 billion.

The trend of earnings pops continued in July with shares gapping up to new all-time highs following its Q2 report on July 23rd. Earnings were $0.42 per share, a penny above estimates. Revenues were up +17.5% to $4.88 billion, just a hair above expectations. Global same-store sales were up +7% and their non-GAAP operating margin improved 100 basis points to 19.5%. Management is still guiding 2015 revenues to rise +17% in the $19.1-19.4 billion range.

Technical Set Up

Traders bought the dip in SBUX at its rising 100-dma last week. The rebound has lifted SBUX to major resistance in the $59.00-59.30 area. A breakout here would mark new all-time highs. Tonight we are suggesting a trigger to launch bullish positions at $59.55. It is possible that the $60.00 level is round-number resistance so more conservative traders may want to wait for SBUX to close above $60.00 before initiating bullish positions.

We plan to exit prior to SBUX's earnings report in very late October. More aggressive investors might want to consider holding over the announcement.

- Suggested Positions -

Long SBUX stock @ $59.55

- (or for more adventurous traders, try this option) -

Long NOV $60 CALL (SBUX151120C60) entry $1.96

10/08/15 triggered @ $59.55
Option Format: symbol-year-month-day-call-strike




BEARISH Play Updates

AMAG Pharmaceuticals - AMAG - close: 37.97 change: -0.44

Stop Loss: 42.05
Target(s): To Be Determined
Current Gain/Loss: -1.5%
Entry on October 08 at $37.40
Listed on October 06, 2015
Time Frame: Exit PRIOR to earnings in late October
Average Daily Volume = 946 thousand
New Positions: see below

Comments:
10/13/15: The consolidation in AMAG is narrowing. Shares appear to be getting closer to another bearish breakdown.

I am suggesting investors wait for a decline below $37.50 before considering new positions.

Trade Description: October 6, 2015:
If you're looking for excitement then check out the biotech stocks. It has been a rough few months for the group. The IBB biotech ETF is down -25% from its July 2015 highs. AMAG has sprinted past its peers with a -49% plunge from its July peak. It is worth noting that the prior year (July 2014-July 2015) the stock was up more than +300%.

Here's a brief description of the company, "As a high-growth specialty pharmaceuticals company, AMAG Pharmaceuticals uses its business and clinical expertise to bring therapeutics to market that provide clear benefits and improve people's lives. Based in Waltham, Mass., AMAG has a diverse portfolio of products in the areas of maternal health, anemia management and cancer supportive care. AMAG continues to work to expand the impact of these and future products for patients by delivering on its aggressive growth strategy, which includes organic growth, as well as the pursuit of products and companies that align with AMAG's existing therapeutic areas or those that could benefit from its proven core competencies."

What makes AMAG different from most small biotech firms is that the company actually has sales. AMAG has seen strong revenue and margin growth. At the moment traders don't seem to care. Investors might be worried about competition. The FDA recently approved a generic version of AMAG's Makena treatment. Previously Makena (hydroxyprogesterone caproate) was the only drug approved by the FDA to reduce the risk of pre-term birth. This is bad news for AMAG since Makena represents 75% of its Q2 sales.

Now add more bad news with the biotech sell-off thanks to presidential hopeful Hillary Clinton tweeting about controlling drug prices to prevent price gouging. Plus there are new headlines about the Transpacific partnership (TPP) which is potentially bearish since it limits the exclusivity for new drugs on the market.

The biotech industry is under a lot of pressure and AMAG is underperforming its peers as investors sell the group. Technically AMAG has found short-term support in the $37.50-38.00 region the last few days. It looks like the stock is about to break down to new lows. Tonight we are suggesting a trigger to launch bearish positions at $37.40.

Please note that we want to use small positions to limit our risk. Trading biotech stocks is a risky business. The right or wrong headline can send an individual biotech stock gapping higher or lower. AMAG is definitely a higher-risk, more aggressive trade. There are already a lot of bears in the name. The most recent data listed short interest a 24.4% of the small 28.7 million share float. Investors could use AMAG options but the spreads are so wide the options are untradeable.

*small positions to limit risk* - Suggested Positions -

Short AMAG stock @ $37.40

10/10/15 new stop @ 42.05
10/08/15 triggered @ $37.40


iPath S&P500 VIX Futures ETN - VXX - close: 21.00 change: +1.00

Stop Loss: None, no stop at this time.
Target(s): To Be Determined
Current Gain/Loss: +3.8%
2nd position Gain/Loss: +27.6%
Entry on August 25 at $21.82
2nd position: September 2nd at $29.01
Listed on August 24, 2015
Time Frame: Exit prior to October option expiration
Average Daily Volume = 50 million
New Positions: see below

Comments:
10/13/15: The market's widespread declined fueled a bounce in the volatility indices. The VXX gained +5.0%.

If you're trading the options we are almost out of time. We are down to our last three trading days before our October options expire.

No new positions at this time.

Trade Description: August 24, 2015
The U.S. stock market's sell-off in the last three days has been extreme. Most of the major indices have collapsed into correction territory (-10% from their highs). The volatile moves in the market have investors panicking for protection. This drives up demand for put options and this fuels a rally in the CBOE volatility index (the VIX).

You can see on this long-term weekly chart that the VIX spiked up to levels not seen since the 2008 bear market during the financial crisis. Moves like this do not happen very often. The VIX rarely stays this high very long.

(see VIX chart from the August 24th play description)

How do we trade the VIX? One way is the VXX, which is an ETN but trades like a stock.

Here is an explanation from the product website:

The iPath® S&P 500 VIX Short-Term Futures® ETNs (the "ETNs") are designed to provide exposure to the S&P 500 VIX Short-Term FuturesTM Index Total Return (the "Index"). The ETNs are riskier than ordinary unsecured debt securities and have no principal protection. The ETNs are unsecured debt obligations of the issuer, Barclays Bank PLC, and are not, either directly or indirectly, an obligation of or guaranteed by any third party. Any payment to be made on the ETNs, including any payment at maturity or upon redemption, depends on the ability of Barclays Bank PLC to satisfy its obligations as they come due. An investment in the ETNs involves significant risks, including possible loss of principal and may not be suitable for all investors.

The Index is designed to provide access to equity market volatility through CBOE Volatility Index® (the "VIX Index") futures. The Index offers exposure to a daily rolling long position in the first and second month VIX futures contracts and reflects market participants' views of the future direction of the VIX index at the time of expiration of the VIX futures contracts comprising the Index. Owning the ETNs is not the same as owning interests in the index components included in the Index or a security directly linked to the performance of the Index.

I encourage readers to check out a long-term chart of the VXX. This thing has been a consistent loser. One market pundit said the VXX is where money goes to die - if you're buying it. We do not want to buy it. We want to short it. Shorting rallies seems to be a winning strategy on the VXX with a constant trend of lower highs.

Today the VXX spiked up to four-month highs near $28.00 before fading. We are suggesting bearish positions at the opening bell tomorrow. The market volatility is probably not done yet so we are not listing a stop loss yet. Our time frame is two or three weeks (or less).

- Suggested Positions -

Short the VXX @ $21.82

- (or for more adventurous traders, try this option) -

Long OCT $20 PUT (VXX151016P20) entry $2.93

Sept. 2nd - 2nd position (Double Down On The September 1st Spike)

Short the VXX @ $29.01

- (or for more adventurous traders, try this option) -

Long OCT $20 PUT (VXX151016P20) entry $0.78

09/02/15 2nd position begins. VXX gapped down at $29.01
09/01/15 Double down on this trade with the VXX's spike to 6-month highs
08/25/15 trade begins. VXX gaps down at $21.82
Option Format: symbol-year-month-day-call-strike