Editor's Note:
The size of the market decline on Monday was a little bit surprising. We were expecting a sell-off at the open. I was not expecting the S&P500 to lose another -6.6%. Three of our four trades held up reasonably well. Our HAL trade was both triggered and stopped on the same move lower.

-James

Current Portfolio:


BULLISH Play Updates

Caribou Coffee Inc. - CBOU - close: 13.65 change: -1.83

Stop Loss: 13.35
Target(s): 16.75, 17.50
Current Gain/Loss: - 2.9%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
08/08 update: Our aggressive, higher-risk trade in CBOU is open. As expected the stock gapped open lower on Monday morning. It proved to be a volatile day. Shares opened at $14.06, rallied to $16.00 (a new relative high) and then rolled over to close down -11.8%. Both CBOU and the market closed on their lows for the session. That does not bode well for tomorrow's open. Given our entry point at $14.06 I am adjusting our stop loss down to $12.95 (from 13.35). I would consider new positions now or you could wait for a dip into the $13.50-13.00 zone instead.

Earlier comments:
I do want to point out that one of my biggest concerns, aside from the wider market issues, is that CBOU's IPO opening price and all-time high is essentially $15.50. This level could be significant resistance. Our targets are $16.75 and $17.50.

- (small positions) -

Current Position: Long CBOU stock @ $14.06

- or -

Long SEP $15 call (CBOU1117I15) Entry $1.30

08/08 new stop loss @ 12.95

Entry on August 8 at $14.06
Earnings Date 11/10/11 (unconfirmed)
Average Daily Volume = 756 thousand
Listed on August 6, 2011


Changyou.com Ltd. - CYOU - close: 39.61 change: -2.77

Stop Loss: 37.45
Target(s): 43.75, 47.50
Current Gain/Loss: + 0.7%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
08/08 update: Our new trade in CYOU is open and we got a better entry point than expected. The plan was to buy the dip at $40.00 but CYOU opened lower at $39.31. Aside from the gap down CYOU did not see that much volatility. Given our lower entry point I am adjusting our stop loss lower to $37.45, which is under the exponential 200-dma. Readers can choose to launch new positions now or wait for a potential bounce from the $38.00 level instead.

FYI: CYOU does have options but the spreads are a little too wide.

Current Position: Long CYOU stock @ $39.31

08/08 new stop loss @ 37.45

Entry on August 8 at $39.31
Earnings Date 10/24/11 (unconfirmed)
Average Daily Volume = 417 thousand
Listed on August 6, 2011


Motorola Mobility Holdings, Inc. - MMI - close: 21.53 chg: -1.01

Stop Loss: 20.70
Target(s): 25.75, 27.75
Current Gain/Loss: - 7.7%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
08/08 update: MMI is still holding up pretty well. The stock gave up -4.4% and traded inside a $1.33 range today. There is a very good chance we will get an entry point near $21.00 soon. Wait for the dip or buy the bounce from $21.00 as a new entry point.

Earlier Comments:
Our first target is $25.75. Our secondary, more aggressive target is $27.75. We do want to keep our position size small to limit our risk.

- small positions-

Suggested Position: long MMI stock @ 23.34

- or -

Long SEP $25 call (MMI1117I25) Entry @ $1.05

Entry on August 5 at $23.34
Earnings Date 10/27/11 (unconfirmed)
Average Daily Volume = 5.9 million
Listed on August 4, 2011


BEARISH Play Updates

None. No bearish plays currently.


CLOSED BULLISH PLAYS

Halliburton Co. - HAL - close: 42.43 change: -4.66

Stop Loss: 43.90
Target(s): 49.75
Current Gain/Loss: - 2.4%
Time Frame: 2 to 6 weeks
New Positions:

Comments:
08/08 update: Our aggressive trader on HAL did not pan out. We were not expecting a -10% drop on Monday. Crude oil's -6% drop fueled massive losses in the energy sector. The OIX oil index is off -8% and the OSX oil services index was down -10%.

The plan was to buy the dip at $45.00. Shares opened at $45.04 and kept right on falling. Our stop loss was hit at $43.90 closing the play. HAL's breakdown under its 200-dma and support in the $44.50-45.00 area is very bearish.

Closed Position: Long HAL stock @ $45.00, exit $43.90 (-2.4%)

- or -

AUG $45 call (HAL1120H45) Entry $1.89, exit $1.70 (-10%)

- or -

SEP $50 call (HAL1117I50) Entry $1.17, exit $1.05 (-10.2%)

08/08 triggered at $45.00, stopped @ 43.90

chart:

Entry on August 8 at $45.00
Earnings Date 10/17/11 (unconfirmed)
Average Daily Volume = 12.9 million
Listed on August 6, 2011