Editor's Note:
We were fortunate enough to be long MMI prior to the GOOG news, making MMI our biggest winner today. I am suggesting we exit out CRS August calls now. Meanwhile our GA and HON trades are open.

-James

Current Portfolio:


BULLISH Play Updates

Alexion Pharmaceuticals - ALXN - close: 53.13 change: +0.54

Stop Loss: 47.90
Target(s): 54.00, 57.00
Current Gain/Loss: + 4.8%
Time Frame: 2 to 5 weeks
New Positions: see below

Comments:
08/15 update: ALXN continues to climb but gains today underperformed the market's major indices. Shares pulled back midday to retest the $52.00 level as short-term support. If you don't feel like chasing ALXN here at current levels then consider waiting for a dip into the $51-50 zone. Please note that I am raising our stop loss on this trade to $47.90. More conservative traders may want a stop closer to $50.00 instead.

Our plan was to keep our position size small to limit our risk.

Current Position: ALXN stock @ $50.67

- or -

Long SEP $55 call (ALXN1117I55) Entry $1.40

08/15 new stop loss @ 47.90
08/12 trade is open.
08/11 open positions if ALXN and S&P500 are positive Friday morning
08/09 new entry point strategy, new stop loss, new targets.

Entry on August 12 at $50.67
Earnings Date 10/20/11 (unconfirmed)
Average Daily Volume = 1.7 million
Listed on August 8, 2011


Caribou Coffee Inc. - CBOU - close: 15.99 change: -1.06

Stop Loss: 14.75
Target(s): --.--, 18.00
Current Gain/Loss: +13.7%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
08/15 update: Ouch! After days of outperforming the market CBOU plunged today (-6.2%) on news that a large shareholder was selling 5.1 million shares in a public offering. Usually any sort of secondary offering is a dilution of current shareholder value. More conservative traders may want to take profits now and run but the intraday bounce off its lows today suggests there were investors ready to buy the dip.

I am not suggesting new positions at this time. Our final target is $18.00. Aggressive traders could aim higher!

- (small positions) -

Current Position: Long CBOU stock @ $14.06

- or -

Long SEP $15 call (CBOU1117I15) Entry $1.30

08/11 new stop loss @ 14.75
08/10 CBOU almost hit our first target at $16.75. Don't wait. Go ahead and take profits now.
CBOU @ $16.28 (+15.7%), Sept.$15 call @ $2.05bid (+57.6%)
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


Carpenter Technology - CRS - close: 49.74 change: +0.76

Stop Loss: 43.45 (stock only)
Target(s): 51.50, 56.50
Current Gain/Loss: + 8.1%
Time Frame: 1 to 3 weeks
New Positions: see below

Comments:
08/15 update: CRS extended its gains but shares were unable to breakout past resistance at $50.00 and its 100-dma. This might be a sign the rally is getting tired. Readers may want to wait for a pull back before initiating new positions.

Cautious traders may want to raise their stop loss on the stock.

Update: We want to exit our August calls immediately! The Aug. $50 call has a bid of $0.75 (down from $1.00 on Friday).

Earlier Comments:
We do want to keep our position size small to limit our risk.

Current Position: Long CRS stock @ $46.01

- or -

AUG $50 call (CRS1120H50) Entry $0.65*, exit $0.75 (+15.3%)

08/15 exit Aug. $50 call now, bid $0.75 (+15.3%)
08/13 consider an early exit on the Aug. call
08/11 *entry is an estimate. option did not trade today.

Entry on August 11 at $46.01
Earnings Date 10/26/11 (unconfirmed)
Average Daily Volume = 622 thousand
Listed on August 9, 2011


Changyou.com Ltd. - CYOU - close: 43.43 change: +0.48

Stop Loss: 39.75
Target(s): 43.75, 47.50
Current Gain/Loss: +10.4%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
08/15 update: CYOU experienced some volatility this morning with a dip to $41.37 but shares recovered. The stock ended the day up +1.1%. The high today was $43.64. Our first target is $43.75. More conservative traders may want to take profits now! However, I'm tempted to launch new positions here at current levels. Readers may want to delay taking profits. Please note our new stop loss at $39.75.

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

Current Position: Long CYOU stock @ $39.31

08/11 new stop loss @ 38.40
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


Giant Interactive Group Inc. - GA - close: 8.20 change: +0.10

Stop Loss: 7.20
Target(s): 9.30
Current Gain/Loss: + 0.0%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
08/15 update: Chinese markets were up on Monday but they weren't up that big so I was surprised to see GA's big gap open at $8.46. We didn't see any specific news behind the morning strength. Unfortunately the gap higher is now our entry point. Shares spiked lower back down toward $8.00 only to crawl its way back up to $8.46 again. While GA was up +3.1% on the day our potential gain sits at +0%.

Readers may want to wait for another dip into the $8.20-8.00 zone before initiating positions.

Earlier Comments:
Readers should consider this a higher-risk, more aggressive trade. We want to keep our position size small to limit our risk.

Current Position: Long GA stock @ $8.46

- or -

Long SEP $7.50 call (GA1117I7.5) Entry $0.95

Entry on August 15 at $ 8.46
Earnings Date 11/16/11 (unconfirmed)
Average Daily Volume = 1.3 million
Listed on August 13, 2011


Honeywell Intl. - HON - close: 47.23 change: +0.35

Stop Loss: 44.40 (stock only)
Target(s): 49.75, 53.50
Current Gain/Loss: + 0.2%
Time Frame: 2 to 6 weeks
New Positions: see below

Comments:
08/15 update: Hmm... the action in HON today was a little worrisome. Shares gapped open higher at $47.10 and then spent most of the day churning sideways. The stock only gained +0.7% versus +2.1% in the S&P500. This could be a caution sign that the stock is due for a dip. Readers may want to look for a pull back into the $46-45 zone before initiating new positions.

Earlier Comments:
We want to keep our position size pretty small to limit our risk. We'll set our first upside targets at $49.75 and $53.50. We're not using a stop loss on our option positions.

Current Position: Long HON stock @ $47.10

- or -

Long SEP $50 call (HON1117I50) Entry $0.95

Entry on August 15 at $47.10
Earnings Date 10/21/11 (unconfirmed)
Average Daily Volume = 7.8 million
Listed on August 13, 2011



BEARISH Play Updates

None. No bearish plays currently.


CLOSED BULLISH PLAYS

Motorola Mobility Holdings, Inc. - MMI - close: 38.12 chg: +13.65

Stop Loss: 21.25
Target(s): 25.75, 27.75
Current Gain/Loss: +65.4%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
08/15 update: Thank you, Google!

News that GOOG was buying MMI for $12.5 billion was the M&A headline of the morning. MMI has over 17,000 patents and GOOG was to make sure it's not muscled out of the wireless market. The deal values MMI at $40 a share. The stock gapped open higher at $38.61. Since our exit targets were $25.75 and $27.75, the play was closed immediately.

- small positions-

Closed Position: long MMI stock @ 23.34, exit $38.61 (+65.4%)

- or -

SEP $25 call (MMI1117I25) Entry @ $1.05, exit $14.00 (+1,233.3%)

08/15 Gap higher exit @ 38.61 (+65.4%)
08/13 new stop loss @ 21.25

chart:

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