Editor's Note:
It was an ugly day for stocks. Selling started in Asia and carried around the world. By the time the U.S. markets were ready to open sentiment was very bearish. The major indices spiked lower this morning. We had several stocks gap open lower under our stop losses, which exacerbated our losses. Every bullish candidate we had open has been stopped out. Meanwhile our bearish candidate did hit our first profit target.

-James

Current Portfolio:


BULLISH Play Updates

There are no active bullish plays at the moment. Please see our new plays section tonight.


BEARISH Play Updates

5 Greif, Inc. - GEF - close: 43.27 change: -2.01

Stop Loss: 46.25
Target(s): 44.00, 40.50
Current Gain/Loss: +7.8%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
09/22 update: Target achieved. GEF gapped open lower at $44.29 and then dropped to a -4.4% decline. Our first target was hit at $44.00. Our second and final target is $40.50. Please note our new stop loss at $46.25.

Earlier Comments:
FYI: The Point & Figure chart for GEF is bearish with a $30 target. I am not suggesting the options. The spreads are too wide.

*Small Bearish Positions*

Current Position: short GEF stock @ $46.93

09/22 new stop loss @ 46.25
09/22 1st target hit at $44.00 (+6.2%)
09/21 new stop loss @ 48.55
09/19 new stop loss @ 49.55

chart:

Entry on September 12 at $46.93
Earnings Date 12/07/11 (unconfirmed)
Average Daily Volume = 247 thousand
Listed on September 10, 2011


CLOSED BULLISH PLAYS

CBOE Holdings, Inc. - CBOE - close: 26.97 change: +0.59

Stop Loss: 25.85
Target(s): 29.50
Current Gain/Loss: - 2.8%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
09/22 update: The trading in CBOE was frustrating today. Shares gapped open lower at $25.67 and then rallied the rest of the session. If gapping under our stop loss at $25.85 was not frustrating enough the stock surged to a +2.2% gain on the session.

Nimble traders may want to reload their bullish positions on this show of relative strength. I would certainly keep CBOE on your watch list.

Earlier Comments:
We need to label this as a slightly more aggressive trade. While things look good on a short-term basis the long-term weekly chart is showing potential resistance. Readers may want to wait for a close over that trendline before considering new bullish positions.

closed Position: Long CBOE stock @ $26.43, exit $25.67 (-2.8%)

- or -

OCT $27 call (CBOE1122J27) Entry $0.99, exit $0.50 (-49.9%)

09/22 stopped out @ 25.67 (gap down exit)
09/19 new stop loss @ 25.85
09/17 new stop loss @ 25.40

chart:

Entry on September 13 at $26.43
Earnings Date 11/03/11 (unconfirmed)
Average Daily Volume = 703 thousand
Listed on September 12, 2011


Electronic Arts - ERTS - close: 20.76 change: -1.19

Stop Loss: 21.90
Target(s): 24.85
Current Gain/Loss: - 7.1%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
09/22 update: ERTS also gapped open lower, below our stop loss. Our stop was at $21.90. ERTS opened at $21.29, closing our trade. Shares eventually fell to their exponential 200-dma.

closed Position: Long ERTS stock @ $23.93, exit $21.29 (-7.1%)

- or -

OCT $24 call (ERTS1122J24) Entry $0.77, exit $0.27 (-64.9%)

09/22 stopped out on gap down at $21.29
09/20 trade opened at $22.93
09/19 new stop loss @ 21.90

chart:

Entry on September 20 at $22.93
Earnings Date 11/01/11 (unconfirmed)
Average Daily Volume = 8.6 million
Listed on September 17, 2011


Nordstrom Inc. - JWN - close: 44.81 change: -1.37

Stop Loss: 45.90
Target(s): 51.75
Current Gain/Loss: -8.1%
Time Frame: 2 to 6 weeks
New Positions: see below

Comments:
09/22 update: JWN is another victim of the gap open lower. Shares gapped down at $44.25. Our stop loss was at $45.90, which exaggerated our loss on this trade.

closed Position: Long JWN @ $48.17, exit $44.25 (-8.1%)

- or -

OCT $50 call (JWN1122J50) Entry $1.96, exit $0.61 (-68.8%)

09/22 stopped out on gap down at $44.25

chart:

Entry on September 20 at $48.17
Earnings Date 11/10/11 (unconfirmed)
Average Daily Volume = 3.8 million
Listed on September 19, 2011


NVIDIA Corp. - NVDA - close: 13.51 change: -0.96

Stop Loss: 13.49
Target(s): 16.75, 18.25
Current Gain/Loss: -9.5%
Time Frame: 6 to 12 weeks
New Positions: see below

Comments:
09/22 update: NVDA was a significant underperformer today as traders sold just about everything they could. The stock gapped open lower at $13.90 and plunged to $13.25 intraday. Our stop loss was hit at $13.49.

We are still very long-term bullish on NVDA. I would be tempted to reopen new bullish positions on a close over $14.00. Should the market continue to drop instead then consider buying a dip near $12.00.

closed Position: Long NVDA stock @ $14.91, exit $13.49 (-9.5%)

- or -

OCT $15 call (NVDA1122J15) Entry $1.10, exit $0.40 (-63.6%)

- or -

2012 JAN $15 call (NVDA1122A15) Entry $2.28, exit $1.33 (-41.6%)

09/22 stopped out at $13.49
09/17 added secondary target of $18.25
09/14 new stop loss @ 13.49
09/14 gap open higher entry point @ 14.91

chart:

Entry on September 14 at $14.91
Earnings Date 11/10/11 (unconfirmed)
Average Daily Volume = 19.3 million
Listed on September 13, 2011


Silver Wheaton Corp. - SLW - close: 40.66 change: -0.28

Stop Loss: 38.85
Target(s): 46.00
Current Gain/Loss: -8.0%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
09/22 update: The stock market's opening weakness helped SLW produce a gap down at $38.19. That is under our stop loss at $38.85. Normally on a market down day you might expect precious metals to rally but U.S. dollar was leaping higher and investors were in a sell-everything mood. Gold and silver were down very hard. SLW ended the session down -12.8%. We just experienced a worst case scenario with SLW hitting our entry point on an intraday spike higher that reverses only to see stocks crash the very next day.

closed Position: Long SLW stock @ 41.55, exit $38.19 (-8.0%)

- or -

OCT $42 call (SLW1122J42) Entry $2.00, exit $0.73 (-63.5%)

09/22 stopped out on gap down at 38.19
09/21 trade opened at $41.55

chart:

Entry on September 21 at $41.55
Earnings Date 11/08/11 (unconfirmed)
Average Daily Volume = 6.5 million
Listed on September 20, 2011


SodaStream Intl. - SODA - close: 35.73 change: -4.59

Stop Loss: 38.75
Target(s): 45.75, 49.75
Current Gain/Loss: -6.5%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
09/22 update: The stock market's pre-opening weakness helped push SODA to a gap down. The stock opened at $38.16, which was under our stop loss at $38.75. SODA eventually dipped to $34.20 before trimming its losses to -11.3%. I would keep SODA on your watch list for a dip or a bounce near its August lows at $32.50.

Earlier Comments:
If this stock can rally then SODA could see a huge short squeeze. The most recent data listed short interest at more than 75% of the very, very small 14.6 million-share float.

Remember, we want to use small positions to limit our risk.

closed Position: Long SODA @ $40.84, exit $38.16 (-6.5%)

- or -

OCT $45 call (SODA1122J45) Entry $3.00, exit $0.75 (-75%)

09/22 stopped out @ 38.16
09/19 new stop loss @ 38.75
09/13 new stop loss at $37.20
09/13 trade is open. SODA @ 40.84

chart:

Entry on September 13 at $40.84
Earnings Date 11/29/11 (unconfirmed)
Average Daily Volume = 3.8 million
Listed on September 8, 2011


virgin Media, Inc. - VMED - close: 24.02 change: -0.62

Stop Loss: 24.40
Target(s): 29.50
Current Gain/Loss: -8.9%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
09/22 update: VMED gapped open lower at $23.89. That's under our stop at $24.40. The play was closed immediately.

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

closed Position: Long VMED stock @ $26.25, exit $23.89 (-8.9%)

- or -

OCT $27 call (VMED1122J27) Entry $0.85, exit $0.65 (-23.5%)

09/22 stopped out on gap down at $23.89

chart:

Entry on September 20 at $26.25
Earnings Date 10/26/11 (unconfirmed)
Average Daily Volume = 4.5 million
Listed on September 17, 2011