Editor's Note:
We closed multiple option positions at the open this morning including our options on EXXI, VECO, and WPRT (which exited when the stock hit $30.15).

ADI was triggered. NTGR was stopped out.

Current Portfolio:


BULLISH Play Updates

Analog Devices - ADI - close: 41.16 change: -0.52

Stop Loss: 39.45
Target(s): 44.75
Current Gain/Loss: + 0.1%

Entry on September 17 at $41.10
Listed on September 15, 2011
Time Frame: 6 to 8 weeks
Average Daily Volume = 2.0 million
New Positions: see below

Comments:
09/17/12: We were expecting ADI to see a pullback. Shares dipped toward $41.00 as expected and hit our buy-the-dip trigger at $41.10. I would still consider new positions now at current levels.

Our multi-week target is going to require some patience but we are aiming for $44.75. The Point & Figure chart for ADI is bullish with a $49 target.

current Position: Long ADI stock @ $41.10

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

Long 2013 Jan $42 call (ADI1319a42) Entry $1.60

09/17/12 triggered @ 41.10



Energy XXI Ltd. - EXXI - close: 37.31 change: -0.06

Stop Loss: 35.45
Target(s): 39.75
Current Gain/Loss: + 5.0%

Entry on September 12 at $35.55
Listed on September 11, 2011
Time Frame: 4 to 6 weeks
Average Daily Volume = 790 thousand
New Positions: see below

Comments:
09/17/12: Monday was a quiet day for EXXI with shares churning sideways in the $37-38 range. I would not be surprised to see a deeper pullback, maybe toward the $36.00 level. I am not suggesting new positions at this time.

Note, this past weekend we planned to exit our October $35 calls at the open this morning.

current Position: Long EXXI stock @ $35.55

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

Long Oct $35 CALL (EXXI1220j35) Entry $2.25 exit $3.05*(+35.5%)

09/17/12 closed our Oct. $35 calls at the open. bid @ $3.05
*option exit price is an estimate since the option did not trade at the time our play was closed.
09/15/12 new stop loss @ 35.45, prepare to exit our Oct. calls at the open on Monday
09/13/12 new stop loss @ 34.40



Lions Gate Entertainment - LGF - close: 15.39 change: -0.37

Stop Loss: 14.75
Target(s): 17.75
Current Gain/Loss: unopened

Entry on September xx at $ xx.xx
Listed on September 15, 2011
Time Frame: 6 to 8 weeks
Average Daily Volume = 1.2 million
New Positions: Yes, see below

Comments:
09/17/12: LGF came close but didn't quite hit our buy-the-dip trigger at $15.25. The stock looks like it will hit our entry point tomorrow. More nimble traders may want to consider trying to jump in closer to the $15.00 mark instead.

Trigger @ 15.25

Suggested Position: buy LGF stock @ (trigger)



Veeco Instruments - VECO - close: 36.07 change: -1.69

Stop Loss: 35.45
Target(s): 39.75
Current Gain/Loss: + 0.5%

Entry on September 10 at $35.88
Listed on September 08, 2011
Time Frame: 6 to 8 weeks
Average Daily Volume = 723 thousand
New Positions: see below

Comments:
09/17/12: Ouch! VECO has almost completely erased our unrealized gains with a -4.4% plunge today. I was worried that VECO might see a pullback. That's why this weekend I said we should exit the October $37 calls at the open this morning. Unfortunately, VECO gapped open lower at $37.32, which impacted our exit price.

Strangely, I couldn't find any news to explain the relative weakness today. VECO was actually upgraded this morning so the stock should have had a bullish bias. I am not suggesting new positions at this time.

Our plan was to limit our risk by keeping our position size small.

*Small Positions to Limit Risk*

current Position: Long VECO stock @ $35.88

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

(planned exit on Monday, Sep. 17th, at the open) Oct $37.00 call (VECO1220j37) Entry $1.60 exit $1.65 (+ 3.2%)

09/17/12 planned exit for the Oct $37 call
09/15/12 new stop loss @ 35.45, prepare to exit our October calls at the open on Monday morning
09/13/12 new stop loss @ 34.45



Virgin Media, Inc. - VMED - close: 29.66 change: -0.14

Stop Loss: 28.45
Target(s): 32.00
Current Gain/Loss: unopened

Entry on September xx at $ xx.xx
Listed on September 06, 2011
Time Frame: 6 to 8 weeks
Average Daily Volume = 2.5 million
New Positions: see below

Comments:
09/17/12: VMED remains resistant to any serious profit taking. Shares dipped to $29.36 and bounced.

Currently the plan is to buy a dip at $29.00 with a stop at $28.45.

Earlier Comments:
I suspect VMED could see more short covering since the most recent data listed short interest at 20% of the 256 million-share float. FYI: The Point & Figure chart for VMED is bullish with a $41 target.

Buy-the-Dip Trigger @ $29.00

Suggested Position: buy VMED stock @ (trigger)

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

buy the Oct $30 call (VMED1220j30)

09/15/12 adjust buy-the-dip trigger to $29.00 and stop to $28.45
09/13/12 adjust the entry trigger to $28.75
09/08/12 adjust the buy-the-dip trigger higher from $28.25 to $28.55 and adjust the stop loss to $27.45



BEARISH Play Updates

Synacor, Inc. - SYNC - close: 7.49 change: -0.11

Stop Loss: 7.70
Target(s): 6.10
Current Gain/Loss: unopened

Entry on September xx at $ xx.xx
Listed on September 13, 2011
Time Frame: 6 to 8 weeks
Average Daily Volume = 628 thousand
New Positions: Yes, see below

Comments:
09/17/12: SYNC drifted lower and erased Friday's gains. Yet we're still waiting for a breakdown.

Last Thursday's low was $7.35. I am suggesting bearish positions if shares can hit $7.30. I do consider this an aggressive, higher-risk trade. The most recent data listed short interest at 15% of the very small 8.0 million share float. We will target a drop to $6.10.

Trigger @ 7.30

Suggested Position: short SYNC stock @ (trigger)



Westport Innovations - WPRT - close: 29.56 change: -1.27

Stop Loss: 33.10
Target(s): 27.50
Current Gain/Loss: +11.6%

Entry on September 07 at $33.45
Listed on September 05, 2011
Time Frame: 3 to 4 weeks
Average Daily Volume = 798 thousand
New Positions: see below

Comments:
09/17/12: WPRT continues to underperform. Shares gave up another -4.1% today. Conservative traders will want to take profits now near the $30 level although technically the close under $30.00 is very bearish. Our target remains $27.50. I am lowering our stop loss to $32.60.

Note, we did plan to exit our October $30 puts when WPRT hit $30.15, which happened today.

Earlier Comments:
We do want to keep our position size small to limit our risk because WPRT does have a high amount of short interest. The most recent data listed short interest at 37% of the 40 million-share float. That does raise the risk of a short squeeze. Readers may want to consider limiting their risk by buying put options instead of shorting the stock. FYI: The Point & Figure chart for WPRT is bearish with a $28.00 target.

*Small Positions to Limit Risk*

current Position: short WPRT stock @ $33.45

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

(closed the Oct $30 put when WPRT hit $30.15 on Sep. 17th) Oct $30 PUT (WPRT1220v30) entry $1.05 exit $1.90 (+ 80.9%)

09/17/12 new stop loss @ 32.60
09/17/12 closed Oct $30 puts when WPRT hit $30.15
09/15/12 new stop loss @ 33.10, plan to exit our October puts when WPRT hits $30.15. 09/13/12 new stop loss @ 33.65, adjust target to $27.50
09/10/12 new stop loss @ 34.05
09/07/12 triggered @ 33.45



CLOSED BULLISH PLAYS

Netgear Inc. - NTGR - close: 39.36 change: +0.11

Stop Loss: 38.80
Target(s): 44.75
Current Gain/Loss: - 3.6%

Entry on September 13 at $40.25
Listed on September 10, 2011
Time Frame: 6 to 8 weeks
Average Daily Volume = 562 thousand
New Positions: see below

Comments:
09/17/12: Over the weekend I mentioned that any follow through lower would likely stop us out. Sure enough NTGR hit our stop loss today at $38.80 and then eventually bounced off its 10-dma to close positive. NTGR would look like a bullish candidate again with a close over $40.25.

closed Position: Long NTGR stock @ $40.25 exit $38.80 (-3.6%)

09/17/12 stopped out at $38.80
09/13/12 triggered @ 40.25

chart: