Editor's Note:
Shares of WPRT continue to plunge and the stock hit our exit target today. Both CNC and CNW were triggered. I am removing SYNC. VECO was stopped out.

Traders should keep in mind that tomorrow (Friday) is quadruple-witching expiration. Equity stock options, index options, index futures and single-stock futures all have expirations tomorrow (or after tomorrow's close).

Current Portfolio:


BULLISH Play Updates

Analog Devices - ADI - close: 40.51 change: -0.41

Stop Loss: 39.45
Target(s): 44.75
Current Gain/Loss: - 1.4%

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:
09/20/12: I am starting to worry about ADI. The stock can't seem to build on any of its bounce attempts in the $40.50 area. Shares underperformed today and look headed for the $40.00 mark. I would wait for a bounce near $40.00 before considering new positions.

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: 37.21 change: +0.51

Stop Loss: 35.45
Target(s): 39.75
Current Gain/Loss: + 4.7%

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:
09/20/12: A rebound across the oil sector helped EXXI to a +1.3% gain. Traders also bought the dip near EXXI's rising 10-dma. I've been warning readers to look for a dip to this level. Nimble traders may want to use today's bounce as a new entry point.

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



Guidewire Software - GWRE - close: 31.30 change: -0.01

Stop Loss: 29.85
Target(s): 34.50
Current Gain/Loss: + 0.2%

Entry on September 18 at $31.23
Listed on September 17, 2011
Time Frame: 4 to 8 weeks
Average Daily Volume = 621 thousand
New Positions: see below

Comments:
09/20/12: Thursday was another very quiet day for GWRE. The stock does still have a slow bullish drift higher but it's not moving very fast. Readers may want to wait for a dip or a bounce near $30.00 as our next entry point. Our multi-week target is $34.50.

current Position: Long GWRE stock @ $31.23

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

Long Oct $30 call (GWRE1220j30) entry $2.50



Lions Gate Entertainment - LGF - close: 15.60 change: -0.01

Stop Loss: 14.75
Target(s): 17.75
Current Gain/Loss: + 2.3%

Entry on September 18 at $15.25
Listed on September 15, 2011
Time Frame: 6 to 8 weeks
Average Daily Volume = 1.2 million
New Positions: see below

Comments:
09/20/12: LGF is another stock that closed virtually unchanged on the session. Traders did buy the morning dip. LGF remains inside the $15-16 trading range.

current Position: Long LGF stock @ $15.25

09/18/12 triggered @ 15.25



Shutterfly, Inc. - SFLY - close: 33.10 change: -0.32

Stop Loss: 32.25
Target(s): 39.75
Current Gain/Loss: unopened

Entry on September xx at $ xx.xx
Listed on September 18, 2011
Time Frame: 4 to 6 weeks
Average Daily Volume = 834 thousand
New Positions: Yes, see below

Comments:
09/20/12: I don't see any changes from my prior comments on SFLY. The stock is trading between short-term support at $32.00 and resistance in the $34-35 area. I am suggesting a trigger to open bullish positions at $35.25. Our target is $39.75. We'll start with a stop loss at $32.25.

If SFLY breaks out past resistance it could see a big short squeeze higher. The most recent data listed short interest at 39% of the small 32.1 million share float. This week's rally has created a new Point & Figure chart buy signal with a long-term $48 target.

Due to SFLY's volatility we want to keep our position size small to limit our risk.

Trigger @ 35.25

Suggested Position: buy SFLY stock @ (trigger)

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

buy the OCT $35 call (SFLY1220j35)



Virgin Media, Inc. - VMED - close: 30.44 change: +0.12

Stop Loss: 29.25
Target(s): 32.25
Current Gain/Loss: + 0.8%

Entry on September 19 at $30.20
Listed on September 06, 2011
Time Frame: 6 to 8 weeks
Average Daily Volume = 2.5 million
New Positions: see below

Comments:
09/20/12: VMED continues to drift higher and hit new 52-week highs today. If you're looking for a new entry point I'd wait for a dip near $30.00, which should be new support.

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

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.

current Position: Long VMED stock @ $30.20

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

Long Oct $30 call (VMED1220j30) entry $0.95

09/19/12 triggered @ $30.20
09/18/12 Strategy change: use a breakout trigger to open bullish positions at $30.20 with a stop loss at $29.25.
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

Centene Corp. - CNC - close: 36.19 change: -0.83

Stop Loss: 38.51
Target(s): 31.50
Current Gain/Loss: + 1.5%

Entry on September 20 at $36.75
Listed on September 19, 2011
Time Frame: 4 to 6 weeks
Average Daily Volume = 693 thousand
New Positions: see below

Comments:
09/20/12: Our new trade on CNC has been opened. The stock gapped down under short-term support near $37.00 and opened at $36.81. Our entry point was quickly hit at $36.75. CNC displayed relative weakness with a -2.2% decline.

current Position: short CNC stock @ $36.75

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

Long Oct $35 PUT (CNC1220v35) Entry $1.20



Con-way Inc. - CNW - close: 27.48 change: -1.42

Stop Loss: 29.55
Target(s): 25.05
Current Gain/Loss: + 3.4%

Entry on September 20 at $28.44
Listed on September 19, 2011
Time Frame: 6 to 8 weeks
Average Daily Volume = 787 thousand
New Positions: see below

Comments:
09/20/12: The transportation sector plunged following an earnings warning from NSC last night. Shares of CNW gapped open lower at $28.44 and then fell to a -4.9% decline. Our planned entry point was $28.70 so our trade was opened immediately on the gap down. I am moving our sopt loss down to $29.55.

Our target is $25.05. More aggressive traders could aim lower. The Point & Figure chart for CNW is bearish with a $20 target.

current Position: short CNW stock @ $28.44 (gap down)

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

Long Oct $27.50 put (CNW1220v27.5) Entry $1.00*

09/20/12 new stop loss @ 29.55
09/20/12 entry on gap open lower at $28.44
*option entry price is an estimate since the option did not trade at the time our play was opened.




CLOSED BULLISH PLAYS

Veeco Instruments - VECO - close: 35.06 change: -0.96

Stop Loss: 35.45
Target(s): 39.75
Current Gain/Loss: - 1.2%

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:
09/20/12: I didn't find any news to account for VECO's relative weakness today. Shares fell -2.6% and hit our stop loss at $35.45 along the way.

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

*Small Positions to Limit Risk*

closed Position: Long VECO stock @ $35.88 exit $35.45 (-1.2%)

- (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%)

09/20/12 stopped out at $35.45
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

chart:



CLOSED BEARISH PLAYS

Synacor, Inc. - SYNC - close: 7.60 change: +0.06

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: see below

Comments:
09/20/12: SYNC is not cooperating. We've been waiting for a breakdown to new relative lows and it's not happening. I am removing SYNC as a candidate.

Our trade did not open.

09/20/12 removed from the newsletter. trade did not open.

chart:



Westport Innovations - WPRT - close: 27.61 change: -1.76

Stop Loss: 32.05
Target(s): 27.50
Current Gain/Loss: +17.8%

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:
09/20/12: Target achieved.

WPRT continues to fall. Shares underperformed again with a -5.99% drop today. Our exit target was hit at $27.50.

*Small Positions to Limit Risk*

closed Position: short WPRT stock @ $33.45 exit $27.50 (+17.8%)

- (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%)

09/20/12 final exit target hit at $27.50
09/19/12 new stop loss @ 32.05
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

chart: