Current Portfolio:


CALL Play Updates

Cameron International - CAM - close 36.78 change -0.39 stop 35.45

Target(s): 37.85 (hit), 38.40, 38.95, 40.50
Key Support/Resistance Areas: 45.00, 42.50, 41.00, 38.75, 36.00
Current Gain/Loss: -70%
Time Frame: Several weeks
New Positions: Yes, with later month options

Comments:
8/31: CAM has made a series of higher lows since 8/25 but the broader market has weakness has held the stock back. I suggest using the above targets to exit positions or tighten stops on any strength and cut our losses on this trade. Our $37.85 target was hit on Friday and was probably the right time to exit.

8/28: CAM gained nearly +5% and closed right on its 20 and 100-day SMA's. I've been saying use strength in the stock to close positions and Friday presented opportunities to do so. Considering the bullish reversal I think we may be able to get more out of the position so I am willing to give this a few more days. The stock closed above a recent down trend line and if the broader market continues higher this week we should be able to get a better exit. Ultimately, I'm looking for CAM to make a move up towards its 200-day SMA but with September options I still suggest selling into any further strength. There will probably be a retracement of some of the gains from Friday but I think the dips will be bought. Readers may want to consider a new entry on a pullback to the $37.00 area with October or November options.

Current Position: Long September $40.00 CALL, entry was $0.95

Entry on August 16, 2010
Earnings Date 11/3/2010 (unconfirmed)
Average Daily Volume: 4.6 million
Listed on August 14, 2010


FMC Technologies, Inc - FTI - close 61.85 change -0.28 stop 58.80

Target(s): 65.25 (hit), 67.00, 68.75
Key Support/Resistance Areas: 69.00, 65.50, 62.40, 59.00
Current Gain/Loss: -27%
Time Frame: Several weeks
New Positions: Yes, with a tight stop

Comments:
8/31: The bullish case remains in FTI as it is maintaining an upward trend line from mid-July. The stock now needs to break out above its 20-day SMA and we should hit our targets. All of the above targets remain valid.

8/28: FTI has a lot of support below and I am looking for the stock to head back up towards our targets. There is resistance in the $65.50 area which is above our $65.25 target that was reached on 8/17. If we get above this level we will have a nice winner, but readers should still consider taking profits or tightening stops to protect them at this target.

Current Position: Long October $70.00 CALL, entry was at $1.10

Entry on August 16, 2010
Earnings 10/27/2010 (unconfirmed)
Average Daily Volume: 1.5 million
Listed on August 14, 2010


NVIDIA Corp. - NVDA - close 9.32 change -0.31 stop 9.38

Target(s): 10.99, 11.39, 11.80
Key Support/Resistance Areas: 11.85, 11.45, 11.00, 10.25, 9.45
Time Frame: 1 to 2 weeks

Comments:
8/30: 8/28: NVDA has been absolutely obliterated after lowering guidance earlier this year. On 8/12 the company missed earning estimates but the stock has been bought ever since. NVDA is now forming an ascending triangle on its daily and intraday charts and looks ready to break out higher. After the broader market reversal on Friday I believe we may be in for a mini rally and this should catapult NVDA up towards our targets. The plan is buy calls if NVDA trades to $10.30 which is above the 8/23 high and its 50-day SMA. Our targets are +6.5%, +10.5% and +14.5% higher. Our stop is below the stock's recent swing low and the 20-day SMA which is starting to turn higher.

Suggested Position: Buy October $10.00 CALL, current ask $0.74

Entry on August xx
Earnings 11/4/2010 (unconfirmed)
Average Daily Volume: 23.5 million
Listed on August 28, 2010


Panera Bread Co. - PNRA - close: 79.94 change: +0.47 stop: 76.90 *NEW*

Target(s): 82.95, 84.50
Key Support/Resistance Areas: 73.00, 76.00, 80.00, 85.00, 88.50
Current Gain/Loss: +9%
Time Frame: 1 to 2 weeks
New Positions: Yes

Comments:
8/30: PNRA is performing very well during the recent broader market weakness. The stock is on the verge of breaking its primary downtrend line and is above all of its major moving averages. If the broader market gains strength PNRA should easily head up towards our targets.

8/28: Considering the broader market reversal on Friday I doubt we will get triggered in PNRA at $74.75. But with the broader market behind it PNRA looks on the verge of breaking out. The stock closed right on a downtrend line from its April highs and if it breaks through I believe buyers will step in. Further, the stock is forming an ascending triangle and is above all of its moving averages. If PNRA breaks out with the broader market behind it the stock should see $83.00 relatively quick. Let's use $80.65 as our trigger to buy October calls with targets at $82.95 and $84.50. Our stop will be $76.90.

Current Position: Long October $80.00 CALL, entry was at $3.30

Entry on August 30, 2010
Earnings Date 10/27/10
Average Daily Volume 562,000
Listed on August 21, 2010


Rackspace Hosting, Inc - RAX - close 19.69 change -0.71 stop 17.95

Target(s): 20.75(hit), 21.30, 23.00
Key Support/Resistance Areas: 23.50, 21.40, 20.00, 19.00, 18.00
Current Gain/Loss: -7%
Time Frame: 3 to 5 weeks
New Positions: Yes, preferably on a pullback

Comments:
8/31: RAX experienced a set-back today when Benchmark Co. cut its rating to hold from buy. The firm reiterated their price target of $22. RAX closed at $19.69 and if it goes to $22.00 we will be happy campers. Once this selling subsides RAX should turn back up. The stock is maintaining its primary upward trend line and is still above all of its major moving averages. For options traders we have December strikes so time is on our side for now. Readers may want to consider this pullback as an entry point.

8/28: Wow! RAX surged nearly +8% higher on Friday and is approaching our 2nd target. I think this stock has the potential of reaching its 52-week highs near our final target of $23.00. RAX is also being talked about as a potential takeover target in the cloud computing space which is why I have suggested the December options, i.e. to give this time to work. Readers may want to consider taking some profits off of the table and keeping the remainder of your position open to see if RAX rewards us.

Current Position: Buy December $21.00 CALL, entry was at $1.40

Entry on August 25, 2010
Earnings 11/9/2010 (unconfirmed)
Average Daily Volume: 1.75 million
Listed on August 25, 2010


PUT Play Updates

Abercrombie & Fitch - ANF - close 34.60 change -0.44 stop 38.40

Target(s): 33.25, 31.50
Key Support/Resistance Areas: 38.20, 37.25, 32.75, 34.00, 30.50
Current Gain/Loss: +3%
Time Frame: Several weeks
New Positions: Yes

Comments:
8/31: ANF hasn't seen a close this low since 7/21 and is below all of its moving averages. We need the stock to break below $34 and our targets should get hit.

8/28: ANF is hanging on to its 50-day SMA and the broader market looks ready for a bounce. We may need to exhibit some patience with this play to see how far the bounce goes. There is lot of overhead resistance to keep things in check. A bounce up into the 200-day SMA and primary downtrend line could be a great entry point with a tight stop.

Current Position: Long October $34.00 PUT, entry was at $2.10

Entry on August 25, 2010
Earnings: 11/11/10 (unconfirmed)
Average Daily Volume: 3.5 million
Listed on August 24, 2010


Apple, Inc - AAPL - close 243.10 change +0.60 stop 256.50

Target(s): 240.00 (hit), 237.50, 236.00, 233.00
Key Support/Resistance Areas: 266, 258, 256, 246, 240, 231, 235
Current Gain/Loss: -16%
Time Frame: Several weeks
New Positions: Yes

Comments:
8/31: AAPL has not been able to make it above the $246 level since breaking through it last week. The stock has been a strong performer the last couple of days, probably because of the hype surrounding a "music-themed" press conference tomorrow that Apple is hosting. Rumors have it that the company will announce a new iPod Touch and new iPod Nano at the event. Although there are no confirmed reports of any new products, Apple has repeatedly introduced new iPod models at their September press conference. This could produce a pop in the stock so readers may want to exit positions ahead of the conference. However, if the conference fails to impress the stock could experience a set-back. The targets above should be considered as exit points and readers may want to consider tighter stops in the $249 to $252 area. The 20-day SMA is $250.27 which should keep bounces in check but we are going to need to see broader market weakness for AAPL to reach our targets.

8/28: AAPL underperformed again Friday gaining a meager +0.56% compared to broader market gains of +1.6% across the board. However, the market appears ready for a bounce so readers should consider keeping a tight leash on this trade. I am adding a target of $237.50 which is a $4 dip from current levels. This is support on the intraday charts and is the area readers should take profits or tighten stops to protect them. I still believe AAPL has a date with destiny at its 200-day SMA but I would rather not sit through bounce. If the broader market breaks down first though AAPL should easily hit our $233 target.

Current Position: Long October $230.00 PUT, entry was at $6.90

Entry on August xx
Earnings: 10/21/10 (unconfirmed)
Average Daily Volume: 23 million
Listed on August 14, 2010


Limited Brands Inc - LTD - close 24.14 change -0.82 stop 25.65

Target(s): 23.30, 22.70, 22.05
Key Support/Resistance Areas: 25.40, 23.85, 22.60, 22.00
Current Gain/Loss: +14%
Time Frame: 1 to 2 weeks
New Positions: Only on strength

Comments:
8/31: We are long October $24 puts as of today's open at $1.40. LTD ultimately lost -2.24% today and looks headed to our first target of $23.30. I suggest readers be prepared to take profits in this position on any further weakness, or tighten stops protect them. The 200-day SMA is just above $23.00 and LTD could bounce from there. My comments from the play release below remain valid.

8/30: We are sticking with a consumer name in the retail space. Retailers are weak and LTD looks ready for a drop if the broader market cooperates. Technically LTD looks like it wants to retest its recent swing lows. There was also a big buyer of the September $25 puts with over 2,200 contracts purchased and I like the volume flow. I suggest we initiate short positions now or on any strength in the stock. $24.50 is just below the 50-day SMA which can be used to time an entry. Our stop is $25.65. Our first target is $23.30 which is about -5% lower from current levels. NOTE: The October strikes were just recently released for trading so the open interest isn't as high as surrounding months.

Current Position: Long October $24.00 PUT, entry was at $1.40

Entry on August 31, 2010
Earnings: 11/17/10 (unconfirmed)
Average Daily Volume: 4.4 million
Listed on August 30, 2010


NUCOR Corp. - NUE - close 36.78 change +0.12 stop 40.55

Target(s): 36.05 (hit), 35.25, 31.90
Key Support/Resistance Areas: 43.00, 40.30, 37.00, 35.00
Option Current Gain/Loss: +12.5%
Time Frame: 4 to 6 weeks
New Positions: Yes

Comments:
8/31: After hitting our target of $36.05 on 8/25 NUE has traded within a $1 range between $36.40 and $37.40. NUE is forming a bear flag and should break lower but the stock and broader market are simply not cooperating. Our stop is above the 20 and 50-day SMA's and a downtrend line. Readers should consider closing positions on any further weakness to protect profits or use a tighter stop to protect capital if there is a more meaningful bounce.

8/28: It looks like NUE could be headed higher before resuming its downtrend. The chart looks terrible but the stock is oversold and it needs to work off some of the oversold conditions. Our stop is above 20 and 50-day SMA's and a downtrend line. Any move into this area could create a good short entry with a tight stop.

Current Position: Long October $35.00 PUT, entry was at $0.96

Entry on August 20, 2010
Earnings Date 10/21/10
Average Daily Volume 2.9 million
Listed on August 19, 2010


Occidental Petrol. - OXY - close: 73.08 change: -0.71 stop: 78.51

Target(s): 72.25, 71.60, 70.25, 67.50
Key Support/Resistance Areas: 75-74.00, 70.00, 65.00
Current Gain/Loss: +3%
Time Frame: Several Weeks
New Positions: Yes, on strength

Comments:
8/31: OXY continued its slide today and has almost retraced all of the gains from Friday. We have small gains in the trade and suggest readers use weakness to consider closing positions. $72.25, $71.60, and $70.25 are the immediate targets. $72.25 is near last week's lows which is where OXY found support. $71.60 is just above the 52-week low at $71.44.

8/28: The rally in OXY on Friday may have been short covering, but regardless we are caught in the middle of it. It would be nice to see the stock turn lower at its 20-day SMA which is just overhead. If it does there is a good chance we will see a retest of last week's lows so I have added $72.25 as a near term target. OXY's chart looks weak but the broader market may have put in a short term bottom and OXY could bounce along with it. Readers need to decide whether or not $72.25 is good area to consider closing positions or tightening stops if OXY gets there. Otherwise a tighter stop could be considered above last week's highs at $76.75.

Current Position: Long OXY November $70.00 PUT, entry was at $3.45

Entry on August 25, 2010
Earnings Date 10/21/10 (unconfirmed)
Average Daily Volume 4.4 million
Listed on August 7th, 2010