Editor's Note:
Good evening. Our short positions took a beating today. I have narrowed targets on shorts and suggest readers begin to look for exits on weakness or tighten stops to protect capital. Please email me with any questions.

Current Portfolio:


CALL Play Updates

Cameron International - CAM - close 38.29 change +1.51 stop 37.50 *NEW*

Target(s): 37.85 (hit), 38.40 (hit), 38.95, 39.35
Key Support/Resistance Areas: 45.00, 42.50, 41.00, 38.75, 36.00
Current Gain/Loss: -45%
Time Frame: Several weeks
New Positions: Yes, with later month options

Comments:
9/1: The whipsaws continue. Another target was hit in CAM today but this time there could be follow through so I am content giving this a little room to work. I think it is prudent to close positions this week regardless of what happens to prevent further time decay. I've adjusted the targets with $39.35 as the final target underneath the 200-day SMA.

8/31: CAM has made a series of higher lows since 8/25 but the broader market 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 (.60)

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 64.79 change +2.94 stop 58.80

Target(s): 65.25 (hit), 66.25, 67.00, 68.75
Key Support/Resistance Areas: 69.00, 65.50, 62.40, 59.00
Current Gain/Loss: +23%
Time Frame: Several weeks
New Positions: Yes, with a tight stop

Comments:
9/1: We now have a +23% gain in FTI and are back on track with options expiring in October. $65.25 has been reached once and I suggest not letting the stock reverse on us again. I've added a target a of $66.25 which will fill a long standing gap from 5/5.

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 9.40 change +0.08 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:
9/1: More nimble traders may want to consider bullish positions in NVDA now as the stock is almost 9% below our plan to buy it on a breakout. Officially we will wait for the breakout but if that doesn't happen in soon the play will most likely be dropped.

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 to 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: 82.95 change: +3.01 stop: 76.90

Target(s): 82.95 (hit), 84.50
Key Support/Resistance Areas: 73.00, 76.00, 80.00, 85.00, 88.50
Current Gain/Loss: +53%
Time Frame: 1 to 2 weeks
New Positions: Yes, preferably on a pullback

Comments:
9/1: PNRA closed +3.7% higher today and our gain in the position is currently +53%. Readers may want to consider taking some profits off of the table while a portion of the position open to see if hit our final target of $84.50. Our first target was reached today.

8/31: 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 20.12 change +0.43 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: +0.00%
Time Frame: 3 to 5 weeks
New Positions: Yes, preferably on a pullback

Comments:
9/1: We are looking good here as RAX is above the key $20.00 support level and the ascending triangle that has been forming since June. Now we need follow through. If RAX spikes back up to our first target protect profits or consider taking a portion of your position off of the table.

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 36.58 change +1.98 stop 38.40

Target(s): 35.55, 34.35, 33.25, 31.50
Key Support/Resistance Areas: 38.20, 37.25, 32.75, 34.00, 30.50
Current Gain/Loss: -30%
Time Frame: Several weeks
New Positions: Only with tight stops

Comments:
9/1: ANF rallied right up to its 20-day SMA but closed below it. There is a primary downtrend line and the 200-day SMA just above current levels which should provide resistance. I've added two lowered targets that I suggest readers use to consider exiting positions or tightening stops to protect capital.

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): 246.50, 244.00, 240.00 (hit), 237.50
Key Support/Resistance Areas: 266, 258, 256, 246, 240, 231, 235
Current Gain/Loss: -50%
Time Frame: Several weeks
New Positions: Only with tight stops

Comments:
9/1: AAPL historically sells off in the ensuing days after their conference but the strong broader market reversal today has e very concerned. Readers should consider exiting positions to preserve capital. I've added 2 near term targets that are support areas and I suggest tightening stops or exiting positions as they approach.

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 24.27 change +0.67 stop 25.40 *NEW*

Target(s): 23.90, 23.60, 22.70, 22.05
Key Support/Resistance Areas: 25.40, 23.85, 22.60, 22.00
Current Gain/Loss: -10%
Time Frame: 1 to 2 weeks
New Positions: Only with tight stops

Comments:
9/1: I've added a $23.90 as a target and suggest readers begin to look for an exit in LTD. The stop has been lowered to $25.40.

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 37.96 change +1.18 stop 40.55

Target(s): 37.40, 37.05, 36.05 (hit), 35.25, 31.90
Key Support/Resistance Areas: 43.00, 40.30, 37.00, 35.00
Option Current Gain/Loss: -30%
Time Frame: 4 to 6 weeks
New Positions: Only with tight stops

Comments:
9/1: I've added a $37.40 as a target and suggest readers begin to look for an exit in NUE. The stock's 20-day, 50-day, and downtrend line are all just overhead which should provide a pullback and exit point, even it is a loss.

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: 76.86 change: +3.78 stop: 78.51

Target(s): 75.80, 74.50, 72.25, 71.60, 70.25
Key Support/Resistance Areas: 75-74.00, 70.00, 65.00
Current Gain/Loss: -36%
Time Frame: Several Weeks
New Positions: Yes, on strength

Comments:
9/1: OXY ripped +5% higher today and closed right on a downtrend line, while the 50-day SMA is just overhead. If the stock breaks through these areas we need to honor our stops and step aside. However, I would be looking for a pullback to exit the position. I have provided two logical near term targets above.

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



United Technologies - UTX - close 67.37 change +2.26 stop 69.11

Target(s): 66.50, 65.05, 64.00, 63.25
Key Support/Resistance Areas: To follow
Current Gain/Loss: -7% Time Frame: 1 to 2 weeks
New Positions: Yes

Comments:
9/1: We got filled at the higher trigger in UTX so we are now long October $65 puts for $1.60. Considering the turnaround in equities today I suggest readers use caution in this position. I've narrowed the targets to account for the higher fill and suggest readers consider taking profits or tightening stops to protect them at these levels.

8/31: A strengthening US dollar is bad for multinational companies who derive income from abroad. After a sell-off in the dollar over the past couple of months it looks poised to break out higher and UTX looks poised to break down lower. The plan is to short UTX if it breaks down to $64.50 but I would also suggest shorting UTX if it trades up to close the gap from 8/24 at $67.00. If we get filled at the higher price our stop will be $69.11. If we get filled at the lower price our stop will $67.61.

Current Position: Long October $65.00 PUT, entry was at $1.60

Entry on September 1, 2010
Earnings: 10/20/10 (unconfirmed)
Average Daily Volume: 4.4 million
Listed on August 31, 2010