Editor's Note:

We had several bullish targets get hit today (BCR, COG, GMCR, HANS, and LULU). We're also taking an early exit on DIA and the SPY to lock in gains.

I've updated multiple stop losses.

-James

Current Portfolio:


CALL Play Updates

CR Bard Inc. - BCR - close: 94.16 change: +0.77

Stop Loss: 89.90
Target(s): 94.75, 98.25
Current Option Gain/Loss: Sep.$85: +8.1% & Oct. $95: +11.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
08/30 update: BCR hit our first target at $94.75 late this afternoon. The intraday high was actually $94.76. You could argue shares are a little bit short-term overbought here so I would not open new positions at this time. The stock should find support in the $92-90 zone. We will raise our stop loss to $89.90.

- Suggested (small) Positions -

Long SEP $95 call (BCR1117I95) Entry $1.85*

- or -

Long OCT $95 call (BCR1122J95) Entry $3.40*

08/30 new stop loss @ 89.90
08/30 1st target hit at $94.75
Sep. $95 call bid at $2.25* (+21.6%)
Oct. $95 call bid at $4.00* (+17.6%)
*these are estimates. options did not trade today
08/29 play opened. BCR gap open entry at $92.11
* these are estimates. options did not trade today
08/27 Adjusted back to old strategy. Buy calls now if both BCR and S&P500 open positive on Monday.
08/27 move stop loss to $87.40 and adjusted strikes to $95
08/25 New strategy. Buy the dip at $86.50, new stop 84.85

chart:

Entry on August 29 at $92.11
Earnings Date 10/20/11 (unconfirmed)
Average Daily Volume = 1.25 million
Listed on August 23, 2011


Caterpillar Inc. - CAT - close: 89.83 change: +1.68

Stop Loss: 84.75
Target(s): --.--, 94.50
Current Option Gain/Loss: Sep.$90: +32.6% & Oct. $90: +21.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
08/30 update: CAT has rallied to potential resistance at the $90.00 level. Cautious traders may want to take profits early right now. If the market sees a pull back then CAT could easily retrace back down toward the $86-85 zone, which would crush our September options.

I am not suggesting new positions at this time. We will raise our stop loss to $84.75.

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

- Suggested Positions -

Long SEP $90 call (CAT1117I90) Entry $2.30

- or -

Long OCT $90 call (CAT1122J90) Entry $4.35

08/30 new stop loss @ 84.75, consider taking profits early now.
08/29 trade opened. CAT gapped open at $87.11
08/27 buy-the-dip trigger not hit. We will switch back to buying calls now if both CAT and S&P500 open positive on Monday.
08/27 new stop loss at $79.49
08/24 play was not triggered. New strategy to buy the dip at $80.50 with a stop at $78.75.

Entry on August 29 at $87.11
Earnings Date 10/24/11 (unconfirmed)
Average Daily Volume = 13.9 million
Listed on August 23, 2011


Cabot Oil & Gas - COG - close: 76.67 change: +2.69

Stop Loss: 69.75
Target(s): --.--, 78.85
Current Option Gain/Loss: Sep.$75: +46.4% & Oct.$75: +37.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
08/30 update: Our first target has been hit. COG delivered another strong session with a +3.6% gain and a breakout past resistance at the $75.00 mark. Shares hit our first profit target at $76.85 this afternoon. The bid on the September $75 call was near $3.70 (+32.1%) and the bid on the October $75 call was at $6.20 (+29.1%).

Please note that we are raising our stop loss up to $69.75. More conservative traders may want to use a stop loss higher (maybe the $72.50 area). I would not launch new positions at this time. The July high of $78.94 could be resistance. I am adjusting our final target down to $78.85. More aggressive traders could aim higher.

- Suggested Positions -

Long SEP $75 call (COG1117I75) Entry $2.80

- or -

Long OCT $75 call (COG1122J75) Entry $4.80

08/30 new stop loss @ 69.75, adjust final target to $78.85
08/30 1st target hit at $75.85.
Sep. $75 call bid @ 3.70 (+32.1%)
Oct. $75 call bid @ 6.20*(+29.1%)
*option did not trade today. this is an estimate. 08/29 COG gapped open higher at $72.79

chart:

Entry on August 29 at $72.79
Earnings Date 10/25/11 (unconfirmed)
Average Daily Volume = 2.1 million
Listed on August 27, 2011


Deckers Outdoor - DECK - close: 88.94 change: +0.54

Stop Loss: 84.40
Target(s): 93.50, 97.00
Current Option Gain/Loss: -23.4%
Time Frame: 1 to 3 weeks
New Positions: see below

Comments:
08/30 update: DECK did not make much progress today. The stock stalled at round-number resistance near $90.00. More conservative traders may want to exit early now and cut their losses with the Sept. $90 call (bid) at $3.60 (-23.4%). If the DECK does see another sharp pull back these options will get crushed lower again.

I am not suggesting new positions at this time. Please note our new stop loss at $84.40.

Earlier Comments:
I do consider this an aggressive trade. DECK can be a volatile normally and in this market the moves get a little crazy. We definitely want to keep our position size small.

- Suggested (SMALL) Positions -

Long SEP $90 call (DECK1117I90) Entry $4.70

08/30 Readers may want to cut losses now (at -23.4%).
New stop loss @ $84.40
08/20 Remainder of our August $90 call position expires at $0.00 (-100%), We took profits on these on the 12th at +232%
08/18 DECK is down nearly 20 points in three days
08/12 1st target hit @ 93.50
bid on Aug. $90 call @ $5.05 (+232.2%)
bid on Sep. $90 call @ $8.45 (+79.7%)

Entry on August 11 at $83.53
Earnings Date 10/27/11 (unconfirmed)
Average Daily Volume = 1.3 million
Listed on August 9, 2011


Energy XXI Ltd. - EXXI - close: 26.39 change: +0.15

Stop Loss: 23.40
Target(s): 27.50, 29.75
Current Option Gain/Loss: + 69.2%
Time Frame: 6 to 12 weeks
New Positions: see below

Comments:
08/30 update: EXXI spent the day consolidating sideways above the $26.00 level. Volume is fading fast. It might be time for a pull back. I am not suggesting new positions at this time. We will move our stop loss up to $23.40. More conservative traders will want to lock in a gain right now.

- Suggested Positions -

Long DEC $25 call (EXXI1117L25) Entry $2.60

08/30 new stop loss @ 23.40
08/29 new stop loss @ 21.90
08/27 new stop loss @ 20.90

Entry on August 22 at $22.00
Earnings Date 10/25/11 (unconfirmed)
Average Daily Volume = 1.4 million
Listed on August 20, 2011


Hansen Natural Corp. - HANS - close: 89.58 change: +0.55

Stop Loss: 83.40
Target(s): 89.75, 94.50
Current Option Gain/Loss: Sep.90: +46.3% & Oct.90: +20.4%
Time Frame: 2 to 6 weeks
New Positions: see below

Comments:
08/30 update: HANS has already hit our first target at $89.75. Shares rallied to $90.24 intraday. The $90 level could be round-number resistance so I would not open new positions at this time. There is a good chance HANS could pull back toward the $86-84 zone or tag its 10-dma. I'd rather wait for the next bounce before considering new positions. We will raise our stop loss to $83.40. More conservative traders may want to risk a higher stop loss.

- Suggested Positions -

Long SEP $90 call (HANS1117I90) Entry $2.05

- or -

Long OCT $90 call (HANS1122J90) Entry $4.40

08/30 1st target hit at $89.75
Sep $90 call bid @ $3.10 (+51.2%)
Oct $90 call bid @ $5.40 (+22.7%)
08/30 new stop loss @ 83.40
08/29 HANS gapped open at $86.00

chart:

Entry on August 29 at $86.00
Earnings Date 11/03/11 (unconfirmed)
Average Daily Volume = 1.4 million
Listed on August 27, 2011


Lululemon Athletica - LULU - close: 52.31 change: +3.19

Stop Loss: 49.75
Target(s): 56.00, 59.50
Current Option Gain/Loss: + 28.1%
Time Frame: up to September 9th
New Positions: see below

Comments:
08/30 update: LULU has also hit our first target. Unfortunately the rally to $56.00 has not been that impressive since the gap open higher on Monday morning impacted our entry point and lowered our potential gains. I am not suggesting new positions at this time with LULU sitting just under technical resistance at its 50-dma. We will raise our stop loss to $49.75. More conservative traders may want to raise their stop loss even higher.

NOTE: This is a short-term trade. We do not want to hold over the Sept. 9th earnings report.

- Suggested Positions -

Long SEP $55 call (LULU1117I55) Entry $3.20

08/30 new stop loss at $49.75
08/30 1st target hit @ $56.00, option bid @ $4.05 (+26.5%)

chart:

Entry on August 29 at $54.05
Earnings Date 09/09/11 (confirmed)
Average Daily Volume = 4.2 million
Listed on August 27, 2011


O'Reilly Automotive - ORLY - close: 65.15 change: -0.09

Stop Loss: 61.75
Target(s): 63.75, 66.00
Current Option Gain/Loss: + 89.4%
Time Frame: 2 to 3 weeks
New Positions: see below

Comments:
08/30 update: Hmm... ORLY did not participate in the market's rally today. Is the stock just pausing at round-number resistance near $65.00? Or is the rally running out of steam? The high today was $65.47. We've been aiming for our final target at $66.00.

I want to take a cautious approach here. We want to exit early. I am suggesting we exit our call options at the open tomorrow!

NOTE: I can not explain why there is suddenly a HUGE spread in the Sept. $60 option price. Yesterday the bid was $5.20. Today the bid $3.60 with an ask of $6.50. You may want to use a limit order to exit instead of a market order. Depending on how the market looks posed to open I'd consider a limit order around $5.00, maybe $5.50ish. The newsletter will have to take whatever the opening bid is.

Earlier Comments:
Use a small position size to limit your risk.

- Suggested (small) Positions -

SEP $60 call (ORLY1117I60) entry $1.90

08/30 prepare to exit tomorrow morning
08/24 new stop loss @ 61.75
08/24 1st target hit @ 63.75, option @ $4.00 (+110.5%)
08/23 new stop loss @ 59.40
08/20 new stop loss @ 57.80
08/15 trade opened
08/13 adjusted entry point. removed Aug. strike
08/10 new trigger at $55.00
08/09 adjusted targets to $63.75 and $66.00.

Entry on August 15 at $60.37
Earnings Date 10/26/11 (unconfirmed)
Average Daily Volume = 1.7 million
Listed on August 6, 2011


Stericycle Inc. - SRCL - close: 87.40 change: +0.04

Stop Loss: 83.75
Target(s): --.--. 88.50
Current Option Gain/Loss: +111.4%
Time Frame: 2 to 4 weeks
New Positions: see below

Comments:
08/30 update: SRCL did not participate in the market's rally on Tuesday. Shares are stuck at their 100-dma. Cautious traders may want to exit immediately. I am not suggesting new positions at this time. We will raise our stop loss to $83.75. At the moment our final target is $88.50. Aggressive traders might want to aim higher.

- Suggested (small) Positions -

Long SEP $85 call (SRCL1117I85) Entry $1.75

08/30 new stop loss @ 83.75
Consider an early exit now
08/29 consider exiting now since the option is up +105%
08/27 new stop loss @ 81.25
08/25 new stop loss @ 79.75
08/25 1st target hit @ 84.90, option @ $2.75* (+57.1%)
*this is an estimate. the option did not trade today.

Entry on August 23 at $81.29
Earnings Date 10/27/11 (unconfirmed)
Average Daily Volume = 858 thousand
Listed on August 22, 2011


Tractor Supply Co. - TSCO - close: 60.82 change: -0.14

Stop Loss: 58.75
Target(s): 64.75
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
08/30 update: TSCO underperformed the market today. Shares gapped open lower at $60.50 and eventually tested the $60.00 level again before paring its losses. The gap down aborted our entry point. We will try again. I am suggesting small bullish positions now but only if TSCO and the S&P500 both open positive tomorrow morning.

NOTE: The September options expire in less than three weeks. If TSCO does not see any follow through higher these will evaporate fast. The spread is a larger percentage of the overall trade with the Septembers.

*See Entry Details Above*

- Suggested Positions -

buy the SEP $65 call (TSCO1117I65) current ask $0.65

- or -

buy the OCT $65 call (TSCO1122J65) current ask $2.15

Entry on August xx at $ xx.xx
Earnings Date 10/20/11 (unconfirmed)
Average Daily Volume = 858 thousand
Listed on August 29, 2011


U.S. Oil Fund - USO - close: 34.44 change: +0.48

Stop Loss: 31.90
Target(s): $37.50, 40.00
Current Option Gain/Loss: +38.0%
Time Frame: 2 to 3 months
New Positions: see below

Comments:
08/30 update: The USO delivered a +1.4% gain but it is struggling to breakout past the August 17th high. This ETF could have additional resistance near $35.00. I am not suggesting new bullish positions at this time.

Earlier Comments:
Keep your position size small! This is a lottery-ticket style of play.

- Suggested Positions -

Long NOV $34 call (USO1119K34) Entry $2.05

08/27 new stop loss @ $31.90
08/27 removing 2nd trigger to add another position.
08/20 Adding a new buy-the-dip entry at $30.50, stop @ 29.00

Entry on August 9 at $31.97
Earnings Date --/--/--
Average Daily Volume = 10.7 million
Listed on August 8, 2011


United Technologies Corp. - UTX - close: 73.76 change: -0.11

Stop Loss: 68.75
Target(s): 76.40, 79.75
Current Option Gain/Loss: (Sep. - 30.0%)
Time Frame: 2 to 4 weeks
New Positions: see below

Comments:
08/30 update: UTX underperformed the market's major indices on Tuesday. This stock is also struggling with its mid August highs. More conservative traders will want to seriously consider cutting their losses now. I am not suggesting new positions at this time.

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

- Suggested Positions -

Long SEP $75 call (UTX1117I75) Entry $1.83

08/30 consider cutting your losses now (-30%)
08/27 Adding a stop loss at $68.75
08/27 We have removed the buy-the-dip entry at $65.00
08/20 New entry point to buy calls on dip at $65.00
08/20 Our aggressive, higher-risk trade with August options has expired. Entry price on Aug. $75 call (UTX1120H75) was $0.29. exit 0.00 (-100%)

Entry on August 15 at $73.21
Earnings Date 10/20/11 (unconfirmed)
Average Daily Volume = 6.6 million
Listed on August 13, 2011


PUT Play Updates

CBOE Volatility Index - VIX - close: 32.28 change: - 3.31

Stop Loss: n/a
Target(s): 26.00, 22.50
Current Option Gain/Loss: -93.7%
Second Position Gain/Loss: - 90.0%
Third Position Gain/Loss: -68.4%
Time Frame: 2 to 3 weeks
New Positions: see below

Comments:
08/30 update: We have about three weeks left on these VIX September options. Where will the VIX be in the second half of September, one of the weakest months of the year?

I heard one analysts suggesting readers buy VIX calls today because they were expecting the volatility to rise again due to so much uncertainty in the market.

We are not suggesting new positions bullish or bearish on the VIX.

Earlier Comments:
I am not listing a stop loss on this trade. We should consider this a higher-risk, speculative trade. I'm setting our targets at 26.00 and 22.50.

- Suggested Positions -

Long SEP $25.00 PUT (VIX1121U25) Entry $4.00

- Second Position, entered at the open on Monday, Aug. 8th -
(very small positions)

Long SEP $25.00 PUT (VIX1121U25) Entry $2.50

- 3rd Position, listed Aug. 8th, Open Aug. 9th @ open. -

Long SEP $30.00 PUT (VXI1121U30) Entry $5.70

08/17 August VIX options expire
1st position Aug. $25 put @ $0.00 (-100%)
2nd position Aug. $25 put @ $0.00 (-100%)
08/08 3rd position listed to buy at the open on Aug. 9th
08/08 2nd position was filled the open.

Entry on August 5 at $28.48
Earnings Date --/--/--
Average Daily Volume = xxx
Listed on August 4, 2011


CLOSED BULLISH PLAYS

Dow Jones Industrial (ETF) - DIA - close: 115.35 change: +0.21

Stop Loss: 111.25
Target(s): 114.50, 117.50
Current Option Gain/Loss: Sep $110: +80.9% & Sep $112: + 97.7%
Time Frame: 2 to 4 weeks
New Positions: see below

Comments:
08/30 update: Upon further review we are taking a more cautious approach to the major indices. Tonight we are closing our DIA and SPY trades early to lock in a gain. More aggressive traders may want to let it run with over two weeks left before September options expire. Just bear in mind that any significant downturn is going to really hurt these options! We will exit immediately.

Earlier Comments:
We will need to use our position size to limit risk.

- Suggested (small) Positions -

SEP $110 call (DIA1117I110) Entry $3.15, Exit $5.70 (+80.9%)

- or -

SEP $112 call (DIA1117I112) Entry $2.20, Exit $4.35 (+97.7%)

08/30 Early exit now!
08/29 new stop loss @ 111.25
08/29 1st target hit at $114.50
Sept. $110 call bid at $5.95 (+88.8%)
Sept. $112 call bid at $4.30 (+95.4%)
08/27 new stop loss at $108.90
08/27 added 2nd target at $117.50. We still want to take $$ off the table at $114.50
08/20 add a stop loss at $105.70

chart:

Entry on August 19 at $108.00
Earnings Date --/--/--
Average Daily Volume = 15 million
Listed on August 18, 2011


Green Mountain Coffee Roasters - GMCR - close: 102.91 change: + 4.20

Stop Loss: 89.50
Target(s): 104.00
Current Option Gain/Loss: ---.-- & (+87.6%)
Time Frame: 2 to 3 weeks
New Positions: see below

Comments:
08/30 update: Our final target on GMCR has been hit at $104.00. The stock was climbing in choppy trading and managed to hit $104.17 late this afternoon. I would be tempted to keep GMCR on your watch list for another buy-the-dip entry point over the next few weeks.

Earlier Comments:
As a high-risk, speculative play we wanted to keep our position size very small.

- Suggested (SMALL) Positions -

SEP $100 call (GMCR1117I100) Entry $3.65, exit $6.85 (+87.6%)

08/30 final target hit at $104.00
08/27 Strategy Update: Stop loss @ 89.50. New target at $104.00.
08/23 Cautious traders may want to exit now with the bid on our Sep. $100 call at $3.25 (-10.9%)
08/18 if you're bearish on the market, then exit now! Sep.bid @$2.29
08/15 exit August $95 calls immediately. Bid @ $7.95 (+190.1%)
08/10 Consider exiting all August options now
08/09 adjusting 2nd target to $107.50
08/09 1st target hit at $99.50.
Aug. $95 call bid $6.30 (+129.9%), Sep. $100 call bid $6.95 (+90.4%)
08/08 we are not using a stop loss on this trade

chart:

Entry on August 8 at $91.26
Earnings Date 12/08/11 (unconfirmed)
Average Daily Volume = 2.9 million
Listed on August 6, 2011


SPDR S&P500 ETF - SPY - close: 121.36 change: +3.39

Stop Loss: n/a
Target(s): ---.--, 122.50
Current Option Gain/Loss: Sep.$120call (+39.6%)
Time Frame: 2 to 4 weeks
New Positions: see below

Comments:
08/30 update: The SPY almost hit our final target at $122.50. The high today was $122.43.

Upon further review we are taking a more cautious approach to the major indices. Tonight we are closing our DIA and SPY trades early to lock in a gain. More aggressive traders may want to let it run with over two weeks left before September options expire. Just bear in mind that any significant downturn is going to really hurt these options! We will exit immediately.

Earlier Comments:
We are not using a stop loss on this trade.

- Suggested (SMALL) Positions -

Long SEP $120 call (SPY1117I120) Entry $2.55, exit $3.56 (+39.6%)

08/30 exit early now.
08/20 Trigger to add positions at $112.00 was NOT hit. We are removing the entry point. Do not add to positions at this time.
08/18 adding a new entry point to buy the Sep.$118call at $112.00
08/16 exit Aug. $118 call now. bid $2.26 (+5.1%)
08/15 1st target hit @ 119.75
bid on the Aug. $118 call @ $2.15 (+0.0%)
bid on the Sep. $120 call @ $3.32 (+30.1%)
08/08 trade opened at $115.00. We are not using a stop loss.

chart:

Entry on August 8 at $115.00
Earnings Date --/--/--
Average Daily Volume = 235 million
Listed on August 6, 2011