Editor's Note:

Shares of RRC surged more than +15% intraday on takeover rumors. The stock hit our first target near $70.00.

I have updated several stop losses tonight.

FYI: In the weekend newsletter we dropped our CS put play with plans to exit immediately. Concerns over Greece hit the European banking sector really hard on Monday. Shares of CS gapped open lower at $24.60 and closed with a -7.3% decline today.

-James

Current Portfolio:


CALL Play Updates

Dollar Tree, Inc. - DLTR - close: 76.29 change: +0.75

Stop Loss: 72.25
Target(s): 76.00, 79.00
Current Option Gain/Loss: Oct$75: +53.1%
Time Frame: 2 to 4 weeks
New Positions: see below

Comments:
09/19 update: DLTR held up pretty well today. When the market was down big this morning shares of DLTR only dipped to $74.44. Shares managed to rebound back into positive territory. More conservative traders might want to raise their stop loss toward the $74.00 level. We are raising our stop to $72.25. I am not suggesting new positions at current levels.

- Suggested Positions -

Long OCT $75 call (DLTR1122J75) Entry $2.35

09/19 new stop loss @ 72.25
09/17 new stop loss @ 71.75
09/15 new stop loss @ 71.45
09/15 1st Target hit at $76.00. Oct $75 call bid @ 3.20 (+36.1%)
09/15 planned exit for Sep. $75 call. bid $0.65 (+30%)
09/14 exit the September $75 calls ASAP (tomorrow morning)
09/07 trade is open. DLTR gapped open at $72.97
09/06 trade not open. Adjusted entry point strategy, stop loss, and targets.

Entry on September 7 at $72.97
Earnings Date 11/17/11 (unconfirmed)
Average Daily Volume = 2.2 million
Listed on September 3, 2011


Ingersoll-Rand Plc. - IR - close: 33.64 change: -2.06

Stop Loss: 32.90
Target(s): 34.75, 37.25
Current Option Gain/Loss: Oct$35: -27.0%
Time Frame: 2 to 4 weeks
New Positions: see below

Comments:
09/19 update: Ouch! Our IR play has been damaged with some steep relative weakness today. I did not see any news behind today's -5.7% plunge. Our call option lost a whole dollar.

The morning weakness was probably just a reaction to the market's big drop but IR did not recover while the rest of the market did. The three-day candlestick pattern looks like a bearish reversal. Conservative trades will want to exit immediately! I am not suggesting new positions. We will raise our stop loss to $32.90. The low today was $33.13.

- Suggested Positions -

Long OCT $35 call (IR1122J35) Entry $1.85

09/19 readers may want to exit immediately! new stop @ 32.90
09/17 new stop loss @ 32.40
09/15 1st target hit @ 34.75. Oct. $35 call @ 1.90 (+2.7%)
09/15 planned exit on Sep$33 call. bid $0.85 (-37%)
09/14 exit Sep. $33 calls tomorrow morning at the open
09/07 trade opened. IR gapped higher at $33.39
*price is an estimate. option did not trade today
09/06 play not open. try again. new stop loss $31.25

Entry on September 7 at $33.39
Earnings Date 10/20/11 (unconfirmed)
Average Daily Volume = 8.0 million
Listed on September 3, 2011


Mead Johnson Nutrition - MJN - close: 75.80 change: -0.29

Stop Loss: 71.75
Target(s): 77.00, 79.50
Current Option Gain/Loss: Oct$70: +16.3% & Oct$75: + 6.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/19 update: MJN also held up reasonably well. Traders bought the dip near $75.00 this morning and the stock almost made it back into positive territory. I would still prefer to wait and buy a bounce from the $74 or $72 levels. Please note our new stop loss at $71.75.

Earlier Comments:
NOTE: The spreads on the Oct. $75 calls are a lot wider than the spreads on the $70s. Buying the $75s would be a riskier bet.

- Suggested Positions -

Long OCT $70 call (MJN1122J70) Entry $5.20*

- or -

Long OCT $75 call (MJN1122J75) Entry $3.15

09/19 new stop loss @ 71.75
09/17 new stop loss @ 71.45
09/14 new stop loss @ 69.90
*09/14 entry price is an estimate

Entry on September 14 at $73.22
Earnings Date 10/27/11 (unconfirmed)
Average Daily Volume = 1.6 million
Listed on September 13, 2011


PriceSmart Inc. - PSMT - close: 74.16 change: +0.88

Stop Loss: 69.90
Target(s): 74.75
Current Option Gain/Loss: +76.4%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/19 update: PSMT displayed some relative strength. The stock dipped to $71.40 this morning but rallied back to a new high. Shares hit $74.59 and our exit target is $74.75. Cautious traders may want to exit now. Aggressive traders may want to aim higher. I am raising our stop loss to $69.90.

No new positions at this time.

- Suggested Positions -

Long OCT $70 call (PSMT1122J70) Entry $3.40

09/19 new stop loss @ 69.90
09/17 Readers may want to take profits now. Option bid at $5.50 (+61.7%).
09/17 new stop loss @ 67.75, adjust target to $74.75
09/15 new stop loss @ 67.25
09/14 new stop loss @ 66.60

Entry on September 13 at $68.25
Earnings Date 11/10/11 (unconfirmed)
Average Daily Volume = 307 thousand
Listed on September 12, 2011


Praxair Inc. - PX - close: 100.09 change: -0.72

Stop Loss: 97.75
Target(s): 104.80, 109.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
09/19 update: PX is one of our new trades from the weekend. The market's gap open lower this morning negated our entry point. PX dipped to $97.84 and bounced back above its 200-dma and the $100 mark. I am suggesting we try again. The plan is to buy calls now with a stop loss at $97.75 but only if both PX and the S&P 500 index both open positive tomorrow.

NOTE: Aggressive traders might want to consider buying a breakout past the 100-dma even if the market is lower tomorrow.

Our first target is $104.80. Our second target is $109.00. The Point & Figure chart for PX is bullish with a $115 target.

*See Entry Point Details Above*

- Suggested Positions -

buy the OCT $105 call (PX1122J105) current ask $1.20

09/19 new stop loss @ 97.75

Entry on September xx at $ xx.xx
Earnings Date 10/26/11 (unconfirmed)
Average Daily Volume = 1.9 million
Listed on September 17, 2011


Range Resources Corp. - RRC - close: 63.44 change: +0.17

Stop Loss: 59.90
Target(s): 69.75, 72.50
Current Option Gain/Loss: Oct$65: +28.5% & Oct$70: +72.4%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
09/19 update: Target achieved. RRC gapped open lower and dipped toward support near $60 this morning. Shares were starting to bounce and then BOOM, the stock surged from $61 to over $70 in minutes (+15.4%). The intraday surge was fueled by rumors that RRC was a takeover target. The rally faded and RRC eventually settled under resistance near $66.00 but still posted a +3.7% gain.

Our first target was hit at $69.75. The bid on the October $65 call was trading near $6.30 (+80.0%) and the bid on the October $70 call was near $4.45 (+206%).

I am not suggesting new positions at this time but readers may want to consider buying calls if we see RRC close over the $67.00 level. Our final target is $72.50.

- Suggested Positions -

Long OCT $65 call (RRC1122J65) Entry $3.50

- or -

Long OCT $70 call (RRC1122J70) Entry $1.45

09/19 1st target hit @ 69.75
bid on Oct. $65 call @ $6.30 (+80%)
bid on Oct. $70 call @ $4.45 (+206%)
09/13 trade opened. RRC @ 63.12

chart:

Entry on September 13 at $63.12
Earnings Date 10/27/11 (unconfirmed)
Average Daily Volume = 2.3 million
Listed on September 8, 2011


Sina Corp. - SINA - close: 109.35 change: -0.98

Target(s): 124.00
Entry #1) Current Option Gain/Loss: -41.7%
Stop Loss: 104.75
Entry #2) Current Option Gain/Loss: -26.6%
Stop Loss: 101.70
Time Frame: 4 to 6 weeks
New Positions: see trigger

Comments:
09/19 update: SINA dipped toward $105 on the market's morning weakness. Shares managed to recoup most of its losses. I am suggesting readers use the afternoon bounce as a new entry point to buy calls.

Earlier Comments:
We do want to keep our position size small because SINA can be a volatile stock and we have a wide stop loss. I am setting our target at $124.00. More aggressive traders could aim higher. The inverse H&S pattern would suggest a target in the $150 area.

FYI: The Point & Figure chart for SINA has recently broken through resistance and is bullish with a $146 target.

Entry #1) Triggered @ 112.55, stop: 104.75 (SMALL positions!)

Long OCT $125 call (SINA1122J125) Entry $ 5.15

Entry #2) Entry @ 107.29, stop: 101.70 (SMALL positions!)

Long OCT $120 call (SINA1122J120) Entry $ 6.00

09/13 trade opened. both entry points hit.

Entry #1) Entry on September 13 at $112.55
Entry #2) Entry on September 13 at $107.29
Earnings Date 11/15/11 (unconfirmed)
Average Daily Volume = 6.0 million
Listed on September 8, 2011


Whole Foods Market - WFM - close: 72.10 change: +3.05

Stop Loss: 65.25
Target(s): 74.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/19 update: The market's gap down at the open as well as WFM's drop at the open negated our entry point. WFM managed to rebound pretty quickly from its morning lows near $68.00. The stock ended up as one of the S&P 500's best performers today with a +4.4% rally and a new high.

I do not want to chase it here. The breakout over $70.00 is bullish but I'd rather wait. The newsletter will temporarily remove our entry point to buy calls. Let's wait and watch WFM to see how shares perform tomorrow. Then we'll either choose a new entry point strategy or we'll remove WFM as a trade.

No Trade Tonight - Just Wait and Watch

Entry on September xx at $ xx.xx
Earnings Date 11/02/11 (unconfirmed)
Average Daily Volume = 2.1 million
Listed on September 17, 2011


PUT Play Updates

Stanley Black & Decker - SWK - close: 55.32 change: -1.41

Stop Loss: 58.05
Target(s): 50.25, 46.00
Current Option Gain/Loss: Oct$50: -44.7%, & Oct$55: -33.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/19 update: SWK underperformed the market on Monday. Shares have dropped back under support near $56.00. Today's move could be used as a new entry point to buy puts.

- Suggested Positions -

Long OCT $50 put (SWK1122V50) Entry $1.90

- or -

Long OCT $55 put (SWK1122V55) Entry $3.90

Entry on September 12 at $54.78
Earnings Date 10/18/11 (unconfirmed)
Average Daily Volume = 1.8 million
Listed on September 10, 2011


CBOE Volatility Index - VIX - close: 32.93 change: + 1.75

Stop Loss: n/a
Target(s): 26.00, 22.50
Current Option Gain/Loss: -100.0%
Second Position Gain/Loss: -100.0%
Third Position Gain/Loss: -98.2%
Time Frame: 2 to 3 weeks
New Positions: see below

Comments:
09/19 update: The VIX gapped open higher on the market's morning drop. Yet volatility was fading as stocks recovered. We are almost out of time for this trade. The newsletter will close any remaining positions tomorrow (Tuesday) at the closing bell.

September VIX options expire on Wednesday, Sep. 21. We are not suggesting new positions at this time.

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

09/19 prepare to close any positions tomorrow (Tuesday).
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 = ---
Listed on August 4, 2011