Editor's Note:

It could be bargain hunting or just an oversold bounce but Monday saw widespread gains for the stock market.

All of our new or unopened bullish trades are now open. Some have already seen substantial improvement. Our SWK put play hit our new stop loss early this morning.

-James

Current Portfolio:


CALL Play Updates

Celgene Corp. - CELG - close: 63.10 change: +0.43

Stop Loss: 60.75
Target(s): 69.00
Current Option Gain/Loss: -1.9%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/26 update: Our new trade on CELG is now open. The stock opened higher at $63.03 but shares quickly dipped back toward their trendline of higher lows before recovering. Volume was pretty light today. I would still consider new positions now. More conservative traders might want to wait for a breakout past the $64.00 level instead.

- Suggested Positions -

Long OCT $65 call (CELG1122J65) Entry $1.53

Entry on September 26 at $63.03
Earnings Date 10/27/11 (unconfirmed)
Average Daily Volume = 4.0 million
Listed on September 22, 2011


Check Point Software - CHKP - close: 53.41 change: +0.54

Stop Loss: 50.80
Target(s): 55.75 , 57.75
Current Option Gain/Loss: -2.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/26 update: Our CHKP trade is now open. The stock opened at $53.00 before dipping back toward technical support at its exponential 200-dma. Traders bought the dip again and the stock closed near its highs for the session. I would still consider new positions now.

Our targets are $55.75 and $57.75. More aggressive traders can aim higher.

- Suggested Positions -

Long OCT $55 call (CHKP1122J55) Entry $1.80

09/26 trade opened.

Entry on September 26 at $53.00
Earnings Date 10/20/11 (unconfirmed)
Average Daily Volume = 1.6 million
Listed on September 20, 2011


Dollar Tree Inc. - DLTR - close: 77.48 change: +1.57

Stop Loss: 73.40
Target(s): 79.75, 82.50
Current Option Gain/Loss: Oct$77.50: -3.7% & Nov$80: +3.4%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/26 update: DLTR displayed some relative strength this morning with a gap open higher at $76.51. The strong open and a positive S&P500 triggered our play. The stock ended the session up +2.0% near its highs from last week.

- Suggested Positions -

Long OCT $77.50 call (DLTR1122J77.5) Entry $2.70

- or -

Long NOV $80.00 call (DLTR1119K80) Entry $2.90

Entry on September 26 at $76.51
Earnings Date 11/17/11 (unconfirmed)
Average Daily Volume = 1.7 million
Listed on September 24, 2011


Hewlett Packard - HPQ - close: 22.71 change: +0.39

Stop Loss: 19.75
Target(s): 29.50
Current Option Gain/Loss: - 7.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/26 update: HPQ saw a strong open but then spent the rest of the day churning sideways. Given our longer-term time frame I would still consider new positions now. However, if you think the market bounce is going to roll over then I suggest waiting for a dip closer to $20.00 before initiating positions. Our multi-week target is $29.50.

- Suggested Positions -

Long 2012 Jan. $24 call (HPQ1221A24) Entry $2.14

Entry on September 23 at $22.52
Earnings Date 11/21/11 (unconfirmed)
Average Daily Volume = 26.6 million
Listed on September 22, 2011


iPath Copper ETN - JJC - close: 43.27 change: +0.43

Stop Loss: 39.95
Target(s): 46.50, 49.75
Current Option Gain/Loss: Oct$45: +46.6% & Dec$45: +17.5%
Time Frame: 10 weeks
New Positions: Yes, see below

Comments:
09/26 update: Metal prices saw another spike lower on Monday morning but copper reversed higher before lunchtime. I warned readers that copper might see a morning spike down as investors react to the margin hike news. If you missed our entry point this morning (today's open $41.92) then I would still consider new bullish positions now.

Please note that we are raising our stop loss from $39.95 to $40.95.

Earlier Comments:
I'm setting our targets are $46.50 and $49.75. We prefer the December $45 calls but I'm listing October calls for more aggressive traders.

- Suggested Positions -

Long OCT $45 call (JJC1122J45) Entry $0.75

- or -

Long DEC $45 call (JJC1117L45) Entry $2.00

Entry on September 26 at $41.92
Earnings Date --/--/--
Average Daily Volume = 267 thousand
Listed on September 24, 2011


ishares Silver ETF - SLV - close: 29.77 change: -0.21

Stop Loss: 27.25
Target(s): 34.50, 37.75
Current Option Gain/Loss: Nov$32: +49.2% & Jan$35: +24.0%
Time Frame: 6 to 9 weeks
New Positions: see below

Comments:
09/26 update: Our SLV trade is off to a great start. I warned readers that the SLV could see a sell-off on Monday morning as investors react to the official margin hike news. Right on cue the SLV rebounded intraday. We were fortunate that the SLV did not hit our stop loss. Shares opened at $27.51, hit $27.41 at its lows, and then surged +8.65 to close near the $30 level on strong volume.

If you missed the entry point this morning I would still consider new positions now.

Earlier Comments:
Our targets are $34.50 and $37.75. We might consider a higher target for the January calls. Keep in mind that the 200-dma and the $38.00 level could be new resistance.

- Suggested Positions - (Small Positions)

Long NOV $32 call (SLV1119K32) Entry $1.36

- or -

Long 2012 Jan $35 call (SLV1221A35) Entry $1.58

Entry on September 26 at $27.51
Earnings Date --/--/--
Average Daily Volume = 24.4 million
Listed on September 22, 2011


Whole Foods Market - WFM - close: 71.57 change: +3.37

Stop Loss: 65.90
Target(s): 73.00, 77.50
Current Option Gain/Loss: OCT$70: +28.9% & NOV$72.50: +21.9%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/26 update: WFM is off to a strong start. Our trade was opened this morning when WFM gapped higher at $69.10. Shares did fill the gap with a dip back to $67.73 before charging higher and closing up +4.9%. If there was something to complain about it would be the lack of volume on the rally. Technically the close over $70.00 is bullish.

Please note our new stop loss at $65.90.

- Suggested Positions - (Small Positions)

Long OCT $70 call (WFM1122J70) Entry $3.18

- or -

Long NOV $72.50 call (WFM1119K72.5) Entry $4.10

09/26 new stop loss @ 65.90

Entry on September 26 at $69.10
Earnings Date 11/02/11 (unconfirmed)
Average Daily Volume = 2.2 million
Listed on September 22, 2011


Watson Pharmaceuticals - WPI - close: 71.36 change: +0.66

Stop Loss: 66.95
Target(s): 74.75, 78.50
Current Option Gain/Loss: Oct$75: - 5.0% & NOV$75: - 9.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
09/26 update: Our new trade in WPI is open. Shares gapped higher at $71.26, filled the gap with a dip back to $70.30, and then rallied back toward its highs for the day. I would still consider new positions now. We have a stop loss at $66.95. More conservative traders may want to use a stop closer to $68.00 instead.

- Suggested Positions -

Long OCT $75 call (WPI1122J75) Entry $1.00

- or -

Long NOV $75 call (WPI1119K75) Entry $2.10

Entry on September 26 at $71.26
Earnings Date 11/01/11 (confirmed)
Average Daily Volume = 1.4 million
Listed on September 24, 2011


CLOSED BEARISH PLAYS

Stanley Black & Decker - SWK - close: 51.80 change: +1.27

Stop Loss: 51.25
Target(s): 50.25, 46.00
Current Option Gain/Loss: Oct$50: + 39.4%, & Oct$55: +38.4%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/26 update: The stock market's widespread bounce on Monday fueled more short covering in SWK. The stock gapped open at $51.16 and quickly hit our stop loss at $51.25 in the first few minutes of trading.

- Suggested Positions -

OCT $50 put (SWK1122V50) Entry $1.90, Exit $2.65 (+39.4%)

- or -

OCT $55 put (SWK1122V55) Entry $3.90, Exit $5.40 (+38.4%)

09/26 stopped out at $51.25
09/24 new stop loss @ 51.25
09/22 new stop loss @ 52.25
09/22 1st target exceeded on gap down at $49.12
bid Oct. $50 put @ 3.12 (+64.2%)
bid Oct. $55 put @ 5.75 (+47.4%)
09/21 new stop loss @ 56.25

chart:

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