Editor's Note:

The U.S. market churned sideways again but that didn't stop AMGN and CNQR from hitting our entry triggers.

Meanwhile, I have removed CELG and VNO as candidates. Neither trade was open.

Current Portfolio:


CALL Play Updates

Amgen Inc. - AMGN - close: 83.65 change: +0.11

Stop Loss: 81.45
Target(s): 88.50
Current Option Gain/Loss: Sep85c: - 2.9% & Oct85c: - 1.8%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
08/15/12 update: AMGN continued to climb although gains were mild today. Shares did hit our trigger to buy calls at $83.75. I would still consider new positions now at current levels.

If you're still looking for an entry point consider that more conservative traders could wait for a new high over $84.40 while nimble traders could try and buy a dip near $82.50 instead.

- Suggested Positions -

Long Sep $85 call (AMGN1222i85) Entry $1.35

- or -

Long Oct $85 call (AMGN1220j85) Entry $2.15

08/15/12 triggered at $83.75

Entry on August 15 at $83.75
Average Daily Volume = 4.8 million
Listed on August 14, 2012


BRCM - Broadcom - close: 34.71 change: +0.30

Stop Loss: 33.25
Target(s): 38.50
Current Option Gain/Loss: - 6.1%
Time Frame: 4-6 weeks
New Positions: see below

Comments:
08/15/12 update: There was no follow through on yesterday's bearish reversal candlestick. That's good news for us. It's worth noting today's bounce struggled with technical resistance at its 150-dma. Readers may want to cinch up their stop loss closer to the $34 level. I am not suggesting new positions at this time.

- Suggested Positions -

Position: Nov $36.00 Call (BRCM1217K36) entry $1.80

08/08/12 new stop loss @ 33.25
no follow through, turning cautious
08/07/12 triggered @ $34.75
08/06/12 adjust stop loss to $32.45

Entry on August 07 at $34.75
Average Daily Volume = 10 million
Earnings Oct-23rd
Listed on Aug 4, 2012


Caterpillar - CAT - close: 87.61 change: -0.26

Stop Loss: 85.90
Target(s): 91.50
Current Option Gain/Loss: -20.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
08/15/12 update: I am surprised that shares of CAT did not see bigger declines today. The company's rival, Deere (DE), reported earnings this morning that missed estimates. Plus, DE lowered its guidance. Shares of DE were down 6% today. CAT fell to short-term support near $86.00 and bounced. I am not suggesting new positions at current levels.

Earlier Comments:
I do consider this somewhat aggressive. CAT's recent earnings were strong and the company raised guidance but its stock price is probably still vulnerable to negative economic headlines. Furthermore the $90.00 level might be round-number resistance.

- Suggested (SMALL) Positions -

Long Sep $90 call (CAT1222I90) Entry $1.90

08/13/12 new stop loss @ 85.90
08/07/12 triggered @ $87.25

Entry on August 07 at $87.25
Average Daily Volume = 8.6 million
Listed on August 6, 2012


Concur Technologies - CNQR - close: 70.33 change: +1.11

Stop Loss: 67.65
Target(s): 74.75
Current Option Gain/Loss: Sep75c: - 8.0% & Nov75c: -11.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
08/15/12 update: CNQR displayed relative strength today with a +1.6% gain and a bullish breakout over the $70.00 level. The stock hit our trigger to buy calls at $70.25. I would still consider new positions at current levels.

- Suggested Positions -

Long Sep $75 call (CNQR1222i75) Entry $1.25

- or -

Long Nov $75 call (CNQR1217j75) Entry $3.60

08/15/12 triggered at $70.25

Entry on August 15 at $70.25
Average Daily Volume = 577 thousand
Listed on August 13, 2012


PVH Corp. - PVH - close: 86.78 change: +1.51

Stop Loss: 82.65
Target(s): 91.50
Current Option Gain/Loss: + 7.0%
Time Frame: exit prior to the Aug 27th earnings report
New Positions: see below

Comments:
08/15/12 update: PVH was a strong performer today with a +1.7% gain and a new three-month high. Readers may want to start raising their stop loss.

Earlier Comments:
The $90.00 level could be resistance but we will aim for the 2012 highs near $92.00. FYI: The Point & Figure chart for PVH is bullish with a $97 target.

- Suggested Positions -

Long Sep $87.50 call (PVH1222i87.5) Entry $3.27

08/14/12 triggered on gap open at $85.62 (trigger was 85.25)

Entry on August 14 at $85.62
Average Daily Volume = 845 thousand
Listed on August 13, 2012


Qualcomm - QCOM - close: 62.52 change: +0.13

Stop Loss: 57.75
Target(s): 64.50
Current Option Gain/Loss: +35.8%
Time Frame: 4-6 weeks
New Positions: see below

Comments:
08/15/12 update: QCOM continues to drift higher and posted another gain. Many are attributing QCOM's recent strength to growing expectations that AAPL will announce their iPhone 5 this fall. That's good news for QCOM who makes chips for AAPL's smart phones.

I am not suggesting new positions at this time. More conservative traders may want to start adjusting their stop loss higher.

- Suggested Positions -

Position: Oct $62.50 Call (QCOM1222J62.5) entry $1.70

08/07/12 triggered @ 60.51

Entry on August 07 at $60.51
Average Daily Volume = 1.5 million
Listed on Aug 4, 2012


SBA Communications - SBAC - close: 61.44 change: +0.82

Stop Loss: 57.75
Target(s): 64.90
Current Option Gain/Loss: Sep60c: +15.7% & Dec65c: - 7.6%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
08/15/12 update: The rally in SBAC started to pick up some speed today. Shares gained +1.3% and set a new multi-year closing high. Readers might want to consider inching their stop loss higher.

Our multi-week target is $64.90. We might need some patience on this one. SBAC doesn't move super fast. FYI: The Point & Figure chart for SBAC is bullish with a long-term $100 target.

- Suggested Positions -

Long Sep $60 call (SBAC1222i60) Entry $1.90

- or -

Long Dec $65 call (SBAC1222L65) Entry $1.30

08/14/12 triggered @ 60.75

Entry on August 14 at $60.75
Average Daily Volume = 1.5 million
Listed on August 11, 2012


WellPoint Inc. - WLP - close: 57.80 change: +0.90

Stop Loss: 54.40
Target(s): 59.75
Current Option Gain/Loss: +23.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
08/15/12 update: After two days of declines WLP displayed some strength today with a +1.5% gain. Yet the stock remains inside its new $56-58 trading range.

I am not suggesting new positions at this time.

- Suggested Positions -

Long Sep $57.50 call (WLP1222I57.5) Entry $1.60

08/08/12 triggered @ 56.50

Entry on August 08 at $56.50
Average Daily Volume = 4.4 million
Listed on August 7, 2012


PUT Play Updates

Coach, Inc. - COH - close: 55.65 change: +1.32

Stop Loss: 56.05
Target(s): 50.15
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
08/15/12 update: COH dipped to $54.00 this morning and then bounced. Shares managed to erase most of yesterday's losses. Yet COH has not broken the bearish trend of lower highs.

I am suggesting a trigger to buy puts at $53.95. We will target a drop toward $50.00 but more aggressive traders could aim lower.

Trigger @ 53.95

- Suggested Positions -

buy the Sep $50 PUT (COH1222u50)

Entry on August xx at $ xx.xx
Average Daily Volume = 6.8 million
Listed on August 14, 2012


Edwards Lifesciences - EW - close: 98.18 change: +0.61

Stop Loss: 100.25
Target(s): 91.50
Current Option Gain/Loss: -25.9%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
08/15/12 update: EW rallied at the open but pared its gains by the closing bell. Shares remain under resistance at the 10-dma, 50-dma and the $100 mark. I am not suggesting new positions tonight.

- Suggested Positions -

Long Sep $95 PUT (EW1222u95) Entry $2.70

08/13/12 trade opened on gap down at $97.66 (trigger was 97.75)

Entry on August 13 at $97.66
Average Daily Volume = 950 thousand
Listed on August 9, 2012


FB - Facebook - close: 21.20 change: +0.82

Stop Loss: 23.25
Target(s): 17.00
Time Frame: 2-4 weeks
Current Option Gain/Loss: -24.1%
New Positions: see below

Comments:
08/15/12 update: FB's next share lock up of 271 million shares has expired today. There is going to be a lot of temptation for investors to sell their stock before capital gains taxes rise in 2013 (and before FB falls any lower). If FB can hold the $20.00 level tomorrow I'll be somewhat surprised.

Earlier Comments:
Facebook has turned into the stock everyone loves to hate. Facebook has 674 million shares outstanding as of Friday. On August 15th another 268 million shares will see their lockup expire and become available for trading. That is 40% additional shares. If you were an investor or employee and you watched your shares decline from $35 to $20 ahead of your lockup expiration you are probably just waiting for an opportunity to sell. Another factor is that taxes are due on the awarded shares regardless of whether they are sold. That means employees have a big tax bill and they have not been able to sell those shares to pay the taxes. That is an additional incentive to pull the trigger on at least part of their position on August 15th.

Facebook has hundreds of detractors and they seem to be racing each other trying to put a lower price target on the stock. Mark Hulbert was on CNBC on Friday with a $13.80 price target based on a bunch of different metrics.

Facebook also has the various lawsuits over the IPO including the valuation and the various claims made about users and revenue in the days leading up to the IPO. There are plenty of clouds and no real catalysts to pump up the stock.

Facebook said expenses grew by 60% in Q2 and they would grow faster in Q3/Q4. That means earnings will decline.

I am recommending a September option with plans to exit (some time) after the August 15th share lock up expiration.

Suggested Positions

current position: Sept $20 PUT (FB1220U20) entry $1.45

08/07/12 triggered @ 20.95
08/06/12 adjust entry trigger to $20.95

Entry on August 07 at $20.95
Average Daily Volume = 80.0 million
Listed on August 5, 2012


iShares Russell 2000 ETF - IWM - close: 80.30 change: +0.70

Stop Loss: 80.75
Target(s): 76.50
Time Frame: 3-5 weeks
Current Option Gain/Loss: -20.0%
New Positions: see below

Comments:
08/15/12 update: Hmm... I think our aggressive IWM put play is in trouble. Traders bought the dip this morning and IWM closed on its highs for the session. That does not bode well for tomorrow. Readers may want to exit early. Currently we have a stop loss at $80.75. I am not suggesting new positions at this time.

Our plan was to keep our position size small to limit our risk.

- Suggested (SMALL) Positions -

Long Oct $78 PUT (IWM1220V78) Entry $2.60

08/13/12 triggered @ 79.40
08/08/12 Adjust entry/stop/exit
Use a trigger @ 79.40, stop @ 80.75, target 76.50. Small Positions Only!
08/07/12 adjust trigger to buy puts up to $78.90

Entry on August 13 at $79.40
Average Daily Volume = 60.0 million
Listed on August 5, 2012


O'Reilly Automotive - ORLY - close: 84.95 change: +0.31

Stop Loss: 84.75
Target(s): 80.25
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
08/15/12 update: Traders are still selling into rallies with ORLY under its exponential 200-dma. Aggressive traders could buy puts now. I am suggesting we wait for a breakdown to new relative lows.

We have a trigger to buy puts at $83.75. Our first target is $80.25. More aggressive traders may want to aim lower. FYI: The Point & Figure chart for ORLY is bearish with a long-term $48 target.

Trigger @ 83.75

- Suggested Positions -

buy the Sept $80 PUT (ORLY1222u80)

Entry on August xx at $ xx.xx
Average Daily Volume = 1.5 million
Listed on August 11, 2012


CLOSED BULLISH PLAYS

Celgene Corp. - CELG - close: 70.91 change: -0.21

Stop Loss: 69.90
Target(s): 75.75
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
08/15/12 update: We have been patiently waiting for CELG to breakout past resistance at $71.00. Yet it seems like shares don't have enough momentum to get the job done. We're dropping the stock as a candidate. Our trade never opened.

Trade did not open.

08/15/12 removed CELG as a candidate. trade did not open. trigger was $72.25.

chart:

Entry on August xx at $ xx.xx
Average Daily Volume = 3.4 million
Listed on August 7, 2012


CLOSED BEARISH PLAYS

Vornado Realty Trust - VNO - close: 81.42 change: +0.40

Stop Loss: 80.55
Target(s): 72.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
08/15/12 update: VNO is not cooperating with us. We were expecting a breakdown under major support in the $80-79 area. Instead VNO is bouncing. That's not too surprising with the market churning sideways. Since our trade has not opened yet we are removing VNO as a candidate. Readers may want to keep this stock on their radar for a breakdown under $79.00

Trade did not open.

08/15/12 trade did not open. removed from the newsletter.

chart:

Entry on August xx at $ xx.xx
Average Daily Volume = 943 thousand
Listed on August 9, 2012