Editor's Note:

The stock market is down two out of the last three days. The S&P 500 is back to testing the 1400 level again. Overall it was a relatively sleepy day on Wall Street.

Our WFM trade has been triggered.

Current Portfolio:


CALL Play Updates

Amgen Inc. - AMGN - close: 83.66 change: -0.21

Stop Loss: 81.45
Target(s): 88.50
Current Option Gain/Loss: Sep85c: -25.1% & Oct85c: -15.8%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
08/23/12 update: The stock market is not cooperating and AMGN is stuck consolidating sideways under the $84.00 level. Readers may want to look for a rally past $84.25 as a new entry point.

- 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: 35.21 change: +0.04

Stop Loss: 34.40
Target(s): 38.50
Current Option Gain/Loss: + 0.5%
Time Frame: 4-6 weeks
New Positions: see below

Comments:
08/23/12 update: BRCM spent Thursday consolidating sideways along short-term support near $35.00. I am not suggesting new positions at this time.

- Suggested Positions -

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

08/18/12 new stop loss @ 34.40
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


Concur Technologies - CNQR - close: 72.66 change: +0.15

Stop Loss: 69.75
Target(s): 74.75
Current Option Gain/Loss: Sep75c: +12.0% & Nov75c: +11.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
08/23/12 update: CNQR didn't make much progress today but it did make progress. Shares rallied off the $72 level only to see gains fade. The lack of profit taking is impressive but I am still expecting a dip toward $70.00 unless the market breaks out higher.

- Suggested Positions -

Long Sep $75 call (CNQR1222i75) Entry $1.25

- or -

Long Nov $75 call (CNQR1217j75) Entry $3.60

08/21/12 new stop loss @ 69.75
08/16/12 new stop loss @ 68.75
08/15/12 triggered at $70.25

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


Dresser-Rand Group - DRC - close: 51.60 change: -0.29

Stop Loss: 49.45
Target(s): 54.75
Current Option Gain/Loss: - 2.0%
Time Frame: exit prior to Sept. option expiration
New Positions: see below

Comments:
08/23/12 update: Spreads widened a little bit on our Sept. $50 call. Shares of DRC continue to churn sideways under the $52.00 level. I don't see any changes from my prior comments. If you're worried about the broader market then consider waiting for DRC to dip in the $50.50 area as your entry point. FYI: The Point & Figure chart for DRC is bullish with a $58 target.

- Suggested Positions -

Long Sep $50 call (DRC1222i50) Entry $2.50

Entry on August 21 at $51.14
Average Daily Volume = 489 thousand
Listed on August 20, 2012


Joy Global, Inc. - JOY - close: 56.84 change: -1.03

Stop Loss: 55.25
Target(s): 59.75
Current Option Gain/Loss: Sep $57.5c: - 1.1% Oct60c: - 2.8%
Time Frame: exit prior to the Aug. 29th earnings report
New Positions: see below

Comments:
08/23/12 update: JOY spiked lower at the open thanks to some bearish analyst comments. The stock spent the rest of the day moving sideways. I am not suggesting new positions.

We do not want to hold over the Aug. 29th earnings.

- Suggested Positions -

Long Sep $57.50 call (JOY1222i57.5) Entry $2.70

- or -

Long Oct $60.00 call (JOY1220j60) Entry $2.50

08/21/12 new stop loss @ 55.25

Entry on August 17 at $56.27
Average Daily Volume = 2.1 million
Listed on August 16, 2012


Netflix, Inc. - NFLX - close: 64.05 change: -1.35

Stop Loss: 61.25
Target(s): 69.50
Current Option Gain/Loss: -14.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
08/23/12 update: Hmm... I'm a little worried about NFLX. Shares underperformed the market today with a -2.0% pullback. A little profit taking isn't surprising. What worries me is that today's session has technically created a bearish engulfing candlestick reversal pattern. I would expect a drop toward $62.00.

Earlier Comments:
I do consider this an aggressive trade. NFLX can be volatile. Nimble traders may want to wait and buy calls on a dip.

- Suggested (SMALL) Positions -

Long Sep $67.50 call (NFLX1222i67.5) Entry $2.23

08/21/12 new stop loss @ 61.25

Entry on August 16 at $63.46
Average Daily Volume = 5.8 million
Listed on August 15, 2012


PVH Corp. - PVH - close: 87.07 change: -0.41

Stop Loss: 85.75
Target(s): 91.50
Current Option Gain/Loss: + 0.9%
Time Frame: exit prior to the Aug 27th earnings report
New Positions: see below

Comments:
08/23/12 update: There is nothing new to report on for PVH. Shares delivered a lackluster performance. We are planning to exit positions on Friday at the closing bell (tomorrow) if shares don't hit our stop loss or target before then.

Earlier Comments:
The $90.00 level could be resistance but we will aim for the 2012 highs near $93.00. 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

08/22/12 new stop loss @ 85.75, prepare to exit on Friday (08/24) at the closing bell
08/18/12 more conservative traders may want to take profits early
08/16/12 new stop loss @ 84.75
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: 62.04 change: -0.12

Stop Loss: 60.95
Target(s): 64.25
Current Option Gain/Loss: +10.5%
Time Frame: 4-6 weeks
New Positions: see below

Comments:
08/23/12 update: Shares of QCOM were sleepwalking today with the stock drifting sideways near $62.00.

I am not suggesting new positions at this time.

- Suggested Positions -

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

08/18/12 adjust exit target to $64.25
08/16/12 new stop loss @ 60.95
08/07/12 triggered @ 60.51

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


Snap On Inc. - SNA - close: 69.77 change: -0.61

Stop Loss: 69.65
Target(s): 74.90
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
08/23/12 update: SNA continues to churn sideways just under new highs. We are waiting for shares to hit our trigger at $71.00. Our target is $74.90. More aggressive traders could aim higher.

Trigger @ $71.00

- Suggested Positions -

buy the Sep $70 call (SNA1222i70)

Entry on August xx at $ xx.xx
Average Daily Volume = 390 thousand
Listed on August 21, 2012


Under Armour, Inc. - UA - close: 57.19 change: +0364

Stop Loss: 55.70
Target(s): 64.00
Current Option Gain/Loss: Unopened
Time Frame: 4 to 6 weeks
New Positions: Yes, see below

Comments:
08/23/12 update: Traders bought the dip near $56.00 for the second day in a row. UA should be poised to bounce back to $58 soon. We are waiting for a breakout past resistance near $58.00. Use a trigger @ 58.55.

Earlier Comments:
I suspect UA could see another short squeeze. The most recent data listed short interest at 24% of the 78 million share float. The August high was $58.48. I am suggesting a trigger to buy calls at $58.55. We'll use a stop loss at $55.70. Our target is $64.00. FYI: The Point & Figure chart for UA is bullish with a long-term $85 target.

Trigger @ 58.55

- Suggested Positions -

Buy the Oct $60 call (UA1220J60)

Entry on August xx at $ xx.xx
Average Daily Volume = 2.1 million
Listed on August 18, 2012


Whole Foods Market, Inc. - WFM - close: 95.08 change: -1.92

Stop Loss: 94.75
Target(s): 104.50
Current Option Gain/Loss: Sep$100c: -51.7% & Oct$100c: -32.4%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
08/23/12 update: Sometimes the market or a stock does not want to cooperate. WFM is definitely being belligerent today. The stock was upgraded this morning and shares spiked to $98.00. Unfortunately the stock promptly reversed lower and plunged to a -1.9% decline on the session. WFM is now sitting on short-term support at $95.00 with today's move creating a bearish engulfing candlestick reversal pattern.

Our trigger to buy calls was hit at $98.00 and our stop loss is at $94.75. If there is any follow through tomorrow WFM will most likely hit our stop.

Earlier Comments:
Keep position size small to limit risk.

- Suggested *SMALL* Positions -

Long Sep $100 call (WFM1222i100) Entry $1.45

- or -

Long Oct $100 call (WFM1220j100) Entry $2.50

Entry on August 23 at $98.00
Average Daily Volume = 1.7 million
Listed on August 22, 2012


Westlake Chemical - WLK - close: 69.13 change: -0.53

Stop Loss: 68.40
Target(s): 74.75
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
08/23/12 update: Thursday proved to be a quiet session for WLK.

I am suggesting we use a trigger to buy calls at $70.25. Our initial target is $74.75.

Trigger @ 70.25

- Suggested Positions -

buy the Sep $70 call (WLK1222i70)

Entry on August xx at $ xx.xx
Average Daily Volume = 507 thousand
Listed on August 22, 2012


WellPoint Inc. - WLP - close: 57.73 change: -0.84

Stop Loss: 55.85
Target(s): 59.75
Current Option Gain/Loss: - 3.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
08/23/12 update: The performance in WLP today is a bit troubling. Shares erased a good chunk of yesterday's gains and the stock is back underneath resistance at the $58.00 level.

I am not suggesting new positions at this time.

- Suggested Positions -

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

08/16/12 new stop loss @ 55.85
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

FB - Facebook - close: 19.44 change: +0.01

Stop Loss: 20.35
Target(s): 17.00
Time Frame: 2-4 weeks
Current Option Gain/Loss: - 6.8%
New Positions: see below

Comments:
08/23/12 update: It was a sleepy session for shares of FB and the stock closed virtually unchanged on the day. I am not suggesting new positions.

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

08/18/12 new stop loss @ 20.35, readers may want to take profits now
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