Editor's Note:

WLP was one of the market's best performers today with a surge following news its CEO was resigning.

Current Portfolio:


CALL Play Updates

Amgen Inc. - AMGN - close: 83.72 change: -0.29

Stop Loss: 81.95
Target(s): 88.50
Current Option Gain/Loss: Sep85c: -39.2% & Oct85c: -15.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
08/29/12 update: AMGN was drifting lower on Wednesday with the market lacking any direction. I don't see any changes from my prior comments. More conservative traders might want to tighten their stops toward the 20-dma near $82.90. I am not suggesting new positions at this time.

- Suggested Positions -

Long Sep $85 call (AMGN1222i85) Entry $1.35

- or -

Long Oct $85 call (AMGN1220j85) Entry $2.15

08/27/12 new stop loss @ 81.95
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: 35.66 change: +0.37

Stop Loss: 34.40
Target(s): 38.50
Current Option Gain/Loss: +16.6%
Time Frame: 4-6 weeks
New Positions: see below

Comments:
08/29/12 update: BRCM was showing some relative strength today with a +1.0% gain. The stock seems to be breaking out of its short-term $35.00-35.50 trading range. There is still resistance near $36.00. Cautious traders may want to tighten their stop even more.

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


Celgene Corp. - CELG - close: 71.63 change: -0.39

Stop Loss: 70.45
Target(s): 77.50
Current Option Gain/Loss: Unopened
Time Frame: 4 to 6 weeks
New Positions: Yes, see below

Comments:
08/29/12 update: CELG is still churning sideways under resistance near $72.00-72.50.

Last Friday's high was $72.53. I am suggesting a trigger to buy calls at $72.75 with a stop loss at $70.45. Our target is $77.50. FYI: The Point & Figure chart for CELG is bullish with a $81 target.

Trigger @ 72.75

- Suggested Positions -

buy the Sep $75 call (CELG1221i75)

- or -

buy the Oct $75 call (CELG1220j75)

Entry on August xx at $ xx.xx
Average Daily Volume = 2.9 million
Listed on August 25, 2012


Concur Technologies - CNQR - close: 72.33 change: -0.05

Stop Loss: 69.75
Target(s): 74.75
Current Option Gain/Loss: Sep75c: + 0.0% & Nov75c: +11.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
08/29/12 update: CNQR continues to levitate along the $72.00 level. There is no change from my prior comments. We have a stop loss at $69.75 because shares could dip toward prior resistance and what should be support at $70.00. Cautious traders may want to consider a stop loss closer to $71.40 instead.

I am not suggesting new positions at this time.

- 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: 50.60 change: -0.64

Stop Loss: 49.75
Target(s): 54.75
Current Option Gain/Loss: -34.0%
Time Frame: exit prior to Sept. option expiration
New Positions: see below

Comments:
08/29/12 update: On a short-term basis today's close under DRC's simple 10-dma is bearish. Yet the $50.00 level should offer support. Traders could buy this dip but given the market's lack of direction you may want to wait and buy a bounce instead.

FYI: The Point & Figure chart for DRC is bullish with a $58 target.

- Suggested Positions -

Long Sep $50 call (DRC1222i50) Entry $2.50

08/28/12 new stop loss @ 49.75

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


Express Scripts - ESRX - close: 61.83 change: -0.09

Stop Loss: 59.75
Target(s): 67.50
Current Option Gain/Loss: Sep62.5c: + 1.0% & Oct$62.5c: + 4.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
08/29/12 update: ESRX tried to rally this morning but quickly ran out of breath and fell back toward the unchanged level. We are expecting the $60 level to act as support so we're keeping our stop loss at $59.75 for now.

FYI: The Point & Figure chart for ESRX is bullish with a $76 target.

- Suggested Positions -

Long Sep $62.50 call (ESRX1222i62.5) Entry $0.95

- or -

Long Oct $62.50 call (ESRX1220j62.5) Entry $1.67

Entry on August xx at $ xx.xx
Average Daily Volume = 5.1 million
Listed on August 23, 2012


F5 Networks - FFIV - close: 102.09 change: +1.26

Stop Loss: 97.90
Target(s): 109.00
Current Option Gain/Loss: Sep105c: + 4.1% & Oct$105c: + 3.8%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
08/29/12 update: Our new play on FFIV is off to a decent start. Shares opened at $101.00 and rallied to a +1.2% gain, outperforming the market. I don't see any changes from my prior comments.

Earlier Comments:
The $105.00 level (and its 300-dma) are currently overhead resistance but we are going to aim for $109.00. FYI: The Point & Figure chart for FFIV is bullish with a $125 target. I would limit our position size and keep it small to lower our risk.

- Suggested *Small* Positions -

Long Sep $105 call (FFIV1222i105) Entry $2.88

- or -

Long Oct $105 call (FFIV1220j105) Entry $5.20

Entry on August 29 at $101.00
Average Daily Volume = 1.4 million
Listed on August 28, 2012


Netflix, Inc. - NFLX - close: 63.44 change: +0.49

Stop Loss: 61.80
Target(s): 69.50
Current Option Gain/Loss: -39.4%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
08/29/12 update: NFLX managed a +0.7% bounce today. The consolidation inside the $62-64 range is narrowing. That would suggest a breakout soon. Obviously with the Bernanke speech on Friday I'm expecting a move on Friday (one way or the other).

I am not suggesting new positions.

Earlier Comments:
I do consider this an aggressive trade. NFLX can be volatile.

- Suggested (SMALL) Positions -

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

08/28/12 new stop loss @ 61.80
08/25/12 NFLX not working for us. Readers may want to exit early
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


Qualcomm - QCOM - close: 62.11 change: +0.10

Stop Loss: 61.40
Target(s): 64.25
Current Option Gain/Loss: + 1.7%
Time Frame: 4-6 weeks
New Positions: see below

Comments:
08/29/12 update: It's been almost two weeks now with QCOM churning sideways in a very narrow range. If it breaks short-term support near $61.50 we will get stopped out.

I am not suggesting new positions at this time.

- Suggested Positions -

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

08/28/12 new stop loss @ 61.40
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: 69.54 change: +0.08

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:
08/29/12 update: There is no change from my prior comments.

SNA is still churning sideways in the $69-71 range. If shares close under $69.00 we'll likely drop it as a bullish candidate.

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


United Technologies - UTX - close: 80.17 change: -0.47

Stop Loss: 78.85
Target(s): 84.00
Current Option Gain/Loss: Sep80c: + 0.6% & Oct82.50c: + 0.7%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
08/29/12 update: Without any direction from the market UTX is slipping back toward the round-number support/resistance at $80.00. I am not suggesting new positions at this time.

- Suggested Positions -

Long Sep $80 call (UTX1222i80) Entry $1.52

- or -

Long Oct $82.50 call (UTX1220j82.5) Entry $1.33

08/27/12 triggered @ 80.30

Entry on August 27 at $80.30
Average Daily Volume = 3.7 million
Listed on August 25, 2012


Whole Foods Market, Inc. - WFM - close: 97.00 change: +0.21

Stop Loss: 94.75
Target(s): 104.50
Current Option Gain/Loss: Sep$100c: -32.4% & Oct$100c: -16.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
08/29/12 update: WFM spiked to a new all-time high above $98.00 this morning. Shares failed to maintain most of its gains and faded back toward unchanged by the close. Currently our stop is at $94.75. More conservative traders may want to tighten their stop further.

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: 69.26 change: +0.45

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:
08/29/12 update: WLK is slowly drifting higher. The stock tested resistance near $70.00 again today. Eventually it should chew through the overhead supply at this level.

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


PUT Play Updates

CH Robinson Worldwide - CHRW - close: 57.00 change: +0.90

Stop Loss: 58.05
Target(s): 51.25
Current Option Gain/Loss: -23.9%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
08/29/12 update: CHRW managed a pretty decent bounce today but shares remain under the bearish trend of lower highs. I would still consider new positions now or you could wait for a failed rally under $58.00 instead.

- Suggested *Small* Positions -

Long Oct $55 PUT (CHRW1220v55) entry $1.38

Entry on August 29 at $56.29
Average Daily Volume = 1.1 million
Listed on August 28, 2012


Cummins Inc. - CMI - close: 97.70 change: +0.76

Stop Loss: 100.55
Target(s): 92.50
Current Option Gain/Loss: + 5.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
08/29/12 update: CMI dipped to a new three-week low and bounced. Readers might want to wait for a new failed rally pattern under the $100 level as our next entry point.

Earlier Comments:
There is potential support at $95.00 and the 50-dma but we are aiming for $92.50.

- Suggested Positions -

Long Sep $95 PUT (CMI1222u95) Entry $1.70

08/28/12 new stop loss @ 100.55
08/28/12 trade opens with CMI gapping down at $98.28

Entry on August 28 at $98.28
Average Daily Volume = 2.3 million
Listed on August 27, 2012


FB - Facebook - close: 19.10 change: -0.05

Stop Loss: 20.35
Target(s): 17.00
Time Frame: 2-4 weeks
Current Option Gain/Loss: - 3.4%
New Positions: see below

Comments:
08/29/12 update: FB is still drifting lower and underperformed the market with a -1.2% decline today.

I am not suggesting new positions at this time and current traders may want to lower their stop loss. If FB continues to churn sideways the time decay on our option is going to hurt us.

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


Weight Watchers Intl. - WTW - close: 47.87 change: +0.29

Stop Loss: 50.10
Target(s): 42.50
Current Option Gain/Loss: Sep47.5p: -13.5% & Oct45p: -13.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
08/29/12 update: WTW delivered another quiet, sideways session under the $48.00 level. I don't see any changes from my prior comments and would still consider new bearish positions at current levels.

- Suggested Positions -

Long Sep $47.50 PUT (WTW1222u47.5) Entry $1.85

- or -

Long Oct $45.00 PUT (WTW1220V45) Entry $1.85

08/28/12 new stop loss @ 50.10

Entry on August 24 at $48.21
Average Daily Volume = 929 thousand
Listed on August 23, 2012


CLOSED BULLISH PLAYS

WellPoint Inc. - WLP - close: 61.80 change: +4.41

Stop Loss: 55.85
Target(s): 59.75
Current Option Gain/Loss: +100.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
08/29/12 update: We were lucky today with our WLP trade. Before the opening bell the company's CEO and President announced they were stepping down. The stock gapped open higher at $60.55 and eventually closed up +7.6%. Since our exit target was $59.75 the trade was closed immediately at the open.

- Suggested Positions -

Sep $57.50 call (WLP1222I57.5) Entry $1.60 exit $3.20 (+100.0%)

08/29/12 Target exceeded on gap open higher
08/28/12 WLP's performance is troubling. Readers may want to exit early or raise their stop loss.
08/16/12 new stop loss @ 55.85
08/08/12 triggered @ 56.50

chart:

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