Editor's Note:

The U.S. market saw plenty of short covering today, which powered a move to new relative highs for the major indices.

CNQR hit our target for the September calls.
BRCM was closed at the open.
VRTX was triggered.
FB was stopped out.

Current Portfolio:


CALL Play Updates

Amgen Inc. - AMGN - close: 84.81 change: +0.73

Stop Loss: 82.40
Target(s): 88.50
Current Option Gain/Loss: Sep85c: -19.2% & Oct85c: - 2.7%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
09/06/12: Considering the size of the rally in the major indices and the biotech index I am disappointed with AMGN's rally today. Shares only gained +0.8% an remain under resistance near $85.00. 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

09/01/12 new stop loss @ 82.40
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


Concur Technologies - CNQR - close: 74.62 change: +0.44

Stop Loss: 71.70
Target(s): 74.75 (Sept calls), $77.50 (Nov calls)
Current Option Gain/Loss:(Sep75c: +40.0%) & Nov75c: +30.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/06/12: Our target for the September calls has been hit.

CNQR's performance today was also underwhelming. That may have been due to an analyst downgrade before the opening bell. Shares did spike toward $76.00 intraday.

Today's low was $71.80. I am raising our stop loss to $71.70.

Our plan was to exit the September $75 calls when CNQR hits $74.75. Our target to exit the November calls is at $77.50.

- Suggested Positions -

(target hit for Sept calls @ 74.75 on CNQR)
Sep $75 call (CNQR1222i75) Entry $1.25 exit $1.75 (+40.0%)

- or -

Long Nov $75 call (CNQR1217j75) Entry $3.60

09/06/12 target hit for the Sept. calls @ 74.75
09/06/12 new stop loss @ 71.70
09/04/12 adjust exit target for Sept. calls to $74.75
adjust exit target for Nov. calls to $77.50
+ new stop loss @ 71.25
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


Carter's Inc. - CRI - close: 57.44 change: +0.87

Stop Loss: 54.65
Target(s): 59.85
Current Option Gain/Loss: +17.3%
Time Frame: 3 weeks
New Positions: see below

Comments:
09/06/12: CRI hit a new all-time high on an intraday basis today. Shares closed up +1.5% on the session. Readers can look for a new dip near $56.00 as another entry point to buy calls.

It looks like the spreads on the October calls has improved so I would consider buying the Octobers instead of Septembers.

- Suggested Positions -

Long Sep $55 call (CRI1222i55) Entry $2.30

09/04/12 triggered @ 56.25

Entry on September 04 at $56.25
Average Daily Volume = 441 thousand
Listed on September 01, 2012


Express Scripts - ESRX - close: 63.75 change: +0.90

Stop Loss: 61.00
Target(s): 67.50
Current Option Gain/Loss: Sep62.5c: +87.3% & Oct$62.5c: +54.4%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
09/06/12: The market's strength helped lift ESRX To a new record high. I am raising our stop loss to $61.00. Readers may want to start thinking about taking profits early on our September calls.

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

09/06/12 new stop loss @ 61.00

Entry on August 24 at $61.31
Average Daily Volume = 5.1 million
Listed on August 23, 2012


Vertex Pharma. - VRTX - close: 57.44 change: +2.45

Stop Loss: 54.25
Target(s): 59.75
Current Option Gain/Loss: + 2.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
09/06/12: Our new play on VRTX has been triggered. The plan was to buy calls when VRTX hit $55.75. Shares soared to a +4.4% gain today. I am raising our stop loss to $54.25.

Earlier Comments:
I am suggesting small bullish positions if VRTX can trade at $55.75. This is a higher-risk trade. You can see from the chart that VRTX has been very volatile over the last few months. We want to limit our position size to reduce our risk. We will aim for $59.75. More aggressive traders could aim higher.

- Suggested Positions -

Long Oct $57.50 call (VRTX1220j57.5) Entry $3.80

09/06/12 new stop loss @ 54.25
09/06/12 triggered @ 55.75

Entry on September 06 at $55.75
Average Daily Volume = 1.4 million
Listed on September 05, 2012


PUT Play Updates

CH Robinson Worldwide - CHRW - close: 57.06 change: +0.69

Stop Loss: 58.05
Target(s): 51.25
Current Option Gain/Loss: -42.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/06/12: The transportation index produced a pretty strong bounce today (+1.8%) but it looks like it was all short covering. CHRW spiked higher at the open but spent the rest of the day fading lower. Technically the close over $57.00 is a short-term bullish breakout and more conservative traders may want to exit early right now to limit any losses. Bigger picture CHRW still remains under a longer-term down trend so we're going to wait and see if there is any follow through tomorrow. Our stop is unchanged at $58.05.

- Suggested *Small* Positions -

Long Oct $55 PUT (CHRW1220v55) entry $1.38

09/06/12 after the market's surged to new highs, readers may want to consider an early exit here.

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


Clean Harbors - CLH - close: 53.34 change: +0.16

Stop Loss: 55.05
Target(s): 50.10
Current Option Gain/Loss: -14.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/06/12: CLH is our new play from last night. The stock did not truly participate in the market's widespread rally today. That's a good sign for the bears. Our trade opened this morning when CLH opened at $53.55. Readers may want to hesitate on launching new positions and wait to see if the major indices see any follow through higher tomorrow. We can look for CLH to find short-term resistance at its 10-dma near $54.50.

Our target is $50.10 but more aggressive traders may want to seriously consider aiming for the $48.00 area instead. FYI: The Point & Figure chart for CLH is bearish with a $46 target.

- Suggested Positions -

Long Oct $55 PUT (CLH1220v55) entry $3.40

Entry on September 06 at $53.55
Average Daily Volume = 620 thousand
Listed on September 05, 2012


Cummins Inc. - CMI - close: 98.43 change: +3.10

Stop Loss: 100.55
Target(s): 92.50
Current Option Gain/Loss: -38.2%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/06/12: It looks like our CMI trade is in trouble. The stock market's surge higher today fueled some short covering in CMI. The stock rallied toward round-number resistance at $100 before paring its gains. Cautious traders will want to seriously consider an early exit right now. The fact that shares did not tag resistance at $100 is somewhat encouraging for the bears and we're going to give CMI another day to see if there is any follow through tomorrow. I would not open new positions at this time.

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


PetroChina Co. Ltd. - PTR - close: 119.02 change: +1.91

Stop Loss: 121.25
Target(s): 111.00
Current Option Gain/Loss: Sep120p: -21.9% & Oct115p: -20.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/06/12: PTR reacted to the market's move with a sharp spike higher at the open but shares ran into new resistance near $119.25 and stayed near this level the rest of the session. Now the question is will shares of PTR move tomorrow on the price of oil or on the move in the Chinese markets?

Currently the price of crude oil is starting to see a significant pullback from its highs today and that should put pressure on the oil stocks tomorrow. Yet tonight(tomorrow) the Chinese markets will probably rally as Chinese investors react to the big move here in the U.S. If the Chinese market sees a widespread rally we could see PTR gap open higher in reaction tomorrow even though the U.S. shares have already moved.

I am not suggesting new positions at this time.

Earlier Comments:
I do consider this somewhat of an aggressive trade since PTR gaps open (up and down) quite often as its price adjusts to trading back home overnight in China.

- Suggested Positions -

Long Sep $120 PUT (PTR1222u120) Entry $3.65*

- or -

Long Oct $115 PUT (PTR1220v115) Entry $3.16

09/04/12 triggered @ 118.75
*entry price on the Sept. $120 put is an estimate as the option did not trade when our play was triggered.

Entry on September 04 at $118.75
Average Daily Volume = 125 thousand
Listed on September 01, 2012


Weight Watchers Intl. - WTW - close: 48.62 change: +1.61

Stop Loss: 50.10
Target(s): 42.50
Current Option Gain/Loss: Sep47.5p: -54.0% & Oct45p: -43.2%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
09/06/12: The ECB news today sent shorts running for cover. WTW definitely saw some short covering this morning. Yet if you look at the intraday chart WTW ran into resistance near $48.50 midday. Plus there remains potential resistance at the 50-dma. We are not giving up yet but I am not suggesting new positions.

- 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

BRCM - Broadcom - close: 36.12 change: +1.19

Stop Loss: 34.40
Target(s): 38.50
Current Option Gain/Loss: +17.7%
Time Frame: 4-6 weeks
New Positions: see below

Comments:
09/06/12: After days of going nowhere shares of BRCM finally moved with the market's widespread rally today. We had already decided last night to exit positions at the open this morning. BRCM opened at $35.31 and the option opened higher.

- Suggested Positions -

Nov $36.00 Call (BRCM1217K36) entry $1.80 exit $2.12 (+17.7%)

09/06/12 closed this morning
09/05/12 prepare to exit tomorrow morning
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

chart:

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


CLOSED BEARISH PLAYS

FB - Facebook - close: 18.96 change: +0.38

Stop Loss: 19.15
Target(s): 17.00
Time Frame: 2-4 weeks
Current Option Gain/Loss: -24.1%
New Positions: see below

Comments:
09/06/12: The one-two punch of the Zuckerberg no sales press release on Tuesday night and now the market's rally on the ECB news has lifted FB from its closing low of $17.73 to $19.00 (+7.1%). Shares actually spiked higher to $19.26 intraday and that was enough to hit our stop loss at $19.15 along the way. You'll notice that FB pulled back and churned along the $19.00 level the rest of the session after the initial rally faded. I am not convinced FB has found a bottom yet.

Suggested Positions

closed Sept $20 PUT (FB1222U20) entry $1.45 exit $1.10 (-24.1%)

09/06/12 stopped out at $19.15
09/01/12 new stop loss @ 19.15
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

chart:

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