Editor's Note:

Stock market bulls extended gains on Friday, helping lift the major averages to new relative highs.

We saw our new ATHN get triggered. Our bearish plays CMI, PTR< and WTW were stopped out.

Current Portfolio:


CALL Play Updates

Amgen Inc. - AMGN - close: 83.96 change: -0.85

Stop Loss: 82.40
Target(s): 88.50
Current Option Gain/Loss: Sep85c: -57.7% & Oct85c: -24.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
09/08/12: AMGN's performance on Friday is troubling. Shares spiked higher and then immediately reversed lower. The stock erased Thursday's gain and Friday's move has created a short-term bearish engulfing candlestick reversal pattern.

More conservative traders may want to raise their stops higher. 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

chart:

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


AthenaHealth, Inc. - ATHN - close: 91.45 chagne: -1.53

Stop Loss: 89.45
Target(s): 97.00
Current Option Gain/Loss: - 9.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/08/12: Just as expected ATHN did see a pullback. Shares hit our buy-the-dip trigger at $91.50 on Friday. I would still consider new positions now or nimble traders could try and jump in on a dip near the $91-90 zone if you think ATHN will continue to pullback.

Earlier Comments:
Keep in mind that ATHN could see more short covering. The most recent data listed short interest at 32% of the relatively small 35 million share float. The option spreads are a little bit wider than I'd like so let's keep our position size small to limit our risk.

- Suggested *Small* Positions -

Long Oct $95 call (ATHN1220j95) Entry $3.20

chart:

Entry on September 07 at $91.50
Average Daily Volume = 345 thousand
Listed on September 06, 2012


Concur Technologies - CNQR - close: 74.26 change: -0.36

Stop Loss: 71.70
Target(s): 74.75 (Sept calls), $77.50 (Nov calls)
Current Option Gain/Loss:(Sep75c: +40.0%) & Nov75c: +27.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/08/12: After spiking to new record highs on Thursday, CNQR took a breather to rest on Friday. Nimble traders could buy a bounce off current levels but you may want to tighten your stop. Currently our stop is at $71.70.

Earlier Comments:
Our plan was to exit the September $75 calls when CNQR hits $74.75. That target was hit on Thursday. 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

chart:

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


Carter's Inc. - CRI - close: 56.77 change: -0.67

Stop Loss: 54.65
Target(s): 59.85
Current Option Gain/Loss: -10.8%
Time Frame: 3 weeks
New Positions: see below

Comments:
09/08/12: Shares of CRI also took the day off on Friday after hitting new record highs the day before. We can look for potential short-term support at $56.00 but more likely at the $55.00 level.

If you're looking for a new entry point I would buy the October calls. The September calls expire in two weeks.

- Suggested Positions -

Long Sep $55 call (CRI1222i55) Entry $2.30

09/04/12 triggered @ 56.25

chart:

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


Express Scripts - ESRX - close: 63.30 change: -0.45

Stop Loss: 61.00
Target(s): 67.50
Current Option Gain/Loss: Sep62.5c: +48.4% & Oct$62.5c: +29.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
09/08/12: ESRX has a similar story. Shares hit new highs on Thursday and pulled back a bit on Friday. We can look for short-term support near $62.00. I am not suggesting new positions. 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

chart:

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


Vertex Pharma. - VRTX - close: 57.10 change: -0.34

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:
09/08/12: Friday's profit taking in VRTX was relatively mild. I would look for a dip near $56.00 as a new bullish entry point. We have a stop loss at $54.25. More conservative traders might want to inch up their stops higher.

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

chart:

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: 57.45 change: +0.39

Stop Loss: 58.05
Target(s): 51.25
Current Option Gain/Loss: -52.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/08/12: As a group the transports continued to bounce on Friday following Thursday's big rebound. CHRW tacked on another +0.6% after traders bought the dip on Friday morning. I have mentioned before my concerns that CHRW could have been building a bull-flag consolidation pattern. This recent breakout definitely adds to those concerns.

More conservative traders will want to seriously consider an early exit now. I still see potential resistance at $58.00 so we'll hold on for now. I am not suggesting new positions.

- 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.

chart:

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


Clean Harbors - CLH - close: 53.40 change: +0.06

Stop Loss: 55.05
Target(s): 50.10
Current Option Gain/Loss: -19.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/08/12: CLH tried to bounce but failed at resistance near $54.00 on Friday. I see this as another bearish entry point but readers may want to tighten their stops in case the market continues to rally and CLH follows it higher.

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

chart:

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


CLOSED BEARISH PLAYS

Cummins Inc. - CMI - close: 100.57 change: +2.14

Stop Loss: 100.55
Target(s): 92.50
Current Option Gain/Loss: -67.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/08/12: Another session of short covering on Friday fueled a +2.1% gain in CMI and shares crossed round-number resistance at the $100 mark. Our stop was hit at $100.55. Friday's rally cut our option in half.

- Suggested Positions -

Sep $95 PUT (CMI1222u95) Entry $1.70 exit $0.55 (-67.6%)

09/07/12 stopped out at $100.55
08/28/12 new stop loss @ 100.55
08/28/12 trade opens with CMI gapping down at $98.28

chart:

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


PetroChina Co. Ltd. - PTR - close: 120.52 change: +1.50

Stop Loss: 121.25
Target(s): 111.00
Current Option Gain/Loss: Sep120p: -53.4% & Oct115p: -49.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/08/12: I cautioned readers on Thursday night that PTR could see a surge on Friday. Sure enough the stock gapped open higher. Shares opened above resistance at $120.00 with a gap to $120.66. Our stop loss was hit at $121.25. News that China was launching a nationwide construction boom worth one trillion yen helped fuel a big rally in Chinese stocks on Friday.

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 -

Sep $120 PUT (PTR1222u120) Entry $3.65* exit $1.70**(-53.4%)

- or -

Oct $115 PUT (PTR1220v115) Entry $3.16 exit $1.60 (-49.3%)

09/07/12 stopped out at $121.25
**option exit price is an estimate since the option did not trade at the time our play was closed.
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.

chart:

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


Weight Watchers Intl. - WTW - close: 51.93 change: +3.31

Stop Loss: 50.10
Target(s): 42.50
Current Option Gain/Loss: Sep47.5p: -88.1% & Oct45p: -70.2%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
09/08/12: WTW does not appear to have unusually high short interest but Friday's move in the stock definitely looks like a short squeeze with the super fast spike higher on Friday morning. WTW crossed resistance at its 50-dma and the $50.00 mark and kept on going. Our stop loss was hit at $50.10.

- Suggested Positions -

Sep $47.50 PUT (WTW1222u47.5) Entry $1.85 exit $0.22 (-88.1%)

- or -

Oct $45.00 PUT (WTW1220V45) Entry $1.85 exit $0.55 (-70.2%)

09/07/12 stopped out at $50.10
08/28/12 new stop loss @ 50.10

chart:

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