Editor's Note:

The market saw its rally stall a bit on Monday. Investors are probably in a wait-and-see mood with a two-day FOMC meeting this week.

Current Portfolio:


CALL Play Updates

Alexion Pharma. - ALXN - close: 110.07 change: -0.54

Stop Loss: 107.25
Target(s): 118.50
Current Option Gain/Loss: + 4.2%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
09/10/12: ALXN spent the day churning on either side of the $110 level. There is no change from my weekend comments. I would still consider new positions here. Our multi-week target is $118.50. FYI: The Point & Figure chart for ALXN is bullish with a $124 target.

- Suggested Positions -

Long Oct $115 call (ALXN1220j115) Entry $2.83

Entry on September xx at $ xx.xx
Average Daily Volume = 905 thousand
Listed on September 08, 2012


Amgen Inc. - AMGN - close: 84.05 change: +0.09

Stop Loss: 82.40
Target(s): 88.50
Current Option Gain/Loss: Sep85c: -61.4% & Oct85c: -25.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
09/10/12: An upgrade this morning failed to have much impact on shares of AMGN today. I remain cautious on this stock. Shares are churning sideways under the $85.00 level.

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

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


AthenaHealth, Inc. - ATHN - close: 92.00 chagne: +0.55

Stop Loss: 89.45
Target(s): 97.00
Current Option Gain/Loss: - 7.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/10/12: Traders bought the dip in ATHN this morning and the stock ended the session up +0.6%. Readers can use this bounce as a new bullish entry point.

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

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


Concur Technologies - CNQR - close: 74.61 change: +0.35

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:
09/10/12: CNQR bounced off the $74.00 level this morning but the stock was paring its gains later this afternoon. There is no change from my prior comments.

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

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


Carter's Inc. - CRI - close: 56.81 change: +0.04

Stop Loss: 54.65
Target(s): 59.85
Current Option Gain/Loss: - 8.6%
Time Frame: 3 weeks
New Positions: see below

Comments:
09/10/12: It was a quiet Monday for CRI with shares drifting sideways. There is no change from my weekend comments. 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

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


Express Scripts - ESRX - close: 61.75 change: -1.55

Stop Loss: 61.00
Target(s): 67.50
Current Option Gain/Loss: Sep62.5c: -40.0% & Oct$62.5c: -17.9%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
09/10/12: Ouch! ESRX displayed relative weakness today. Over the weekend I suggested we look for short-term support at $62.00. ESRX tried to hold that level today but didn't do a very good job.

I am suggesting we abandon ship and exit all positions tomorrow morning at the open.

- Suggested Positions -

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

- or -

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

09/08/12 prepare to exit tomorrow at the open
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: 56.64 change: -0.46

Stop Loss: 54.25
Target(s): 59.75
Current Option Gain/Loss: -10.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
09/10/12: Hmm... VRTX tried to rally this morning but it failed at the $58.00 level again. That's the second time in two days VRTX has failed at $58.00. I am now expecting a pullback toward the $55.00 area. Wait for the dip before considering new positions. 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

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: 57.34 change: -0.11

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:
09/10/12: Monday was a very boring session for CHRW with shares moving in a very narrow range. I remain cautious on this trade. There is no change from my weekend comments.

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.

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


Clean Harbors - CLH - close: 53.22 change: -0.18

Stop Loss: 55.05
Target(s): 50.10
Current Option Gain/Loss: -20.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/10/12: CLH gapped down at the open and hit new multi-month lows before paring its losses. The trend of lower highs remains intact. Readers might want to tighten their stops a bit. Our stop is at $55.05.

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


O'Reilly Automotive - ORLY - close: 85.06 change: +1.81

Stop Loss: 86.05
Target(s): 77.50
Current Option Gain/Loss: -33.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
09/10/12: Today's performance in ORLY was pretty disappointing if you're bearish. The stock rallied on no news and outperformed the market with a +2.1% gain. Yet ORLY remains under its bearish trend of lower highs and technical resistance at several key moving averages.

While our new trade is not off to a great start I would still consider new positions if ORLY trades below $84.50 again.

Our plan was to keep our position size small to limit our risk. FYI: The Point & Figure chart for ORLY is bearish with a long-term $48 target.

- Suggested *Small* Positions -

Long Oct $80 PUT (ORLY1220v80) Entry $1.50

Entry on September 10 at $83.05
Average Daily Volume = 1.2 million
Listed on September 08, 2012