Editor's Note:

The stock market churned sideways as investors wait on a key vote by German courts on the ESM. Plus, many are expecting the Federal Reserve to announce new stimulus for the economy tomorrow.

We closed our ESRX trade this morning. ORLY was stopped out. We want to exit our CHRW trade at the open tomorrow.

Current Portfolio:


CALL Play Updates

Alexion Pharma. - ALXN - close: 109.65 change: -0.42

Stop Loss: 107.25
Target(s): 118.50
Current Option Gain/Loss: - 1.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
09/11/12: ALXN churned sideways around the $110 level all day. I suspect we could see ALXN dip toward short-term support near $108 soon. I would be tempted to use a dip near $108 as a new bullish entry point. 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: 83.94 change: -0.11

Stop Loss: 82.40
Target(s): 88.50
Current Option Gain/Loss: Sep85c: -66.6% & Oct85c: -31.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
09/11/12: I am definitely starting to worry about AMGN. The upward momentum has certainly stalled. I'm not suggesting new bullish positions. More conservative traders may want to exit early.

- 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: 92.92 change: -1.08

Stop Loss: 89.45
Target(s): 97.00
Current Option Gain/Loss: -25.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/11/12: Profit taking pulled ATHN down toward the $90.50 level before shares started to pare their losses. I remain bullish on ATHN with the stock above $90.00.

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: 74.30 change: -0.31

Stop Loss: 71.70
Target(s): 74.75 (Sept calls), $77.50 (Nov calls)
Current Option Gain/Loss:(Sep75c: +40.0%) & Nov75c: +19.4%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/11/12: CNQR is churning sideways along short-term support (old resistance) at the $74.00 level. If this level breaks I would expect a quick dip toward the $72.00 level. I am not suggesting new positions at this time.

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: 56.57 change: -0.24

Stop Loss: 54.65
Target(s): 59.85
Current Option Gain/Loss: -19.5%
Time Frame: 3 weeks
New Positions: see below

Comments:
09/11/12: CRI saw a minor decline toward its simple 10-dma today. We can look for short-term support at $56.00 and $55.00. I am inching our stop loss higher to $54.90. Keep in mind that the September options have less than two weeks to expiration.

- 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


Vertex Pharma. - VRTX - close: 56.05 change: -0.59

Stop Loss: 54.25
Target(s): 59.75
Current Option Gain/Loss: -18.4%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
09/11/12: I don't see any changes from my prior comments. We are expecting a dip toward support near $55.00 so today's pullback is not a surprise. Use a dip near $55 as a new bullish entry point. 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: 57.47 change: +0.13

Stop Loss: 58.05
Target(s): 51.25
Current Option Gain/Loss: -56.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/11/12: CHRW has spent the last few days drifting sideways after its bullish breakout last week. We are suggesting an early exit from this trade. I've been cautious on CHRW for days now and pointed out what looks like a bull flag pattern. We're throwing in the towel here and plan to exit at the opening bell tomorrow. The current bid is 60 cents.

- Suggested *Small* Positions -

Long Oct $55 PUT (CHRW1220v55) entry $1.38

09/11/12 prepare to exit at the opening bell tomorrow
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: 53.41 change: +0.19

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:
09/11/12: CLH is churning sideways. Yesterday it was down 18 cents. Today it's up 19 cents. CLH still has a bearish trend of lower highs so the path of least resistance should be down. 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


Zumiez, Inc. - ZUMZ - close: 27.52 change: +0.05

Stop Loss: 29.05
Target(s): 23.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
09/11/12: There was no follow through on yesterday's decline in ZUMZ. Shares drifted sideways in a narrow range. I don't see any changes from my prior comments.

I am suggesting a trigger to buy puts at $27.00. Our target is $23.00. I do want to warn you that the $25.00 could be potential support but it's not guaranteed. Another concern is that a lot of investors are already bearish on ZUMZ and the most recent data listed short interest at 18.4% of the small 22.3 million share float. That raises the risk of a short squeeze.

We want to keep our position size small.

Trigger @ 27.00

- Suggested Positions -

buy the Nov $25 PUT (ZUMZ1217w25)

Entry on September xx at $ xx.xx
Average Daily Volume = 821 thousand
Listed on September 10, 2012


CLOSED BULLISH PLAYS

Express Scripts - ESRX - close: 61.71 change: -0.04

Stop Loss: 61.00
Target(s): 67.50
Current Option Gain/Loss: Sep62.5c: -40.0% & Oct$62.5c: -19.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
09/11/12: Yesterday we decided it was time to close our ESRX play early. So the plan was to exit at the opening bell this morning. Shares of ESRX opened at $61.71 and happened to close right at $61.71 as well.

- Suggested Positions -

Sep $62.50 call (ESRX1222i62.5) Entry $0.95 exit $0.57 (-40.0%)

- or -

Oct $62.50 call (ESRX1220j62.5) Entry $1.67 exit $1.35 (-19.1%)

09/11/12 exit positions at the open
09/10/12 prepare to exit tomorrow at the open
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


CLOSED BEARISH PLAYS

O'Reilly Automotive - ORLY - close: 85.64 change: +0.58

Stop Loss: 86.05
Target(s): 77.50
Current Option Gain/Loss: -43.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
09/11/12: ORLY does not want to cooperate with us. The stock has a very bearish pattern but yesterday it rallied for no reason. Today that rallied continued with a spike to $86.25 intraday. Our stop loss was hit at $86.05. If ORLY can close over its 50-dma I would expect the rebound to continue. We knew this was an aggressive trade, which was why the plan was to limit our position size to reduce our risk.

- Suggested *Small* Positions -

Oct $80 PUT (ORLY1220v80) Entry $1.50 exit $0.85*(-43.3%)

09/11/12 stopped out at $86.05
*option exit price is an estimate since the option did not trade at the time our play was closed.

chart:

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