Editor's Note:

Stocks have spent this week churning sideways as investors wait for the German court vote, which came out today, and the FOMC decision, which comes out tomorrow.

If Ben Bernanke disappoints the market tomorrow then stocks could see a sharp spike lower. Plan accordingly.

Our CHRW play was closed. LO was triggered. We want to exit our AMGN 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: -22.2%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
09/12/12: As expected shares of ALXN continued to drift lower today. I'm looking for short-term support at $108.00 but this level may not hold if Bernanke disappoints the market tomorrow afternoon. 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 10 at $110.72
Average Daily Volume = 905 thousand
Listed on September 08, 2012


Amgen Inc. - AMGN - close: 83.15 change: -0.79

Stop Loss: 82.40
Target(s): 88.50
Current Option Gain/Loss: Sep85c: -83.7% & Oct85c: -49.7%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
09/12/12: Relative weakness in AMGN the last couple of days has been a caution sign. I told readers I was worried about AMGN yesterday. The stock was downgraded this morning. Today's drop (-0.9%) underperforms both the market and the BTK biotech index. I am suggesting an early exit at the opening bell tomorrow.

- Suggested Positions -

Long Sep $85 call (AMGN1222i85) Entry $1.35

- or -

Long Oct $85 call (AMGN1220j85) Entry $2.15

09/12/12 prepare to exit tomorrow morning
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: 91.27 change: +0.35

Stop Loss: 89.45
Target(s): 97.00
Current Option Gain/Loss: -21.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/12/12: ATHN spent Wednesday consolidating sideways. There is still a good chance shares will see an intraday dip near the $90.00 mark. Readers may want to wait and use that dip as an 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: 75.00 change: +0.70

Stop Loss: 72.45
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:
09/12/12: CNQR continues to bounce along short-term support at the $74.00 level. The stock market could be volatile tomorrow following the FOMC meeting. More conservative traders may want to exit prior to the Fed's announcement, usually around 2:00 p.m. Eastern.

I am raising our stop loss to $72.45. 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

09/12/12 new stop loss @ 72.45
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: 56.59 change: +0.02

Stop Loss: 54.90
Target(s): 59.85
Current Option Gain/Loss: -19.5%
Time Frame: 3 weeks
New Positions: see below

Comments:
09/12/12: CRI bounced off short-term support near $56 and its simple 10-dma but the stock closed virtually unchanged on the session. Yesterday we raised our stop loss 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

09/11/12 new stop loss @ 54.90
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: 55.74 change: -0.31

Stop Loss: 54.25
Target(s): 59.75
Current Option Gain/Loss: -25.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
09/12/12: I warned readers that VRTX might see a dip near $55.00 and suggested we use the pullback as a new entry point. We got that pullback today with a dip to $55.28. 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

Clean Harbors - CLH - close: 52.48 change: -0.93

Stop Loss: 54.25
Target(s): 50.10
Current Option Gain/Loss: - 2.9%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/12/12: CLH failed at the simple 10-dma and then accelerated lower with a -1.7% decline. We are adjusting our stop loss lower to $54.25.

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

09/12/12 new stop loss @ 54.25

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


Deckers Outdoor - DECK - close: 44.95 change: -0.23

Stop Loss: 46.30
Target(s): 40.25
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
09/12/12: Shares of DECK are still hovering near support at the $45.00 level. I am suggesting a trigger to buy puts at $44.75. Our target is $40.25.

This is an aggressive trade. There are a lot of investors already bearish on the stock. The most recent data listed short interest at 29% of the small 30.5 million share float. That raises the risk of a short squeeze.

Trigger @ 44.75

- Suggested Positions -

buy the Oct $42.50 PUT (DECK1220v42.5)

Entry on September xx at $ xx.xx
Average Daily Volume = 4.5 million
Listed on September 11, 2012


Lorillard Inc. - LO - close: 115.76 change: -5.24

Stop Loss: 120.25
Target(s): 110.50
Current Option Gain/Loss: +18.8%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
09/12/12: Our new LO trade is off to a strong start. Yesterday's oversold bounce has failed. The stock collapsed through support near $120 and its 300-dma. Our trigger to buy puts was hit at $118.50. I am adjusting our stop loss down to $120.25.

I would keep our position size small to start.

(small positions) - Suggested Positions -

Long Oct $115 PUT (LO1220v115) Entry $2.65

09/12/12 new stop loss @ 120.25
09/12/12 triggered @ 118.50

Entry on September 12 at $118.50
Average Daily Volume = 963 thousand
Listed on September 11, 2012


Zumiez, Inc. - ZUMZ - close: 27.73 change: +0.21

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:
09/12/12: ZUMZ spent a second day consolidating sideways between $27.20 and the $28.00 level. We are waiting for a new relative low.

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 BEARISH PLAYS

CH Robinson Worldwide - CHRW - close: 57.46 change: -0.01

Stop Loss: 58.05
Target(s): 51.25
Current Option Gain/Loss: -67.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/12/12: CHRW has not been cooperating so the plan was to exit positions at the opening bell this morning. CHRW opened at $57.47. Even though CHRW opened unchanged on the day our option opened lower, which exacerbated our loss.

- Suggested *Small* Positions -

Oct $55 PUT (CHRW1220v55) entry $1.38 exit $0.45 (-67.3%)

09/12/12 closed this morning
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.

chart:

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