Editor's Note:

The U.S. stock market has rallied to new multi-year highs following the Fed's announcement today.

Meanwhile, we closed our AMGN play this morning. DECK and HUM were triggered. ZUMZ has been removed.

Current Portfolio:


CALL Play Updates

Alexion Pharma. - ALXN - close: 110.46 change: +1.40

Stop Loss: 107.25
Target(s): 118.50
Current Option Gain/Loss: - 9.8%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
09/13/12: ALXN almost hit our stop loss this morning before rebounding to a +1.2% gain. shares dipped under short-term support near $108 but failed to hit our stop at $107.25. I would use today's bounce 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 10 at $110.72
Average Daily Volume = 905 thousand
Listed on September 08, 2012


AthenaHealth, Inc. - ATHN - close: 92.50 change: +1.23

Stop Loss: 89.75
Target(s): 97.00
Current Option Gain/Loss: - 6.2%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/13/12: ATHN spiked to a new multi-week high at $94.46 before paring its gains. I am raising our stop loss up to $89.75.

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

09/13/12 new stop loss @ 89.75

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


Concur Technologies - CNQR - close: 75.23 change: +0.23

Stop Loss: 72.45
Target(s): 74.75 (Sept calls), $77.50 (Nov calls)
Current Option Gain/Loss:(Sep75c: +40.0%) & Nov75c: +25.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/13/12: For a brief moment shares of CNQR traded over short-term resistance at the $76.00 level. The stock trimmed its gains to just +0.3% by the closing bell. CNQR appears to be in a new $74-76 trading range.

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, Sept. 6th. 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: 56.84 change: +0.25

Stop Loss: 55.75
Target(s): 59.85
Current Option Gain/Loss: -17.3%
Time Frame: 3 weeks
New Positions: see below

Comments:
09/13/12: We are running out of time for our September options with just over one week left. CRI failed to breakout to new highs today. This could be the beginning of a short-term bearish double top. Readers may want to exit early now. I am raising our stop loss up to $55.75.

- Suggested Positions -

Long Sep $55 call (CRI1222i55) Entry $2.30

09/13/12 new stop loss @ 55.75
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: 56.21 change: +0.47

Stop Loss: 54.75
Target(s): 59.75
Current Option Gain/Loss: -21.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
09/13/12: VRTX produced a +0.8% gain. That's only about half of the SP 500's gain today. I would still use today's bounce as a new bullish entry point. We can raise our stop loss to $54.75.

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

09/13/12 new stop loss @ 54.75
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: 52.90 change: +0.42

Stop Loss: 54.25
Target(s): 50.10
Current Option Gain/Loss: -17.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/13/12: CLH bounced toward its trend of lower highs before pulling back to a +0.8% gain. I don't see any changes from my prior comment. The trend is still down.

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: 45.61 change: +0.66

Stop Loss: 46.30
Target(s): 40.25
Current Option Gain/Loss: -27.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/13/12: We need to be careful here. DECK spiked lower this morning and hit our trigger to buy puts at $44.75. Shares fell as low as $43.76 only to reverse all the way back to close up +1.4%. This is potentially a one-day bullish reversal pattern but it needs to see confirmation.

I am not suggesting new positions at this time.

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.

- Suggested Positions -

Long Oct $42.50 PUT (DECK1220v42.5) Entry $2.00*

09/13/12 triggered @ 44.75
*option entry price is an estimate since the option did not trade at the time our play was opened.

Entry on September 13 at $44.75
Average Daily Volume = 4.5 million
Listed on September 11, 2012


Humana Inc. - HUM - close: 69.41 change: +0.57

Stop Loss: 70.25
Target(s): 63.50
Current Option Gain/Loss: -40.9%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
09/13/12: We have a similar situation with HUM. The stock shot lower at the open and dipped toward $68.00 before bouncing back with the wider market. Our trigger was hit at $68.50. Yet now, with the big bounce, I would not launch new positions. We can look for overhead resistance near the $70.00 mark.

- Suggested Positions -

Long Oct $65 PUT (HUM1220v65) Entry $1.10

09/13/12 triggered @ 68.50

Entry on September 13 at $68.50
Average Daily Volume = 1.8 million
Listed on September 12, 2012


Lorillard Inc. - LO - close: 116.56 change: +0.80

Stop Loss: 120.25
Target(s): 110.50
Current Option Gain/Loss: - 3.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
09/13/12: After yesterday's $5 drop, an 80 cent bounce today is relatively mild. I am not suggesting new positions at this time.

Earlier Comments:
We want to 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


CLOSED BULLISH PLAYS

Amgen Inc. - AMGN - close: 83.33 change: +0.18

Stop Loss: 82.40
Target(s): 88.50
Current Option Gain/Loss: Sep85c: -86.6% & Oct85c: -60.4%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
09/13/12: AMGN managed a minor bounce but not before spiking lower to $82.15 intraday. The rebound stalled at short-term technical resistance at its 10 and 20-dma. We had already decided to exit our AMGN positions at the opening bell. AMGN opened at $82.91.

- Suggested Positions -

Sep $85 call (AMGN1222i85) Entry $1.35 exit $0.18 (-86.6%)

- or -

Oct $85 call (AMGN1220j85) Entry $2.15 exit $0.85 (-60.4%)

09/13/12 closed at the opening bell
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

chart:

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


CLOSED BEARISH PLAYS

Zumiez, Inc. - ZUMZ - close: 29.21 change: +1.48

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:
09/13/12: ZUMZ outperformed the market with a +5.3% gain thanks to an analyst upgrade this morning. Our trade has not opened yet. I am removing ZUMZ as a candidate.

Trade did not open.

09/13/12 trade did not open. removed.

chart:

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