Editor's Note:

Shares of Alexion (ALXN) hit our bullish exit target today. Elsewhere I have removed ROK as a candidate.

Current Portfolio:


CALL Play Updates

Commvault Sys. - CVLT - close: 58.10 change: -0.21

Stop Loss: 54.90
Target(s): 62.00
Current Option Gain/Loss: -35.4%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
10/04/12: Something happened this morning but I can't find the headlines to explain the gap down in CVLT at the open. Traders bought the dip and CVLT pared its losses.

I don't see any changes from my prior comments. Our exit target is $62.00. I am not suggesting new positions.

- Suggested Positions -

Long Oct $60 Call (CVLT1220j60) Entry $1.24

10/03/12 adjust exit target to $62.00
10/01/12 new stop loss @ 54.90
09/29/19 new stop loss @ 54.40

Entry on September 20 at $56.07
Average Daily Volume = 427 thousand
Listed on September 19, 2012


EQT Corp. - EQT - close: 59.87 change: +1.55

Stop Loss: 57.45
Target(s): 63.00
Current Option Gain/Loss: +63.9%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
10/04/12: EQT displayed relative strength today with a +2.6% gain. The stock has erased yesterday's losses and looks poised to breakout past the $60 level soon. I am raising our stop loss to $57.45.

- Suggested Positions -

Long Oct $60 call (EQT1220j60) Entry $0.61

10/04/12 new stop loss @ 57.45
09/27/12 new stop loss @ 56.45

Entry on September 24 at $ xx.xx
Average Daily Volume = 1.0 million
Listed on September 22, 2012


Infosys Ltd. - INFY - close: 49.65 change: +0.16

Stop Loss: 48.90
Target(s): 54.85
Current Option Gain/Loss: Unopened
Time Frame: about 2-to-3 weeks
New Positions: Yes, see below

Comments:
10/04/12: INFY is inching higher and looks like it's building up steam for a bullish breakout past $50.00 and its 300-dma.

I am suggesting a trigger to buy calls at $50.25. We'll start with a stop loss at $48.90. Our target is $54.85. FYI: The Point & Figure chart for INFY is bullish with a $72 target.

Trigger @ 50.25

- Suggested Positions -

buy the Oct $50 call (INFY1220j50)

Entry on October xx at $ xx.xx
Average Daily Volume = 1.9 million
Listed on October 1, 2012


NetSuite Inc. - N - close: 64.00 change: +1.40

Stop Loss: 59.75
Target(s): 67.50
Current Option Gain/Loss: Oct65: + 4.7% & Nov65c: +13.7%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
10/04/12: Traders bought the dip in N this morning and the stock is testing short-term resistance at the top of its $62-64 trading range.

Our multi-week target is $67.50. FYI: The Point & Figure chart for N is bullish with an $82 target.

- Suggested Positions -

Long Oct $65 call (N1220j65) Entry $1.05

- or -

Long Nov $65 call (N1217k65) Entry $2.90

10/01/12 triggered @ 62.50

Entry on October 01 at $62.50
Average Daily Volume = 565 thousand
Listed on September 29, 2012


Noble Energy, Inc. - NBL - close: 92.85 change: +0.06

Stop Loss: 91.75
Target(s): 99.75
Current Option Gain/Loss: Unopened
Time Frame: exit prior to earnings on Oct. 25th
New Positions: Yes, see below

Comments:
10/04/12: NBL is still churning inside the $92-94 range.

I am suggesting a trigger to buy calls at $94.25 with a stop loss at $91.75. Our target is $99.75. More aggressive traders could aim higher.

Trigger @ 94.25

- Suggested Positions -

buy the Oct $95 call (NBL1220j95)

- or -

buy the Nov $95 call (NBL1217k95)

Entry on October xx at $ xx.xx
Average Daily Volume = 1.0 million
Listed on October 2, 2012


Onyx Pharma. - ONXX - close: 85.87 change: -0.60

Stop Loss: 82.90
Target(s): 89.50
Current Option Gain/Loss: -26.6%
Time Frame: 2 to 3 weeks
New Positions: see below

Comments:
10/04/12: ONXX saw a little profit taking today with a -0.69% decline. Shares seemed to find some support near $85.00 midday. I warned readers yesterday to expect a pullback. I would use a new rally past $86.25 as a new entry point for bullish positions. More conservative traders may want to inch up their stops to they are closer to the $84 level.

Earlier Comments:
We started with an aggressive entry point and the plan was to keep our position size small to limit our risk.

- Suggested Positions - *Small Positions*

Long Oct $90 call (ONXX1220j90) Entry $1.50

Entry on October 02 at $85.08
Average Daily Volume = 1.4 million
Listed on October 1, 2012


Sears Holding Corp. - SHLD - close: 56.99 change: +0.53

Stop Loss: 53.95
Target(s): 62.50
Current Option Gain/Loss: + 6.8%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
10/04/12: This morning brought September same-store sales data from a number of companies. SHLD was not one of them but the general trend seemed to be positive. Shares of SHLD popped higher this morning. It was interesting to note that Target (TGT) has announced they will stop providing same-store sales guidance beginning in their fiscal 2013.

SHLD briefing traded above some key moving averages only to see its gains fade into the close.

Earlier Comments:
SHLD could see some short covering. The most recent data listed short interest at 37% of the 31.3 million share float.

NOTE: There are two October $57.50 option strikes. Make sure you pick the normal one. Pay attention to the symbol.

- Suggested Positions -

Long Oct $57.50 call (SHLD1220j57.5) Entry $1.75

Entry on September 28 at $56.11
Average Daily Volume = 1.7 million
Listed on September 27, 2012


PUT Play Updates

ITT Educational Services - ESI - close: 30.13 change: +0.73

Stop Loss: 32.05
Target(s): 25.15
Current Option Gain/Loss: -11.2%
Time Frame: exit prior to earnings on Oct. 25th
New Positions: see below

Comments:
10/04/12: After yesterday's big drop a little bounce today is not a surprise. ESI opened at $29.47 and closed with a +2.4% gain. Yet it has not convincingly broken back through the $30.00 level. We remain bearish.

Earlier Comments:
I want to reiterate my caution about using small positions. ESI already has a high amount of short interest because so many investors think this stock is going lower.

- Suggested *SMALL* Positions -

Long 2013 Jan $27.50 PUT (ESI1319m27.5) Entry $3.10

Entry on October 04 at $29.47
Average Daily Volume = 408 thousand
Listed on October 2, 2012


Juniper Networks - JNPR - close: 16.70 change: +0.09

Stop Loss: 17.75
Target(s): 14.10
Current Option Gain/Loss: - 2.7%
Time Frame: Exit prior the late October earnings report
New Positions: see below

Comments:
10/04/12: JNPR opened higher before falling to a new relative low only to bounce again. Today's session actually looks like a potential one-day reversal pattern but it will need to see follow through. The $17.50 level should be overhead resistance. Readers may want to wait on launching positions and wait for a bounce into the $17.25-17.50 zone as their new entry point instead.

Earlier Comments:
The plan was to keep our position size small to reduce our risk. FYI: The Point & Figure chart for JNPR is bearish with a $13.50 target.

- Suggested *SMALL* Positions -

buy the Nov $16 PUT (JNPR1211W16) Entry $0.72

Entry on October 04 at $16.74
Average Daily Volume = 6.6 million
Listed on October 2, 2012


Tech Data Corp. - TECD - close: 44.23 change: -0.01

Stop Loss: 45.75
Target(s): 42.00
Current Option Gain/Loss: - 5.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
10/04/12: Hmm.... I suspect we will see TECD bounce tomorrow. Shares dipped to $43.82 intraday only to bounce back to virtually unchanged. I would not be surprised to see a bounce back into the $45-46 area.

Earlier Comments:
I would keep our position size small to limit our risk.

*Small Positions* - Suggested Positions -

Long Nov $45 PUT (TECD1211w45) Entry $1.95

10/03/12 new stop loss @ 45.75
10/01/12 triggered @ 44.90

Entry on October 01 at $44.90
Average Daily Volume = 333 thousand
Listed on September 29, 2012


CLOSED BULLISH PLAYS

Alexion Pharma. - ALXN - close: 117.72 change: -0.10

Stop Loss: 112.45
Target(s): 118.50
Current Option Gain/Loss: +94.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
10/04/12: ALXN open higher at $118.25 and quickly hit our exit target at $118.50 this morning.

- Suggested Positions -

Oct $115 call (ALXN1220j115) Entry $2.83 Exit $5.50 (+ 94.3%)

10/04/12 target hit @ 118.50
10/03/12 new stop loss @ 112.45
Readers may want to start taking profits now!
10/01/12 new stop loss @ 111.75
09/29/12 new stop loss @ 110.75
09/20/12 new stop loss @ 109.40
09/15/12 new stop loss @ 107.75

chart:

Entry on September 10 at $110.72
Average Daily Volume = 905 thousand
Listed on September 08, 2012


CLOSED BEARISH PLAYS

Rockwell Automation - ROK - close: 70.43 change: +1.21

Stop Loss: 70.10
Target(s): 63.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
10/04/12: We have been waiting for ROK to breakdown under support at $68.00 but the stock is not cooperating with us. I am removing ROK as an active candidate.

Trade did not open.

10/04/12 removed from the newsletter.

chart:

Entry on September xx at $ xx.xx
Average Daily Volume = 1.1 million
Listed on September 26, 2012