Editor's Note:

Shares of Onyx Pharmaceuticals (ONXX) hit our bullish exit target on Friday.

I am removing INFY as a candidate and PVH hit our trigger.

Current Portfolio:


CALL Play Updates

Commvault Sys. - CVLT - close: 57.28 change: -0.82

Stop Loss: 54.90
Target(s): 62.00
Current Option Gain/Loss: -51.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
10/06/12: CVLT struggled to make any progress on Friday. Shares gave up -1.4% and are right in the middle of its $55-60 trading range. We only have two weeks left on October options. I am not suggesting new positions at this time.

- 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

chart:

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


EQT Corp. - EQT - close: 59.83 change: -0.04

Stop Loss: 57.75
Target(s): 63.00
Current Option Gain/Loss: +55.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
10/06/12: EQT retreated from its Friday morning rally above the $60 level. The trend is up but that does not preclude the potential for a dip back toward the $58.50-58.00 area. I am raising our stop loss to $57.75. I am not suggesting new positions at this time.

- Suggested Positions -

Long Oct $60 call (EQT1220j60) Entry $0.61

10/06/12 new stop loss @ 57.75
10/04/12 new stop loss @ 57.45
09/27/12 new stop loss @ 56.45

chart:

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


NetSuite Inc. - N - close: 62.78 change: -1.22

Stop Loss: 59.75
Target(s): 67.50
Current Option Gain/Loss: Oct65: -28.5% & Nov65c: - 3.4%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
10/06/12: NetSuite tagged a new high on Friday morning but traders sold the rally. Shares gave up -1.9% and closed on their lows for the session. It could have just been profit taking ahead of the weekend but it does not bode well for Monday. I would expect a dip back toward $62.00. I am not suggesting new positions at this time.

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

chart:

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


Noble Energy, Inc. - NBL - close: 93.38 change: +0.53

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:
10/06/12: NBL continues to churn inside its $92-94 trading range. We are waiting for a bullish breakout higher. 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. Keep in mind that we do not want to hold over the late October earnings report.

Trigger @ 94.25

- Suggested Positions -

buy the Oct $95 call (NBL1220j95)

- or -

buy the Nov $95 call (NBL1217k95)

chart:

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


PVH Corp. - PVH - close: 95.50 change: -0.33

Stop Loss: 94.25
Target(s): 99.85
Current Option Gain/Loss: - 25.9%
Time Frame: exit prior to October expiration
New Positions: see below

Comments:
10/06/12: Our new trade on PVH is open but it's not moving quite as expected. The stock gapped open higher on Friday at $96.28. The rally reversed at $96.95 and shares closed back under resistance at the $96.00 level. Our trigger to buy calls was $96.05 so the trade was opened immediately on Friday morning. Yet at this time I would wait for a new rise back above $96.00 before initiating new positions.

Our target is $99.85. More aggressive traders could aim higher but we're using the October calls, which expire in two weeks. You could use November options but the bid/ask spread is a lot wider.

- Suggested Positions -

Long Oct $97.50 call (PVH1220j97.5) Entry $1.35

10/05/12 triggered on gap open higher at $96.28 (trigger was 96.05)

chart:

Entry on October 05 at $96.28
Average Daily Volume = 842 thousand
Listed on October 4, 2012


Sears Holding Corp. - SHLD - close: 56.78 change: -0.21

Stop Loss: 54.75
Target(s): 62.50
Current Option Gain/Loss: - 6.2%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
10/06/12: SHLD is still struggling with resistance near the $58.00 level. The stock "should" find support at its trend line of higher lows (see chart). I am raising our stop loss to $54.75. Wait for a new bounce off the trend line (or the 50-dma) before considering new positions.

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

10/06/12 new stop loss @ 54.75

chart:

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: 30.79 change: +0.66

Stop Loss: 32.05
Target(s): 25.15
Current Option Gain/Loss: -22.2%
Time Frame: exit prior to earnings on Oct. 25th
New Positions: see below

Comments:
10/06/12: The oversold bounce in ESI continues for a second day. I am expecting this rebound to run out of steam very soon. However, more conservative traders might want to tighten their stop a little bit. I am not suggesting new positions at this time.

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

chart:

Entry on October 04 at $29.47
Average Daily Volume = 408 thousand
Listed on October 3, 2012


Juniper Networks - JNPR - close: 16.65 change: -0.05

Stop Loss: 17.75
Target(s): 14.10
Current Option Gain/Loss: + 0.0%
Time Frame: Exit prior the late October earnings report
New Positions: see below

Comments:
10/06/12: Shares of JNPR spiked higher on Friday morning. Yet traders sold the rally right at technical resistance at the stock's converging 10-dma and 100-dma. This failed rally could be a new bearish entry point. More conservative traders may want to tighten their stops toward Friday's high (near $17.17).

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

chart:

Entry on October 04 at $16.74
Average Daily Volume = 6.6 million
Listed on October 3, 2012


Tech Data Corp. - TECD - close: 44.19 change: -0.04

Stop Loss: 45.75
Target(s): 42.00
Current Option Gain/Loss: - 2.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
10/06/12: Friday was a relatively quiet session for TECD. Shares did fade from their Friday morning lows. The stock remains oversold here. We can look for potential resistance near $45.50 and its 10-dma. I am not suggesting new positions at this time.

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

chart:

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


CLOSED BULLISH PLAYS

Infosys Ltd. - INFY - close: 48.75 change: -0.90

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:
10/06/12: INFY has failed to breakout past resistance at $50 and its 300-dma. Shares were retreating lower on Friday. The company has announced they will report earnings this coming Friday. We do not want to hold over the announcement so I am removing INFY as a candidate. Our trade did not open.

Trade did not open.

10/06/12 removed from the newsletter.

chart:

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


Onyx Pharma. - ONXX - close: 89.40 change: +3.53

Stop Loss: 82.90
Target(s): 89.50
Current Option Gain/Loss: +40.0%
Time Frame: 2 to 3 weeks
New Positions: see below

Comments:
10/06/12: Target achieved.

ONXX outperformed the market with a +4.1% gain on Friday. Shares hit an intraday high of $90.09. Our exit target was hit at $89.50.

- Suggested Positions - *Small Positions*

Oct $90 call (ONXX1220j90) Entry $1.50 exit $2.10 (+40.0%)

10/06/12 target hit at $89.50

chart:

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