Editor's Note:

The U.S. market delivered a relatively quiet Monday with most stocks drifting sideways. We did see enough movement to have NBL, PXP and SBUX all hit our entry triggers. PVH was also stopped out.

Current Portfolio:


CALL Play Updates

Commvault Sys. - CVLT - close: 56.58 change: -0.70

Stop Loss: 54.90
Target(s): 62.00
Current Option Gain/Loss: -79.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
10/08/12: CVLT drifted lower toward the bottom of its trading range. The stock looks headed for the $56-55 area. We have less than two weeks left on our options and odds don't favor us at the moment. 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

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


EQT Corp. - EQT - close: 60.05 change: +0.22

Stop Loss: 57.75
Target(s): 63.00
Current Option Gain/Loss: +63.9%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
10/08/12: EQT managed to eke out a gain but that was a better performance than the major indices. The stock has yet to convincingly breakout past the $60 level. More conservative traders may want to take profits now. I am not suggesting new positions at this time.

- Suggested Positions -

Long Oct $60 call (EQT1220j60) Entry $0.61

10/08/12 readers may want to take profits now
10/06/12 new stop loss @ 57.75
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


NetSuite Inc. - N - close: 62.21 change: -0.57

Stop Loss: 59.75
Target(s): 67.50
Current Option Gain/Loss: Oct65: -47.6% & Nov65c: -12.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
10/08/12: NetSuite pulled back again and is about to test short-term support near $62.00. More conservative traders may want to raise their stops closer to the $61.50 area. 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

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


Noble Energy, Inc. - NBL - close: 94.30 change: +0.92

Stop Loss: 91.75
Target(s): 99.75
Current Option Gain/Loss: Oct95c: - 6.8% & Nov95c: - 6.4%
Time Frame: exit prior to earnings on Oct. 25th
New Positions: see below

Comments:
10/08/12: Many of the energy stocks were showing relative strength today. NBL managed to breakout through resistance near $94.00 and hit our trigger to buy calls at $94.25. I would still consider new positions now at current levels. Keep in mind that we do not want to hold over the late October earnings report.

Trigger @ 94.25

- Suggested Positions -

Long Oct $95 call (NBL1220j95) Entry $1.45

- or -

Long Nov $95 call (NBL1217k95) Entry $3.10

Entry on October 08 at $94.25
Average Daily Volume = 1.0 million
Listed on October 2, 2012


Sears Holding Corp. - SHLD - close: 58.58 change: +1.80

Stop Loss: 54.75
Target(s): 62.50
Current Option Gain/Loss: +48.5%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
10/08/12: SHLD is showing relative strength and rallied of its intraday lows to close up +3.1%. The breakout past a small cloud of moving averages is bullish.

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

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: 31.35 change: +0.56

Stop Loss: 32.05
Target(s): 25.15
Current Option Gain/Loss: -28.7%
Time Frame: exit prior to earnings on Oct. 25th
New Positions: see below

Comments:
10/08/12: The oversold bounce in ESI is now three days old. The stock looks headed for what should be resistance at $32.00. I am concerned that we're going to see ESI spike over $32, hit our stop loss, and then reverse lower. 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

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


Juniper Networks - JNPR - close: 16.61 change: -0.04

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:
10/08/12: Aside from a little volatility this morning JNPR spent the day in a narrow range drifting sideways. There is no change from my prior comments. The 10-dma and 100-dma directly overhead should be short-term resistance.

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 3, 2012


Plains Exploration & Production - PXP - close: 36.07 change: -0.10

Stop Loss: 37.25
Target(s): 31.50
Current Option Gain/Loss: - 6.2%
Time Frame: exit prior to earnings on Nov. 1st.
New Positions: see below

Comments:
10/08/12: PXP dipped lower enough to hit our trigger at $35.75 but eventually bounced back. I would wait for a new dip, under $35.75 or $35.50 before initiating new positions. FYI: The Point & Figure chart for PXP is bearish with a $31 target.

*Small Positions* - Suggested Positions -

Long Nov $35 PUT (PXP1211w35) Entry $1.60

Entry on October 08 at $35.75
Average Daily Volume = 4.3 million
Listed on October 6, 2012


Starbucks Corp. - SBUX - close: 48.76 change: +0.02

Stop Loss: 50.05
Target(s): 44.00
Current Option Gain/Loss: - 9.8%
Time Frame: exit prior to the early November earnings report
New Positions: see below

Comments:
10/08/12: SBUX briefly traded under its 50-dma and dipped low enough to hit our trigger at $48.40. Our trade is open and while I could consider new positions now more conservative traders may want to wait for a new low under $48.40.

Our target is $44.00. More aggressive traders could aim lower since SBUX appears to be in a new trend of lower highs and lower lows.

- Suggested Positions -

Long Nov $50 PUT (SBUX1211w50) Entry $2.73

Entry on October 08 at $48.40
Average Daily Volume = 8.1 million
Listed on October 6, 2012


Tech Data Corp. - TECD - close: 44.12 change: -0.07

Stop Loss: 45.75
Target(s): 42.00
Current Option Gain/Loss: - 7.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
10/08/12: It was a quiet Monday for shares of TECD with the stock bouncing off its morning lows. The trend is down but TECD remains oversold. 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

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


CLOSED BULLISH PLAYS

PVH Corp. - PVH - close: 94.46 change: -1.04

Stop Loss: 94.25
Target(s): 99.85
Current Option Gain/Loss: - 59.2%
Time Frame: exit prior to October expiration
New Positions: see below

Comments:
10/08/12: PVH retreated after Friday's failed breakout over $96.00. The stock hit our stop loss at $94.25 before lunchtime.

- Suggested Positions -

Oct $97.50 call (PVH1220j97.5) Entry $1.35 exit $0.55 (-59.2%)

10/08/12 stopped out at $94.25
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