Editor's Note:

The market continues to move lower. The S&P 500 is testing support near the 1430 level. A bounce from here could reignite the rally. Naturally a breakdown could inspire a new round of selling pressure.

Last Friday's high is looking like a bearish double top pattern.

Our N trade was stopped out today.

Current Portfolio:


CALL Play Updates

Commvault Sys. - CVLT - close: 56.54 change: +1.08

Stop Loss: 54.90
Target(s): 62.00
Current Option Gain/Loss: -75.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
10/10/12: CVLT recouped a large chunk of yesterday's declines with a strong rebound this morning. Shares spent the rest of the day consolidating sideways. I remain cautious here. CVLT is bouncing from the bottom of its $55-59 trading range. 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: 59.69 change: -0.80

Stop Loss: 57.75
Target(s): 63.00
Current Option Gain/Loss: + 6.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
10/10/12: EQT hit some profit taking with a dip back toward its 10-dma. The stock is back below the $60.00 level but has yet to break the bullish trend of higher lows. 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 $57.89
Average Daily Volume = 1.0 million
Listed on September 22, 2012


Noble Energy, Inc. - NBL - close: 94.11 change: -0.26

Stop Loss: 91.75
Target(s): 99.75
Current Option Gain/Loss: Oct95c: -20.6% & Nov95c: - 8.0%
Time Frame: exit prior to earnings on Oct. 25th
New Positions: see below

Comments:
10/10/12: NBL is still holding short-term support at the $94.00 level for now. It is worth noting that both yesterday and today saw NBL pullback sharply from its intraday highs. The bulls are having trouble maintaining any gains here. Readers may want to tighten their stops. I am not suggesting new positions at this time.

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: 59.36 change: +0.46

Stop Loss: 54.75
Target(s): 62.50
Current Option Gain/Loss: +65.7%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
10/10/12: SHLD continues to hold up well. The stock is inching higher toward round-number resistance at the $60.00 mark. More conservative traders may want to take profits now.

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

CACI Intl. - CACI - close: 49.31 change: +0.05

Stop Loss: 52.01
Target(s): 45.25
Current Option Gain/Loss: - 6.5%
Time Frame: 3 to 4 weeks
New Positions: , see below

Comments:
10/10/12: The early morning gains faded and CACI settled with a five-cent advance. I would still consider new bearish positions at current levels. FYI: The Point & Figure chart for CACI is bearish with a $20 target.

- Suggested Positions -

Long Nov $50 PUT (CACI1211w50) Entry $2.30

Entry on October 09 at $49.64
Average Daily Volume = 373 thousand
Listed on October 8, 2012


Deckers Outdoor - DECK - close: 35.06 change: -0.42

Stop Loss: 36.55
Target(s): 30.25
Current Option Gain/Loss: Unopened
Time Frame: exit prior to the late October earnings report
New Positions: Yes, see below

Comments:
10/10/12: DECK garnered some bearish analyst comments this morning. The stock fell to a -1.1% decline. I don't see any changes from my prior comments.

Earlier Comments:
I want to caution readers that there are already a lot of bearish traders in DECK. The most recent data listed short interest at 33% of the small 30 million share float. That raises the risk of a short squeeze. Therefore we want to limit our position size to reduce our risk.

I am suggesting a trigger to buy puts at $34.45. Our target is $30.25. FYI: The Point & Figure chart for DECK is bearish with a long-term $20 target.

Trigger @ 34.45

- Suggested Positions -

buy the NOV $35 PUT (DECK1211w35)

Entry on October xx at $ xx.xx
Average Daily Volume = 2.5 million
Listed on October 9, 2012


ITT Educational Services - ESI - close: 30.44 change: -0.40

Stop Loss: 32.05
Target(s): 25.15
Current Option Gain/Loss: -20.6%
Time Frame: exit prior to earnings on Oct. 25th
New Positions: see below

Comments:
10/10/12: The bounce continues to fade in ESI and shares are once again testing the $30.00 level. More conservative traders may want to use a new drop under $30.00 as a new bearish entry point.

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: 16.35 change: -0.23

Stop Loss: 17.75
Target(s): 14.10
Current Option Gain/Loss: +11.1%
Time Frame: Exit prior the late October earnings report
New Positions: see below

Comments:
10/10/12: JNPR is still slowly sinking lower. Readers might want to consider a tighter stop near the Oct. 5th high.

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


Starbucks Corp. - SBUX - close: 46.95 change: -0.40

Stop Loss: 50.05
Target(s): 44.00
Current Option Gain/Loss: +37.3%
Time Frame: exit prior to the early November earnings report
New Positions: see below

Comments:
10/10/12: The sell-off in SBUX continues with another -0.8% Readers may want to start lowering their stops.

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: 42.80 change: -0.39

Stop Loss: 44.65
Target(s): 42.00
Current Option Gain/Loss: +41.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
10/10/12: TECD spiked down to new relative lows today, hitting $42.25 at its lowest levels. Readers may want to go ahead and take profits now. Our target is $42.00. More aggressive traders could aim lower. I am not suggesting new positions at this time.

Please note our new stop loss at $44.65.

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

10/10/12 new stop loss at $44.65
10/09/12 new stop loss @ 45.15
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

NetSuite Inc. - N - close: 59.94 change: +0.05

Stop Loss: 59.75
Target(s): 67.50
Current Option Gain/Loss: Oct65: -90.4% & Nov65c: -50.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
10/10/12: Shares of NetSuite ended the day in positive territory but not before the stock hit our stop loss at $59.75. Readers may want to keep an eye on N for a potential dip near $55.00, which could be strong support.

- Suggested Positions -

Oct $65 call (N1220j65) Entry $1.05 exit $0.10 (-90.4%)

- or -

Nov $65 call (N1217k65) Entry $2.90 exit $1.45 (-50.0%)

10/10/12 stopped out @ 59.75
10/01/12 triggered @ 62.50

chart:

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