Editor's Note:

The S&P 500 trimmed its morning gains to close almost unchanged on the session. We are updating a few stop losses tonight.

Our new play on LO has been triggered.

Current Portfolio:


CALL Play Updates

Commvault Sys. - CVLT - close: 56.57 change: +0.03

Stop Loss: 54.90
Target(s): 62.00
Current Option Gain/Loss: -91.9%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
10/11/12: CVLT tried to rally this morning but pared its gains to settle almost unchanged on the session. 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: 60.84 change: +1.15

Stop Loss: 58.40
Target(s): 63.00
Current Option Gain/Loss: +113.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
10/11/12: EQT outperformed the market with a +1.9% gain. Shares hit new relative highs above $61. I am raising our stop loss to $58.40. Readers may want to take profits right now! I am not suggesting new positions at this time.

- Suggested Positions -

Long Oct $60 call (EQT1220j60) Entry $0.61

10/11/12 new stop loss @ 58.40, readers may want to take profits now with the bid on our option at $1.30 (+113%)
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: 93.29 change: -0.82

Stop Loss: 91.75
Target(s): 99.75
Current Option Gain/Loss: Oct95c: -51.7% & Nov95c: -24.1%
Time Frame: exit prior to earnings on Oct. 25th
New Positions: see below

Comments:
10/11/12: Shares of NBL were downgraded this morning and that helped the stock underperform the market and its peers in the energy sector. I would wait for a rally back above $94.00 before considering new positions.

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: 60.92 change: +1.56

Stop Loss: 57.90
Target(s): 62.50
Current Option Gain/Loss: +125.7%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
10/11/12: SHLD displayed relative strength with a bullish breakout above round-number resistance at $60.00. The stock is within striking distance of our exit target at $62.50 but readers may want to go ahead and take profits now with our option up +125%. I am raising our stop loss to $57.90.

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

10/11/12 new stop loss @ 57.90, readers may want to take profits now. Our option is up +125%.
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


Six Flags Entertainment - SIX - close: 61.72 change: -0.15

Stop Loss: 60.90
Target(s): 64.95
Current Option Gain/Loss: Unopened
Time Frame: exit prior to the Oct. 24th earnings report
New Positions: Yes, see below

Comments:
10/11/12: SIX managed to trade above resistance at $62 this morning but the stock's rally stopped at $62.22. Our trade is not yet open.

I am suggesting a trigger to buy calls at $62.25 with a stop loss at $60.90. Our target is $64.90 but more aggressive traders could definitely aim higher. We do not want to hold over the earnings report on Oct. 24th. FYI: The Point & Figure chart for SIX is bullish with a long-term $98 target.

NOTE: Readers may want to keep their position size small. The bid/ask spread on options for SIX are a little wide.

Trigger @ 62.25

- Suggested Positions -

buy the Nov $65 call (SIX1217k65)

Entry on October xx at $ xx.xx
Average Daily Volume = 334 thousand
Listed on October 10, 2012


PUT Play Updates

CACI Intl. - CACI - close: 49.10 change: -0.21

Stop Loss: 51.25
Target(s): 45.25
Current Option Gain/Loss: + 0.0%
Time Frame: 3 to 4 weeks
New Positions: , see below

Comments:
10/11/12: CACI's bounce attempt failed under the $50.00 level. Shares settled at a new relative low. I would still consider new positions at current levels. We will lower the stop loss to $51.25. FYI: The Point & Figure chart for CACI is bearish with a $20 target.

- Suggested Positions -

Long Nov $50 PUT (CACI1211w50) Entry $2.30

10/11/12 new stop loss @ 51.25

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


Deckers Outdoor - DECK - close: 36.63 change: +1.57

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:
10/11/12: DECK saw some short covering today and the stock surged to $37.37 before paring its gains to just +4.4%. If the rally continues tomorrow we will probably drop DECK as a candidate. Right now the plan is to wait for a breakdown.

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: 31.59 change: +1.15

Stop Loss: 32.05
Target(s): 25.15
Current Option Gain/Loss: -30.9%
Time Frame: exit prior to earnings on Oct. 25th
New Positions: see below

Comments:
10/11/12: ESI produced a strong rebound today with a +3.7% gain. Shares are testing resistance near $32.00 and ESI looks poised to breakout past this level. More conservative traders may want to go ahead and abandon ship right now. Odds are good that if the market is positive tomorrow morning we'll see ESI rally and hit our stop loss at $32.05. I am not suggesting new positions.

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: -0.00

Stop Loss: 17.25
Target(s): 14.10
Current Option Gain/Loss: +12.5%
Time Frame: Exit prior the late October earnings report
New Positions: see below

Comments:
10/11/12: JNPR continues to coil sideways and closed unchanged on the session. If you look hard enough at the chart you can see that JNPR has a bearish trend of lower highs. JNPR seems to be coiling for a breakdown.

I am adjusting our stop loss down to $17.25.

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

10/11/12 new stop loss @ 17.25

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


Lorillard, Inc - LO - close: 113.76 change: -1.11

Stop Loss: 116.15
Target(s): 110.25
Current Option Gain/Loss: - 1.2%
Time Frame: exit ahead of the late October earnings report
New Positions: see below

Comments:
10/11/12: LO failed at the $116 level this morning and then broke down to new lows. Our trigger to buy puts was hit at $114.50. Our target is $110.25. More aggressive traders could aim lower but we do not want to hold over the late October earnings report (not yet confirmed).

- Suggested Positions -

Long NOV $110 PUT (LO1217w110) Entry $2.33

10/11/12 triggered @ 114.50

Entry on October 11 at $114.50
Average Daily Volume = 1.4 million
Listed on October 10, 2012


Starbucks Corp. - SBUX - close: 47.16 change: +0.21

Stop Loss: 50.05
Target(s): 44.00
Current Option Gain/Loss: +30.0%
Time Frame: exit prior to the early November earnings report
New Positions: see below

Comments:
10/11/12: SBUX managed a bounce after two days of declines. Broken support near $49.00 should be new resistance so readers might want to consider adjusting their stops closer to the $49.00 level.

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: 42.99 change: +0.19

Stop Loss: 44.65
Target(s): 42.00
Current Option Gain/Loss: + 2.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
10/11/12: A +0.4% bounce did not help our option position. The bid/ask spread has widened on us and reducing our potential gains significantly. I don't see any changes from my prior comments. Our target is $42.00. More aggressive traders could aim lower. 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

10/10/12 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