Editor's Note:

The U.S. market produced its third loss in a row after closing at all-time highs last Friday. Today the market struggled after a weak session for the Asian markets.

AMP and COF have been removed. SRCL was stopped out.
UTX has been triggered.


Current Portfolio:


CALL Play Updates

CR Bard Inc. - BCR - close: 116.21 change: -0.21

Stop Loss: 113.95
Target(s): 119.75
Current Option Gain/Loss: - 22.2%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
08/07/13: BCR tagged another new high before paring its gains in the last few minutes of the day. Nimble traders could look for a dip near $115.00 or its 10-dma as an alternative entry point to buy calls.

- Suggested Positions -

Long Sep $120 call (BCR1321i120) entry $0.90

Entry on August 06 at $116.25
Average Daily Volume = 475 thousand
Listed on August 05, 2013


Costco Wholesale - COST - close: 119.34 change: +0.15

Stop Loss: 117.90
Target(s): 124.75
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Comments:
08/07/13: COST began trading ex-dividend this morning. Shares managed to rebound from their intraday lows and buck the market's widespread decline to post a gain. Currently the newsletter is suggesting a trigger to buy calls at $120.25. If triggered our target is $124.75.

Trigger @ 120.25

- Suggested Positions -

buy the Sep $120 call (COST1321i120)

Entry on August -- at $---.--
Average Daily Volume = 1.4 million
Listed on August 03, 2013


Johnson & Johnson - JNJ - close: 93.66 change: -0.15

Stop Loss: 92.75
Target(s): 98.00
Current Option Gain/Loss: Aug.call + 6.5% & Sept.call: + 4.8%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
08/07/13: JNJ is still consolidating sideways and still doing a pretty good job of ignoring the market's widespread weakness the last couple of days. More conservative traders may want to raise their stop closer to the simple 10-dma currently at $93.47.

- Suggested Positions -

Long Aug $92.50 call (JNJ1317H92.5) entry $1.37

- or -

Long Sep $95 call (JNJ1321i95) entry $0.82

08/03/13 new stop loss @ 92.75
08/01/13 new stop loss @ 92.35
07/31/13 new stop loss @ 91.90

Entry on July 29 at $93.05
Average Daily Volume = 9.0 million
Listed on July 27, 2013


Polaris Industries - PII - close: 112.67 change: -2.54

Stop Loss: 113.40
Target(s): 119.75
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
08/07/13: Hey! What happened to PII? Shares suddenly decided to participate in the stock market's decline. PII underperformed the major indices with a -2.2% drop. In spite of the pullback today the overall trend is still higher. We are on the sidelines waiting for a new high but if PII doesn't recover soon we'll have to re-evaluate.

We are suggesting a trigger to buy calls at $116.25. If triggered our target is $119.75.

Trigger @ 116.25

- Suggested Positions -

Buy the Sep $120 call (PII1321i120)

Entry on August -- at $---.--
Average Daily Volume = 829 thousand
Listed on August 06, 2013


Shire plc - SHPG - close: 110.29 change: +0.21

Stop Loss: 108.95
Target(s): 118.50
Current Option Gain/Loss: -36.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
08/07/13: SHPG tried to rally this morning but only made it to the $111 level before succumbing to profit taking. Shares are still holding short-term support near $110 and its 10-dma, at least for now.

Earlier Comments:
SHPG is overbought at current levels but it can always grow more overbought. I would keep position size small to limit risk.

*small positions* - Suggested Positions -

Long Sep $115 call (SHPG1321i115) entry $2.60

Entry on August 02 at $111.50
Average Daily Volume = 347 thousand
Listed on August 01, 2013


Under Armour, Inc. - UA - close: 70.04 change: +0.77

Stop Loss: 68.45
Target(s): 74.75
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
08/07/13: UA tried to rally this morning but shares failed near the same spot as Tuesday with resistance near $70.30.

We are suggesting a trigger to buy calls at $70.50. If triggered our target is $74.75. More aggressive traders could aim higher.

Trigger @ 70.50

- Suggested Positions -

Buy the Sep $72.50 call (UA1321i72.5)

Entry on August -- at $---.--
Average Daily Volume = 1.3 million
Listed on August 06, 2013


United Technologies - UTX - close: 106.03 change: +0.83

Stop Loss: 103.45
Target(s): 109.75
Current Option Gain/Loss: + 9.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
08/07/13: Right on cue shares of UTX rebounded. The stock hit our new trigger to buy calls at $105.55. We have a stop loss at $103.45. More conservative traders may want to use a tighter stop.

FYI: UTX will begin trading ex-dividend on August 14th. The quarterly dividend should be 53.5 cents.

*small positions* - Suggested Positions -

Long Sep $105 call (UTX1321i105) entry $2.40

Entry on August 07 at $105.55
Average Daily Volume = 3.2 million
Listed on August 03, 2013


PUT Play Updates

Illumina Inc. - ILMN - close: 78.55 change: -0.47

Stop Loss: 80.25
Target(s): 75.25
Current Option Gain/Loss: - 5.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
08/07/13: After a two-day bounce it looks like the rebound in ILMN might be losing steam. Shares gave up -0.59% today. I am not suggesting new positions at this time.

NOTE: Once ILMN fills the gap we can re-evaluate it for a potential bullish entry point.

*small positions* - Suggested Positions -

Long Sep $75 PUT (ILMN1321u75) entry $2.00

08/06/13 new stop loss @ 80.25

Entry on August 01 at $79.50
Average Daily Volume = 1.2 million
Listed on July 31, 2013


iShares Russell 2000 ETF - IWM - close: 103.72 change: -0.74

Stop Loss: 106.05
Target(s): 97.00
Current Option Gain/Loss: -22.2%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
08/07/13: Profit taking continued on Wednesday and the IWM slipped -0.7%. The lows from late July could be support near the $103.00 level. I am not suggesting new bearish positions at this time.

- Suggested Positions -

Long Sep $100 PUT (IWM1321u100) Entry $1.48

08/03/13 readers may want to consider an early exit

Entry on July 30 at $103.69
Average Daily Volume = 31 million
Listed on July 29, 2013



Longer-Term Play Updates



Chicago Bridge & Iron - CBI - close: 59.17 change: +0.24

Stop Loss: 55.75
Target(s): 74.50
Current Option Gain/Loss: -21.5%
Time Frame: 4 to 6 months
New Positions: see below

Comments:
08/07/13: CBI displayed some volatility today. Shares dipped to $57.73 this morning only to reverse and rally towards $60 before paring its gains.

I am not suggesting new positions at this time.

*Small Positions* - Suggested Positions -

Long 2014 Jan $65 call (CBI1418A65) entry $2.55

07/20/13 new stop loss @ 55.75
06/29/13 CBI might be poised to dip into the $57-55 zone again.
06/24/13 triggered @ 56.75
06/22/13 adjust entry trigger to $56.75
06/15/13 entry strategy change: change the breakout trigger at $65.25 to a buy-the-dip trigger at $56.50. Adjust the stop loss to $53.75.
Adjust the option strike to the 2014 Jan. $65 call

Entry on June 24 at $56.75
Average Daily Volume = 1.8 million
Listed on June 01, 2013


CLOSED BULLISH PLAYS

Ameriprise Financial - AMP - close: 89.54 change: -0.32

Stop Loss: 89.75
Target(s): 98.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
08/07/13: AMP continues to sink and has closed below what should have been short-term support at the $90.00 level. Our trade has not opened yet with a trigger at $91.40. Tonight we are removing AMP as a candidate. Given the current pullback readers may want to keep AMP on their watch list for a dip near the $85 area and its rising 50-dma, which could be a bullish entry point.

Trade did not open.

08/07/13 removed from the newsletter

chart:

Entry on August -- at $---.--
Average Daily Volume = 760 thousand
Listed on August 05, 2013


Capital One Financial - COF - close: 67.93 change: -1.36

Stop Loss: 68.25
Target(s): 74.75
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
08/07/13: COF finally broke down below its 10-dma for the first time in weeks. Shares are unlikely to hit our suggested entry point at $70.25 soon so we are removing COF as a candidate.

Trade did not open.

08/07/13 removed from the newsletter

chart:

Entry on August -- at $---.--
Average Daily Volume = 3.1 million
Listed on August 01, 2013


Stericycle, Inc. - SRCL - close: 116.47 change: -0.49

Stop Loss: 115.95
Target(s): 124.00
Current Option Gain/Loss: -62.1%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
08/07/13: SRCL traded just low enough today that shares hit our stop loss at $115.95. Our play is closed.

- Suggested Positions -

Sep $120 call (SRCL1321i120) entry $1.85 exit $0.70 (-62.1%)

08/07/13 stopped out

chart:

Entry on August 05 at $117.35
Average Daily Volume = 334 thousand
Listed on August 03, 2013