Editor's Note:

Market performance was mixed on Monday with the Dow Industrials and the S&P 500 posting minor losses and the NASDAQ and Russell 2000 eking our minor gains.

CONN hit our suggested entry trigger.


Current Portfolio:


CALL Play Updates

CR Bard Inc. - BCR - close: 116.72 change: -0.65

Stop Loss: 114.65
Target(s): 119.75
Current Option Gain/Loss: -22.2%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
08/12/13: BCR erased Friday's gain with minor pullback on Monday. Shares did underperform the broader market today. There should be short-term support in the $115-116 zone.

- Suggested Positions -

Long Sep $120 call (BCR1321i120) entry $0.90

08/10/13 new stop loss @ 114.65

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


Conns Inc. - CONN - close: 67.11 change: +1.66

Stop Loss: 64.40
Target(s): 74.00
Current Option Gain/Loss: + 0.0%
Time Frame: exit PRIOR to earnings in early September
New Positions: see below

Comments:
08/12/13: CONN spent the first part of Monday consolidating sideways. Something happened this afternoon that sparked a big move higher. I couldn't find any headlines to explain today's relative strength. We were expecting a bullish breakout and CONN hit our suggested entry point at $66.65.

Earlier Comments:
If the rally continues CONN could see more short covering. The most recent data listed short interest at more than 18% of the small 24.1 million share float. Our short-term target is $74.00. However, more conservative traders may want to exit near $70.00, which might be round-number resistance.

- Suggested Positions -

Long Sep $70 call (CONN1321i70) entry $2.70

Entry on August 12 at $66.65
Average Daily Volume = 394 thousand
Listed on August 10, 2013


eBay Inc. - EBAY - close: 53.28 change: -0.05

Stop Loss: 52.75
Target(s): 57.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
08/12/13: Traders bought the dip in EBAY this morning but the rebound failed to see any real follow through higher. We are waiting on a breakout past the $54.00 level.

We are suggesting a trigger to buy calls at $54.15. If triggered our target is $57.00.

Trigger @ 54.15

- Suggested Positions -

Buy the Sep $55 call (EBAY1321i55)

Entry on August -- at $---.--
Average Daily Volume = 12.0 million
Listed on August 08, 2013


Lockheed Martin Corp. - LMT - close: 123.00 change: -1.02

Stop Loss: 123.45
Target(s): 129.75
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
08/12/13: LMT continued to see profit taking on Monday. Shares ended the session sitting on short-term technical support at its 10-dma. If the stock doesn't bounce here we might drop it. Currently we are still sitting on the sidelines waiting on a breakout past resistance at $125.00. We are suggesting small bullish positions if LMT can trade at $125.25. If triggered our target is $129.75.

Trigger @ 125.25 *small positions*

- Suggested Positions -

buy the Sep $125 call (LMT1321i125)

Entry on August -- at $---.--
Average Daily Volume = 1.6 million
Listed on August 07, 2013


Polaris Industries - PII - close: 113.12 change: -0.29

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:
08/12/13: PII spent Monday' session drifting sideways near its simple 10-dma. Nimble traders might want to consider buying calls on a dip or a bounce near the $110.00 level (and use a tight stop loss). We are currently on the sidelines waiting for a breakout to new highs. I am 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


Qihoo 360 Technology - QIHU - close: 68.87 change: -0.29

Stop Loss: 66.49
Target(s): 74.50
Current Option Gain/Loss: Unopened
Time Frame: 1 to 2 weeks
New Positions: Yes, see below

Comments:
08/12/13: QIHU rebounded off its Monday morning lows. The stock managed to tag a new intraday high but QIHU couldn't breakout past round-number resistance at the $70.00 mark.

There is no change from my weekend comments.

This is an aggressive, higher-risk momentum trade. What makes QIHU even more risky is the time frame. The company is expected to report earnings sometime in the August 20-24th time frame. There is no confirmed date yet. We do not want to hold over the announcement. That gives us about ten to fourteen days for this trade to work.

We are suggesting a trigger to buy small bullish positions at $70.25. If triggered our short-term target is $74.50. Traders could obviously aim higher. The Point & Figure chart for QIHU is bullish with an $84 target.

Trigger @ 70.25 *small positions, higher-risk trade*

- Suggested Positions -

Buy the Sep $75 call (QIHU1321i75)

Entry on August -- at $---.--
Average Daily Volume = 2.2 million
Listed on August 10, 2013


Shire plc - SHPG - close: 110.13 change: -1.11

Stop Loss: 109.40
Target(s): 118.50
Current Option Gain/Loss: -48.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
08/12/13: Ouch! SHPG underperformed the market today. Shares gapped open lower and briefly traded to a new one-week low at $109.75 before paring its losses. We have a stop loss at $109.40. More conservative traders may want to adjust theirs closer to today's low instead.

Earlier Comments:
The plan was to keep our position size small to limit risk.

*small positions* - Suggested Positions -

Long Sep $115 call (SHPG1321i115) entry $2.60

08/10/13 new stop loss @ 109.40

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


Under Armour, Inc. - UA - close: 73.93 change: +1.24

Stop Loss: 69.25
Target(s): 74.75
Current Option Gain/Loss: +78.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
08/12/13: UA's rally continued on Monday with the stock hitting $74.45 intraday. Our exit target is $74.75 but more conservative traders may want to take profits now.

- Suggested Positions -

Long Sep $72.50 call (UA1321i72.5) entry $1.85

08/12/13 readers may want to take profits now
option bid at $3.30
08/10/13 new stop loss @ 69.25

Entry on August 08 at $70.50
Average Daily Volume = 1.3 million
Listed on August 06, 2013


United Technologies - UTX - close: 105.54 change: -0.08

Stop Loss: 104.45
Target(s): 109.75
Current Option Gain/Loss: - 7.9%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
08/12/13: UTX produced a relatively quiet session and closed almost unchanged on Monday. The short-term trend of lower highs is starting to worry me. I am not suggesting new positions at this time.

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

08/10/13 new stop loss @ 104.45

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: 78.72 change: +0.01

Stop Loss: 79.65
Target(s): 75.25
Current Option Gain/Loss: -17.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
08/12/13: Traders bought the dip in ILMN this morning and the stock continued to trade sideways inside the $77.50-79.50 zone. We are moving our stop loss down to $79.65. I am not suggesting new positions at this time.

*small positions* - Suggested Positions -

Long Sep $75 PUT (ILMN1321u75) entry $2.00

08/12/13 new stop loss @ 79.65
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: 104.59 change: +0.55

Stop Loss: 106.05
Target(s): 97.00
Current Option Gain/Loss: -38.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
08/12/13: It was an odd session for the IWM. Shares gapped open lower at a new low for the month of August and then a few minutes later shot higher. The fact that the IWM closed on its high for the day would suggest a bullish open for tomorrow morning. 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: 59.65 change: -0.21

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:
08/12/13: CBI spent Monday's session churning sideways under round-number resistance at the $60.00 mark. I remain cautious here and we're 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


Vanguard FTSE Europe ETF - VGK - close: 52.82 change: -0.27

Stop Loss: 51.25
Target(s): 58.50
Current Option Gain/Loss: Unopened
Time Frame: exit PRIOR to 2013 December option expiration
New Positions: Yes, see below

Comments:
08/12/13: VGK shot lower at the open and then spent the rest of the day drifting sideways. There is no change from our new play description from the weekend newsletter.

Earlier Comments:
We are taking a multi-month time frame with this trade. I am suggesting we wait for the VGK to close above $53.50 and then buy calls the next morning. If we are triggered our target is $58.50 but we'll adjust it as the trade progresses.

FYI: The Point & Figure chart for VGK is bullish with a $63 target.

Trigger: Wait for a close above $53.50, then buy calls the next morning.

- Suggested Positions -

Buy the 2013 Dec $55 call (VGK1322L55)

Entry on August -- at $---.--
Average Daily Volume = 3.0 million
Listed on August 10, 2013