Editor's Note:

The market's afternoon rebound on Tuesday triggered multiple trades for us on the Option Investor play list. EBAY, JAZZ, PII, and QIHU have all been opened.
ILMN was stopped out.


Current Portfolio:


CALL Play Updates

CR Bard Inc. - BCR - close: 116.16 change: -0.56

Stop Loss: 114.65
Target(s): 119.75
Current Option Gain/Loss: -44.4%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
08/13/13: Profit taking in BCR occurred for the second day in a row. Shares are testing short-term support near $116 and its 10-dma. I am not suggesting new positions at this time.

- 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: 68.05 change: +0.94

Stop Loss: 64.40
Target(s): 74.00
Current Option Gain/Loss: +11.1%
Time Frame: exit PRIOR to earnings in early September
New Positions: see below

Comments:
08/13/13: The rally in CONN continues with a +1.4% gain and another new high. There is no change from my earlier comments.

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: 54.12 change: +0.84

Stop Loss: 52.75
Target(s): 57.00
Current Option Gain/Loss: - 1.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
08/13/13: EBAY displayed some relative strength today with an early morning surge higher. The stock has broken out past resistance near $54.00 and its 150-dma. Our trigger to buy calls has been hit at $54.15.

- Suggested Positions -

Long Sep $55 call (EBAY1321i55) entry $1.25

Entry on August 13 at $54.15
Average Daily Volume = 12.0 million
Listed on August 08, 2013


Jazz Pharmaceuticals - JAZZ - close: 81.57 change: -0.57

Stop Loss: 79.75
Target(s): 88.00
Current Option Gain/Loss: -24.4%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
08/13/13: JAZZ spiked higher at the open. Our trigger was hit at $82.35. Unfortunately the rally reversed near $83.00 and JAZZ posted a loss on the session. At the moment today's move looks like a potential bull-trap pattern. Nimble traders could try and buy calls on a dip or a bounce near $80.00 but I would suggest waiting for a new rally past $82.50 instead.

- Suggested Positions -

Long Sep $85 call (JAZZ1321i85) entry $2.45*
*option entry price is an estimate since the option did not trade at the time our play was opened.

Entry on August 13 at $82.35
Average Daily Volume = 700 thousand
Listed on August 12, 2013


Lockheed Martin Corp. - LMT - close: 124.06 change: +1.06

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:
08/13/13: LMT is bouncing from short-term technical support at its 10-dma. More aggressive traders may want to buy calls now and use a stop loss near the $123.00 level. The newsletter is suggesting investors wait for a breakout and buy calls at $125.25.

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: 116.39 change: +3.27

Stop Loss: 113.40
Target(s): 119.75
Current Option Gain/Loss: - 6.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
08/13/13: PII was a strong performer with a +2.89% gain and a breakout to new highs. Shares churned sideways inside the $113-114 zone for a few hours before surging in the latter half of the session. Our suggested entry trigger to buy calls was hit at $116.25.

- Suggested Positions -

Long Sep $120 call (PII1321i120) entry $1.65

Entry on August 13 at $116.25
Average Daily Volume = 829 thousand
Listed on August 06, 2013


Qihoo 360 Technology - QIHU - close: 70.46 change: +1.59

Stop Loss: 66.49
Target(s): 74.50
Current Option Gain/Loss: + 0.0%
Time Frame: 1 to 2 weeks
New Positions: see below

Comments:
08/13/13: Our new trade on QIHU has been triggered. The stock outperformed the market with a +2.3% gain and a bullish breakout past round-number resistance at the $70.00 mark. Our trigger to buy calls was hit at $70.25.

Earlier 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 small positions. 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.

*small positions, higher-risk trade* - Suggested Positions -

Long Sep $75 call (QIHU1321i75) entry $4.10

Entry on August 13 at $70.25
Average Daily Volume = 2.2 million
Listed on August 10, 2013


Shire plc - SHPG - close: 110.74 change: +0.61

Stop Loss: 109.40
Target(s): 118.50
Current Option Gain/Loss: -40.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
08/13/13: We are growing more cautious on SHPG and its sideways consolidation. More conservative traders may want to exit immediately. I am suggesting we give SHPG one more day to break past the short-term trend of lower highs. If that doesn't happen then we'll likely drop SHPG tomorrow night.

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: 74.07 change: +0.14

Stop Loss: 69.25
Target(s): 74.75
Current Option Gain/Loss: +83.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
08/13/13: UA spent Tuesday's session consolidating sideways near the $74.00 level. Readers may want to go ahead and take profits now. Our exit target is $74.75. Naturally more aggressive traders could aim higher.

Currently the bid on our option is at $3.40.

- 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: 106.80 change: +1.26

Stop Loss: 104.45
Target(s): 109.75
Current Option Gain/Loss: +20.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
08/13/13: UTX produced a strong midday rally and managed to outperform most of the industrials with a +1.19% gain. Traders may want to raise their stop loss closer to $105.00. Don't be surprised to see shares gap down by 53 cents tomorrow morning thanks to the dividend.

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

iShares Russell 2000 ETF - IWM - close: 104.45 change: -0.14

Stop Loss: 106.05
Target(s): 97.00
Current Option Gain/Loss: -37.8%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
08/13/13: The small cap indices and ETF underperformed the large caps today. The IWM posted a minor loss.

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


Monsanto Co. - MON - close: 97.10 change: +1.42

Stop Loss: 96.25
Target(s): 90.25
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
08/13/13: It looks like the bulls were not done buying the dips in MON. Shares rebounded from technical support near its 300-dma today. The stock outperformed the major indices with a +1.48% gain. Yet the rally was unable to breakout past short-term resistance near $98.00.

We are on the sidelines waiting for a breakdown. I am suggesting a trigger to buy puts at $94.40. If triggered our short-term target is $90.25 but more aggressive traders could aim lower. The point & figure chart is suggesting an $84 target.

Trigger @ 94.40

- Suggested Positions -

buy the Sep $90 PUT (MON1321u90)

Entry on August -- at $---.--
Average Daily Volume = 3.1 million
Listed on August 12, 2013



Longer-Term Play Updates



Chicago Bridge & Iron - CBI - close: 59.37 change: -0.28

Stop Loss: 55.75
Target(s): 74.50
Current Option Gain/Loss: -25.4%
Time Frame: 4 to 6 months
New Positions: see below

Comments:
08/13/13: It's whale watching season on Wall Street as big investors file their positions with the SEC. As the filings become public they can move individual stocks. I heard tonight that a big investor had started or increased positions in CBI. This could push shares to gap open higher tomorrow morning.

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: 53.15 change: +0.33

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:
08/13/13: Europe continues to garner bullish comments from Wall Street. The VGK delivered a bounce with today's +0.6% gain. More aggressive traders might want to start positions now.

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


CLOSED BEARISH PLAYS

Illumina Inc. - ILMN - close: 79.64 change: +0.92

Stop Loss: 79.65
Target(s): 75.25
Current Option Gain/Loss: -35.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
08/13/13: Our ILMN trade has been stopped out. Last night we adjusted our stop loss down to $79.65 since ILMN had been consolidating sideways below the $79.50 level. The market's afternoon rally helped push ILMN toward $80 and closed our trade.

*small positions* - Suggested Positions -

Sep $75 PUT (ILMN1321u75) entry $2.00 exit $1.30 (-35.0%)

08/13/13 stopped out
08/12/13 new stop loss @ 79.65
08/06/13 new stop loss @ 80.25

chart:

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