Editor's Note:

News that the Eurozone GDP rose +0.3% in the second quarter failed to inspire market bulls. The U.S. market produced widespread declines.


Current Portfolio:


CALL Play Updates

CR Bard Inc. - BCR - close: 115.41 change: -0.75

Stop Loss: 114.65
Target(s): 119.75
Current Option Gain/Loss: -50.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
08/14/13: BCR just posted its third decline in a row. The market's widespread weakness pushed shares below their 10-dma. The stock did find support near $115.00 as we expected. If this trend continues we could see BCR hit our stop loss tomorrow. Meanwhile a bounce back above $116 could be used as a new bullish entry point.

- 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: 67.67 change: -0.38

Stop Loss: 64.40
Target(s): 74.00
Current Option Gain/Loss: + 5.5%
Time Frame: exit PRIOR to earnings in early September
New Positions: see below

Comments:
08/14/13: CONN gapped open higher but couldn't maintain its gains. The stock eventually closed relatively flat with a -0.5% loss (compared to the -0.5% drop in the S&P 500).

The $66 level and the 10-dma should offer some support. Nimble traders could buy calls on a dip near these levels.

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: 54.23 change: +0.11

Stop Loss: 52.75
Target(s): 57.00
Current Option Gain/Loss: - 2.4%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
08/14/13: EBAY displayed a little bit of relative strength with a +0.2% gain. If you look closely shares merely churned sideways inside the $54.00-54.50 zone with prior resistance near $54.00 acting as new support.

- 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: 80.96 change: -0.61

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:
08/14/13: JAZZ quietly drifted lower today. Odds are we are going to see JAZZ retesting the $80.00 level or its 10-dma. Nimble traders could try and buy calls on a dip or a bounce near $80.00.

- 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: 123.62 change: -0.44

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:
08/14/13: LMT is still churning sideways under the $125 level. We are waiting for a breakout higher. We're suggesting investors 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: 115.97 change: -0.42

Stop Loss: 113.40
Target(s): 119.75
Current Option Gain/Loss: -12.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
08/14/13: PII is holding up relatively well. A rally past today's high (116.65) could be used as an alternative bullish entry point. If the market accelerates lower we could see PII slip toward $114.00.

- 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: 67.34 change: -3.12

Stop Loss: 66.49
Target(s): 74.50
Current Option Gain/Loss: -29.2%
Time Frame: Exit PRIOR to earnings on Aug. 26th
New Positions: see below

Comments:
08/14/13: Ouch! The market's widespread profit taking hit QIHU pretty hard. Yesterday afternoon the stock tagged $71.00. This morning shares hit $71.00 and reversed. Fortunately shares found some short-term support near the rising 10-dma around the $67 area. If the market continues to sink we could see QIHU hit our stop loss at $66.49 tomorrow.

NOTE: We do not want to hold over the Aug. 26th earnings report.

Earlier Comments:
This is an aggressive, higher-risk momentum trade. What makes QIHU even more risky is the time frame. We do not want to hold over QIHU's earnings announcement. We are suggesting small positions. 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: 111.22 change: +0.48

Stop Loss: 109.40
Target(s): 118.50
Current Option Gain/Loss: -38.4%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
08/14/13: SHPG displayed some relative strength today (+0.4%) with a bounce toward the top of its recent trading range. Fortunately today's move does break the short-term trend of higher lows so we'll hold on another day. I am not suggesting new positions.

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


Thermo Fisher Scientific, Inc. - TMO - close: 92.06 change: -0.59

Stop Loss: 91.25
Target(s): 98.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 5 weeks
New Positions: Yes, see below

Comments:
08/14/13: The market's widespread declines today short-circuited TMO's rally with a -0.6% decline. TMO remains inside the $91.50-92.50 zone and we're waiting for a breakout higher.

I am suggesting a trigger to buy calls at $92.75. if triggered our target is $98.50.

Trigger @ 92.75

- Suggested Positions -

Buy the Sep $95 call (TMO1321i95)

Entry on August -- at $---.--
Average Daily Volume = 1.57 million
Listed on August 13, 2013


Under Armour, Inc. - UA - close: 73.30 change: -0.77

Stop Loss: 69.75
Target(s): 74.75
Current Option Gain/Loss: +56.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
08/14/13: UA gave back -1% during today's market decline. More conservative traders may want to take profits now or raise their stop near the $71.50-72.00 area. We are moving our stop loss up to $69.75.

- Suggested Positions -

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

08/14/13 new stop loss @ 69.75
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: 105.06 change: -1.21

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:
08/14/13: UTX gapped down due to its 53.5 cent dividend and then continued to drop. The stock eventually erased all of yesterday's gains before settling on support at the $105.00 level. The intraday low was $104.93. More conservative traders may want to raise their stop loss.

*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

Digital Realty Trust - DLR - close: 54.25 change: -0.33

Stop Loss: 55.35
Target(s): 50.25
Current Option Gain/Loss: -23.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
08/14/13: DLR slipped just low enough to tag a new low for the year and hit our suggested entry point at $53.75. The low today was $53.74. DLR managed an afternoon bounce. I would wait for a new low before initiating new positions.

Earlier Comments:
We like how the oversold bounce is already failing and DLR is flirting with another new low for the year. Today's low was $53.81. I am suggesting a trigger to buy puts at $53.75. If triggered our short-term target is $50.25. More aggressive traders may want to aim lower since the Point & Figure chart for DLR is bearish with a $42 target.

- Suggested Positions -

Long Sep $50 PUT (DLR1321u50) entry $1.05

Entry on August 14 at $53.75
Average Daily Volume = 1.8 million
Listed on August 13, 2013


iShares Russell 2000 ETF - IWM - close: 104.04 change: -0.41

Stop Loss: 106.05
Target(s): 97.00
Current Option Gain/Loss: -33.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
08/14/13: The IWM slowly drifted lower all day. The next challenge for the bears is short-term support in the $103.00-103.50 zone.

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: 97.02 change: -0.08

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:
08/14/13: There was no follow through on yesterday's bounce in MON. The stock looks sandwiched between resistance near $98 and support near $95.

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: -13.7%
Time Frame: 4 to 6 months
New Positions: see below

Comments:
08/14/13: As expected shares of CBI rallied today. The stock managed to buck the market's down trend and post a +1.7% gain. CBI also closed above the $60.00 level. While this move is encouraging I am still not suggesting new positions.

*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: 53.22 change: +0.07

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:
08/14/13: News that the Eurozone's GDP came in positive today failed to give European stocks much of a push. The VGK did post a gain and this is a new 52-week closing high but I would have expected more.

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