Editor's Note:

The S&P 500 snapped a four-day losing streak and the Russell 2000 index ended a five-day losing streak with today's bounce.

We have removed FLR as a candidate.


Current Portfolio:


CALL Play Updates

Shire plc - SHPG - close: 114.11 change: +1.58

Stop Loss: 109.40
Target(s): 118.50
Current Option Gain/Loss: + 7.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
08/20/13: SHPG delivered a strong session with steady climb higher on Tuesday. Investors may want to start thinking about raising their stops toward the $111.00-111.50 area. 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


SINA Corp. - SINA - close: 79.88 change: -0.72

Stop Loss: 77.70
Target(s): 89.00
Current Option Gain/Loss: -30.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
08/20/13: SINA spiked down at the open this morning, likely a reaction to weakness in the Chinese stock market on Tuesday. Fortunately traders are still in a buy-the-dip mood and bought SINA near short-term technical support at its rising 10-dma. If you missed the entry point consider waiting for a new rally past $81.25 before launching positions.

- Suggested Positions -

Long Sep $85 call (SINA1321i85) entry $2.75

Entry on August 19 at $81.35
Average Daily Volume = 2.9 million
Listed on August 17, 2013


PUT Play Updates

Apache Corp. - APA - close: 76.27 change: +0.90

Stop Loss: 80.55
Target(s): 71.00
Current Option Gain/Loss: +56.8%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
08/20/13: Bullish analyst comments on APA helped fuel an oversold bounce today. APA gained +1.19% after yesterday's plunge. We can watch for likely overhead resistance near the $78.00 and $80.00 levels.

FYI: The Point & Figure chart for APA is bearish with a $72 target.

- Suggested Positions -

Long Oct $75 PUT (APA1319v75) entry $1.60

08/19/13 trade opened on gap down at $78.42. Trigger was $78.75

Entry on August 19 at $78.42
Average Daily Volume = 2.6 million
Listed on August 17, 2013


Boeing Company - BA - close: 104.63 change: -0.09

Stop Loss: 105.55
Target(s): 100.25
Current Option Gain/Loss: -41.7%
Time Frame: 1 to 2 weeks
New Positions: see below

Comments:
08/20/13: BA produced a quiet session. There was no follow through on yesterday's rally. The stock remains below its short-term trend line of lower highs.

- Suggested Positions -

Long Sep $100 PUT (BA1321u100) entry $1.75

08/15/13 trade opened on gap down at $103.19. Trigger was $103.75

Entry on August 15 at $103.19
Average Daily Volume = 4.6 million
Listed on August 14, 2013


Digital Realty Trust - DLR - close: 52.69 change: +1.63

Stop Loss: 54.25
Target(s): 50.25
Current Option Gain/Loss: - 9.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
08/20/13: A lot of the high-dividend and interest rate sensitive names produced oversold bounces today. DLR was one of them with a +3.19% gain. Yesterday we lowered our stop loss to $54.25. More conservative traders may want to lower theirs even farther.

Earlier Comments:
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

08/19/13 new stop loss @ 54.25

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


iShares Russell 2000 ETF - IWM - close: 102.10 change: +1.45

Stop Loss: 104.25
Target(s): 98.50
Current Option Gain/Loss: - 9.4%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
08/20/13: The U.S. market produced an oversold bounce this morning. The rally in the small cap ETF outperformed its big cap peers with a +1.4% gain. Yet the rally also seemed to stall about lunchtime and the IWM drifted sideways the rest of the session.

I am not suggesting new bearish positions at this time.

- Suggested Positions -

Long Sep $100 PUT (IWM1321u100) Entry $1.48

08/19/13 new stop loss @ 104.25
08/15/13 adjust exit target from $97.00 to $98.50
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: 95.88 change: +0.60

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:
08/20/13: Tuesday was generally a positive day for stocks and MON produced another bounce from support at the bottom of its trading range. There is no change from my earlier comments.

So far the August low has been $94.56. We are suggesting a trigger to buy puts at $94.40. If triggered our short-term target is $90.25. More aggressive traders could certainly aim lower since the P&F chart is forecasting an $84 target.

Trigger @ 94.40

- Suggested Positions -

Buy the Sep $90 PUT (MON1321u90)

Entry on August -- at $---.--
Average Daily Volume = 3.3 million
Listed on August 19, 2013


Time Warner Cable - TWC - close: 108.86 change: +0.13

Stop Loss: 111.60
Target(s): 105.00
Current Option Gain/Loss: -21.2%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
08/20/13: Shares of TWC spent Tuesday's session asleep at the wheel. The stock drifted sideways in a narrow range. If shares do see a bounce we can look for resistance near $110.00 and the 50-dma (currently near 110.50).

Earlier Comments:
We do want to keep our position size small. There is potential support at $108.00. The next level of support is $104.00. If we are triggered at $109.50, our target is $105.00.

- Suggested Positions -

Long Sep $105 PUT (TWC1321u105) entry $2.35

Entry on August 16 at $109.50
Average Daily Volume = 2.3 million
Listed on August 15, 2013



Longer-Term Play Updates



Chicago Bridge & Iron - CBI - close: 60.16 change: -0.05

Stop Loss: 55.75
Target(s): 74.50
Current Option Gain/Loss: -23.5%
Time Frame: 4 to 6 months
New Positions: see below

Comments:
08/20/13: CBI delivered a quiet sideways session on Tuesday.

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


Vanguard FTSE Europe ETF - VGK - close: 52.78 change: +0.16

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:
08/20/13: There was no follow through on yesterday's sell-off in the VGK.
I don't see any changes from my earlier comments.

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 BULLISH PLAYS

Fluor Corp. - FLR - close: 65.05 change: -0.01

Stop Loss: 64.95
Target(s): 74.00
Current Option Gain/Loss: Unopened
Time Frame: 6 to 9 weeks
New Positions: see below

Comments:
08/20/13: FLR has been underperforming the market two days in a row. We are going to remove the stock as an active candidate. Our trade did not open. I would keep FLR on your watch list for a bullish breakout past $67.00.

Trade did not open.

08/20/13 removed from the newsletter

chart:

Entry on August -- at $---.--
Average Daily Volume = 1.7 million
Listed on August 17, 2013