Editor's Note:

Better than expected economic data out of China and Europe fueled a rebound in stocks. Meanwhile the NASDAQ suffered a three-hour trading outage.

MON was triggered and then later stopped out.


Current Portfolio:


CALL Play Updates

Alliant Techsystems - ATK - close: 100.03 change: +1.02

Stop Loss: 97.90
Target(s): 108.00
Current Option Gain/Loss: Unopened
Time Frame: 6 to 9 weeks
New Positions: Yes, see below

Comments:
08/22/13: ATK shot higher at the open but the rally stalled at $101.24. That means our play is not open yet since our suggested trigger to buy calls is $101.25. ATK faded back toward the $100 level by the closing bell. More aggressive traders may want to buy calls now. I am suggesting we stick to our trigger at $101.25.

The recent high is near $101.00. We are suggesting a trigger to buy calls at $101.25. If triggered our target is $108.00. The option spreads on ATK are a little bit wide therefore I am suggesting we use small positions to limit our risk.

Trigger @ 101.25 *small positions*

- Suggested Positions -

buy the Nov $105 call (ATK1316k105)

Entry on August -- at $---.--
Average Daily Volume = 462 thousand
Listed on August 20, 2013


Lumber Liquidators - LL - close: 102.68 change: +2.88

Stop Loss: 98.25
Target(s): 108.00
Current Option Gain/Loss: +25.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
08/22/13: The really in LL continued with a +2.88% gain on Thursday. This is a new all-time high for the stock. We are raising our stop loss to $98.25.

Earlier Comments:
A breakout past the $100 level could spark some short covering. The most recent data listed short interest at 25% of the small 26.2 million share float.

Our target is $108.00. More conservative traders may want to exit near $105.00 instead.

- Suggested Positions -

Long Sep $105 call (LL1321i105) entry $2.20

08/22/13 new stop loss @ 98.25

Entry on August 21 at $100.25
Average Daily Volume = 611 thousand
Listed on August 20, 2013


Shire plc - SHPG - close: 113.99 change: -0.03

Stop Loss: 111.75
Target(s): 118.50
Current Option Gain/Loss: + 7.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
08/22/13: SHPG gapped down at the open but traders bought the dip near $113.00. The stock was pushing higher until the NASDAQ trading outage for three hours. When trading re-opened SHPG spiked to a new four-day high above $114.50 and then retreated.

We are raising our stop loss to $111.75. 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

08/22/13 new stop loss @ 111.75
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: 81.53 change: +2.12

Stop Loss: 77.49
Target(s): 89.00
Current Option Gain/Loss: -15.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
08/22/13: SINA is launching a new chat product to compete with a rival's mobile chat application. This news may have helped shares rally this morning. The stock outperformed the broader market with a +2.6% gain.

I am not suggesting new positions at the moment.

- Suggested Positions -

Long Sep $85 call (SINA1321i85) entry $2.75

08/21/13 adjust stop loss from $77.70 to $77.49

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: 78.99 change: +1.77

Stop Loss: 80.55
Target(s): 71.00
Current Option Gain/Loss: - 7.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
08/22/13: A widespread market bounce combined with outperformance in the energy stocks and a relative quiet in Egypt has helped shares of APA rally. The oversold bounce continues for a third day in a row. The stock has cleared short-term resistance near $78.00 and is headed for the next level of resistance near $80.00 and its 200-dma. A failure near $80.00 could be used as a new bearish entry point.

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: 105.14 change: +1.23

Stop Loss: 105.55
Target(s): 100.25
Current Option Gain/Loss: -52.0%
Time Frame: 1 to 2 weeks
New Positions: see below

Comments:
08/22/13: Our BA trade could be in trouble again. The market's widespread bounce today helped push BA back above its 50-dma and back above the $105 level. BA is once again testing its three-week bearish trend line of lower highs. If the market continues to rally tomorrow I do expect BA to hit our stop loss at $105.55. The high today was $105.50.

- 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: 53.30 change: +0.72

Stop Loss: 54.25
Target(s): 50.25
Current Option Gain/Loss: -28.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
08/22/13: The bounce in DLR continues as well with a +1.3% gain. Shares are still trading below what should be resistance at $54.00. I am not suggesting new positions at this time.

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


eBay Inc. - EBAY - close: 51.08 change: +0.12

Stop Loss: 52.05
Target(s): 45.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Comments:
08/22/13: The early morning bounce in EBAY failed and shares closed on their low for the day.

Earlier Comments:
EBAY is nearing major support near $50.00. I am suggesting a trigger to buy puts at $49.90. More conservative traders may want to wait for a drop below the March 2013 low of $49.55 before initiating new put positions. If we are triggered at $49.90 our first target is $45.50.

Trigger @ 49.90

- Suggested Positions -

buy the Sep $50 PUT (EBAY1321u50)

- or -

buy the Oct $45 PUT (EBAY1319v45)

Entry on August -- at $---.--
Average Daily Volume = 8.6 million
Listed on August 21, 2013


Hanesbrands Inc. - HBI - close: 61.12 change: +0.36

Stop Loss: 60.60
Target(s): 55.25
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
08/22/13: HBI is not cooperating. If shares continue to rebound higher tomorrow we might drop it as a candidate. At the moment our plan is unchanged.

We are suggesting a trigger to buy puts at $58.95. If triggered our target is $55.25.

Trigger @ 58.95

- Suggested Positions -

buy the Sep $55 PUT (HBI1321u55)

Entry on August -- at $---.--
Average Daily Volume = 1.1 million
Listed on August 20, 2013


iShares Russell 2000 ETF - IWM - close: 102.91 change: +1.43

Stop Loss: 104.25
Target(s): 98.50
Current Option Gain/Loss: -27.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
08/22/13: The small cap IWM outperformed its large cap peers with a +1.4% gain. This ETF is testing short-term resistance near $103.00. If the rally continues the next level of resistance should be $104.00.

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


ManpowerGroup Inc. - MAN - close: 67.08 change: +1.13

Stop Loss: 67.05
Target(s): 61.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
08/22/13: Shares of MAN bounced in the first 30 minutes of trading and then spent the rest of the day churning sideways in a narrow range just above the $67.00 level. There is no change from my prior comments.

We are suggesting a trigger to buy puts at $65.75. There is arguably potential short-term support at $65.00 but we are aiming for a drop to $61.00.

Trigger @ 65.75

- Suggested Positions -

buy the Sep $65 PUT (MAN1321u65)

Entry on August -- at $---.--
Average Daily Volume = 530 thousand
Listed on August 21, 2013


Time Warner Cable - TWC - close: 108.96 change: +0.81

Stop Loss: 111.60
Target(s): 105.00
Current Option Gain/Loss: -23.4%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
08/22/13: TWC followed the market higher and managed a +0.74% gain but remains below resistance at the $110 level.

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: 61.25 change: +1.95

Stop Loss: 55.75
Target(s): 74.50
Current Option Gain/Loss: - 9.8%
Time Frame: 4 to 6 months
New Positions: see below

Comments:
08/22/13: CBI managed to erase about three days of losses with today's +3.28% bounce.

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: 52.90 change: +0.66

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:
08/22/13: VGK managed to erase all of yesterday's decline with a +1.2% bounce today.
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 BEARISH PLAYS

Monsanto Co. - MON - close: 96.25 change: +1.44

Stop Loss: 96.25
Target(s): 90.25
Current Option Gain/Loss: -30.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
08/22/13: It was a very frustrating day for our MON trade. The stock was drifting higher with the broader market and we were sitting on the sidelines waiting for a breakdown. Then in one minute, at 2:57 p.m., MON started to see some really irregular trading with several sharp ticks lower toward $95.00, then under $95.00. All within the same one-minute window MON dipped down to $94.00 and then rebounded right back into the $96.00 area. Our play was both triggered at $94.40 and stopped out at 96.25 by the closing bell. Sometimes the market does not want to work with you. The September $90 put high for the day was 60 cents but that may not be accurate given how fast the move in MON was.

- Suggested Positions -

Sep $90 PUT (MON1321u90) entry $0.60 exit $0.42 (-30.0%)

08/22/13 stopped out at $96.25
08/22/13 triggered at $94.40

chart:

Intraday chart:

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