Editor's Note:

Concerns over the conflict in Syria and if the U.S. will get involved helped sink the stock market in the last hour of trading.

ATK, FDX, and OPEN were all triggered.
APA and BA were stopped out. EBAY has been removed.


Current Portfolio:


CALL Play Updates

Alliant Techsystems - ATK - close: 101.57 change: +0.95

Stop Loss: 97.90
Target(s): 108.00
Current Option Gain/Loss: -13.2%
Time Frame: 6 to 9 weeks
New Positions: Yes, see below

Comments:
08/26/13: Shares of ATK were upgraded this morning. This sparked a gap open higher at $101.84 and ATK hit an intraday high of $103.77 this morning before paring its gains. Odds are good we'll see ATK retest the $101.00 level and readers may want to wait for that dip before launching positions. Our plan had been to buy calls at $101.25 but the gap higher triggered our play.

I am suggesting we use small positions to limit our risk.

*small positions* - Suggested Positions -

Long Nov $105 call (ATK1316k105) entry $3.40*

08/26/13 triggered on gap higher at $101.84. trigger was 101.25
*option entry price is an estimate since the option did not trade at the time our play was opened.

Entry on August 26 at $101.84
Average Daily Volume = 462 thousand
Listed on August 20, 2013


Buffalo Wild Wings Inc. - BWLD - close: 107.98 change: -0.43

Stop Loss: 106.25
Target(s): 118.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Comments:
08/26/13: BWLD delivered another session of sideways churning in the $107-110 zone.

We are suggesting a trigger to buy calls at $110.25. If triggered our target is $118.50. The Point & Figure chart for BWLD is bullish with a $121 target.

Trigger @ 110.25

- Suggested Positions -

buy the Oct $115 call (BWLD1319j115)

08/24/13 new stop loss @ 106.75

Entry on August -- at $---.--
Average Daily Volume = 425 thousand
Listed on August 22, 2013


FedEx Corp. - FDX - close: 112.04 change: +1.35

Stop Loss: 108.99
Target(s): 118.00
Current Option Gain/Loss: +13.2%
Time Frame: exit PRIOR to earnings on Sep. 18th
New Positions: see below

Comments:
08/26/13: FDX displayed relative strength today with a +1.2% gain and a new multi-year high. Shares opened at $110.80 and quickly hit our suggested entry trigger at $111.00.

Earlier Comments:
The next level of significant resistance could be FDX's all-time highs near $120 set back in the 2006-2007 time frame. Our multi-week target is $118.00. However, we will plan to exit prior to FDX's earnings report on September 18th.

- Suggested Positions -

Long Oct $115 call (FDX1319j115) entry $2.50

Entry on August 26 at $111.00
Average Daily Volume = 1.9 million
Listed on August 24, 2013


Lumber Liquidators - LL - close: 100.02 change: +0.49

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:
08/26/13: Good news! There was no follow through on Friday's bearish reversal candlestick in LL. The stock managed to outperform the broader market today with a +0.49% gain. I remain cautious here.

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

08/24/13 warning! LL has produced a one-day bearish reversal pattern on Friday
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


OpenTable, Inc. - OPEN - close: 75.89 change: +1.26

Stop Loss: 73.45
Target(s): 79.75
Current Option Gain/Loss: +10.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
08/26/13: Our OPEN trade has been triggered. The stock actually spiked lower this morning and trade down near $74.00. Just as quickly the stock reversed higher and OPEN hit new 52-week highs near $78 before paring its gains. OPEN ended the session with a +1.6% gain and a close above round-number resistance at $75.00. Our suggested trigger to buy calls was hit this morning at $75.25.

Earlier Comments:
If this rally continues OPEN could see a short squeeze, or at least additional short covering. The most recent data listed short interest at 22% of the small 22.4 million share float. Our short-term target is $79.75. More aggressive traders may want to aim a lot higher. The Point & Figure chart for OPEN is bullish with a $103 target.

- Suggested Positions -

Long Oct $80 call (OPEN1319j80) entry $2.50

Entry on August 26 at $75.25
Average Daily Volume = 900 thousand
Listed on August 24, 2013


Shire plc - SHPG - close: 113.01 change: -0.58

Stop Loss: 111.75
Target(s): 118.50
Current Option Gain/Loss: - 5.7%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
08/26/13: Warning! Not only did SHPG underperform the market with a -0.5% decline but shares created a one-day bearish reversal candlestick pattern. If SHPG sees any follow through lower tomorrow then we'll likely see SHPG hit our stop at $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: 80.32 change: -1.87

Stop Loss: 78.60
Target(s): 89.00
Current Option Gain/Loss: -42.9%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
08/26/13: The Chinese market closed higher today but that couldn't save SINA from some profit taking. The stock underperformed with a -2.2% decline. SINA briefly traded below round-number support at $80.00. The low today was $79.35. More conservative traders may want to raise their stops toward today's low.

- Suggested Positions -

Long Sep $85 call (SINA1321i85) entry $2.75

08/24/13 new stop loss @ 78.60
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

iShares Russell 2000 ETF - IWM - close: 103.18 change: +0.01

Stop Loss: 105.25
Target(s): 98.50
Current Option Gain/Loss: -39.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
08/26/13: The IWM closed virtually unchanged on the session but that doesn't tell the whole story. Stocks were actually up most of the day until Secretary of State John Kerry issued his statement regarding the alleged use of chemical weapons in Syria and suggested that the U.S. is likely to get involved. On a side note a recent poll said that less than 10% of Americans support any military involvement in Syria.

Looking back at IWM we've been warning readers that this ETF might bounce back toward $104 and try to fill the gap. Today's high was $103.82. That might be enough.

I am not suggesting new bearish positions at this time.

- Suggested Positions -

Long Sep $100 PUT (IWM1321u100) Entry $1.48

08/24/13 new stop loss @ 105.25
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: 66.93 change: -0.08

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:
08/26/13: MAN's performance today is almost identical to Friday's with the same morning spike higher and then the same sideways churn the rest of the session. If we do not see MAN decline soon we will likely drop it.

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


McDonald's Corp. - MCD - close: 95.31 change: +0.18

Stop Loss: 96.05
Target(s): 90.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
08/26/13: MCD eked out a bounce. Shares tested resistance near the top of its $95-96 trading range and technical resistance at its 200-dma. There is no change from my prior comments.

Shares are sitting on support near $95.00. Friday's intraday low was $94.91. I am suggesting a trigger to buy puts at $94.75. If triggered our target is $90.50.

Trigger @ 94.75

- Suggested Positions -

buy the Sep $92.50 PUT (MCD1321u92.5) current ask $0.57

Entry on August -- at $---.--
Average Daily Volume = 4.8 million
Listed on August 24, 2013


Time Warner Cable - TWC - close: 108.20 change: -0.53

Stop Loss: 111.60
Target(s): 105.00
Current Option Gain/Loss: -25.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
08/26/13: TWC tried to bounce this morning but the rally failed near resistance at $110 (actually the high was $110.26). Seeing TWC close on its low for the session should be bearish for tomorrow morning.

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: 61.22 change: -0.15

Stop Loss: 55.75
Target(s): 74.50
Current Option Gain/Loss: -11.7%
Time Frame: 4 to 6 months
New Positions: see below

Comments:
08/26/13: CBI delivered a quiet performance on Monday. I would not be surprised to see another dip toward the $60 level again.

*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: 52.91 change: -0.26

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:
08/26/13: VGK did not make any progress today. Shares erased Friday's gain with a dip back toward its simple 10-dma. There is no change 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 2014 Mar $55 call (VGK1422L55) current ask $2.00

08/24/13 adjust the option strike from 2013 Dec $55 to $2014 Mar $55.

chart:
%IMG15%

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


CLOSED BEARISH PLAYS

Apache Corp. - APA - close: 79.73 change: -0.07

Stop Loss: 80.55
Target(s): 71.00
Current Option Gain/Loss: -33.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
08/26/13: Our APA has been stopped out at $80.55.

Sessions like today are very frustrating. APA briefly traded above resistance near $80.00 and traded above its 20-dma and 100-dma before reversing lower and eventually closing negative on the session. Today's overall move looks like a bearish reversal following an oversold bounce. You could also say today's move looks like a new bearish entry point to buy puts (with a stop above today's high). Unfortunately, our trade has been closed.

- Suggested Positions -

Oct $75 PUT (APA1319v75) entry $1.60 exit $1.07 (-33.1%)

08/26/13 stopped out at $80.55
08/24/13 More conservative traders may want to exit given the dramatic reversal higher in APA these last four days.
08/19/13 trade opened on gap down at $78.42. Trigger was $78.75

chart:

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


Boeing Company - BA - close: 105.53 change: +0.05

Stop Loss: 105.55
Target(s): 100.25
Current Option Gain/Loss: -64.0%
Time Frame: 1 to 2 weeks
New Positions: see below

Comments:
08/26/13: BA ended the session with a five-cent gain. Unfortunately the intraday strength was enough to hit our stop loss at $105.55. We should not be surprised. BA has been flirting with a breakout higher the last couple of sessions.

- Suggested Positions -

Long Sep $100 PUT (BA1321u100) entry $1.75 exit $0.63 (-64.0%)

08/26/13 stopped out
08/24/13 BA looks like it's about to move higher. Readers may want to exit bearish positions now.
08/15/13 trade opened on gap down at $103.19. Trigger was $103.75

chart:

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


eBay Inc. - EBAY - close: 51.96 change: +0.31

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

Comments:
08/26/13: EBAY is not cooperating. The stock outperformed the market again with a +0.6% gain and a close above its exponential 200-dma. It is unlikely that EBAY will hit our suggested entry point at $49.90 soon so we are removing EBAY as an active candidate.

Trade did not open.

08/26/13 removed from the newsletter

chart:

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