Editor's Note:

The market produced widespread declines as investors fret over potential U.S. involvement in Syria.

All of our bullish call plays have been stopped out.
BWLD was not open yet but we're removed it as an active candidate.

Put plays MAN and MCD were both triggered.


Current Portfolio:


CALL Play Updates


Currently we do not have any active call trades.



PUT Play Updates

DaVita HealthCare - DVA - close: 108.74 change: -2.11

Stop Loss: 112.15
Target(s): 105.25
Current Option Gain/Loss: + 27.2%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
08/27/13: Widespread market weakness helped push DVA to new relative lows. Shares gapped open lower at $109.95 and then fell to a 1.9% loss on the session.

Our short-term target is $105.25. More aggressive traders could aim lower since the Point & Figure chart for DVA is bearish with a $96 target.

FYI: Investors should note that DVA does have a 2-for-1 split coming up on September 9th.

- Suggested Positions -

Long Sep $110 PUT (DVA1321u110) entry $2.20*

08/27/13 trade opens on gap down at $109.95
*option entry price is an estimate since the option did not trade at the time our play was opened.

Entry on August 27 at $109.95
Average Daily Volume = 833 thousand
Listed on August 26, 2013


iShares Russell 2000 ETF - IWM - close: 100.76 change: -2.42

Stop Loss: 105.25
Target(s): 99.00
Current Option Gain/Loss: +19.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
08/27/13: Small caps underperformed the big caps and the IWM fell -2.3% on Tuesday. Today's drop is also a close below its rising 50-dma. The next challenge for the bears is potential support at the $100 mark. If the $100 level fails then the next level of support is the simple 100-dma current at 98.65. We are adjusting our exit target to $99.00 since I would expect a bounce at the 100-dma.

- Suggested Positions -

Long Sep $100 PUT (IWM1321u100) Entry $1.48

08/27/13 adjust exit target to $99.00
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: 64.84 change: -2.09

Stop Loss: 67.05
Target(s): 61.00
Current Option Gain/Loss: +11.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
08/27/13: Our MAN trade has been opened. The stock gapped open lower at $65.82 and quickly hit our suggested entry point at $65.75. MAN ended the session with a -3.1% decline. Broken support near $66.00 should be new resistance.

- Suggested Positions -

Long Sep $65 PUT (MAN1321u65) entry $1.70

Entry on August 27 at $65.75
Average Daily Volume = 530 thousand
Listed on August 21, 2013


McDonald's Corp. - MCD - close: 94.84 change: -0.47

Stop Loss: 96.05
Target(s): 90.50
Current Option Gain/Loss: - 7.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
08/27/13: MCD gapped open lower at $94.86 and quickly hit our suggested entry point at $94.75. The stock saw a spike down toward potential support at its 300-dma near $94.00 and then immediately rebounded. MCD spent the rest of the session hovering sideways near the $95.00 level. Overall MCD's performance was rather disappointing if you're a bear. I would have expected more weakness.

- Suggested Positions -

Long Sep $92.50 PUT (MCD1321u92.5) entry $0.77

Entry on August 27 at $94.75
Average Daily Volume = 4.8 million
Listed on August 24, 2013


Time Warner Cable - TWC - close: 107.69 change: -0.51

Stop Loss: 111.60
Target(s): 105.00
Current Option Gain/Loss: -12.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
08/27/13: TWC's decline was also disappointing. The stock saw a spike lower to $106 this morning but quickly rebounded. TWC spent the rest of the day hovering near short-term support around the $108 area. I am not suggesting new positions. More conservative traders may want to scale back their position size even further.

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: 60.42 change: -0.80

Stop Loss: 55.75
Target(s): 74.50
Current Option Gain/Loss: -21.5%
Time Frame: 4 to 6 months
New Positions: see below

Comments:
08/27/13: CBI weathered the market's downturn reasonably well today with a -1.3% decline. Shares are still holding above the $60.00 level, at least for now.

*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: 51.78 change: -1.13

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:
08/27/13: Global markets were affected by concerns over Syria and potential U.S. involvement. The VGK gapped down and posted its biggest one-day decline in weeks. We are still on the sidelines here. 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)

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

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


CLOSED BULLISH PLAYS

Alliant Techsystems - ATK - close: 97.97 change: -3.60

Stop Loss: 97.90
Target(s): 108.00
Current Option Gain/Loss: -48.5%
Time Frame: 6 to 9 weeks
New Positions: see below

Comments:
08/27/13: Worries about U.S. involvement in Syria did not prevent profit taking in the defense names. Shares of ATK gapped down a bit at $100.91 and then plunged past its 20-dma for a -3.5% decline. Our stop loss was hit at $97.90.

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

*small positions* - Suggested Positions -

Nov $105 call (ATK1316k105) entry $3.40* exit $1.75 (-48.5%)

08/27/13 stopped out
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.

chart:

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


Buffalo Wild Wings Inc. - BWLD - close: 105.03 change: -2.95

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

Comments:
08/27/13: BWLD continues to retreat from resistance near $110. It's unlikely that this stock will hit our suggested entry point at $110.25 any time soon and we're not ready to buy the dip yet. Tonight we're removing BWLD as an active candidate. Our trade did not open.

Trade did not open.

08/27/13 removed from the newsletter
08/24/13 new stop loss @ 106.75

chart:

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


FedEx Corp. - FDX - close: 108.45 change: -3.59

Stop Loss: 108.99
Target(s): 118.00
Current Option Gain/Loss: -29.2%
Time Frame: exit PRIOR to earnings on Sep. 18th
New Positions: see below

Comments:
08/27/13: Worries about Syria helped fuel a rally in oil prices and the sharp rise in oil hurt the transportation stocks. FDX reversed sharply with a gap down at $110.50 and then a drop toward its 30-dma near $108. Our stop loss was hit at $108.99.

- Suggested Positions -

Oct $115 call (FDX1319j115) entry $2.50 exit $1.77 (-29.2%)

08/27/13 stopped out

chart:

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


Lumber Liquidators - LL - close: 97.01 change: -3.01

Stop Loss: 98.25
Target(s): 108.00
Current Option Gain/Loss: -53.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
08/27/13: The reversal in LL appears to have started on Friday with the bearish reversal candlestick we pointed out. Today's market wide sell-off pushed LL to a -3.0% slide and a drop to short-term technical support at the rising 20-dma. Our stop was hit at $98.25.

- Suggested Positions -

Sep $105 call (LL1321i105) entry $2.20 exit $1.03 (-53.1%)

08/27/13 stopped out
08/24/13 warning! LL has produced a one-day bearish reversal pattern on Friday
08/22/13 new stop loss @ 98.25

chart:

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


OpenTable, Inc. - OPEN - close: 72.95 change: -2.94

Stop Loss: 73.45
Target(s): 79.75
Current Option Gain/Loss: -24.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
08/27/13: The profit taking in OPEN was pretty steep. Shares gapped down over a point and then plunged to a -3.8% drop. The stock broke short-term support and hit our stop loss at $73.45.

- Suggested Positions -

Oct $80 call (OPEN1319j80) entry $2.50 exit $1.90 (-24%)

08/27/13 stopped out

chart:

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


Shire plc - SHPG - close: 111.17 change: -1.84

Stop Loss: 111.75
Target(s): 118.50
Current Option Gain/Loss: -15.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
08/27/13: SHPG was not immune to the market sell-off. Shares gapped down near $112.50, then after trying to bounce, the stock reversed to a new one-week low. Shares hit our stop at $111.75.

Earlier Comments:
The plan was to keep our position size small to limit risk.

*small positions* - Suggested Positions -

Sep $115 call (SHPG1321i115) entry $2.60 exit $2.20 (-15.3%)

08/27/13 stopped out
08/22/13 new stop loss @ 111.75
08/10/13 new stop loss @ 109.40

chart:

Entry on August 02 at $111.50
Average Daily Volume = 347 thousand
Listed on August 01, 2013


SINA Corp. - SINA - close: 76.75 change: -3.57

Stop Loss: 78.60
Target(s): 89.00
Current Option Gain/Loss: -61.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
08/27/13: Big momentum names like SINA were hit hard by the market's sell-off on Tuesday. Shares gapped open lower at $79.25 and then plunged to a -4.4% decline. Our stop loss was hit at $78.60.

- Suggested Positions -

Sep $85 call (SINA1321i85) entry $2.75 exit $1.05 (-61.8%)

08/27/13 stopped out
08/24/13 new stop loss @ 78.60
08/21/13 adjust stop loss from $77.70 to $77.49

chart:

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