Editor's Note:

Overall Thursday's session was mostly up with only housing, utilities, and precious metals on the decline.

SBUX and UA were triggered today.
DVA, EBAY, SHW, and TWC were stopped out.
PII and RRGB have been removed.


Current Portfolio:


CALL Play Updates

NetSuite Inc. - N - close: 100.49 change: +1.74

Stop Loss: 97.85
Target(s): 109.00
Current Option Gain/Loss: Unopened
Time Frame: 4 to 6 weeks
New Positions: Yes, see below

Comments:
09/05/13: Traders bought the dip in N this morning near its 10-dma and the stock completely (exactly) reversed yesterday's loss to the penny. If Wall Street chooses to interpret the jobs data as bullish tomorrow then we could see N hit our suggested trigger at $101.05 on Friday morning.

Earlier Comments:
If triggered our multi-week target is $109.00. I would not be surprised to see N find some short-term resistance around the $105 area.

Trigger @ 101.05

- Suggested Positions -

Buy the Oct $105 call (N1319j105)

Entry on September -- at $---.--
Average Daily Volume = 294 thousand
Listed on September 03, 2013


Sturm, Ruger & Co. Inc. - RGR - close: 55.01 change: +2.64

Stop Loss: 49.95
Target(s): 57.50
Current Option Gain/Loss: +29.0%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
09/05/13: RGR has been languishing sideways all week. That changed with RGR producing a +5.0% gain. The rally was fueled by stronger than expected earnings from rival Smith & Wesson (SWHC). Management at SWHC also raised their guidance. Meanwhile shares of RGR are testing round-number resistance at the $55.00 mark.

Earlier Comments:
If this rally continues it could spark a short squeeze. The most recent data listed short interest at 30% of the very small 18.8 million share float.

- Suggested Positions -

Long Oct $55 call (RGR1319j55) entry $1.24

08/28/13 trade opened on gap higher at $53.45. Trigger was 52.65

Entry on August 28 at $53.45
Average Daily Volume = 341 thousand
Listed on August 27, 2013


Starbucks Corp. - SBUX - close: 72.05 change: -0.09

Stop Loss: 69.95
Target(s): 78.00
Current Option Gain/Loss: Oct75c: -15.2% & 2014Jan75c: - 9.8%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
09/05/13: SBUX rallied this morning thanks to some bullish analyst comments. The stock opened at $72.25 and rushed to $72.76 before paring its gains. The fact that SBUX closed negative on the session is a little bit disappointing. Our suggested entry point at $72.35 was hit this morning but traders may want to wait for a new rise past $72.50 before initiating positions given the afternoon pullback today.

Our target is $78.00. I do expect the recent high near $74.00 to offer some short-term resistance.

- Suggested Positions -

Long Oct $75 call (SBUX1319j75) entry $1.18

- or -

Long 2014 Jan $75 call (SBUX1418a75) entry $3.25

Entry on September 05 at $72.35
Average Daily Volume = 3.0 million
Listed on September 04, 2013


Under Armour, Inc. - UA - close: 76.89 change: +2.10

Stop Loss: 72.25
Target(s): 79.50
Current Option Gain/Loss: + 22.2%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
09/05/13: UA outperformed the market today with a +2.8% gain. I couldn't find any specific headline behind today's show of relative strength. Although the start of the NFL season tonight probably does not hurt UA. Today's breakout past the $75.00 level is bullish and UA hit our suggested entry point at $75.25.

- Suggested Positions -

Long Oct $77.50 call (UA1319j77.5) entry $2.25

Entry on September 05 at $75.25
Average Daily Volume = 1.1 million
Listed on September 03, 2013


PUT Play Updates

Diamond Offshore Drilling - DO - close: 63.41 change: -0.05

Stop Loss: 66.01
Target(s): 57.50
Current Option Gain/Loss: -20.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
09/05/13: Crude oil and energy stocks bounced today. DO added +0.77% but remains below short-term resistance at its 10-dma. Nimble traders could use a failed rally near the $64.50-65.00 zone as a new entry point.

Earlier Comments:
If triggered our target is the $57.50 level. I would not be surprised to see a temporary bounce near the $60.00 mark.

- Suggested Positions -

Long Oct $60 PUT (DO1319v60) entry $0.85

Entry on September 03 at $63.75
Average Daily Volume = 1.0 million
Listed on August 28, 2013


iShares Russell 2000 ETF - IWM - close: 102.11 change: +0.16

Stop Loss: 103.25
Target(s): 99.00
Current Option Gain/Loss: -41.8%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
09/05/13: The small cap IWM briefly traded to a new six-day high and above its simple 50-dma before paring its gains. We are running out of time on this trade with just over two weeks left before our September options expire.

- Suggested Positions -

Long Sep $100 PUT (IWM1321u100) Entry $1.48

08/31/13 new stop loss @ 103.25
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



Longer-Term Play Updates



Chicago Bridge & Iron - CBI - close: 59.71 change: -0.20

Stop Loss: 55.75
Target(s): 74.50
Current Option Gain/Loss: -35.2%
Time Frame: 4 to 6 months
New Positions: see below

Comments:
09/05/13: It was another quiet day for shares of CBI. 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: 52.04 change: -0.03

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:
09/05/13: The VGK also traded inside a narrow range today suggesting investor indecision.

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 BEARISH PLAYS

DaVita HealthCare - DVA - close: 111.55 change: +2.11

Stop Loss: 110.51
Target(s): 105.25
Current Option Gain/Loss: - 40.9%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/05/13: I warned readers yesterday that our DVA play was in trouble. This morning DVA shot higher at the open, rallied past its 10-dma and the $110 level and outperformed the market with a +1.9% gain. Our stop was hit this morning at $110.51. 1.45 a 10.35

- Suggested Positions -

Sep $110 PUT (DVA1321u110) entry $2.20* exit $1.30* (-40.9%)

09/05/13 stopped out
09/04/13 the action today is troubling. Readers may want to lower their stop or exit early
08/29/13 new stop loss @ 110.51
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.

chart:

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


eBay Inc. - EBAY - close: 51.95 change: +0.50

Stop Loss: 51.75
Target(s): 46.00
Current Option Gain/Loss: -71.8%
Time Frame: exit PRIOR to September option expiration
New Positions: see below

Comments:
09/05/13: EBAY continued to bounce as well and shares rallied another 50 cents and hit our stop loss along the way.

- Suggested Positions -

Sep $50 PUT (EBAY1321u50) entry $1.35 exit $0.38 (-71.8%)

09/05/13 stopped out
09/04/13 today's move is a warning signal for the bears. traders may want to exit bearish positions immediately

chart:

Entry on August 30 at $49.75
Average Daily Volume = 8.2 million
Listed on August 28, 2013


Polaris Industries - PII - close: 112.24 change: +1.12

Stop Loss: 112.05
Target(s): 101.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/05/13: We are removing PII as a potential candidate. The stock has bounced three days in a row. Lack of follow through on the recent breakdown does not bode well for the bears. Our trade did not open.

Trade did not open.

09/05/13 removed from the newsletter. trigger was 108.65.

chart:

Entry on September -- at $---.--
Average Daily Volume = 535 thousand
Listed on August 31, 2013


Red Robin Gourmet Burgers Inc. - RRGB - close: 67.52 change: +0.98

Stop Loss: 66.75
Target(s): 60.25
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/05/13: Our RRGB play has not opened and tonight we are removing the stock as a potential bearish candidate. Shares found support near $65.00 and the stock is starting to look like a bullish candidate with today's bounce above its 10-dma.

Trade did not open.

09/05/13 removed from the newsletter. trigger was 64.65

chart:

Entry on September -- at $---.--
Average Daily Volume = 152 thousand
Listed on August 31, 2013


Sherwin-Williams Co. - SHW - close: 174.36 change: +2.01

Stop Loss: 176.05
Target(s): sell half at 161.00, then exit the rest at $156.00
Current Option Gain/Loss: Sep165p: -36.3% & Oct165p: -23.4%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/05/13: Shares of SHW were upgraded this morning and that news produced a sharp spike higher. SHW rallied past its 50-dma on an intraday basis and hit $176.16 before reversing lower again. While today's move looks like a potential failed rally at technical resistance we did see SHW hit our stop loss at $176.05.

- Suggested Positions -

Sep $165 PUT (SHW1321u165) entry $1.10 exit $0.70 (-36.3%)

- or -

Oct $165 PUT (SHW1319v165) entry $3.20 exit $2.45 (-23.4%)

09/05/13 stopped out
09/03/13 trade opened this morning (SHW @ 172.92)
08/31/13 entry point strategy change: buy puts now following Friday's intraday reversal.
Adjust the stop loss to $176.05
Adjust the option strike from Sep $160 to 165 put.
Previous plan was an entry trigger at $165.90.

chart:

Entry on September 03 at $172.92
Average Daily Volume = 781 thousand
Listed on August 27, 2013


Time Warner Cable - TWC - close: 108.90 change: -1.01

Stop Loss: 110.55
Target(s): 105.00
Current Option Gain/Loss: -65.9%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/05/13: Moves like the one in shares of TWC today can definitely make you frustrated as a trader. The stock produced a brief, intraday spike higher this morning past resistance near $110 and its 20-dma. The stock hit $110.56 and then immediately reversed. Shares eventually underperformed the market to close down -0.9% near its lows for the session. It's probably no coincidence that our stop loss was at $110.55.

Earlier Comments:
We do want to keep our position size small.

- Suggested Positions -

Sep $105 PUT (TWC1321u105) entry $2.35 exit $0.80 (-65.9%)

09/05/13 stopped out
09/04/13 I am repeating my warning that readers may want to exit now.
09/03/13 readers may want to exit early now. News of an agreement with CBS sparked a bounce in TWC.
08/29/13 new stop loss @ 110.55

chart:

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