Editor's Note:

The S&P 500 index eked out another gain on Friday, making it four in a row for the bulls. Yet worries over Syria continue to persist. The Friday morning jobs report failed to give a clear picture if the Fed will or will not announce any taper in the QE program at the next meeting.


Current Portfolio:


CALL Play Updates

NetSuite Inc. - N - close: 100.16 change: -0.33

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:
09/07/13: The market was volatile this morning. Yet the volatility in N was limited to a $101.00-99.50 range. Shares spent the rest of the day hovering near $100.50. The overall trend is still higher and we're waiting for a breakout past $101.00.

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) current ask $2.35

chart:

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


Sturm, Ruger & Co. Inc. - RGR - close: 54.03 change: -0.98

Stop Loss: 50.90
Target(s): 57.50
Current Option Gain/Loss: + 0.0%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
09/07/13: Disappointing comments from Smith & Wesson (SWHC) sparked some profit taking in both SWHC and RGR. SWHC said that the pace of gun sales was slowing from the frenzied pace earlier in the year.

RGR found short-term support right where you would have expected it too, near prior resistance in the $53.50 area. The simple 50-dma has risen to $51.30. I am adjusting our stop loss higher to $50.90.

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

09/07/13 new stop loss @ 50.90
08/28/13 trade opened on gap higher at $53.45. Trigger was 52.65

chart:

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


Starbucks Corp. - SBUX - close: 71.57 change: -0.48

Stop Loss: 69.95
Target(s): 78.00
Current Option Gain/Loss: Oct75c: -29.6% & 2014Jan75c: -16.9%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
09/07/13: The market's spike lower this morning pushed SBUX down toward $71.00 and technical support at its rising 40-dma before shares rebounded. I remain bullish on SBUX but readers may want to hesitate on launching new positions. We might see a lower entry point near the 50-dma or you could wait for a new rally past $72.50 as an alternative entry.

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

chart:

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


Tractor Supply Company - TSCO - close: 123.66 change: -1.05

Stop Loss: 121.75
Target(s): 134.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Comments:
09/07/13: The volatility this morning saw TSCO spike down toward $122 before bouncing back. Unfortunately the rebound could not breakout past resistance near $125. By day's end TSCO had erased Thursday's gain. The stock does still have a three-week trend of higher lows so we're not giving up yet.

Earlier Comments:
I am suggesting a trigger to buy calls at $125.25. If triggered our target is $134.00. More conservative traders may want to take profits near $130 instead.

NOTE: The company has announced a 2-for-1 stock split set for Friday, September 27th.

Trigger @ 125.25

- Suggested Positions -

Buy the Oct $130 call (TSCO1319j130)

chart:

Entry on September -- at $---.--
Average Daily Volume = 352 thousand
Listed on September 05, 2013


Under Armour, Inc. - UA - close: 77.20 change: +0.31

Stop Loss: 73.45
Target(s): 79.50
Current Option Gain/Loss: + 28.8%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
09/07/13: UA managed to keep the rally alive with another gain on Friday. Shares spiked higher at the open and traded above $78.00 before paring its gains. UA is arguably short-term overbought here with a +6.2% gain in just the last four days. I would not be surprised to see a dip back toward $75.00 if the market turns weak.

Please note our new stop loss at $73.45.

- Suggested Positions -

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

09/07/13 new stop loss @ 73.45

chart:

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: 64.33 change: +0.43

Stop Loss: 66.01
Target(s): 57.50
Current Option Gain/Loss: -30.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
09/07/13: Crude oil continued to rally on Syria worries. The energy sector is still moving higher. DO bounced for a second day in a row but the rally stalled at technical resistance near its 10-dma. More conservative traders might want to move their stop loss closer to the $65.00 level.

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

chart:

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


iShares Russell 2000 ETF - IWM - close: 102.39 change: +0.28

Stop Loss: 103.25
Target(s): 99.00
Current Option Gain/Loss: -46.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
09/07/13: I am growing worried about our IWM put play. The small cap IWM is now up four days in a row. Previously it looked like overhead resistance my curtail any rebounds but now I'm having doubts. Plus, we are down to our last two weeks with the September options. I am not suggesting new positions.

- 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

chart:

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: 59.39 change: -0.32

Stop Loss: 55.75
Target(s): 74.50
Current Option Gain/Loss: -39.2%
Time Frame: 4 to 6 months
New Positions: see below

Comments:
09/07/13: CBI dipped toward short-term technical support at the simple 100-dma. The stock continues to consolidate sideways inside a huge wedge-like pattern. This consolidation has been narrowing, which would suggest a breakout is getting closer. More conservative traders may want to raise their stops.

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

chart:

Entry on June 24 at $56.75
Average Daily Volume = 1.8 million
Listed on June 01, 2013


Vanguard FTSE Europe ETF - VGK - close: 52.38 change: +0.34

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:
09/07/13: The overall tone for European stocks remains optimistic. Investors seem to believe that the worst is behind it for the Eurozone. The VGK produced a decent bounce this past week but shares of this ETF are in no man's land. The $53.00-53.50 zone remains overhead resistance.

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.

chart:

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