Editor's Note:

The U.S. markets delivered a widespread rally while bonds rallied and oil retreated.

ALNY, LII, N, and TSCO all hit our entry trigger today.
UA hit our bullish exit target. IWM was stopped out.


Current Portfolio:


CALL Play Updates

Alnylam Pharmaceuticals - ALNY - close: 57.50 change: +1.60

Stop Loss: 53.20
Target(s): sell half at $60.0 and half at $64.00
Current Option Gain/Loss: +10.2%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
09/09/13: Our new play on ALNY is off to a good start. Shares opened at $56.00 and outperformed the broader market with a +2.8% gain. This is another new all-time high. Our trigger to buy calls was hit at $56.50.

Earlier Comments:
We want to keep our position size small to limit our risk. I am suggesting we sell half of our position at $60.00 and then we'll aim for $64.00 with the other half.

*small positions* - Suggested Positions -

Long Oct $60 call (ALNY1319j60) entry $2.45

Entry on September 09 at $56.50
Average Daily Volume = 464 thousand
Listed on September 07, 2013


Lennox Intl. - LII - close: 72.46 change: +1.94

Stop Loss: 68.95
Target(s): 74.90
Current Option Gain/Loss: +12.9%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/09/13: LII is another new play that is off to a good start. Shares opened at $70.45 and then shot higher. LII outperformed the market with a +2.75% gain and closed at new four-week highs. Our trigger to buy calls was hit this morning at $71.00.

Our short-term target is $74.90. More aggressive traders could aim higher.

- Suggested Positions -

Long Oct $70 call (LII1319j70) entry $3.10*

*option entry price is an estimate since the option did not trade at the time our play was opened.

Entry on September 09 at $71.00
Average Daily Volume = 386 thousand
Listed on September 07, 2013


NetSuite Inc. - N - close: 103.49 change: +3.33

Stop Loss: 97.85
Target(s): 109.00
Current Option Gain/Loss: +16.3%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
09/09/13: It was a good day for NetSuite bulls. The stock market's strong open this morning helped launch N higher and shares rallied to new all-time highs. Our trigger to buy calls was hit at $101.05.

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

- Suggested Positions -

Long Oct $105 call (N1319j105) entry $2.75*

*option entry price is an estimate since the option did not trade at the time our play was opened.

Entry on September 09 at $101.05
Average Daily Volume = 294 thousand
Listed on September 03, 2013


Sturm, Ruger & Co. Inc. - RGR - close: 54.54 change: +0.51

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:
09/09/13: RGR underperformed the market this morning with a decline. Fortunately traders bought the dip and the stock recovered to post a +0.9% gain. It is a bit odd to see our October $55 call not move in value.

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

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


Starbucks Corp. - SBUX - close: 72.44 change: +0.87

Stop Loss: 69.95
Target(s): 78.00
Current Option Gain/Loss: Oct75c: -16.1% & 2014Jan75c: - 8.3%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
09/09/13: Shares of SBUX managed to keep pace with the rally in the NASDAQ with a +1.2% gain today. I would consider new positions now or you could wait for a rally past the $72.50 level.

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


Tractor Supply Company - TSCO - close: 126.84 change: +3.18

Stop Loss: 121.75
Target(s): 134.00
Current Option Gain/Loss: +11.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
09/09/13: The market's widespread rally on Monday helped push TSCO past resistance near $125.00. The stock hit our entry point to buy calls at $125.25 this morning.

Earlier Comments:
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.

- Suggested Positions -

Long Oct $130 call (TSCO1319j130) entry $2.20*

*option entry price is an estimate since the option did not trade at the time our play was opened.

Entry on September 09 at $125.25
Average Daily Volume = 352 thousand
Listed on September 05, 2013


PUT Play Updates

Advance Auto Parts - AAP - close: 79.64 change: +0.52

Stop Loss: 80.60
Target(s): 75.10
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
09/09/13: There was no follow through lower in AAP after Friday's bearish breakdown below its 200-dma. That's not too surprising given the market's widespread rally today. It is worth noting that AAP's bounce failed at the $80.00 level intraday. I don't see any changes from my prior comments.

Earlier Comments:
I am suggesting a trigger to buy puts at $78.80. If triggered our target is $75.10. More aggressive traders could aim lower.

Trigger @ 78.80

- Suggested Positions -

Buy the Oct $80 PUT (AAP1319v80)

Entry on September -- at $---.--
Average Daily Volume = 640 thousand
Listed on September 07, 2013


Diamond Offshore Drilling - DO - close: 65.02 change: +0.69

Stop Loss: 66.01
Target(s): 57.50
Current Option Gain/Loss: -48.2%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
09/09/13: Our DO trade could be in trouble. Today's bounce (+1.0%) is a bullish breakout past its simple 10-dma, a moving average that DO has failed at several times in the last few weeks. The rally today did reverse at the 20-dma. More conservative traders may want to exit early now or lower their stop loss toward today's high (65.36). I am not suggesting new positions.

Earlier Comments:
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



Longer-Term Play Updates



Chicago Bridge & Iron - CBI - close: 60.80 change: +1.41

Stop Loss: 55.75
Target(s): 74.50
Current Option Gain/Loss: -25.4%
Time Frame: 4 to 6 months
New Positions: see below

Comments:
09/09/13: CBI outperformed the market with a +2.3% gain today. Yet shares remain inside the large wedge-shaped consolidation pattern. The stock did garner some bullish analyst comments on CNBC's Fast Money tonight.

I would be tempted to launch new positions if CBI can close above $62.00.

*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: +0.53

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:
09/09/13: It was an interesting day for the VGK. The European markets didn't really move that much. Yet the VGK added +1.0% in the American market. Shares of this European ETF are nearing resistance in the $53.00-53.50 zone.

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 $1.70

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

Under Armour, Inc. - UA - close: 79.31 change: +2.11

Stop Loss: 73.45
Target(s): 79.50
Current Option Gain/Loss: + 86.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
09/09/13: Target achieved.

UA sprinted higher this morning but the rally stalled under round-number resistance near the $80 level. The intraday high was $79.62 and that was enough to hit our exit target at $79.50.

- Suggested Positions -

Oct $77.50 call (UA1319j77.5) entry $2.25 exit $4.20* (+86.6%)

09/09/13 target hit
*option exit price is an estimate since the option did not trade at the time our play was closed.
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


CLOSED BEARISH PLAYS

iShares Russell 2000 ETF - IWM - close: 103.94 change: +1.55

Stop Loss: 103.25
Target(s): 99.00
Current Option Gain/Loss: -66.2%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
09/09/13: The U.S. market's widespread rally saw small cap stocks outperform their large cap rivals. The IWM surged +1.5% and hit our stop loss at $103.25 along the way.

- Suggested Positions -

Sep $100 PUT (IWM1321u100) Entry $1.48 exit $0.50 (-66.2%)

09/09/13 stopped out at $103.25
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