Editor's Note:

Asian stock markets, European stock markets and the U.S. stock markets were all in rally mode as investors reacted to Russia's proposal on the Syrian chemical weapon issue.

Positive economic data out of China didn't hurt either.

AAP has been removed.
VGK (long-term play) met our entry trigger requirements with today's gain.


Current Portfolio:


CALL Play Updates

Alnylam Pharmaceuticals - ALNY - close: 57.20 change: -0.30

Stop Loss: 53.20
Target(s): sell half at $60.0 and half at $64.00
Current Option Gain/Loss: + 2.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
09/10/13: After big gains yesterday ALNY pulled back 30 cents today. Shares did hit a new high this morning above $58.00. Nimble traders might want to consider buying calls on a dip near $56.00.

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


Anadarko Petroleum - APC - close: 93.40 change: -0.62

Stop Loss: 91.65
Target(s): 99.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 5 weeks
New Positions: Yes, see below

Comments:
09/10/13: Crude oil turned lower on the Russian proposal for Syria's chemical weapons lessened the likelihood of a U.S. strike. The energy stocks were some of the market's worst performers today. APC spiked to $94.15 this morning before falling to its 10-dma. Fortunately, traders bought the dip at this short-term support and APC rebounded.

I am suggesting a trigger to buy calls at $94.25. If triggered our target is $99.50.

Trigger @ 94.25

- Suggested Positions -

buy the Oct $95 call (APC1319j95) current ask $2.67

Entry on September -- at $---.--
Average Daily Volume = 2.55 million
Listed on September 09, 2013


Lennox Intl. - LII - close: 72.78 change: +0.32

Stop Loss: 68.95
Target(s): 74.90
Current Option Gain/Loss: +16.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/10/13: LII seemed to struggle with the $73.00 level today. Shares managed a +0.4% gain but that follows yesterday's +2.75% rally. I am not suggesting new positions at this time.

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: 105.68 change: +2.19

Stop Loss: 99.45
Target(s): 109.00
Current Option Gain/Loss: +56.3%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
09/10/13: Shares of N continue to show relative strength with a +2.1% gain on top of yesterday's rally. The close above the $105 level is encouraging since $105 could have been round-number resistance. I am raising our stop loss up to $99.45.

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*

09/10/13 new stop loss @ 99.45
*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: 55.94 change: +1.40

Stop Loss: 51.75
Target(s): 57.50
Current Option Gain/Loss: +37.0%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
09/10/13: RGR saw some volatility this morning but traders bought the midday pullback and shares closed near their highs for the session. RGR managed to outperform the market with a +2.5% gain.

We are aiming for $57.50 but more conservative traders might want to take profits early as RGR near the August high around $56.75. Please note our new stop loss at $51.75.

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

09/10/13 new stop loss @ 51.75
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: 74.22 change: +1.78

Stop Loss: 69.95
Target(s): 78.00
Current Option Gain/Loss: Oct75c: +37.2% & 2014Jan75c: +15.3%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
09/10/13: SBUX was a hot stock today with shares gapping open higher and then surging to a +2.45% gain. It is important to note that the rally today stalled exactly at the early August high near $74.25. A reversal here would look like a potential bearish double top. I am not suggesting new positions at this time.

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: 129.30 change: +2.46

Stop Loss: 121.75
Target(s): 134.00
Current Option Gain/Loss: +54.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
09/10/13: Tuesday was another strong day for TSCO. Shares added +1.9% and closed at new all-time highs. Shares are also approaching what could be round-number resistance near the $130.00 mark. I would not be surprised to see a brief pullback here.

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

Diamond Offshore Drilling - DO - close: 65.18 change: +0.16

Stop Loss: 66.01
Target(s): 57.50
Current Option Gain/Loss: -52.9%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
09/10/13: Shares of DO only managed a meager bounce today in spite of the stock market's widespread strength. The intraday high was $65.55 and had the market been open longer DO would have likely closed in negative territory. This relative "weakness" should be a good signal for our bearish play.

I'm not suggesting new positions at this time.

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: 62.98 change: +2.18

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:
09/10/13: Great news! The rebound in CBI continued today (+3.5%) and shares appear to have broken out from its large consolidation pattern.

*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: 53.57 change: +0.66

Stop Loss: 50.95
Target(s): 58.50
Current Option Gain/Loss: Unopened
Time Frame: exit PRIOR to 2014 March option expiration
New Positions: see below

Comments:
09/10/13: The big rally in the European stock ETF continued today with the VGK gapping open higher at $53.42 and closing at a new two-year high. Our plan was to wait for shares to close above $53.50 and then buy calls the next day. That requirement has been met. We'll open positions tomorrow morning. Please note that I am adjusting our stop loss to $50.95.

Earlier Comments:
We are taking a multi-month time frame with this trade. 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 $1.75

09/10/13 entry trigger met. open positions tomorrow.
09/10/13 new stop loss @ 50.95
08/24/13 adjust the option strike from 2013 Dec $55 to $2014 Mar $55.

Entry on September 11 at $---.--
Average Daily Volume = 3.0 million
Listed on August 10, 2013


CLOSED BEARISH PLAYS

Advance Auto Parts - AAP - close: 81.08 change: +1.44

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

Comments:
09/10/13: The stock market's new strength is sparking a bounce in AAP. It seems less likely that AAP will hit our suggested entry point at $78.80 any time soon. Therefore we are removing AAP as an active candidate.

Trade did not open.

09/10/13 removed from the newsletter. Trigger was 78.80

chart:

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