Editor's Note:

Shares of Sturm, Ruger & Co. Inc. (RGR) hit our bullish exit target on Wednesday.

APC was triggered. Our long-term play on VGK opened this morning.


Current Portfolio:


CALL Play Updates

Alnylam Pharmaceuticals - ALNY - close: 55.96 change: -1.24

Stop Loss: 53.20
Target(s): sell half at $60.0 and half at $64.00
Current Option Gain/Loss: -20.4%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
09/11/13: Biotech stocks underperformed the broader market today but ALNY underperformed its peers with a -2.1% decline. I didn't see any specific news behind the sharp drop this morning but traders did buy the dip twice near the $55.00 area. If you were waiting to buy the dip, you got one.

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: 94.67 change: +1.27

Stop Loss: 91.65
Target(s): 99.50
Current Option Gain/Loss: + 1.6%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
09/11/13: APC started off weak this morning but traders bought the dip near $93.00 this morning. By mid afternoon APC had broken out past resistance near $94.00, hit our trigger at $94.25, and closed at a new all-time high.

- Suggested Positions -

Long Oct $95 call (APC1319j95) entry $3.05*

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

Entry on September 11 at $94.25
Average Daily Volume = 2.55 million
Listed on September 09, 2013


Hanesbrand Inc. - HBI - close: 61.34 change: -1.66

Stop Loss: 59.90
Target(s): 68.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Comments:
09/11/13: There was no follow through on yesterday's rally to new relative highs in HBI. Instead this stock shot lower at the open before finding support near $61.00. The drop may have been investor disappointment to HBI merely reaffirming their prior guidance. Currently we are still on the sidelines.

I am suggesting a trigger to buy calls at $63.25. If triggered our target is $68.50. I do expect to see some temporary resistance at the prior high near $65.00.

Trigger @ 63.25

- Suggested Positions -

buy the Oct $65 call (HBI1319j65)

Entry on September -- at $---.--
Average Daily Volume = 612 thousand
Listed on September 10, 2013


Lennox Intl. - LII - close: 73.42 change: +0.64

Stop Loss: 69.65
Target(s): 74.90
Current Option Gain/Loss: +25.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/11/13: LII recovered from its morning lows to close up +0.8% and outperform the major indices. I am raising our stop loss to $69.65. 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*

09/11/13 new stop loss @ 69.65
*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: 106.85 change: +1.17

Stop Loss: 101.45
Target(s): 109.00
Current Option Gain/Loss: +74.5%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
09/11/13: The rally in N continues with shares outperforming the major indices again with a +1.1% gain on Wednesday. I am adjusting our stop loss up to $101.45.

Earlier Comments:
Our multi-week target is $109.00.

- Suggested Positions -

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

09/11/13 new stop loss @ 101.45
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


Starbucks Corp. - SBUX - close: 75.39 change: +1.18

Stop Loss: 69.95
Target(s): 78.00
Current Option Gain/Loss: Oct75c: +85.5% & 2014Jan75c: +33.8%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
09/11/13: The rally in SBUX is accelerating higher with shares surging +1.5% and closing at a new all-time high (above the early August peak). Shares are arguably short-term overbought here and more conservative traders might want to take profits early. I am not suggesting new positions at this time.

- Suggested Positions -

Long Oct $75 call (SBUX1319j75) entry $1.18

- or -

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

09/11/13 SBUX at new highs. Cautious traders may want to lock in some gains.

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


Tractor Supply Company - TSCO - close: 130.88 change: +1.58

Stop Loss: 124.75
Target(s): 134.00
Current Option Gain/Loss: +86.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
09/11/13: TSCO delivered its third strong gain in a row with today's +1.2% rally. The close above $130.00 is very encouraging since the $130 level could have been round-number, psychological resistance. I am raising our stop loss to $124.75.

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*

09/11/13 new stop loss @ 124.75
*option entry price is an estimate since the option did not trade at the time our play was opened.

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


UnitedHealth Group - UNH - close: 75.18 change: +0.83

Stop Loss: 73.40
Target(s): 79.75
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Comments:
09/11/13: UNH managed to break out past resistance at $75.00 yet it has not hit our suggested entry point at $75.25. The high today was $75.19. Odds are extremely high that if the market opens positive tomorrow that we will see UNH hit our entry point.

Earlier Comments:
I am suggesting a trigger to buy calls at $75.25. If triggered our target is $79.75.

Trigger @ 75.25

- Suggested Positions -

Buy the Oct $75 call (UNH1319j75) current ask $2.31

Entry on September -- at $---.--
Average Daily Volume = 3.3 million
Listed on September 10, 2013


PUT Play Updates

Bed Bath & Beyond Inc. - BBBY - close: 72.29 change: +0.51

Stop Loss: 73.55
Target(s): 66.50
Current Option Gain/Loss: Unopened
Time Frame: exit PRIOR to earnings on Sept. 25th
New Positions: Yes, see below

Comments:
09/11/13: BBBY dipped to a new relative low this morning but rebounded near the $71.50 level. The intraday low was $71.47. Thus our trade is not open yet. I don't see any changes from my prior comments.

Earlier Comments:
I am suggesting a trigger to buy puts at $71.45. If triggered our target is $66.50, just above the simple 200-dma. Please note that I would not be surprised to see a short-term bounce from the $70.00 level and the $72.00 area, once broken as support, should be new resistance. FYI: BBBY is expected to report earnings on September 25th. We will most likely exit prior to the earnings report to avoid any surprises.

Trigger @ 71.45

- Suggested Positions -

buy the Oct $70 PUT (BBBY1319v70)

Entry on September -- at $---.--
Average Daily Volume = 1.45 million
Listed on September 10, 2013


Diamond Offshore Drilling - DO - close: 65.29 change: +0.11

Stop Loss: 66.01
Target(s): 57.50
Current Option Gain/Loss: -55.2%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
09/11/13: I am urging caution here. Traders bought the dip in DO again. That's two days in a row that investors bought the dip near $64.65. More conservative traders may want to abandon ship early.

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

09/11/13 DO is not cooperating and traders may want to exit early now

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: 64.15 change: +1.17

Stop Loss: 57.65
Target(s): 74.50
Current Option Gain/Loss: +33.3%
Time Frame: 4 to 6 months
New Positions: see below

Comments:
09/11/13: CBI continues to charge higher after breaking out from its massive consolidation pattern. Shares outperformed the market indices with a +1.8% gain. The stock is nearing potential resistance at its May 2013 highs near the $64.65-65.00 area. I would not be surprised to see a short-term pullback.

I am raising our stop loss to $57.65.

FYI: After the closing bell tonight CBI announced an interim dividend on its stock of five cents per share, payable on September 30th, 2013 to shareholders of record on September 20th.

*Small Positions* - Suggested Positions -

Long 2014 Jan $65 call (CBI1418A65) entry $2.55

09/11/13 new stop loss @ 57.65
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: 53.95 change: +0.38

Stop Loss: 50.95
Target(s): 58.50
Current Option Gain/Loss: + 0.0%
Time Frame: exit PRIOR to 2014 March option expiration
New Positions: see below

Comments:
09/11/13: The bullish breakout in VGK continued on Wednesday with shares opening at $53.60 and posting a +0.7% gain by the closing bell. Our plan was to launch positions at the opening bell this morning.

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.

- Suggested Positions -

Long 2014 Mar $55 call (VGK1422L55) entry $1.80*

09/11/13 trade opens. VGK @ 53.60
*option entry @ 1.80 is an estimate.
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 BULLISH PLAYS

Sturm, Ruger & Co. Inc. - RGR - close: 58.63 change: +2.69

Stop Loss: 51.75
Target(s): 57.50
Current Option Gain/Loss: +117.7%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
09/11/13: Target achieved.

I cautioned readers that RGR could see some short covering. Today's +4.8% gain certainly looks like a little bit of a short squeeze. RGR managed to close at new all-time highs, just above its March 2013 highs near $58.50. Our exit target was hit at $57.50 this afternoon.

- Suggested Positions -

Oct $55 call (RGR1319j55) entry $1.24 exit $2.70 (+117.7%)

09/11/13 target hit
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

chart:

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