Editor's Note:

Most of the market gapped open higher on Monday morning in reaction to a U.S./Russia deal on Syria and news that Larry Summers had withdrawn from the Fed chairman nomination.

HAR, HBI, and MGA all hit our entry triggers today.


Current Portfolio:


CALL Play Updates

Alnylam Pharmaceuticals - ALNY - close: 54.51 change: -0.62

Stop Loss: 53.75
Target(s): sell half at $60.0 and half at $64.00
Current Option Gain/Loss: -44.8%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
09/16/13: Our ALNY trade is in trouble. The morning pop failed near $56 and ALNY posted its fifth decline in a row. Shares tested the $54.00 level this afternoon. If there is any follow through lower tomorrow we will likely see ALNY hit our stop at $53.75.

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

09/14/13 new stop loss @ 53.75, traders should be cautious given ALNY's recent relative weakness.

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


Anadarko Petroleum - APC - close: 93.36 change: -1.34

Stop Loss: 91.65
Target(s): 99.50
Current Option Gain/Loss: -23.9%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
09/16/13: APC also saw trader selling into the morning spike higher. This energy name underperformed its peers and the major indices with a -1.4% decline. Shares settled just below their simple 10-dma.

- 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


Cornerstone OnDemand, Inc. - CSOD - close: 53.68 change: -0.09

Stop Loss: 52.25
Target(s): 59.50
Current Option Gain/Loss: -40.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/16/13: CSOD held up pretty well on Monday. The stock chopped sideways and closed almost unchanged on the session. I would still wait for a new rally above $55.00 before considering new positions. As an alternative more nimble traders could look for a dip near $52.00 and buy a bounce instead (keep in mind that currently our stop loss is at $52.25).

- Suggested Positions -

Long Oct $55 call (CSOD1319j55) entry $2.60*

Entry on September 13 at $55.25
Average Daily Volume = 367 thousand
Listed on September 12, 2013


Fluor Corp. - FLR - close: 67.86 change: +0.65

Stop Loss: 64.75
Target(s): 74.50
Current Option Gain/Loss: Oct70c: - 9.5% & 2014jan70c: - 6.2%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
09/16/13: FLR hit a new two-year high this morning but the rally failed near the $69.00 mark and FLR pared its gains. Odds are good we're going to see FLR retest the $67.00 level again.

Our target is $74.50. You may want to aim higher. The Point & Figure chart for FLR is bullish with an $82 target.

- Suggested Positions -

Long Oct $70 call (FLR1319j70) entry $1.05

- or -

Long 2014 Jan $70 call (FLR1418a70) entry $3.20

Entry on September 12 at $67.65
Average Daily Volume = 1.1 million
Listed on September 11, 2013


Harman Intl. - HAR - close: 66.87 change: +0.41

Stop Loss: 64.70
Target(s): 71.00
Current Option Gain/Loss: -28.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/16/13: Our new play on HAR has been triggered. Actually the stock gapped open higher at $67.07, which was above our suggested entry point at $67.00. The stock's rally almost made it to $68 before paring its gains. If you're nimble you could try buying calls on a dip near $66.00. Otherwise I would wait for a new rise past $67.00.

Our short-term target is $71.00. More aggressive traders could aim higher. The point & figure chart is bullish with an $88 target.

- Suggested Positions -

Long Oct $70 call (HAR1319j70) entry $1.25

09/16/13 trade opened on gap higher at $67.07.
trigger was 67.00

Entry on September 16 at $67.07
Average Daily Volume = 690 thousand
Listed on September 14, 2013


Hanesbrand Inc. - HBI - close: 63.38 change: +1.38

Stop Loss: 59.90
Target(s): 68.50
Current Option Gain/Loss: -10.7%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
09/16/13: Our patience on HBI finally paid off with shares hitting our entry point today. The stock displayed relative strength with a +2.2% gain and a new multi-week high. Our trigger to buy calls was hit at $63.25.

Earlier Comments:
The late July high near $65.60 could be short-term overhead resistance. I would not be surprised to see HBI stall or pullback on its initial test of this level.

- Suggested Positions -

Long Oct $65 call (HBI1319j65) entry $1.40

Entry on September 16 at $63.25
Average Daily Volume = 612 thousand
Listed on September 10, 2013


Lennox Intl. - LII - close: 73.05 change: +0.26

Stop Loss: 69.65
Target(s): 74.90
Current Option Gain/Loss: +16.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/16/13: LII rallied toward last week's highs before stalling and paring its gains today. If the market reverses I would expect LII to dip back toward the $71-70 zone.

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


Magna Intl. - MGA - close: 83.46 change: +1.41

Stop Loss: 79.65
Target(s): 89.50
Current Option Gain/Loss: +12.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/16/13: The rally in MGA continued on Monday and shares outperformed the market with a +1.7% gain. Our plan was to buy calls at $82.65 but MGA gapped open higher at $82.76 this morning. The breakout past resistance at $82.00 is bullish and MGA ended the session at new all-time, record highs.

- Suggested Positions -

Long Oct $85 call (MGA1319j85) entry $1.20

09/16/13 trade opened on gap higher at $82.76
trigger was $82.65

Entry on September 16 at $82.76
Average Daily Volume = 545 thousand
Listed on September 14, 2013


NetSuite Inc. - N - close: 106.38 change: +0.35

Stop Loss: 102.40
Target(s): 109.00
Current Option Gain/Loss: +56.3%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
09/16/13: NetSuite produced a relatively quiet session on Monday. Today's minor gain erased Friday's small loss. There is no change from my prior comments.

N remains short-term overbought here. More conservative traders may want to exit immediately to lock in gains.

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

- Suggested Positions -

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

09/14/13 new stop loss @ 102.40
09/12/13 readers may want to take profits now
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


Northrop Gruman - NOC - close: 97.79 change: +1.60

Stop Loss: 94.25
Target(s): 99.75
Current Option Gain/Loss: Oct97.5c: +81.8% & 2014j100c: +27.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/16/13: Defense industry names continued to show relative strength on Monday and NOC added +1.66%. This is a new all-time high for the stock. I am raising our stop loss to $94.25.

FYI: The Point & Figure chart for NOC is bullish with a long-term $160 target.

- Suggested Positions -

Long Oct $97.50 call (NOC1319j97.5) entry $1.10

- or -

Long 2014 Jan $100 call (NOC1418a100) entry $2.16

09/16/13 new stop loss @ 94.25
09/14/13 new stop loss @ 93.30

Entry on September 12 at $95.25
Average Daily Volume = 1.2 million
Listed on September 11, 2013


Starbucks Corp. - SBUX - close: 75.24 change: -0.33

Stop Loss: 71.75
Target(s): 78.00
Current Option Gain/Loss: Oct75c: +63.5% & 2014Jan75c: +24.6%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
09/16/13: SBUX hits new highs with its gap open higher at $76.57. After a few minutes profit taking set in and SBUX followed the market lower. More conservative traders may want to take profits now, especially if you're holding the October $75 calls. I am not suggesting new positions.

- Suggested Positions -

Long Oct $75 call (SBUX1319j75) entry $1.18

- or -

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

09/14/13 new stop loss @ 71.75
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: 130.52 change: +0.02

Stop Loss: 127.75
Target(s): 134.00
Current Option Gain/Loss: +68.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
09/16/13: TSCO held up well today. Shares hit new all-time highs with the spike to $132.69 this morning. When the market's early morning rally faded traders continued to buy TSCO at short-term support near $130.00.

Investors will want to seriously consider taking profits now. I am raising our stop loss up to $127.75.

We will most likely exit this trade on Thursday ahead of its stock split on Friday.

Earlier Comments:
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*

09/16/13 new stop loss @ 127.75
09/12/13 traders may want to take profits now. Ask @ $3.90 (+77.2%)
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: 75.12 change: +0.64

Stop Loss: 73.40
Target(s): 79.75
Current Option Gain/Loss: - 6.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
09/16/13: Many of the healthcare names were showing relative strength today. UNH ended the session up +0.85% but that was after paring its gains from the midday highs. I remain cautiously bullish here.

- Suggested Positions -

Long Oct $75 call (UNH1319j75) entry $2.30

09/12/13 trade opened on gap higher at $75.32. Trigger was $75.25

Entry on September 12 at $ 75.32
Average Daily Volume = 3.3 million
Listed on September 10, 2013


PUT Play Updates

Diamond Offshore Drilling - DO - close: 64.39 change: -0.02

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:
09/16/13: DO followed the market with a gap higher at the open but gains didn't last. Shares closed virtually unchanged on the session.

I would be tempted to use a new drop under $64.00 as a bearish entry point.

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: 64.21 change: +0.71

Stop Loss: 57.65
Target(s): 74.50
Current Option Gain/Loss: +25.4%
Time Frame: 4 to 6 months
New Positions: see below

Comments:
09/16/13: It was a bit surprising to see CBI showing relative strength today (+1.1%) after Friday's apparent bearish reversal at resistance. CBI remains below resistance at the $65.00 level.

*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: 53.96 change: +0.25

Stop Loss: 50.95
Target(s): 58.50
Current Option Gain/Loss: + 5.5%
Time Frame: exit PRIOR to 2014 March option expiration
New Positions: see below

Comments:
09/16/13: All of the major European stock markets were up on Monday. That helped push the VGK to a new two-year high.

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. Ask closed at $1.75 yesterday
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