Editor's Note:

The stock market continued to rally ahead of the FOMC decision tomorrow afternoon.

Many stocks merely churned sideways today as market participants wait for the FOMC decision and Bernanke's press conference. Wall Street wants to know if the Fed will begin to taper their QE program or not. Traders may want to consider taking profits early or scaling back positions before the 2:00 p.m. FOMC announcement. Stocks could very volatile immediately after the announcement. If the Fed disappoints then stocks could see a lot of profit taking.

ALNY was stopped out.
We want to exit our October calls on the NOC and SBUX trades tomorrow morning. I am also suggesting we exit our TSCO calls at the open tomorrow.


Current Portfolio:


CALL Play Updates

Anadarko Petroleum - APC - close: 93.67 change: +0.31

Stop Loss: 91.65
Target(s): 99.50
Current Option Gain/Loss: -22.9%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
09/17/13: APC bounced off its morning lows and closed up +0.3%. Today's high was $94.27. Readers may want to wait for a new rise past today's high before considering new bullish positions.

- 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: -0.00

Stop Loss: 52.25
Target(s): 59.50
Current Option Gain/Loss: -46.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/17/13: CSOD dipped to short-term support at its 10-dma and bounced. The stock eventually closed unchanged on the session. I don't see any changes from my prior comments. 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: 68.04 change: +0.18

Stop Loss: 64.75
Target(s): 74.50
Current Option Gain/Loss: Oct70c: - 4.7% & 2014jan70c: - 3.1%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
09/17/13: FLR found some support near $67.60 this morning. The stock closed with a +0.2% gain, which lagged behind the broader market indices. I would still bet on a dip back to the $67.00 level before FLR moves higher.

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: 66.92 change: +0.05

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:
09/17/13: Tuesday proved to be a very quiet session for HAR with shares hovering near the $67.00 level all day long. Traders could launch positions here or look for a dip back toward $66.00 as an alternative entry point.

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: 63.56 change: +0.18

Stop Loss: 59.90
Target(s): 68.50
Current Option Gain/Loss: - 7.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
09/17/13: HBI ended near its highs for the session but the stock only gained +0.2%. That performance lags behind the S&P 500's +0.4% gain today. Shares look poised to move higher but that could depend on how traders interpret the FOMC news tomorrow.

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: 73.70 change: +0.65

Stop Loss: 69.65
Target(s): 74.90
Current Option Gain/Loss: +22.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/17/13: LII displayed some relative strength today. Traders were buying the dips near $73 and LII ended the day up +0.88%. More conservative traders might want to raise their stop loss.

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: 83.67 change: +0.21

Stop Loss: 79.65
Target(s): 89.50
Current Option Gain/Loss: +20.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/17/13: After yesterday's bullish breakout past resistance MGA continued to drift higher today (+0.25%). Broken resistance near $82.00 should be new support and nimble traders could buy calls on a dip near $82 if the market retreats.

- 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: 106.72 change: +0.34

Stop Loss: 103.75
Target(s): 109.00
Current Option Gain/Loss: +60.0%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
09/17/13: N continues to churn sideways inside the $106-108 zone. I am raising our stop loss to $103.75.

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*

09/17/13 new stop loss @ 103.75
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: 98.75 change: +0.96

Stop Loss: 94.75
Target(s): 99.50
Current Option Gain/Loss: Oct97.5c:+127.2% & 2014j100c: +43.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/17/13: There was no slow down in the rally for NOC. Shares shot higher at the open and hit $98.84 this afternoon. The stock is approaching potential round-number resistance at the $100.00 mark. I am adjusting our exit target down to $99.50. I am also moving our stop loss up to $94.75.

Please note that I am suggesting we exit our October $97.50 calls immediately at the opening bell tomorrow. These October calls ended the day with a bid at $2.50 (+127.2%).

- Suggested Positions -

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

- or -

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

09/17/13 prepare to exit the Oct. $97.50 calls at the open tomorrow
09/17/13 new stop loss @ 94.75, adjust exit target to $99.50
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: 76.04 change: +0.80

Stop Loss: 72.40
Target(s): 78.00
Current Option Gain/Loss: Oct75c:+100.8% & 2014Jan75c: +36.9%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
09/17/13: Traders bought the dip in SBUX this morning and the stock outpaced the market with a +1.0% gain. This is a new all-time, closing high.

I am moving our stop loss up to $72.40. I am also suggesting we exit our October $75 calls immediately at the opening bell tomorrow morning. Our October calls closed with a bid at $2.37 (+100%).

- Suggested Positions -

Long Oct $75 call (SBUX1319j75) entry $1.18

- or -

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

09/17/13 prepare to exit the October $75 calls at the open tomorrow
09/17/13 new stop loss @ 72.40
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: 130.75 change: +0.23

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:
09/17/13: TSCO continues to churn sideways above the $130 level. I am suggesting we go ahead and exit our positions tomorrow at the opening bell. Our October calls currently have a bid at $3.70. I'd rather exit now ahead of the FOMC meeting and lock in a gain than risk seeing this trade reverse lower on us when we were already planning to exit on Thursday.

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*

09/17/13 prepare to exit at the opening bell tomorrow morning
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: 74.31 change: -0.81

Stop Loss: 73.40
Target(s): 79.75
Current Option Gain/Loss: -27.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
09/17/13: Hmm... I could not find any headlines to explain UNH's relative weakness today (-1.0%). The stock plunged to the $74.00 level and then stalled. I would wait for a new bounce above $75.00 before considering new bullish positions.

- 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: 65.01 change: +0.62

Stop Loss: 66.01
Target(s): 57.50
Current Option Gain/Loss: -67.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
09/17/13: Crude oil continued to sink on Tuesday but that didn't stop the energy stocks from rebounding higher. DO followed the industry higher and posted a +0.9% gain. More conservative traders may want to abandon ship. 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

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


The Fresh Market, Inc. - TFM - close: 49.82 change: +1.56

Stop Loss: 50.05
Target(s): 42.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
09/17/13: TFM is not cooperating either. The stock shot higher this morning and closed the session with a +3.2% gain. I couldn't find any headlines to account for today's display of relative strength. For the moment we are still on the sidelines. There is no change from my prior comments.

Earlier Comments:
The September 4th low was $47.71. I am suggesting a trigger to buy puts at $47.50. If triggered our target is $42.00. I am suggesting we keep our position size small because TFM can be a little bit volatile. Plus the most recent data listed short interest at 13% of its small 40.1 million share float.

FYI: The Point & Figure chart for TFM is bearish with a $39 target.

Trigger @ 47.50

- Suggested Positions -

buy the Oct $45 PUT (TFM1319v45)

Entry on September -- at $---.--
Average Daily Volume = 591 thousand
Listed on September 16, 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:
09/17/13: Traders bought the dip in CBI this morning. The stock closed unchanged on the session. 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: 54.39 change: +0.03

Stop Loss: 50.95
Target(s): 58.50
Current Option Gain/Loss: + 2.7%
Time Frame: exit PRIOR to 2014 March option expiration
New Positions: see below

Comments:
09/17/13: VGK also rebounded from its morning lows but gains proved to be elusive.

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


CLOSED BULLISH PLAYS

Alnylam Pharmaceuticals - ALNY - close: 54.50 change: -0.01

Stop Loss: 53.75
Target(s): sell half at $60.0 and half at $64.00
Current Option Gain/Loss: -59.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
09/17/13: ALNY continues to underperform the market. The major market indices continued to rally on Tuesday. Yet ALNY failed to participate and posted its sixth decline in a row. Shares almost closed unchanged on the session but not before slipping below the $54.00 level and hitting our stop loss at $53.75.

Earlier Comments:
We want to keep our position size small to limit our risk.

*small positions* - Suggested Positions -

Oct $60 call (ALNY1319j60) entry $2.45 exit $1.00 (-59.1%)

09/17/13 stopped out
09/14/13 new stop loss @ 53.75, traders should be cautious given ALNY's recent relative weakness.

chart:

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