Editor's Note:

Wall Street was surprised by the Federal Reserve's decision to not begin tapering their QE program. Investors reacted by sending equities higher.

Shares of Lennox Intl. (LII) hit our bullish exit target today.
RRGB was triggered. TSCO was closed at the open. UNH was stopped out. We also exited the October calls on NOC and SBUX. j

Tomorrow we want to exit our DO put play.


Current Portfolio:


CALL Play Updates

Anadarko Petroleum - APC - close: 94.96 change: +1.29

Stop Loss: 91.65
Target(s): 99.50
Current Option Gain/Loss: - 7.2%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
09/18/13: Oil rallied today and the energy stocks tried to keep up. APC added +1.37%. The bounce today looks like a new bullish entry point to buy calls.

- 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: 53.91 change: +0.23

Stop Loss: 52.25
Target(s): 59.50
Current Option Gain/Loss: -48.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/18/13: CSOD added +0.4% today as traders bought the dip near its 10-dma. The bounce underperformed the broader market. I would be cautious here. I would still wait for a new rally above $55.00 before considering new positions.

- 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: 69.91 change: +1.87

Stop Loss: 65.75
Target(s): 74.50
Current Option Gain/Loss: Oct70c: +61.9% & 2014jan70c: +21.8%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
09/18/13: The post-FOMC meeting rally in FLR was a sharp one with shares surging to $70.74 intraday. The stock settled with a +2.7% gain and closed just below round-number resistance at the $70.00 level. I am raising our stop loss to $65.75.

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

09/18/13 new stop loss @ 65.75

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


Harman Intl. - HAR - close: 67.11 change: +0.19

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:
09/18/13: HAR's performance today was disappointing. Shares dipped toward support near $66.00, which we suggested might happen. The stock bounced but HAR only gained +0.28% today. Traders may want to wait for some follow through higher before initiating new positions.

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: 64.07 change: +0.51

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:
09/18/13: Traders were also in a buy-the-dip mood with HBI today. The stock slipped toward its 10-dma before rebounding and closing up +0.8%. I would use today's rebound as a new bullish entry point to buy calls.

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


Magna Intl. - MGA - close: 83.71 change: +0.04

Stop Loss: 79.65
Target(s): 89.50
Current Option Gain/Loss: +16.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/18/13: MGA did not really participate in the market's rally today. Shares were actually sliding lower ahead of the FOMC decision. The afternoon market rally lifted MGA to virtually unchanged on the day. Today's performance is a bit troubling. More conservative traders may want to raise their stop loss.

- 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: 107.50 change: +0.78

Stop Loss: 104.75
Target(s): 109.75
Current Option Gain/Loss: +74.5%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
09/18/13: N managed a +0.7% gain but the stock remains stuck under short-term resistance near the $108.00 level. Fortunately, N does look poised to breakout higher. I am raising our exit target from $109.00 to $109.75. I am also raising our stop loss to $104.75.

- Suggested Positions -

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

09/18/13 new stop loss @ 104.75, adjust exit target to $109.75
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: 98.59 change: -0.16

Stop Loss: 94.75
Target(s): 99.50
Current Option Gain/Loss: Oct97.5c:+118.1% & 2014j100c: +38.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/18/13: NOC delviered a disappointing performance. Shares were slipping lower before they bounce near $97.50. Then the market's afternoon rally lifted NOC to a new high before the stock pared its gains. The intraday high was $99.05 and our target is $99.50. More conservative traders may want to just take profits right now and exit early.

Speaking of exiting early, our plan was to exit our October $97.50 calls this morning to lock in gains before the Fed decision. The option did not trade at the open so our exit price is an estimate.

- Suggested Positions -

Oct $97.50 call (NOC1319j97.5) entry $1.10 exit $2.40*(+118.1%)

- or -

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

09/18/13 closed the Oct. $97.50 calls @ the open
*option exit price is an estimate since the option did not trade at the time our play was closed.
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


Red Robin Gourmet Burgers - RRGB - close: 70.12 change: +0.50

Stop Loss: 67.90
Target(s): 74.75
Current Option Gain/Loss: -11.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/18/13: Our brand new trade on RRGB has been triggered. The stock traded above resistance near $70.00 this morning and then again later this afternoon. Our suggested entry point was hit at $70.25. I would still consider new positions now or you could wait to see some follow through and buy calls on a rally past $70.50 instead.

- Suggested Positions -

Long Oct $70 call (RRGB1319j70) entry $2.25

Entry on September 18 at $70.25
Average Daily Volume = 126 thousand
Listed on September 17, 2013


Starbucks Corp. - SBUX - close: 77.33 change: +1.29

Stop Loss: 72.40
Target(s): 79.00
Current Option Gain/Loss: Oct75c:+ 93.2% & 2014Jan75c: +60.0%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
09/18/13: It was another bullish day for SBUX. The post-FOMC decision market rally lifted shares to a +1.69% gain and another new all-time closing high. I am adjusting our exit target to $79.00 (for the 2014 January call). We're also moving the stop loss to $73.40.

It was our plan to lock in gains on our October $75 call at the opening bell this morning. The option gapped down and our exit was $2.28. If we had held them the bid is currently up to $3.20.

- Suggested Positions -

Oct $75 call (SBUX1319j75) entry $1.18 exit $2.28 (+93.2%)

- or -

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

09/18/13 new stop loss @ 73.40, adjust exit to $79.00
this morning we closed the Oct. $75 calls at the open.
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


PUT Play Updates

Diamond Offshore Drilling - DO - close: 65.43 change: +0.42

Stop Loss: 66.01
Target(s): 57.50
Current Option Gain/Loss: -74.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
09/18/13: We are giving up on our DO put play. Shares are not cooperating. The last few days is starting to look like a short-term bottom for DO. We are suggesting an immediate exit at the opening bell tomorrow morning. The October $60 put currently has a bid at $0.22.

- Suggested Positions -

Long Oct $60 PUT (DO1319v60) entry $0.85

09/18/13 prepare to exit at the open tomorrow
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: 49.69 change: -0.13

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:
09/18/13: TFM rebounded off its midday lows but shares really didn't participate in the market's widespread gains today. 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: 66.19 change: +2.03

Stop Loss: 57.65
Target(s): 74.50
Current Option Gain/Loss: +68.6%
Time Frame: 4 to 6 months
New Positions: see below

Comments:
09/18/13: The post-Fed rally today helped boost CBI past resistance near the $65.00 level. Shares outperformed the major indices with a +3.1% gain.

*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: 55.76 change: +1.37

Stop Loss: 50.95
Target(s): 58.50
Current Option Gain/Loss: +38.8%
Time Frame: exit PRIOR to 2014 March option expiration
New Positions: see below

Comments:
09/18/13: The VGK also reacted well to the no taper headline and shares soared to a new two-year high with a +2.5% gain. I would not chase it here. Wait for a pullback.

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

Lennox Intl. - LII - close: 74.76 change: +1.06

Stop Loss: 69.65
Target(s): 74.90
Current Option Gain/Loss: +61.2%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/18/13: Target achieved.

The post-Fed meeting rally pushed LII past resistance at the $75.00 level. Our exit target was hit at $74.90.

- Suggested Positions -

Oct $70 call (LII1319j70) entry $3.10* exit $5.00** (+61.2%)

09/18/13 target hit
**option exit price is an estimate since the option did not trade at the time our play was closed.
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.

chart:

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


Tractor Supply Company - TSCO - close: 131.15 change: +0.40

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:
09/18/13: TSCO underperformed the market this morning but shares bounced back thanks to the market's widespread rally this afternoon. Our plan was to exit positions this morning at the opening bell to lock in gains.

Our option exit price is an estimate. TSCO gapped open higher by five cents but the option didn't trade right at the open.

Don't forget TSCO is due to split 2-for-1 on Friday.

- Suggested Positions -

Oct $130 call (TSCO1319j130) entry $2.20* exit $3.70** (+68.1%)

09/18/13 scheduled exit
**option exit price is an estimate since the option did not trade at the time our play was closed.
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.

chart:

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


UnitedHealth Group - UNH - close: 73.04 change: -1.27

Stop Loss: 73.40
Target(s): 79.75
Current Option Gain/Loss: -41.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
09/18/13: UNH hit our stop loss @ 73.40. The stock has been weak right at the opening bell two days in a row. I couldn't find any specific headlines to explain this relative weakness. UNH broke down below short-term support near $74.00 and hit our stop loss pretty quickly.

- Suggested Positions -

Oct $75 call (UNH1319j75) entry $2.30 exit $1.35 (-41.3%)

09/18/13 stopped out
09/12/13 trade opened on gap higher at $75.32. Trigger was $75.25

chart:

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