Editor's Note:

The S&P 500 index snapped a four-day winning streak with some minor profit taking today.

ACT and BCR were triggered.
DO was closed this morning.


Current Portfolio:


CALL Play Updates

Actavis, Inc. - ACT - close: 138.40 change: -0.70

Stop Loss: 134.70
Target(s): 148.50
Current Option Gain/Loss: -26.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/19/13: ACT gapped higher at the open but the rally failed to breakout past the $140 level. Our trigger to buy calls was hit at $139.50 this morning. Yet traders may want to wait for some follow through higher, maybe a new rise past $139.50 or even $140.00 before initiating new positions.

- Suggested Positions -

Long Oct $145 call (ACT1319j145) entry $1.50*
*option entry price is an estimate since the option did not trade at the time our play was opened.

Entry on September 19 at $139.50
Average Daily Volume = 985 thousand
Listed on September 18, 2013


Anadarko Petroleum - APC - close: 94.80 change: -0.16

Stop Loss: 91.65
Target(s): 99.50
Current Option Gain/Loss: -15.0%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
09/19/13: APC's early morning Thursday gains faded but traders stepped in to buy the dip this afternoon. I would still consider new positions here.

- 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


CR Bard Inc. - BCR - close: 120.10 change: -0.45

Stop Loss: 118.75
Target(s): 124.75
Current Option Gain/Loss: -24.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/19/13: BCR gave back about a third of yesterday's gains but not before hitting new highs. Shares actually gapped open higher at $120.86. That was above our suggested entry point at $120.75 so our trade opened this morning. Traders did buy the dip near $120.00 midday. Readers may want to watch for a bounce off the $120.00 mark before initiating new positions.

- Suggested Positions -

Long Oct $120 call (BCR1319j120) entry $2.45*

09/19/13 trade opened on gap higher at $120.86.
suggested trigger was $120.75
*option entry price is an estimate since the option did not trade at the time our play was opened.

Entry on September 19 at $120.86
Average Daily Volume = 448 thousand
Listed on September 18, 2013


Cornerstone OnDemand, Inc. - CSOD - close: 54.50 change: +0.59

Stop Loss: 52.25
Target(s): 59.50
Current Option Gain/Loss: -34.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/19/13: After underperforming yesterday CSOD displayed some relative strength today with a +1.0% gain. The stock remains under short-term resistance near the $55.00 level.

- 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: 71.45 change: +1.54

Stop Loss: 65.75
Target(s): 74.50
Current Option Gain/Loss: Oct70c:+142.8% & 2014jan70c: +46.8%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
09/19/13: FLR has put together two big days in a row with a +2.2% gain today, which lifted shares above potential round-number resistance at the $70.00 mark. Today's move may have gotten a boost from news that the U.S. Department of Energy has awarded FLR a five-year contract to manage and operate the U.S. strategic petroleum reserve (SPR). The contract is worth almost $700 million.

If you're holding the October $70 calls you may want to take profits now with the bid up to $2.55 (+142.8%).

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: 66.71 change: -0.40

Stop Loss: 64.70
Target(s): 71.00
Current Option Gain/Loss: -44.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/19/13: Yesterday HAR delivered a disappointing performance and the disappointment continues today. Shares lost -0.59% and the stock is once again testing very short-term support near $66.00. I am not suggesting 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: 64.47 change: +0.40

Stop Loss: 59.90
Target(s): 68.50
Current Option Gain/Loss: +14.2%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
09/19/13: Traders bought the morning dip and HBI outperformed the major indices with a +0.6% gain. The stock is nearing potential resistance at $65.00 and its late July and early August highs.

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: 84.41 change: +0.70

Stop Loss: 79.65
Target(s): 89.50
Current Option Gain/Loss: +37.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/19/13: MGA rallied this morning but shares struggled to get past potential round-number resistance near the $85.00 level. I am not suggesting new positions at this time.

- 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: 107.77 change: +0.27

Stop Loss: 104.75
Target(s): 109.75
Current Option Gain/Loss: +78.1%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
09/19/13: N briefly traded above short-term resistance at $108.00 but pared its gains by the closing bell. I don't see any changes from my prior comments. We are not suggesting new positions at this time. More conservative traders may want to lock in gains now.

- 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: 98.05 change: -0.54

Stop Loss: 94.75
Target(s): 99.50
Current Option Gain/Loss: (Oct97.5c:+118.1%) & 2014j100c: +27.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/19/13: Defense-related names saw a pullback today and NOC was no exception. Shares retreated from the $99 level this morning and closed with a -0.5% decline . The stock looks poised for more profit taking. I am not suggesting new positions.

- 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: 69.57 change: -0.55

Stop Loss: 67.90
Target(s): 74.75
Current Option Gain/Loss: -26.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/19/13: RRGB erased yesterday's gains with a pullback this morning. Shares spent the rest of the day drifting sideways. I would wait for a new rally past $70.00 before considering new bullish positions (or more conservative traders could wait for 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: 76.35 change: -0.98

Stop Loss: 73.90
Target(s): 79.00
Current Option Gain/Loss:(Oct75c:+ 93.2%) & 2014Jan75c: +41.5%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
09/19/13: SBUX felt some profit taking today with a -1.2% decline. This helps reinforce our decision to take profits on the October $75 calls yesterday morning. We still have the 2014 January calls.

SBUX could find some short-term support at the $76.00 level and the early August highs near $74.25. Yesterday we raised the stop to $73.40. Today I am raising our stop loss to $73.90.

- Suggested Positions -

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

- or -

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

09/19/13 new stop loss @ 73.90
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

The Fresh Market, Inc. - TFM - close: 48.75 change: -0.94

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:
09/19/13: It looks like TFM's attempt to bounce is failing near round-number resistance at $50.00. 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: 66.71 change: +0.52

Stop Loss: 57.65
Target(s): 74.50
Current Option Gain/Loss: +80.3%
Time Frame: 4 to 6 months
New Positions: see below

Comments:
09/19/13: CBI extended its rally another day and hit another new all-time high. Broken resistance near $65.00 should be new support.

*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: 55.49 change: -0.27

Stop Loss: 50.95
Target(s): 58.50
Current Option Gain/Loss: +30.5%
Time Frame: exit PRIOR to 2014 March option expiration
New Positions: see below

Comments:
09/19/13: After yesterday's big afternoon spike higher it's not surprising to see the VGK slowly drift lower today. I would not chase it here. Wait for a deeper 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 BEARISH PLAYS

Diamond Offshore Drilling - DO - close: 64.27 change: -1.16

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:
09/19/13: Sometimes the trading gods are cruel. Last night we decided to close our DO trade because shares were not cooperating. Today the stock underperforms the market with a -1.77% bearish reversal lower. Our trade closed at the open this morning (65.49).

- Suggested Positions -

Oct $60 PUT (DO1319v60) entry $0.85 exit $0.22 (-74.1%)

09/19/13 scheduled exit at the open
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

chart:

Entry on September 03 at $63.75
Average Daily Volume = 1.0 million
Listed on August 28, 2013