Editor's Note:

Stocks continued to see profit taking following the Wednesday afternoon spike higher.

Shares of Fluor Corp. (FLR) hit our bullish exit target on Friday.
BCR was stopped out.


Current Portfolio:


CALL Play Updates

Actavis, Inc. - ACT - close: 135.50 change: -2.90

Stop Loss: 134.70
Target(s): 148.50
Current Option Gain/Loss: -36.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/21/13: Our ACT trade is poised for trouble. If you look at an intraday chart the stock closed near $138.15 on Friday. Yet most of the quote services are listing ACT's closing price at $135.50 on Friday. If you look at after hours movement in ACT the stock did trade near $135.50 but bounced back toward $137.00.

The odd thing here is that I can't find any news to account for the late day plunge in shares of ACT. We can definitely expect some increased volatility on Monday morning. I am not suggesting new positions.

- Suggested Positions -

Long Oct $145 call (ACT1319j145) entry $1.50*

09/21/13 Shares of ACT were volatile right at the closing bell on Friday (09/20/13). Expected more volatility on Monday morning
*option entry price is an estimate since the option did not trade at the time our play was opened.

chart:

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


Anadarko Petroleum - APC - close: 93.69 change: -1.11

Stop Loss: 92.25
Target(s): 99.50
Current Option Gain/Loss: -30.8%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
09/21/13: Crude oil and energy-related stocks have seen a two-day pullback as traders sell the post-FOMC meeting spike higher. APC is back below its 10-dma. It looks like the stock could retest the Sept. 17th low near $92.70. We are turning more defensive here and raising our stop loss to $92.25. I am not suggesting new positions.

- Suggested Positions -

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

09/21/13 new stop loss @ 92.25
*option entry price is an estimate since the option did not trade at the time our play was opened.

chart:

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


Costco Wholesale Corp. - COST - close: 117.94 change: -1.26

Stop Loss: 116.90
Target(s): 127.50
Current Option Gain/Loss: Unopened
Time Frame: Exit PRIOR to earnings on October 9th
New Positions: Yes, see below

Comments:
09/21/13: After a three-day rally in shares of COST the stock reversed on Friday with a -1.0% decline. Shares are once again testing short-term technical support at their 10-dma. The stock remains inside the recent trading range. We are on the sidelines waiting for a breakout higher. I don't see any changes from my earlier comments.

Earlier Comments:
The early August high was $120.20. I am suggesting a trigger to buy calls at $120.30. If triggered our target is $127.50. However, we will plan on exiting positions prior to the earnings report on October 9th.

Trigger @ 120.30

- Suggested Positions -

Buy the Oct $120 call (COST1319j120)

chart:

Entry on September -- at $---.--
Average Daily Volume = 1.5 million
Listed on September 19, 2013


Cornerstone OnDemand, Inc. - CSOD - close: 54.04 change: -0.46

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:
09/21/13: CSOD is still struggling with resistance near the $55.00 level. Shares retreated on Friday but traders bought the dip near $53.00. I would wait for a new rally above $55.00 before considering new bullish positions.

- Suggested Positions -

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

chart:

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


Harman Intl. - HAR - close: 65.16 change: -1.55

Stop Loss: 64.70
Target(s): 71.00
Current Option Gain/Loss: -68.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/21/13: After holding up reasonably well on Thursday shares of HAR took a turn for the worse on Friday with a -2.3% plunge. The stock paused near its 40-dma and potential round-number support near $65.00. I couldn't find any news to account for Friday's relative weakness. If there is any follow through lower on Monday we could see HAR hit our stop loss at $64.70. I am not suggesting new positions.

- 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

chart:

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


Hanesbrand Inc. - HBI - close: 63.68 change: -0.79

Stop Loss: 62.25
Target(s): 68.50
Current Option Gain/Loss: -14.2%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
09/21/13: HBI also saw some profit taking on Friday, snapping a five-day winning streak. We are turning more defensive on this trade and moving our stop loss up to $62.25. If this dip continues, look for short-term support near the 10-dma (around 62.85).

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

09/21/13 new stop loss @ 62.25

chart:

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


Magna Intl. - MGA - close: 83.50 change: -0.91

Stop Loss: 81.90
Target(s): 89.50
Current Option Gain/Loss: + 0.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/21/13: I have to urge caution on our MGA trade. The stock hit a new all-time high on Friday morning. Unfortunately the stock couldn't breakout past the $85.00 level. Profit taking left MGA with a -1.0% decline. Friday's session has also created a bearish engulfing candlestick reversal pattern. We are adjusting our stop loss up to $81.90. I am not suggesting new positions at this time.

- Suggested Positions -

Long Oct $85 call (MGA1319j85) entry $1.20

09/21/13 new stop loss @ 81.90
09/16/13 trade opened on gap higher at $82.76
trigger was $82.65

chart:

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


NetSuite Inc. - N - close: 107.75 change: -0.02

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:
09/21/13: N held up well on Friday with the stock closing virtually unchanged for the session. Shares actually hit a new all-time high very briefly on Friday morning. 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.

chart:

Entry on September 09 at $101.05
Average Daily Volume = 294 thousand
Listed on September 03, 2013


Northrop Gruman - NOC - close: 96.30 change: -1.75

Stop Loss: 94.75
Target(s): 99.50
Current Option Gain/Loss: (Oct97.5c:+118.1%) & 2014j100c: - 2.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/21/13: Ouch! I cautioned readers on Thursday that NOC looked poised for more profit taking. The stock underperformed the market with a -1.78% decline. Defense-related stocks as a group were underperforming the market on Friday so it wasn't just NOC. Shares have paused near potential support at the early August highs. More conservative traders may want to raise their stops. 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

chart:

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


Red Robin Gourmet Burgers - RRGB - close: 69.65 change: +0.08

Stop Loss: 67.90
Target(s): 74.75
Current Option Gain/Loss: -31.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/21/13: Shares of Darden Restaurants (DRI) plunged on Friday due to an earnings miss. DRI's news could have weighed on the industry. Yet RRGB managed to ignore the news and just quietly consolidate sideways near the $70.00 level.

Traders may want to wait for a new rally past $70.25 or $70.75 before initiating new bullish positions on RRGB.

- Suggested Positions -

Long Oct $70 call (RRGB1319j70) entry $2.25

chart:

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


Starbucks Corp. - SBUX - close: 76.12 change: -0.23

Stop Loss: 73.90
Target(s): 79.00
Current Option Gain/Loss:(Oct75c:+ 93.2%) & 2014Jan75c: +36.9%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
09/21/13: Thankfully SBUX did not see a lot of follow through on Thursday's reversal lower. Shares did give back -0.3% on Friday but that was half what the S&P 500 gave back. SBUX could find potential short-term support at its 10-dma, the $75.00 level or its early August highs. I am not suggesting new positions at this time.

- 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.

chart:

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: 48.19 change: -0.56

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:
09/21/13: TFM is inching closer to a bearish breakdown below support near $48.00 and its 200-dma and 150-dma. 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) current ask $0.50

chart:

Entry on September -- at $---.--
Average Daily Volume = 591 thousand
Listed on September 16, 2013



Longer-Term Play Updates



Chicago Bridge & Iron - CBI - close: 66.64 change: -0.07

Stop Loss: 59.75
Target(s): 74.50
Current Option Gain/Loss: +76.4%
Time Frame: 4 to 6 months
New Positions: see below

Comments:
09/21/13: Traders bought the dip in CBI on Friday and shares almost made it back to positive territory. Broken resistance near $65.00 should be new support.

We are adjusting our stop loss to $59.75. More conservative investors may want to use a stop closer to $62 or higher.

*Small Positions* - Suggested Positions -

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

09/21/13 new stop loss @ 59.75
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

chart:

Entry on June 24 at $56.75
Average Daily Volume = 1.8 million
Listed on June 01, 2013


Vanguard FTSE Europe ETF - VGK - close: 55.13 change: -0.36

Stop Loss: 50.95
Target(s): 58.50
Current Option Gain/Loss: +25.0%
Time Frame: exit PRIOR to 2014 March option expiration
New Positions: see below

Comments:
09/21/13: Profit taking in the VGK continued on Friday with a -0.6% decline. Shares of this Europe-focused ETF were overbought so it's not surprising to see a pullback. The closest level of support is the $53.50 area. I am not suggesting new positions at this time.

Germany will hold national elections on September 22nd. European markets could be very volatile on Monday depending on German election results.

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.

chart:

Entry on September 11 at $---.--
Average Daily Volume = 3.0 million
Listed on August 10, 2013


CLOSED BULLISH PLAYS

CR Bard Inc. - BCR - close: 118.45 change: -1.65

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:
09/21/13: Ouch! BCR underperformed the market on Friday with a -1.37% decline and a breakdown below its 10-dma. Shares also broke down below short-term support near $119.00 and hit our stop loss at $118.75. I didn't see any specific headlines to explain BCR's relative weakness on Friday.

- 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.

chart:

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


Fluor Corp. - FLR - close: 72.01 change: +0.56

Stop Loss: 65.75
Target(s): 74.50
Current Option Gain/Loss: Oct70c:+285.7% & 2014jan70c: +73.4%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
09/21/13: Target achieved.

On Thursday the company had good news as it won a management contract from the U.S. D.O.E. for the SPR. Then on Friday the company announced another contract win, this time to build a gas compression system in Mexico. The stock reacted on Friday morning by gapping open higher at $73.37 and surging to $74.72 intraday. Shares pared their gains by the close to just +0.7%. Our exit target was hit at $74.50.

- Suggested Positions -

Oct $70 call (FLR1319j70) entry $1.05 exit $4.05 (+285.7%)

- or -

2014 Jan $70 call (FLR1418a70) entry $3.20 exit $5.55 (+73.4%)

09/20/13 target hit at $74.50
09/18/13 new stop loss @ 65.75

chart:

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