Editor's Note:

The major U.S. stock market indices all tested short-term technical support at their rising (simple) 10-dma today.

CSOD and HAR have been stopped out.
ATK and WDC were both triggered today.


Current Portfolio:


CALL Play Updates

Actavis, Inc. - ACT - close: 138.60 change: +3.10

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:
09/23/13: We were expecting some volatility in ACT this morning. Shares managed to bounce back after Friday's odd close lower. I am suggesting caution. Traders may want to wait for ACT to close above $140.00 before initiating 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.

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


Anadarko Petroleum - APC - close: 94.11 change: +0.42

Stop Loss: 92.25
Target(s): 99.50
Current Option Gain/Loss: -32.4%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
09/23/13: Crude oil prices continued to drop on Monday but APC managed to bounce after traders bought the morning dip at $92.65 (near last week's low). I will point out that the MACD indicator on APC's daily chart has turned bearish. 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.

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


Costco Wholesale Corp. - COST - close: 117.57 change: -0.37

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:
09/23/13: COST bounced near the bottom of its $117-119.50 trading range this morning. 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)

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


Hanesbrand Inc. - HBI - close: 63.60 change: -0.08

Stop Loss: 62.25
Target(s): 68.50
Current Option Gain/Loss: -21.4%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
09/23/13: HBI traded down toward last week's low near $62.50 and bounced. If the market cooperates we could see HBI challenging its late July highs soon.

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

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


Jarden Corp. - JAH - close: 49.05 change: -0.56

Stop Loss: 47.75
Target(s): 54.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
09/23/13: Bullish analyst comments on JAH this morning couldn't stop shares from following the widespread market weakness lower. Traders did step in to buy the dip near last Wednesday's lows and JAH's rising 10-dma. Currently we are on the sidelines waiting for a new high.

Earlier Comments:
I am suggesting a trigger to buy calls at $50.25. If triggered our target is $54.50. More aggressive traders could aim higher.

I am suggesting the October calls but you might want to consider buying the 2014 January calls instead.

Trigger @ 50.25

- Suggested Positions -

buy the Oct $50 call (JAH1319j50)

Entry on September -- at $---.--
Average Daily Volume = 1.9 million
Listed on September 21, 2013


Magna Intl. - MGA - close: 83.78 change: +0.28

Stop Loss: 81.90
Target(s): 89.50
Current Option Gain/Loss: + 4.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/23/13: MGA almost hit its simple 10-dma this morning before bouncing. Shares managed to rebound back into positive territory. I am cautiously bullish here. Given the market's widespread weakness today 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

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


NetSuite Inc. - N - close: 106.31 change: -1.44

Stop Loss: 104.75
Target(s): 109.75
Current Option Gain/Loss: +38.1%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
09/23/13: Warning! Today's action in N looks bearish. The stock managed to resist the market's declines on Thursday and Friday last week but it was playing catch up today with a -1.3% drop. Shares also closed below their simple 10-dma. Today's low was $105.80. More conservative traders may want to exit now or raise their stop closer to today's low.

- 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: 95.86 change: -0.44

Stop Loss: 94.75
Target(s): 99.50
Current Option Gain/Loss: (Oct97.5c:+118.1%) & 2014j100c: -12.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/23/13: NOC found support near $95.50 this morning. Shares did manage to trim their losses but NOC seemed to struggle with the $96.00 level. As long as the broader market does not accelerate lower I would expect the $95 area to hold as support. 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: 68.57 change: -1.08

Stop Loss: 67.90
Target(s): 74.75
Current Option Gain/Loss: -48.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/23/13: RRGB underperformed the market with a -1.5% decline. Shares did bounce at short-term support near $68.00. If there is any follow through lower tomorrow then we'll likely see RRGB hit our stop loss at $67.90.

- 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: 75.36 change: -0.76

Stop Loss: 73.90
Target(s): 79.00
Current Option Gain/Loss:(Oct75c:+ 93.2%) & 2014Jan75c: +21.5%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
09/23/13: Profit taking in SBUX continued on Monday with a -0.99% drop and a close below its simple 10-dma. Traders did buy the dip near the $75.00 level but SBUX could break below $75 if the market continues to slip. We have a stop loss at $73.90 but more conservative traders might want to raise their stop. 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.

Entry on September 05 at $72.35
Average Daily Volume = 3.0 million
Listed on September 04, 2013


PUT Play Updates

Alliant Techsystems - ATK - close: 95.16 change: -0.44

Stop Loss: 99.51
Target(s): 90.25
Current Option Gain/Loss: -17.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/23/13: Defense-related names continued to sink on Monday. ATK traded below potential round-number support at $95.00 on an intraday basis and hit our suggested entry point to buy puts at $94.75. I would still consider new positions now or you could wait for a new drop under $94.75 before launching positions.

Earlier Comments:
Our target is $90.25. More aggressive traders may want to aim for the rising 100-dma instead. I do consider this a slightly more aggressive, higher-risk trade because we're using a wider stop loss, just above Friday's intraday high.

- Suggested Positions -

Long Oct $95 PUT (ATK1319v95) entry $2.80

Entry on September 23 at $94.75
Average Daily Volume = 434 thousand
Listed on September 21, 2013


The Fresh Market, Inc. - TFM - close: 48.39 change: +0.20

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:
09/23/13: TFM briefly traded below support near $48.00 and its simple 200-dma. Traders bought the dip and shares bounced, outperforming the market with a +0.4% gain. The intraday low today was $47.78.
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 $0.40

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


Western Digital Corp. - WDC - close: 63.27 change: -0.41

Stop Loss: 65.60
Target(s): 60.15
Current Option Gain/Loss: - 1.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/23/13: As expected WDC continued to sink on Monday. What we did not expect was the gap down at $63.24. Our plan was to buy puts at $63.50 so the gap down instantly opened our play. I would still consider new bearish positions now at current levels.

(NOTE: Surprisingly, the Oct. $60 put did not gap higher in spite of WDC's gap down this morning. Our option position opened at $1.22.)

Earlier Comments:
our target is $60.15. I would keep our position size small to limit risk. More aggressive traders may want to aim lower. The Point & Figure chart for WDC is bearish with a $52 target.

*small positions* - Suggested Positions -

Long Oct $60 PUT (WDC1319v60) entry $1.22

09/23/13 trade opened on gap down at $63.24.
suggested trigger was $63.50

Entry on September 23 at $63.24
Average Daily Volume = 2.2 million
Listed on September 21, 2013



Longer-Term Play Updates



Chicago Bridge & Iron - CBI - close: 66.26 change: -0.38

Stop Loss: 59.75
Target(s): 74.50
Current Option Gain/Loss: +68.6%
Time Frame: 4 to 6 months
New Positions: see below

Comments:
09/23/13: CBI pared its losses with a bounce from its Monday morning lows. I suspect we could see CBI retest the $64-65 zone as support.

*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

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


Vanguard FTSE Europe ETF - VGK - close: 54.85 change: -0.07

Stop Loss: 50.95
Target(s): 58.50
Current Option Gain/Loss: +16.6%
Time Frame: exit PRIOR to 2014 March option expiration
New Positions: see below

Comments:
09/23/13: German Chancellor Angela Merkel won a decisive victory in the German national elections on Sunday. Yet instead of market's rallying on the news investors decided to sell the news instead. The VGK has seen three days of profit taking.

Look for support in the $53.00-53.50 zone.

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

Cornerstone OnDemand, Inc. - CSOD - close: 53.32 change: -0.72

Stop Loss: 52.25
Target(s): 59.50
Current Option Gain/Loss: -71.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/23/13: It was a volatile session for shares of CSOD and the stock hit our stop loss at $52.25.

Unfortunately, I couldn't find any headlines behind this morning's relative weakness. The stock plunged just below its 30-dma and the $52.00 level before bouncing back and paring its losses.

- Suggested Positions -

Oct $55 call (CSOD1319j55) entry $2.60* exit $0.75**(-71.1%)

09/23/13 stopped out
**option exit price is an estimate since the option did not trade at the time our play was closed.
*option entry price is an estimate since the option did not trade at the time our play was opened.

chart:

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


Harman Intl. - HAR - close: 64.65 change: -0.51

Stop Loss: 64.70
Target(s): 71.00
Current Option Gain/Loss: -80.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/23/13: After Friday's sharp reversal lower we are not surprised to see HAR continue to sink on Monday. Shares hit our stop loss at $64.70. The stock did manage an intraday bounce once it hit the early September lows but the rebound was struggling this afternoon near $65.

- Suggested Positions -

Oct $70 call (HAR1319j70) entry $1.25 exit $0.25 (-80.0%)

09/23/13 stopped out
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