Editor's Note:

The stock market continues to sink following the post-FOMC meeting spike higher. The S&P 500 index is now down four days in a row.

COST has been removed. RRGB was stopped out.
SFUN and COO have been triggered.


Current Portfolio:


CALL Play Updates

Actavis, Inc. - ACT - close: 139.33 change: +0.73

Stop Loss: 134.70
Target(s): 148.50
Current Option Gain/Loss: -33.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/24/13: The bounce in ACT continued on Tuesday but shares remain stuck under the $140 level. More conservative traders might want to adjust their stops closer to the $136.00 level.

- 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: 94.71 change: +0.60

Stop Loss: 92.25
Target(s): 99.50
Current Option Gain/Loss: -23.9%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
09/24/13: APC spiked up toward the $96.00 level intraday before paring its gains. Shares still outperformed the major indices with a +0.6% gain today. 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


Hanesbrand Inc. - HBI - close: 63.41 change: -0.19

Stop Loss: 62.25
Target(s): 68.50
Current Option Gain/Loss: -32.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
09/24/13: HBI spiked lower this morning thanks to a downgrade. Yet traders bought the dip again near yesterday's low and short-term support around the $62.50 level. I am not suggesting new positions at this time.

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: 49.66 change: +0.61

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:
09/24/13: JAH displayed relative strength with a +1.24% gain today. Yet the rally stalled at round-number resistance near the $50.00 mark. There is no change from my earlier comments.

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: 84.43 change: +0.65

Stop Loss: 81.90
Target(s): 89.50
Current Option Gain/Loss: +20.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/24/13: MGA also displayed relative strength today with a +0.77% gain. The rally did stall at short-term resistance near $85.00. I need to warn you that tomorrow morning could be a little volatile. There were headlines, which appeared to surface after the closing bell, where MGA disclosed that German officials, armed with a search warrant, attended a Magna operating division in Germany in connection to an antitrust investigation. I don't see any afterhours drop in MGA's stock but that doesn't mean we won't see a knee jerk move lower. The press release about the event didn't have a lot of details.

- 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: 107.20 change: +0.89

Stop Loss: 104.75
Target(s): 109.75
Current Option Gain/Loss: +52.7%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
09/24/13: Shares of N bounced from the $106 area and outperformed the market with a +0.8% gain. I am suggesting traders remain cautious. The rebound struggled with short-term resistance near $108. I am not suggesting new positions.

- 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: 95.95 change: +0.09

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:
09/24/13: Hmm... many of the defense-related names produced decent bounces today. NOC's bounce was rather anemic. Shares just hovered near the $95.00 level. This could be a warning signal. More conservative traders may want to exit early now!

- 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


Starbucks Corp. - SBUX - close: 76.55 change: +1.19

Stop Loss: 73.90
Target(s): 79.00
Current Option Gain/Loss:(Oct75c:+ 93.2%) & 2014Jan75c: +43.0%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
09/24/13: SBUX shot higher this morning and traded above $77.00 before trimming its gains. The relative strength is encouraging. 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


SouFun Holdings - SFUN - close: 48.93 change: -1.05

Stop Loss: 47.90
Target(s): 57.50
Current Option Gain/Loss: -37.1%
Time Frame: exit prior to October expiration
New Positions: see below

Comments:
09/24/13: I have to urge caution here. Our new trade on SFUN has been triggered but the stock isn't cooperating. Our plan was to buy calls on a breakout over $51.00 with a trigger to buy calls at $51.10. SFUN gapped open higher at $51.14 and then promptly collapsed back below the $50 level. Shares underperformed the market with a -2.1% decline. The low today was $48.63. Our stop loss is at $47.90. I would wait for a new rally above $51.00 before considering new positions.

Earlier Comments:
This is an aggressive, higher-risk trade. I am suggesting we use small positions to help limit our risk. The recent high near $53.50 could be resistance but we're aiming for $57.50. The Point & Figure chart for SFUN is bullish with a $63 target.

*small positions* - Suggested Positions -

Long Oct $55 call (SFUN1319j55) entry $1.75*

09/24/13 trade opened on gap higher at $51.14. Trigger was 51.10
*option entry price is an estimate since the option did not trade at the time our play was opened.

Entry on September 24 at $51.14
Average Daily Volume = 1.2 million
Listed on September 23, 2013


PUT Play Updates

Alliant Techsystems - ATK - close: 97.20 change: +2.04

Stop Loss: 98.05
Target(s): 90.25
Current Option Gain/Loss: -50.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/24/13: Defense names bounced and ATK outperformed the market with a +2.1% gain. In spite of the big bounce the rally stalled at the new short-term (less than two-week) trend line of lower highs. We are adjusting our stop loss down to $98.05. If ATK rolls over back below its 50-dma (near 96.40) I would consider new 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

09/24/13 new stop loss @ 98.05

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


The Cooper Companies - COO - close: 127.79 change: -1.46

Stop Loss: 131.75
Target(s): 124.00
Current Option Gain/Loss: + 2.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/24/13: Our new trade on COO has been triggered. Shares opened lower at $129.24 and quickly hit our suggested entry point at $128.90. COO underperformed the market with a -1.1% decline.

- Suggested Positions -

Long Oct $125 PUT (COO1319v125) entry $2.00

Entry on September 24 at $128.90
Average Daily Volume = 280 thousand
Listed on September 23, 2013


The Fresh Market, Inc. - TFM - close: 48.13 change: -0.26

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:
09/24/13: TFM tried to bounce this morning but the rally failed under its 10-dma. Shares are inching closer to a breakdown below support. 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: 64.68 change: +1.41

Stop Loss: 65.60
Target(s): 60.15
Current Option Gain/Loss: -28.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/24/13: Ouch! After yesterday's bearish breakdown below the 100-dma there was no follow through lower today. Instead WDC shot higher at the open and continued to climb almost all day. WDC outperformed the market with a +2.2% gain. Shares do remain below the bearish trend of lower highs. I am not suggesting new positions at this time.

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: 66.36 change: +0.10

Stop Loss: 59.75
Target(s): 74.50
Current Option Gain/Loss: +72.5%
Time Frame: 4 to 6 months
New Positions: see below

Comments:
09/24/13: It was a quiet session for CBI with shares hovering near the $66 level.

*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: 54.70 change: -0.15

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:
09/24/13: Both the S&P 500 and the VGK have declined four days in a row. The VGK did try and bounce from its 10-dma this morning but the rebound rolled over under the $55.00 level midday.

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

Costco Wholesale Corp. - COST - close: 116.34 change: -1.23

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:
09/24/13: COST has broken down from its recent trading range. The stock looks vulnerable to more selling pressure. Our trade has not opened yet so we're removing COST as a bullish candidate. The suggested entry trigger was $120.30.

Trade did not open.

09/24/13 removed from the newsletter

chart:

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


Red Robin Gourmet Burgers - RRGB - close: 68.18 change: -0.39

Stop Loss: 67.90
Target(s): 74.75
Current Option Gain/Loss: -73.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/24/13: The stock market's afternoon weakness was too much for RRGB. The stock broke down under short-term support near $68.00 and hit our stop loss at $67.90 before paring its losses. The option saw a serious drop near the closing bell.

- Suggested Positions -

Oct $70 call (RRGB1319j70) entry $2.25 exit $0.60 (-73.3%)

09/24/13 stopped out

chart:

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