Editor's Note:

The S&P 500 index posted its fifth decline in a row, the first time that has happened this year.

Prepare to exit our N call play tomorrow morning.
TFM was triggered. WDC was stopped out.


Current Portfolio:


CALL Play Updates

Actavis, Inc. - ACT - close: 139.09 change: -0.24

Stop Loss: 135.75
Target(s): 148.50
Current Option Gain/Loss: -40.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/25/13: ACT tried to rally past resistance near $140 this morning but traders quickly sold the move and shares reversed under their early September highs. We are turning more cautious here and raising the stop loss to $135.75.

- Suggested Positions -

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

09/25/13 new stop loss @ 135.75
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: 94.83 change: +0.12

Stop Loss: 92.25
Target(s): 99.50
Current Option Gain/Loss: -22.6%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
09/25/13: APC managed to eke out another small gain. Yet shares struggled under yesterday's high near $96.00. 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


3D Systems - DDD - close: 54.96 change: -0.19

Stop Loss: 52.48
Target(s): 59.75 & 64.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks and two-to-three months
New Positions: Yes, see below

Comments:
09/25/13: Shares of DDD quickly churned sideways. I don't see any changes from my earlier comments.

Earlier Comments:
DDD could see a short squeeze. The most recent data listed short interest at 33% of the 94.5 million share float. Tuesday's high was $56.23. We are suggesting a trigger to buy calls at $56.35. If triggered our short-term target is $59.75. Our longer-term target is $64.00. The Point & Figure chart for DDD is bullish with a $71 target.

Trigger @ 56.35

- Suggested Positions -

Buy the NOV $60 call (DDD1316k60)

- or -

Buy the 2014 Jan $60 call (DDD1418a60)

Entry on September -- at $---.--
Average Daily Volume = 4.1 million
Listed on September 24, 2013


Hanesbrand Inc. - HBI - close: 62.70 change: -0.71

Stop Loss: 62.25
Target(s): 68.50
Current Option Gain/Loss: -42.8%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
09/25/13: Hmm... it was an interesting session for HBI. The stock saw a midday rally that reversed under last week's highs. Shares gave back all of its gains and more and eventually underperformed with a -1.1% decline. I suspect that if the broader market is weak tomorrow we could see HBI hit our stop loss at $62.25.

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: 48.65 change: -1.01

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:
09/25/13: JAH hit some profit taking today with shares reversing under resistance at the $50 level again. The stock underperformed the broader market with a -2.0% decline. 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: 84.00 change: -0.43

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:
09/25/13: MGA gave back about two thirds of yesterday's gains. The stock appears to be coiling between resistance at $85.00 and short-term technical support at the 10-dma.

- 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: 108.50 change: +1.30

Stop Loss: 104.75
Target(s): 109.75
Current Option Gain/Loss: +85.4%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
09/25/13: NetSuite almost hit our exit target today. The stock rallied to a new high and hit $109.56 intraday before paring its gains. Our exit target has been $109.75. We're not going to wait. Tonight we're suggesting traders exit immediately to lock in gains. The October $105 calls currently have a bid/ask of $5.10/5.40. Plan to exit at the open tomorrow.

- Suggested Positions -

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

09/25/13 prepare to exit at the open tomorrow morning
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: 95.73 change: -0.22

Stop Loss: 94.95
Target(s): 99.50
Current Option Gain/Loss: (Oct97.5c:+118.1%) & 2014j100c: -16.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/25/13: We are growing more concerned over the action in NOC. You could argue that NOC is actually showing relative strength as it churns sideways near $96 while the broader market slips lower. Unfortunately, momentum is definitely starting to turn for NOC. More conservative traders may want to seriously consider an early exit right now. Tonight we are adjusting our stop loss higher to $94.95.

- 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

09/25/13 new stop loss @ 94.95
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: 76.34 change: -0.21

Stop Loss: 73.90
Target(s): 79.00
Current Option Gain/Loss:(Oct75c:+ 93.2%) & 2014Jan75c: +40.0%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
09/25/13: Wednesday proved to be a quiet session for SBUX. The stock churned sideways and closed with a minor decline. 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: 50.00 change: +1.07

Stop Loss: 47.90
Target(s): 57.50
Current Option Gain/Loss: -25.7%
Time Frame: exit prior to October expiration
New Positions: see below

Comments:
09/25/13: There was no follow through lower on yesterday's decline. SFUN actually erased yesterday's loss. Shares outperformed the market with a +2.1% gain but the rally did stall at the $50.00 mark.

More aggressive traders may want to buy calls now. Today saw new short-term resistance near $50.50 so you could use a rally past $50.50 as an entry point. I am still suggesting readers wait for a rise past $51.00.

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: 97.14 change: -0.06

Stop Loss: 98.05
Target(s): 90.25
Current Option Gain/Loss: -48.2%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/25/13: There was no follow through higher on yesterday's big bounce in ATK. Yet ATK did not see any real selling pressure either. My comments from yesterday still apply. 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: 129.24 change: +1.45

Stop Loss: 130.25
Target(s): 124.00
Current Option Gain/Loss: -22.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/25/13: COO is not cooperating. Shares spiked down to $126.00 today. After a couple of hours of finding support there COO rallied back and more to completely reverse yesterday's losses. Technically this might be considered a one-day bullish reversal pattern but COO still has overhead resistance near $130.00 and its simple 50-dma. Tonight we are adjusting our stop loss down to $130.25.

- Suggested Positions -

Long Oct $125 PUT (COO1319v125) entry $2.00

09/25/13 new stop loss @ 130.25, COO not cooperating.

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


The Fresh Market, Inc. - TFM - close: 47.28 change: -0.85

Stop Loss: 50.05
Target(s): 42.00
Current Option Gain/Loss: -11.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/25/13: We have been patiently waiting for a bearish breakdown in TFM and it looks like the breakdown is happening today. The stock has closed below support near $48.00 and its 200-dma and 150-dma. Our trigger to buy puts was hit at $47.50.

Earlier Comments:
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.

- Suggested Positions -

Long Oct $45 PUT (TFM1319v45) entry $0.45

Entry on September 25 at $47.50
Average Daily Volume = 591 thousand
Listed on September 16, 2013



Longer-Term Play Updates



Chicago Bridge & Iron - CBI - close: 65.84 change: -0.52

Stop Loss: 59.75
Target(s): 74.50
Current Option Gain/Loss: +56.8%
Time Frame: 4 to 6 months
New Positions: see below

Comments:
09/25/13: The S&P 500 posted its fifth decline in a row and shares of CBI look like they might finally succumb to some profit taking. Shares gave back -0.7% although it's worth noting that traders did buy the dip at its 10-dma today.

I am not suggesting new positions at this time.

*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: +0.15

Stop Loss: 50.95
Target(s): 58.50
Current Option Gain/Loss: +19.4%
Time Frame: exit PRIOR to 2014 March option expiration
New Positions: see below

Comments:
09/25/13: After a four-day decline the VGK bounced at its 10-dma. Today's move erases yesterday's loss. I am not suggesting new positions at this time.

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 BEARISH PLAYS

Western Digital Corp. - WDC - close: 65.43 change: +0.75

Stop Loss: 65.60
Target(s): 60.15
Current Option Gain/Loss: -48.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/25/13: The bullish rebound in WDC continues and shares broke out past the $65.00 level and its 50-dma and one of its trend lines of lower highs. WDC's rival STX surged on bullish analyst comments and that could have given WDC a boost today. Our stop loss was hit at $65.60.

Earlier Comments:
I would keep our position size small to limit risk.

*small positions* - Suggested Positions -

Oct $60 PUT (WDC1319v60) entry $1.22 exit $0.63 (-48.3%)

09/25/13 stopped out
09/23/13 trade opened on gap down at $63.24.
suggested trigger was $63.50

chart:

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