Editor's Note:

The S&P 500 index ended a five-day losing streak with today's +0.3% gain. Meanwhile both the NASDAQ composite and the small cap Russell 2000 index look poised to breakout to new highs.

JAH has been removed. N was closed this morning.
ATK and COO have been stopped out.


Current Portfolio:


CALL Play Updates

Actavis, Inc. - ACT - close: 142.67 change: +3.58

Stop Loss: 135.75
Target(s): 148.50
Current Option Gain/Loss: +13.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/26/13: ACT shot higher this morning and finally broke away from resistance near the $140 level. The stock outperformed the broader market with a +2.5% gain and closed at new all-time highs.

- 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: 94.48 change: -0.35

Stop Loss: 92.25
Target(s): 99.50
Current Option Gain/Loss: -30.4%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
09/26/13: Hmm... APC underperformed the energy group and the broader market with a -0.3% decline. I didn't see anything to account for today's relative weakness. Shares did find some short-term support near the rising 20-dma. 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: 55.69 change: +0.73

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:
09/26/13: DDD spent today slowly drifting higher yet shares failed to breakout past Tuesday's high. 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) current ask $2.55

- or -

Buy the 2014 Jan $60 call (DDD1418a60) current ask $4.30

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


Hanesbrand Inc. - HBI - close: 63.17 change: +0.74

Stop Loss: 62.25
Target(s): 68.50
Current Option Gain/Loss: -35.7%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
09/26/13: Looking at HBI's intraday chart today's move doesn't look like much, just a sideways churn near $63.00. Yet HBI outperformed the major indices with a +0.74% gain. I remain cautious here given Wednesday's intraday reversal lower.

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


Magna Intl. - MGA - close: 83.84 change: -0.16

Stop Loss: 81.90
Target(s): 89.50
Current Option Gain/Loss: - 8.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/26/13: MGA did not participate in the stock market's bounce today. Shares continue to churn between resistance near $85.00 and short-term 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


Northrop Gruman - NOC - close: 96.37 change: +0.64

Stop Loss: 94.95
Target(s): 99.50
Current Option Gain/Loss: (Oct97.5c:+118.1%) & 2014j100c: - 8.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/26/13: It looks like the correction lower in the defense stocks might be over. NOC added +0.66% today and looks poised to challenge its recent highs.

- 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: 77.18 change: +0.84

Stop Loss: 73.90
Target(s): 79.00
Current Option Gain/Loss:(Oct75c:+ 93.2%) & 2014Jan75c: +55.3%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
09/26/13: SBUX displayed some relative strength today with a +1.1% gain. Shares look poised to test the $78 level soon. 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: 49.29 change: -0.71

Stop Loss: 47.90
Target(s): 57.50
Current Option Gain/Loss: -42.8%
Time Frame: exit prior to October expiration
New Positions: see below

Comments:
09/26/13: Yesterday SFUN looked poised to rally but the move may have been short circuited today due to a drop in the Chinese markets. The Shanghai index lost almost -2% today.

I am still suggesting readers wait for a rise past $51.00 before launching 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

Energizer Holdings - ENR - close: 93.25 change: +1.13

Stop Loss: 94.65
Target(s): 88.00
Current Option Gain/Loss: -40.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/26/13: Our plan was to open positions this morning. ENR gapped open higher at $92.36 and eventually closed with a +1.22% gain. While shares did outperform the broader market today's move was stuck inside of yesterday's trading range. That makes today an "inside day" and suggest investor indecision. The overall trend (down) remains in effect.

Readers could wait for a new failed rally in the $93.50-94.00 zone as a new entry point for bearish positions.

- Suggested *Small* Positions -

Long Oct $90 PUT (ENR1319v90) entry $1.00

Entry on September 26 at $92.36
Average Daily Volume = 424 thousand
Listed on September 25, 2013


The Fresh Market, Inc. - TFM - close: 47.72 change: +0.44

Stop Loss: 50.05
Target(s): 42.00
Current Option Gain/Loss: -33.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/26/13: TFM gapped open higher at the open as the stock reacted to new of a new "buy" rating. Yet the rally attempt failed near its descending 10-dma. Today's low was $47.35. Readers could wait for a drop under today's low as a new entry point for bearish positions.

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: 67.09 change: +1.25

Stop Loss: 59.75
Target(s): 74.50
Current Option Gain/Loss: +84.3%
Time Frame: 4 to 6 months
New Positions: see below

Comments:
09/26/13: CBI is back to showing relative strength again. The stock added +1.89% and set a new all-time closing high 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: 54.83 change: -0.02

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:
09/26/13: Most of the major European stock markets closed in the red today. The VGK spent the day churning sideways. This ETF has been drifting sideways in the $54.60-55.00 zone for the last four sessions. I am not suggesting new positions at this time.

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

Jarden Corp. - JAH - close: 48.35 change: -0.30

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

Comments:
09/26/13: JAH is not cooperating. Big picture the stock continues to look bullish but short-term JAH is still retreating from round-number, psychological resistance near $50.00. Our trade has not opened yet with the entry trigger at $50.25. Tonight we are removing JAH as an active candidate.

I would keep JAH on your radar screen for a breakout past $50.00.

Trade did not open.

09/26/13 removed from the newsletter. Trigger was $50.25

chart:

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


NetSuite Inc. - N - close: 109.65 change: +1.15

Stop Loss: 104.75
Target(s): 109.75
Current Option Gain/Loss: +89.0%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
09/26/13: Yesterday N cam within 20 cents of our exit target at $109.75 and then reversed. We decided last night to exit immediately at the open this morning to lock in gains. Yet if we had stuck to our guns and held the trade as planned N would have hit our exit target anyway.

N did gap open 17 cents to $108.67 this morning. Our option trade closed at $5.20. If we had held on it would have been about $5.70.

- Suggested Positions -

Oct $105 call (N1319j105) entry $2.75* exit $5.20 (+89.0%)

09/26/13 closed this morning.
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.

chart:

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


CLOSED BEARISH PLAYS

Alliant Techsystems - ATK - close: 98.32 change: +1.18

Stop Loss: 98.05
Target(s): 90.25
Current Option Gain/Loss: -60.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/26/13: The defense-related names are starting to show relative strength again. While ATK was underperforming its peers the stock has produced a three-day bounce. Today's rebound (+1.2%) was enough to cross a short-term trend line of resistance and hit our stop loss at $98.05. The industry is starting to look bullish again.

Earlier Comments:
I do consider this a slightly more aggressive, higher-risk trade.

- Suggested Positions -

Oct $95 PUT (ATK1319v95) entry $2.80 exit $1.10 (-60.7%)

09/26/13 stopped out
09/24/13 new stop loss @ 98.05

chart:

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


The Cooper Companies - COO - close: 129.98 change: +0.74

Stop Loss: 130.25
Target(s): 124.00
Current Option Gain/Loss: -37.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/26/13: The oversold bounce in COO continued on Thursday and shares traded above what should have been resistance near $130.00 and its 50-dma. Our new stop loss was hit at $130.25.

- Suggested Positions -

Oct $125 PUT (COO1319v125) entry $2.00 exit $1.25 (-37.5%)

09/26/13 stopped out
09/25/13 new stop loss @ 130.25, COO not cooperating.

chart:

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