Editor's Note:

The S&P 500 index snapped a three-week winning streak with a pullback from new all-time highs. Meanwhile the NASDAQ composite and the small cap Russell 2000 still look ready to breakout higher.

WDAY hit our entry trigger on Friday.


Current Portfolio:


CALL Play Updates

Actavis, Inc. - ACT - close: 144.30 change: +1.63

Stop Loss: 137.75
Target(s): 148.50
Current Option Gain/Loss: +60.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/28/13: There were new headlines for ACT today. The company conceded to FTC demands to divest itself of some generic drug assets so it can proceed with its $8.5 billion acquisition of Warner Chilcott Plc.(WCRX).

The stock reacted by hitting new highs and outperforming the market with a +1.1% gain. I am raising our stop loss to $137.75.

- Suggested Positions -

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

09/28/13 new stop loss @ 137.75
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.

chart:

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


Anadarko Petroleum - APC - close: 94.53 change: +0.05

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:
09/28/13: Friday was another quiet day for shares of APC. Traders did buy the dip again near $93.50 and its 20-dma. Shares seem to have overhead resistance 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.

chart:

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


Boeing Co. - BA - close: 118.74 change: -0.64

Stop Loss: 117.75
Target(s): 127.50
Current Option Gain/Loss: Unopened
Time Frame: Exit prior to Oct. 23 earnings announcement
New Positions: Yes, see below

Comments:
09/28/13: BA continues to get new orders for its trouble 787 Dreamliner. The news really didn't impact the stock today. Shares drifted toward the $118 level and tested its simple 10-dma before paring its losses. There is no change from my prior comments.

Earlier Comments:
Right now BA is consolidating sideways below resistance near the $120 level. The September 19th high was $120.38. I am suggesting a trigger to buy calls at $120.50. If triggered our target is $127.50 but we will plan on exiting positions prior to BA's earnings report in late October.

Trigger @ 120.50

- Suggested Positions -

Buy the NOV $125 call (BA1316K125)

chart:

Entry on September -- at $---.--
Average Daily Volume = 4.5 million
Listed on September 26, 2013


3D Systems - DDD - close: 54.79 change: -0.90

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:
09/28/13: It was a down day for DDD with the stock underperforming the broader market with a -1.6% decline. Shares dipped to short-term technical support at the 10-dma before bouncing off its lows. Technically shares have created a bearish engulfing candlestick reversal pattern but it needs to see confirmation.

Bigger picture 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)

chart:

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


Hanesbrand Inc. - HBI - close: 62.61 change: -0.56

Stop Loss: 62.25
Target(s): 68.50
Current Option Gain/Loss: -53.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
09/28/13: It was a down week for the stock market and shares of HBI have not been performing well either. Shares gave up -0.88% on Friday. The stock looks poised to breakdown under short-term support near $62.50 and hit our stop loss at $62.25. More conservative traders may want to just abandon ship and exit immediately to cut their losses. I am not suggesting new positions.

- Suggested Positions -

Long Oct $65 call (HBI1319j65) entry $1.40

09/28/13 HBI is not performing well and looks poised to hit our stop loss soon. Traders may want to exit early now
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: 83.45 change: -0.39

Stop Loss: 82.45
Target(s): 89.50
Current Option Gain/Loss: -20.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/28/13: The stock market's recent weakness is starting to take its toll on shares of MGA as well. MGA closed below short-term support at its 10-dma on Friday. Now shares look poised to break down under short-term support near $83.00 as well. More conservative traders may want to exit early. We are adjusting our stop loss up to $82.45. instead. I am not suggesting new positions.

- Suggested Positions -

Long Oct $85 call (MGA1319j85) entry $1.20

09/28/13 new stop loss @ 82.45
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


Northrop Gruman - NOC - close: 96.25 change: -0.16

Stop Loss: 95.30
Target(s): 99.50
Current Option Gain/Loss: (Oct97.5c:+118.1%) & 2014j100c: - 5.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/28/13: Friday brought more headlines that NOC had won hundreds of millions in new government defense contracts. Yet the news failed to move the stock price. There was almost no follow through on yesterday's bounce in the defense names.

Shares of NOC actually remain stuck inside the $95.50-96.50 trading range. The Monday, Sept. 23rd low was $95.40. I am raising our stop loss up to $95.30.

If you're looking for a new entry point consider waiting for a breakout past $96.50 or past $96.75.

- 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

09/28/13 new stop loss @ 95.30
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

chart:

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


Starbucks Corp. - SBUX - close: 77.33 change: +0.15

Stop Loss: 75.75
Target(s): 79.00
Current Option Gain/Loss:(Oct75c:+ 93.2%) & 2014Jan75c: +58.4%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
09/28/13: SBUX is still showing relative strength (+0.19% on Friday) and closed at its highs for the week. More conservative investors might want to consider taking profits early on our 2014 January calls. I am raising our stop loss up to $75.75. I am not suggesting new positions at this time.

NOTE: If SBUX were to see a correction I would look for a dip near its simple 40-dma or 50-dma as a new entry point to consider bullish positions.

- Suggested Positions -

Oct $75 call (SBUX1319j75) entry $1.18 exit $2.28 (+93.2%)

- or -

Long 2014 Jan $75 call (SBUX1418a75) entry $3.25

09/28/13 new stop loss @ 75.75, consider taking profits early!
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


SouFun Holdings - SFUN - close: 49.48 change: +0.19

Stop Loss: 47.90
Target(s): 57.50
Current Option Gain/Loss: -45.7%
Time Frame: exit prior to October expiration
New Positions: see below

Comments:
09/28/13: SFUN seems to be having trouble getting its mojo back. The stock looked ready to pop a couple of days ago but then the Chinese market had a down day (-2%). Friday both the Chinese market and SFUN closed with only minor gains.

If you look at the intraday chart you can see a new trend of lower highs developing, which could be a warning signal. I am suggesting traders either wait for a rally past Thursday's high (50.55) or past the $51.00 level 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.

chart:

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


Workday, Inc. - WDAY - close: 81.65 change: -0.72

Stop Loss: 79.75
Target(s): 89.00
Current Option Gain/Loss: -19.2%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
09/28/13: WDAY was trading at a new high for the week by lunchtime on Friday. Unfortunately the market's widespread weakness pulled WDAY lower by the closing bell. Our trigger to buy calls was hit at $82.75. At this point nimble traders may want to try and jump in on a dip near the rising 10-dma if WDAY continues to slip lower. Otherwise investors might be better off waiting for a rise past Friday's intraday high (82.85).

Earlier Comments:
The stock could see a short squeeze. The most recent data listed short interest at 18% of the 65.2 million share float.

- Suggested Positions -

Long Dec $90 call (WDAY1322L90) entry $2.85

chart:

Entry on September 27 at $82.75
Average Daily Volume = 1.2 million
Listed on September 26, 2013


PUT Play Updates

Energizer Holdings - ENR - close: 92.19 change: -1.06

Stop Loss: 94.65
Target(s): 88.00
Current Option Gain/Loss: -30.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/28/13: ENR erased almost all of Thursday's bounce. Shares also hit a new relative low on an intraday basis. I would be tempted to launch new put positions now or you could wait for a drop below Friday's low (91.78).

- Suggested *Small* Positions -

Long Oct $90 PUT (ENR1319v90) entry $1.00

chart:

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


The Fresh Market, Inc. - TFM - close: 47.59 change: -0.13

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:
09/28/13: Hmm... TFM really is not cooperating. The stock traded down to a new four-month low on Friday morning only to bounce back. Shares nearly erased all of its Friday losses. I am suggesting caution here. Traders may want to pare down their position size or lower their stop loss.

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 *small* Positions -

Long Oct $45 PUT (TFM1319v45) entry $0.45

chart:

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: 67.28 change: +0.19

Stop Loss: 59.75
Target(s): 74.50
Current Option Gain/Loss: +88.2%
Time Frame: 4 to 6 months
New Positions: see below

Comments:
09/28/13: The strength in CBI continues. The stock is up three weeks in a row and just closed at its highs for the week (and a new all-time closing high). More conservative investors may want to raise their stop loss.

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

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: 54.82 change: -0.01

Stop Loss: 50.95
Target(s): 58.50
Current Option Gain/Loss: +13.8%
Time Frame: exit PRIOR to 2014 March option expiration
New Positions: see below

Comments:
09/28/13: The VGK European ETF is going nowhere - at least this past week. The VGK surged to new two-year highs on the Federal Reserve's no taper announcement. Then after a four-day pullback the selling has stopped. You could argue that's actually bullish, that selling has paused.

This ETF remains inside the $54.60-55.00 trading range. If it sees a breakdown I would look for a drop toward $53.00. 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.

chart:

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