Editor's Note:

It was a down day for global markets and the U.S. market gapped open lower at the morning bell. This weakness produced a lot of gap downs for many stocks. Fortunately, most equities appeared to pare their losses by the closing bell.

We did see HBI, MGA, and NOC hit our recently raised stop loss in anticipation of additional market weakness.
The IWM hit our buy-the-dip entry trigger.


Current Portfolio:


CALL Play Updates

Actavis, Inc. - ACT - close: 144.00 change: -0.30

Stop Loss: 139.40
Target(s): 148.50
Current Option Gain/Loss: +40.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/30/13: ACT found support near $142.00 twice today. Given a little more time it looks like ACT would have closed in positive territory. Tonight I am raising our stop loss to $139.40.

- Suggested Positions -

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

09/30/13 new stop loss @ 139.40
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.

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


Anadarko Petroleum - APC - close: 92.99 change: -1.54

Stop Loss: 92.25
Target(s): 99.50
Current Option Gain/Loss: -54.4%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
09/30/13: The market's drop this morning produced a gap down in APC near $93.25. There wasn't much follow through lower. Shares bounced at the $92.50 mark. 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


Boeing Co. - BA - close: 117.50 change: -1.24

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:
09/30/13: BA dipped toward last week's low this morning but managed to pare its losses. We are still on the sidelines waiting for a breakout higher. 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)

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


3D Systems - DDD - close: 53.99 change: -0.80

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:
09/30/13: DDD also gapped down this morning and shares pared their losses to -1.4% by the closing bell. We are still on the sidelines waiting a new 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)

- or -

Buy the 2014 Jan $60 call (DDD1418a60)

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


iShares Russell 2000 ETF - IWM - close: 106.61 change: +0.03

Stop Loss: 103.40
Target(s): TBD
Current Option Gain/Loss: +16.1%
Time Frame: 6 to 9 weeks
New Positions: see below

Comments:
09/30/13: The market weakness this morning played into our buy-the-dip strategy perfectly. Shares of the IWM gapped open lower at $105.43 and fell to $105.24 before finally bouncing. Not only did the IWM bounce but it closed in positive territory (barely).

Our trigger to buy calls was hit at $105.25.

Earlier Comments:
I'm suggesting the 2014 January $110 calls but you may want to use another month or strike that better suits your trading style.

- Suggested Positions -

Long 2014 Jan $110 call (IWM1418a110) entry $2.10

09/30/13 buy-the-dip trigger hit at $105.25.

Entry on September 30 at $105.25
Average Daily Volume = 34.6 million
Listed on September 28, 2013


Ross Stores Inc. - ROST - close: 72.80 change: +0.25

Stop Loss: 69.95
Target(s): 77.50
Current Option Gain/Loss: Unopened
Time Frame: 6 to 9 weeks
New Positions: Yes, see below

Comments:
09/30/13: ROST continues to show relative strength. Traders quickly bought the dip this morning near its rising 10-dma. Some bullish analyst comments on ROST this morning didn't hurt. The stock rebounded off its lows and hit a new high at $73.00.

I am suggesting a trigger to buy calls at $73.05. If triggered our multi-week target is $77.50. FYI: The Point & Figure chart for ROST is bullish with an $89 target.

NOTE: I'm listing our trade with an initial stop loss at $69.95 but more conservative traders may want to use a stop closer to $71.00 instead.

Trigger @ 73.05

- Suggested Positions -

buy the Nov $75 call (ROST1316K75) current ask $1.10

- or -

buy the 2014 Jan $75 call (ROST1418a75) current ask $2.50

Entry on September -- at $---.--
Average Daily Volume = 1.28 million
Listed on September 28, 2013


Starbucks Corp. - SBUX - close: 76.97 change: -0.36

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:
09/30/13: Traders bought the dip in SBUX near $76.00 this morning. Shares almost made it back to positive territory. I am not suggesting new positions at this time.

A drop under $76.00 would likely hit our stop loss at $75.75. However, 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.

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


SouFun Holdings - SFUN - close: 51.64 change: +2.16

Stop Loss: 47.90
Target(s): 57.50
Current Option Gain/Loss: - 5.7%
Time Frame: exit prior to October expiration
New Positions: see below

Comments:
09/30/13: SFUN displayed relative strength. Shares did gap open lower but the stock immediately rallied and closed up +4.3%. This is a new two-week high and a breakout past short-term resistance near $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


Workday, Inc. - WDAY - close: 80.93 change: -0.72

Stop Loss: 79.75
Target(s): 89.00
Current Option Gain/Loss: -31.5%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
09/30/13: WDAY continued to dip on Monday with shares falling toward short-term technical support at its 10-dma. I would be tempted to buy calls on a bounce here. 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

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: 91.15 change: -1.04

Stop Loss: 94.65
Target(s): 88.00
Current Option Gain/Loss: +15.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/30/13: ENR continued to slip and closed near its lows today. There is a chance that ENR might bounce from the $90.00 mark. If ENR does bounce look for resistance near $93.50-94.00.

- 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: 47.31 change: -0.28

Stop Loss: 50.05
Target(s): 42.00
Current Option Gain/Loss: -22.2%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/30/13: TFM didn't really seem that affected by today's market weakness. Shares bounced off their lows but the stock struggled with resistance near its 200-dma.

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

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: 67.77 change: +0.49

Stop Loss: 59.75
Target(s): 74.50
Current Option Gain/Loss: +103.9%
Time Frame: 4 to 6 months
New Positions: see below

Comments:
09/30/13: CBI displayed relative strength with a +0.7% gain. CNBC said the move was fueled by news that CBI had won a big contract in Russia (the contract is shared with FWLT).

Traders bought the dip at short-term support near the 10-dma and CBI closed at a new all-time 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

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


Vanguard FTSE Europe ETF - VGK - close: 54.50 change: -0.32

Stop Loss: 50.95
Target(s): 58.50
Current Option Gain/Loss: + 5.5%
Time Frame: exit PRIOR to 2014 March option expiration
New Positions: see below

Comments:
09/30/13: It was a down day across the board for European stock markets. The VGK gapped down but trimmed its decline to -0.5%. 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

Hanesbrand Inc. - HBI - close: 62.31 change: -0.30

Stop Loss: 62.25
Target(s): 68.50
Current Option Gain/Loss: -75.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
09/30/13: The widespread market weakness was too much for HBI today. Shares gapped open lower at $62.15, which was below our stop loss at $62.25. Our play immediately closed.

- Suggested Positions -

Oct $65 call (HBI1319j65) entry $1.40 exit $0.35 (-75.0%)

09/30/13 stopped out
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: 82.56 change: -0.89

Stop Loss: 82.45
Target(s): 89.50
Current Option Gain/Loss: -36.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/30/13: MGA gapped open lower at $82.60 and quickly hit our stop loss at $82.45 before rebounding.

- Suggested Positions -

Oct $85 call (MGA1319j85) entry $1.20 exit $0.76 (-36.6%)

09/30/13 stopped out
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: 95.26 change: -0.99

Stop Loss: 95.30
Target(s): 99.50
Current Option Gain/Loss: (Oct97.5c:+118.1%) & 2014j100c: -18.9%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
09/30/13: NOC also gapped down this morning. Shares opened at $95.45 and quickly hit our stop at $95.30.

I would keep NOC on your watch list. The $95.00 level or the 50-dma could still act as support.

- Suggested Positions -

Oct $97.50 call (NOC1319j97.5) entry $1.10 exit $2.40*(+118.1%)

- or -

2014 Jan $100 call (NOC1418a100) entry $2.16 exit $1.75 (-18.9%)

09/30/13 stopped out
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