Editor's Note:

The first day of the fourth quarter got off to a good start. Market participants ignored the U.S. government shutdown and bought the dip in stocks.

ROST and TSCO hit our entry triggers.


Current Portfolio:


CALL Play Updates

Actavis, Inc. - ACT - close: 145.10 change: +1.10

Stop Loss: 139.40
Target(s): 148.50
Current Option Gain/Loss: +90.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
10/01/13: ACT tested support near $142 again and then rallied to a new all-time closing high. More conservative traders may want to take profits soon. We are aiming for $148.50.

- 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: 93.44 change: +0.45

Stop Loss: 92.25
Target(s): 99.50
Current Option Gain/Loss: -53.4%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
10/01/13: APC posted +0.4% gain but it was a disappointing session with shares failing near their 10-dma midday. I remain cautious here. 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: 117.75 change: +0.25

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:
10/01/13: Hmmm... I find it very interesting that BA underperformed the market by only gain +0.2%. That could be forecasting more weakness ahead. Shares have stalled at their 10-dma. 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: 55.83 change: +1.84

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:
10/01/13: DDD was showing lots of relative strength today with a +3.4% gain. Shares now look poised to breakout past resistance near $56.00 soon. 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 $2.60

- or -

Buy the 2014 Jan $60 call (DDD1418a60) current as $4.20

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


iShares Russell 2000 ETF - IWM - close: 107.85 change: +1.24

Stop Loss: 103.40
Target(s): 110.95
Current Option Gain/Loss: +37.1%
Time Frame: 6 to 9 weeks
New Positions: see below

Comments:
10/01/13: The rally in the small cap ETF continued on Tuesday with the IWM breaking out to a new all-time high. We are setting our bullish exit target at $110.95.

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

10/01/13 setting the bullish exit target at $110.95
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: 73.74 change: +0.94

Stop Loss: 69.95
Target(s): 77.50
Current Option Gain/Loss: Nov75c: +15.0% & 2014jan75c: + 5.7%
Time Frame: 6 to 9 weeks
New Positions: see below

Comments:
10/01/13: The rally in ROST continued as expected. Shares gapped open higher at $73.00 and posted a +1.29% gain to close at new all-time highs. Our trigger to buy calls was hit this morning at $73.05.

Earlier Comments:
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.

- Suggested Positions -

Long Nov $75 call (ROST1316K75) entry $1.13

- or -

Long 2014 Jan $75 call (ROST1418a75) entry $2.60*
*option entry price is an estimate since the option did not trade at the time our play was opened.

Entry on October 01 at $73.05
Average Daily Volume = 1.28 million
Listed on September 28, 2013


Starbucks Corp. - SBUX - close: 77.16 change: +0.19

Stop Loss: 75.75
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:
10/01/13: I am surprised that SBUX did not perform better on Tuesday. Shares managed to eke out a +0.24% gain thanks to a late day spike higher. The overall trend remains bullish.

We are aiming to exit our 2014 calls at $79.00. More aggressive traders may want to aim higher.

- 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: 51.98 change: +0.34

Stop Loss: 47.90
Target(s): 57.50
Current Option Gain/Loss: -11.4%
Time Frame: exit prior to October expiration
New Positions: see below

Comments:
10/01/13: SFUN posted another gain following yesterday's short-term bullish breakout higher. Yet I would have expected a stronger outperformance than today's +0.6% advance. Given the intraday bounce I would still be tempted to buy calls here.

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


Tractor Supply Company - TSCO - close: 68.27 change: +1.10

Stop Loss: 64.75
Target(s): 74.00
Current Option Gain/Loss: + 0.0%
Time Frame: 6 to 9 weeks
New Positions: see below

Comments:
10/01/13: A strong open for the stock market produced a gap higher in shares of TSCO. The stock gapped to $68.04 this morning and eventually closed with a +1.6% gain (another new all-time high). Our plan was to buy calls at $67.50 so the gap open triggered our play.

Earlier Comments:
It is possible that the $70.00 level could be round-number resistance but we're aiming for $74.00 between now and yearend. FYI: The Point & Figure chart for TSCO is bullish with an $87 target.

- Suggested Positions -

Long 2014 Jan $70 call (TSCO1418a70) entry $2.72

10/01/13 trade opened on gap higher at $68.04.
Trigger was $67.50

Entry on October 01 at $68.04
Average Daily Volume = 440 thousand
Listed on September 30, 2013


Workday, Inc. - WDAY - close: 82.68 change: +1.75

Stop Loss: 79.75
Target(s): 89.00
Current Option Gain/Loss: -12.2%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
10/01/13: WDAY displayed relative strength with a +2.1% gain. Shares appear to have short-term resistance near $83.00 (check the intraday chart). Overall WDAY looks poised to move higher.

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: 92.37 change: +1.22

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:
10/01/13: The stock market's widespread rally on Tuesday sparked an oversold bounce in ENR. Shares reversed yesterday's losses. Look for resistance near the $93.50-94.00 area.

- 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: 47.51 change: +0.20

Stop Loss: 50.05
Target(s): 42.00
Current Option Gain/Loss: -44.4%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
10/01/13: TFM briefly traded above technical resistance at its 10-dma and at its 200-dma today. Fortunately the rally faded and TFM pared its gains to just +0.4% while closing back below these key moving averages.

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: 70.00 change: +2.23

Stop Loss: 64.00
Target(s): 79.00
Current Option Gain/Loss: +166.6%
Time Frame: 4 to 6 months
New Positions: see below

Comments:
10/01/13: Shares of CBI rallied on news it had won a contract (joint venture) to build nuclear power plants in China. The stock reacted by surging to round-number, psychological resistance near $70.00 (+3.29% today).

The rally in CBI has really accelerated with shares up $10 in the last four weeks. We are going to raise our exit target to $79.00 and adjust our stop loss to $64.00.

I am not suggesting new positions at this time.

*Small Positions* - Suggested Positions -

Long 2014 Jan $65 call (CBI1418A65) entry $2.55

10/01/13 new stop loss @ 64.00, adjust target to $79.00
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: 54.86 change: +0.36

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:
10/01/13: It was an up day for the European markets. The British FTSE was the only exception with a -0.03% loss on the session. The rest of the continent traded higher. The VGK erased yesterday's losses. 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