Editor's Note:

Wall Street remains relatively calm over the U.S. government shutdown and traders quickly bought the dip this morning.


Current Portfolio:


CALL Play Updates

Actavis, Inc. - ACT - close: 146.38 change: +1.28

Stop Loss: 139.40
Target(s): 148.50
Current Option Gain/Loss: +113.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
10/02/13: The rally in ACT continues with shares adding another +0.88% and closing at another new high. If this trend continues we could see ACT hit our exit target at $148.50 by week's end.

- 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: 94.68 change: +1.24

Stop Loss: 92.25
Target(s): 99.50
Current Option Gain/Loss: -36.7%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
10/02/13: APC briefly dipped to a new two-week low and almost hit our stop loss at $92.25 before rebounding and closing with a +1.3% gain. 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: 117.84 change: +0.09

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:
10/02/13: I am growing concerned with BA's performance. The stock is not moving. Today shares garnered some new bullish analyst comments and a higher price target but this failed to move the stock price. Currently we are still on the sidelines. 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: 55.22 change: -0.61

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:
10/02/13: DDD spent today's session churning 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


Ecolab Inc. - ECL - close: 99.51 change: +0.03

Stop Loss: 97.75
Target(s): 105.00
Current Option Gain/Loss: Unopened
Time Frame: exit prior to earnings in late October
New Positions: Yes, see below

Comments:
10/02/13: Traders quickly bought the dip in ECL this morning and shares closed virtually unchanged on the session.

We are suggesting a trigger to buy calls at $100.25. If triggered we'll use a stop loss at $97.75. Our target is $105.00. We will plan to exit prior to ECL's next earnings report due sometime in very late October.

Trigger @ 100.25

- Suggested Positions -

buy the NOV $100 call (ECL1316k100) current ask $2.25

Entry on October -- at $---.--
Average Daily Volume = 877 thousand
Listed on October 01, 2013


iShares Russell 2000 ETF - IWM - close: 107.41 change: -0.44

Stop Loss: 103.40
Target(s): 110.95
Current Option Gain/Loss: +24.7%
Time Frame: 6 to 9 weeks
New Positions: see below

Comments:
10/02/13: There was no follow through on yesterday's bullish breakout in the IWM. At the same time today's profit taking was pretty mild. The next hurdle for the bulls is the $108.00 level.

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: 74.01 change: +0.27

Stop Loss: 69.95
Target(s): 77.50
Current Option Gain/Loss: Nov75c: +28.3% & 2014jan75c: +11.5%
Time Frame: 6 to 9 weeks
New Positions: see below

Comments:
10/02/13: ROST is trading technically. The stock bounced at new support (a.k.a. old resistance) near $72.80-73.00 this morning. Shares rebounded to a +0.3% gain, outperforming the broader market indices. I would be tempted to buy calls here if you're looking for an entry point.

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: 77.19 change: +0.03

Stop Loss: 75.75
Target(s): 79.75
Current Option Gain/Loss:(Oct75c:+ 93.2%) & 2014Jan75c: +56.9%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
10/02/13: Traders bought the dip this morning but SBUX didn't move very much. The stock has been stuck inside the $76.00-77.50 zone for six and a half days in a row.

Traders looking for a new entry point could use a breakout past $77.50 as a possible entry point (you'll need to adjust your stop and target). Speaking of targets, I am adjusting our final target to $79.75.

- Suggested Positions -

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

- or -

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

10/02/13 adjust final target to $79.75
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: 51.72 change: -0.26

Stop Loss: 47.90
Target(s): 57.50
Current Option Gain/Loss: -22.8%
Time Frame: exit prior to October expiration
New Positions: see below

Comments:
10/02/13: SFUN produced a quiet session with the stock churning sideways below the $52.00 level. The Chinese markets are closed for the next five days for the country's national "Golden Week" holiday. That leaves SFUN to only trade on action in the U.S. markets.

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: 68.73 change: +0.46

Stop Loss: 64.75
Target(s): 74.00
Current Option Gain/Loss: +10.2%
Time Frame: 6 to 9 weeks
New Positions: see below

Comments:
10/02/13: TSCO did not see much of a dip this morning. The stock continues to show relative strength with a +0.6% gain and set another new closing high.

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


United Parcel Service - UPS - close: 91.28 change: -0.52

Stop Loss: 89.95
Target(s): 99.00
Current Option Gain/Loss: Unopened
Time Frame: exit prior to earnings on Oct. 25th
New Positions: Yes, see below

Comments:
10/02/13: UPS delivered a disappointing performance today. The stock garnered bullish analyst comments and a new $100 price target but the news failed to lift the share price. Instead shares gapped down at the open and struggled to hold the $91.00 level. Overall I don't see any changes from my earlier comments.

Earlier Comments:
We are suggesting a trigger to buy calls at $92.25. If triggered our target is $99.00 but we will plan to exit prior to the earnings announcement on October 25th.

Trigger @ 92.25

- Suggested Positions -

buy the 2014 Jan $95 call (UPS1418a95)

Entry on October -- at $---.--
Average Daily Volume = 2.6 million
Listed on October 01, 2013


Workday, Inc. - WDAY - close: 82.63 change: -0.05

Stop Loss: 79.75
Target(s): 89.00
Current Option Gain/Loss: -10.5%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
10/02/13: The morning dip in WDAY was pretty mild and shares almost made it to breakeven by day's end. I would consider new positions here but traders may want to wait for a rise past $83.00 as a new entry point.

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: 92.34 change: -0.03

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:
10/02/13: ENR ended the day virtually unchanged after churning sideways near $92. 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: 47.79 change: +0.28

Stop Loss: 48.75
Target(s): 42.00
Current Option Gain/Loss: -55.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
10/02/13: I am starting to grow concerned with our TFM trade. Downward momentum has slowed. This stock has been churning sideways inside the $46.75-48.50 zone for the last few days. I am lowering our stop loss down to $48.75.

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

10/02/13 new stop loss @ 48.75

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: 70.78 change: +0.78

Stop Loss: 64.00
Target(s): 79.00
Current Option Gain/Loss: +190.1%
Time Frame: 4 to 6 months
New Positions: see below

Comments:
10/02/13: There was virtually no dip in CBI this morning as traders bid shares up to another new high.

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: 54.87 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:
10/02/13: Wednesday proved to be a quiet day for the VGK with shares closing almost unchanged on the session. 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