Editor's Note:

The U.S. market bounced on Friday following Thursday's sell-off to new two-week lows. There doesn't appear to be any Wall Street panic yet over the government shutdown.

ACT hit our exit target. GPOR and SLB hit our entry trigger. TFM was stopped out.


Current Portfolio:


CALL Play Updates

Anadarko Petroleum - APC - close: 93.90 change: +0.92

Stop Loss: 92.25
Target(s): 99.50
Current Option Gain/Loss: -53.7%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
10/05/13: APC managed to stay ahead of the S&P 500 with a +0.98% gain but Friday's range was inside of Thursday's range. Thursday's session was almost an inside day within Wednesday's range. What does this mean? It means investors are indecisive. The stock is coiling for a breakout but the breakout could go either way. More conservative traders may want to just abandon ship instead of risk the break lower. 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


3D Systems - DDD - close: 54.14 change: +0.21

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:
10/05/13: DDD really didn't see much action on Friday. Shares traded sideways and only closed with a +0.3% gain versus +0.7% in the S&P 500. The bigger picture is still positive so we will continue to wait for a breakout.

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


Ecolab Inc. - ECL - close: 99.34 change: +1.58

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:
10/05/13: ECL reversed nearly all of Thursday's declines with a big bounce off its 20-dma. Shares rallied +1.6% to close near the top of its recent trading range. The stock now looks poised to breakout past round-number resistance at the $100.00 mark.

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)

chart:

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


Gulfport Energy - GPOR - close: 67.41 change: +0.96

Stop Loss: 63.95
Target(s): 72.50
Current Option Gain/Loss: + 0.0%
Time Frame: exit PRIOR to GPOR's earnings in November
New Positions: see below

Comments:
10/05/13: As we expected the bounce in GPOR continued on Friday. Shares hit our trigger at $67.10 and closed at a new all-time high. The $64.00-64.50 zone should be support. The next challenge is possible round-number resistance at the $70.00 level.

- Suggested Positions -

Long NOV $70 call (GPOR1316K70) entry $2.75

chart:

Entry on October 04 at $67.10
Average Daily Volume = 1.4 million
Listed on October 03, 2013


iShares Russell 2000 ETF - IWM - close: 107.02 change: +0.71

Stop Loss: 103.40
Target(s): 110.95
Current Option Gain/Loss: +20.0%
Time Frame: 6 to 9 weeks
New Positions: see below

Comments:
10/05/13: Thursday's afternoon bounce in the IWM continued into Friday and the ETF added +0.66%. This looks like a rebound from its rising 20-dma. The IWM appears to have some short-term resistance at $107.50 and $108.00 but our multi-week target is $110.95. More conservative investors may want to consider raising their stop loss toward the $105 area.

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.

chart:

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


Ross Stores Inc. - ROST - close: 73.48 change: +0.32

Stop Loss: 69.95
Target(s): 77.50
Current Option Gain/Loss: Nov75c: + 6.1% & 2014jan75c: + 1.9%
Time Frame: 6 to 9 weeks
New Positions: see below

Comments:
10/05/13: ROST bounced near short-term support again and posted a +0.4% by Friday's closing bell. Shares look poised to hit new all-time highs soon. More conservative traders may want to raise their stop loss higher.

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.

chart:

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


Starbucks Corp. - SBUX - close: 77.40 change: +0.53

Stop Loss: 75.75
Target(s): 79.75
Current Option Gain/Loss:(Oct75c:+ 93.2%) & 2014Jan75c: +61.5%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
10/05/13: SBUX has been consolidating sideways for two weeks now. Shares did close at their high for the day on Friday and the stock looks poised to breakout higher. We are aiming for $79.75. More aggressive traders could aim higher (maybe $82.00).

- 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.

chart:

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


Schlumberger - SLB - close: 90.01 change: +0.57

Stop Loss: 88.25
Target(s): 94.75
Current Option Gain/Loss: - 6.9%
Time Frame: exit PRIOR to earnings on Oct. 18th
New Positions: see below

Comments:
10/05/13: Traders bought the dip in SLB near $89.00 again on Friday and the bounce carried shares above resistance near $90.00. The stock hit our suggested entry point at $90.25. If you missed it more conservative traders might want to wait for a rise past Friday's intraday high and buy calls when SLB hits $90.50.

Earlier Comments:
Please note that we only have about two weeks. We do not want to hold positions over SLB's earnings announcement on October 18th. FYI: The Point & Figure chart for SLB is bullish with a $113 target.

- Suggested Positions -

Long Nov $92.50 call (SLB1316K92.5) entry $1.88

chart:

Entry on October 04 at $90.25
Average Daily Volume = 6.3 million
Listed on October 02, 2013


Sohu.com Inc. - SOHU - close: 86.70 change: +4.12

Stop Loss: 81.75
Target(s): 88.50
Current Option Gain/Loss: +68.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
10/05/13: SOHU ended the week with a big push higher (+4.98%). The stock has rallied from Monday's low near $74.50 to almost $87.00 in the last five days (a +16% move). Shares are short-term overbought here. Readers will want to seriously consider taking profits right now with the bid on our call up to $7.40. We are still aiming for $88.50 and will raise our stop loss to $81.75.

Earlier Comments:
NOTE: I do consider this a more aggressive, higher-risk trade because SOHU can be a volatile stock. I am suggesting small positions to limit risk.

*small positions* - Suggested Positions -

Long Nov $85 call (SOHU1316K85) entry $4.40

10/05/13 new stop loss @ 81.75. More conservative traders may want to just take profits right now!
10/03/13 new stop loss @ 77.75

chart:

Entry on October 03 at $80.75
Average Daily Volume = 2.0 million
Listed on October 02, 2013


Tractor Supply Company - TSCO - close: 68.53 change: +0.33

Stop Loss: 65.75
Target(s): 74.00
Current Option Gain/Loss: + 6.6%
Time Frame: 6 to 9 weeks
New Positions: see below

Comments:
10/05/13: Friday turned out to be a relatively quiet day for shares of TSCO. Shares edged up +0.48% and spent the entire day inside of Thursday's range. More conservative traders may want to tighten their stop loss again. I am not suggesting new positions at this time.

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

10/03/13 new stop loss @ 65.75
10/01/13 trade opened on gap higher at $68.04.
Trigger was $67.50

chart:

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


United Parcel Service - UPS - close: 91.00 change: +0.90

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:
10/05/13: I was about ready to give up on UPS after Thursday's plunge toward $90.00. The stock rebounded and is back inside its recent trading range. We are still on the sidelines and waiting for a breakout past resistance near $92.00. We need to remain patient.

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)

chart:

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


Workday, Inc. - WDAY - close: 82.39 change: -0.01

Stop Loss: 79.75
Target(s): 89.00
Current Option Gain/Loss: -15.7%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
10/05/13: Friday's session in WDAY looks like an echo of Thursday. The early gains faded but traders bought the dip midday. Overall shares just continue to drift sideways. I remain cautiously bullish here. Cautious traders could raise their stops closer to Thursday's low ($80.88). I would wait for a rally past $84.00 or the September 19th high at $84.42 before initiating new positions.

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: 92.85 change: +0.46

Stop Loss: 93.65
Target(s): 88.00
Current Option Gain/Loss: -55.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
10/05/13: ENR managed another bounce on Friday. Shares rallied toward resistance near $94.00 and its 20-dma and exponential 200-dma before paring its gains. We are turning more defensive here. Friday's intraday high was $93.57. We're adjusting our stop loss down to $93.65. More aggressive traders will want to keep their stop above $94.00.

- Suggested *Small* Positions -

Long Oct $90 PUT (ENR1319v90) entry $1.00

10/05/13 new stop loss @ 93.65

chart:

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



Longer-Term Play Updates



Chicago Bridge & Iron - CBI - close: 70.47 change: +0.78

Stop Loss: 64.00
Target(s): 79.00
Current Option Gain/Loss: +178.4%
Time Frame: 4 to 6 months
New Positions: see below

Comments:
10/05/13: CBI outperformed the major indices on Friday with a +1.1% gain. Yet shares still look vulnerable to more profit taking. I would not be surprised to see a dip into the $66-68 zone.

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

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: 54.55 change: -0.03

Stop Loss: 50.95
Target(s): 58.50
Current Option Gain/Loss: +11.1%
Time Frame: exit PRIOR to 2014 March option expiration
New Positions: see below

Comments:
10/05/13: The VGK has churned sideways in the $54-55 zone for the last two weeks. What's different this past week is that shares have been failing at their simple 10-dma (new short-term resistance). I suspect that we're going to see the VGK dip into the $53.50-53.00 area.

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


CLOSED BULLISH PLAYS

Actavis, Inc. - ACT - close: 146.90 change: +2.41

Stop Loss: 139.40
Target(s): 148.50
Current Option Gain/Loss: +213.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
10/05/13: Target achieved.

ACT shot higher on Friday morning and almost hit $150.00 before paring its gains. Our exit target was hit at $148.50.

- Suggested Positions -

Oct $145 call (ACT1319j145) entry $1.50* exit $4.70 (+213.3%)

10/04/13 target hit
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.

chart:

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


CLOSED BEARISH PLAYS

The Fresh Market, Inc. - TFM - close: 49.78 change: +1.78

Stop Loss: 48.75
Target(s): 42.00
Current Option Gain/Loss: -77.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
10/05/13: Our TFM trade has been stopped out. I could not find any news to account for Friday's display of relative strength. The move itself looks like short covering with the gap open higher on Friday morning. I warned readers on Thursday night that Thursday's close above its moving averages was bullish and that conservative traders may want to exit immediately.

Earlier Comments:
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.

- Suggested *small* Positions -

Oct $45 PUT (TFM1319v45) entry $0.45 exit $0.10 (-77.7%)

10/04/13 stopped out
10/02/13 new stop loss @ 48.75

chart:

Entry on September 25 at $47.50
Average Daily Volume = 591 thousand
Listed on September 16, 2013