Editor's Note:

The stock market spiked lower at the open. The S&P 500 pared its losses midday only to fade lower into the closing bell. It was not a great day for the small cap Russell 2000, which closed on its lows for the session.

All of the major indices closed lower. Gold, silver and some momentum names like AAPL and TSLA managed to buck the down trend.


Current Portfolio:


CALL Play Updates

Anadarko Petroleum - APC - close: 93.60 change: -0.30

Stop Loss: 92.25
Target(s): 99.50
Current Option Gain/Loss: -61.6%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
10/07/13: APC's early morning gains faded. Shares eventually settled with a -0.3% decline but that was better than the S&P 500's -0.85% decline.

Earlier Comments:
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.

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


3D Systems - DDD - close: 53.72 change: -0.42

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:
10/07/13: DDD rallied off its morning lows but struggled with short-term resistance near $54.75. The stock once again tested its simple 30-dma. We are still sitting on the sidelines waiting for a breakout higher.

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: 97.27 change: -2.07

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:
10/07/13: ECL has produced yet another reversal. Shares are testing support at the bottom of their trading range again. Nimble traders may want to consider buying calls on a dip near $95.00 and its 50-dma (with a tight stop loss). Our strategy hasn't changed yet.

Earlier Comments:
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)

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


Gulfport Energy - GPOR - close: 66.42 change: -0.99

Stop Loss: 63.95
Target(s): 72.50
Current Option Gain/Loss: -14.5%
Time Frame: exit PRIOR to GPOR's earnings in November
New Positions: see below

Comments:
10/07/13: GPOR's rally failed near $68.00 again. Shares are likely to dip back toward $65.00, which should be short-term support. Actually the $65.00-64.50-64.00 area should be support.

- Suggested Positions -

Long NOV $70 call (GPOR1316K70) entry $2.75

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


iShares Russell 2000 ETF - IWM - close: 105.77 change: -1.25

Stop Loss: 103.40
Target(s): 110.95
Current Option Gain/Loss: + 2.3%
Time Frame: 6 to 9 weeks
New Positions: see below

Comments:
10/07/13: The small cap ETF underperformed today and that's a potential warning signal for the broader market. The IWM should find support near $105.00. 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.

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


L Brands, Inc. - LTD - close: 60.52 change: -1.56

Stop Loss: 59.95
Target(s): 66.50
Current Option Gain/Loss: Unopened
Time Frame: exit PRIOR to earnings in mid November
New Positions: Yes, see below

Comments:
10/07/13: Retail stocks underperformed on Monday and LTD gave back -2.5%. If shares don't bounce from the $60.00 level we will likely drop it. Currently there is no change from my prior comments.

Earlier Comments:
I am suggesting a trigger to buy calls at $62.25. If triggered our target is $66.50 but we will plan to exit prior to LTD's earnings report in mid November.

Trigger @ 62.25

- Suggested Positions -

Buy the NOV $65 call (LTD1316K65)

- or -

Buy the 2014 Jan $65 call (LTD1418a65)

Entry on October -- at $---.--
Average Daily Volume = 1.5 million
Listed on October 05, 2013


Ross Stores Inc. - ROST - close: 72.41 change: -1.07

Stop Loss: 69.95
Target(s): 77.50
Current Option Gain/Loss: Nov75c: -24.7% & 2014jan75c: -13.4%
Time Frame: 6 to 9 weeks
New Positions: see below

Comments:
10/07/13: ROST was caught up in the retail stock underperformance. Shares fell -1.45% and closed below short-term technical support at the 10-dma. More conservative traders may want to raise their stop closer to $71.00 or $72.00. Currently our stop is at $69.95.

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: 76.86 change: -0.54

Stop Loss: 75.75
Target(s): 79.75
Current Option Gain/Loss:(Oct75c:+ 93.2%) & 2014Jan75c: +50.7%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
10/07/13: Monday's session erased Friday's bounce as SBUX continues to churn inside its trading range under the $77.50 level.

- 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


Schlumberger - SLB - close: 89.29 change: +0.57

Stop Loss: 88.25
Target(s): 94.75
Current Option Gain/Loss: -19.6%
Time Frame: exit PRIOR to earnings on Oct. 18th
New Positions: see below

Comments:
10/07/13: SLB dipped toward short-term support near $89.00 and its 10-dma before paring its losses. I would wait for a bounce back above today's high ($90.10) or 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

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


Sohu.com Inc. - SOHU - close: 83.75 change: -2.95

Stop Loss: 81.75
Target(s): 88.50
Current Option Gain/Loss: +31.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
10/07/13: After huge gains last week it was not surprising to see some profit taking on SOHU with the market in a widespread decline on Monday. Readers may want to exit positions early to lock in gains.

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

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


Tractor Supply Company - TSCO - close: 66.79 change: -1.74

Stop Loss: 65.75
Target(s): 74.00
Current Option Gain/Loss: -17.2%
Time Frame: 6 to 9 weeks
New Positions: see below

Comments:
10/07/13: TSCO was hit hard today with a -2.5% decline. The stock is nearing what should be support in the $66.00-66.50 zone. 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

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


United Parcel Service - UPS - close: 90.03 change: -0.97

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:
10/07/13: UPS could be in trouble with no follow through on Friday's bounce. If shares fail at $90.00 the next level of support is the $88.00 level. 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)

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


Workday, Inc. - WDAY - close: 81.27 change: -1.12

Stop Loss: 79.75
Target(s): 89.00
Current Option Gain/Loss: -29.8%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
10/07/13: WDAY has spent the last few days consolidating sideways. Today's display of relative weakness (-1.35%) suggest we are going to see WDAY testing the $80.00 level soon. I am not suggesting new positions at this time.

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


Whole Foods Market - WFM - close: 59.15 change: -0.40

Stop Loss: 57.90
Target(s): 64.75
Current Option Gain/Loss: Unopened
Time Frame: exit PRIOR to earnings in early November
New Positions: Yes, see below

Comments:
10/07/13: WFM spent Monday's session drifting sideways in a narrow range. Overall our view is unchanged as we wait for a breakout higher past $60.00.

Earlier Comments:
I am suggesting a trigger to buy calls at $60.25. If triggered our target is $64.75. However, we will plan to exit prior to WFM's earnings report in early November.

Trigger @ 60.25

- Suggested Positions -

Buy the NOV $60 call (WFM1316K60)

Entry on October -- at $---.--
Average Daily Volume = 2.4 million
Listed on October 05, 2013


Yelp, Inc. - YELP - close: 69.93 change: -3.29

Stop Loss: 69.75
Target(s): 79.50
Current Option Gain/Loss: Unopened
Time Frame: exit PRIOR to earnings in very late October
New Positions: Yes, see below

Comments:
10/07/13: YELP displayed some relative weakness with a -4.49% decline today. Shares are testing short-term support near $70.00 and its 10-dma. If the stock continue to sink from here we might drop it as a bullish candidate. At the moment I don't see any changes from my earlier comments.

Earlier Comments:
YELP could see more short covering. The most recent data listed short interest a 22% of the relatively small 37.8 million share float. Now after a two-week consolidation in the $65-70 zone YELP is breaking out to new all-time highs.

Friday's intraday high was $73.45. I am suggesting a trigger at $73.75. If triggered our target is $79.50. I do consider this an aggressive, higher-risk trade and therefore suggest readers use smaller positions to limit risk.

Trigger @ 73.75 *small positions*

- Suggested Positions -

Buy the NOV $80 call (YELP1316K80)

Entry on October -- at $---.--
Average Daily Volume = 3.75 million
Listed on October 05, 2013


PUT Play Updates

Energizer Holdings - ENR - close: 92.04 change: -0.81

Stop Loss: 93.65
Target(s): 88.00
Current Option Gain/Loss: -45.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
10/07/13: It looks like the oversold bounce in ENR might be ending. Readers could use today's move as a new entry point for bearish positions.

- Suggested *Small* Positions -

Long Oct $90 PUT (ENR1319v90) entry $1.00

10/05/13 new stop loss @ 93.65

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: 70.00 change: -0.47

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:
10/07/13: CBI held up well today with only a minor decline. The stock garnered more bullish analyst comments today. There is no change from my weekend comments. 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

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


Vanguard FTSE Europe ETF - VGK - close: 54.29 change: -0.26

Stop Loss: 50.95
Target(s): 58.50
Current Option Gain/Loss: + 2.7%
Time Frame: exit PRIOR to 2014 March option expiration
New Positions: see below

Comments:
10/07/13: The VGK fell -0.4% today. While the $54.00 level might offer some short-term support I would expect a 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.

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