Editor's Note:

The Russell 2000 and the NASDAQ are down three days in a row. The S&P 500 and the Dow Industrials managed to bounce off their intraday lows. The S&P 500 barely made it back into positive territory. The DJIA tested technical support at its 200-dma.

It was an active day for our play list. GPOR, IWM and WFM were stopped out. CTXS, MCD, and RTN were all triggered.


Current Portfolio:


CALL Play Updates


Currently we do not have any active call option trades.



PUT Play Updates

Citrix Systems - CTXS - close: 66.66 change: -0.95

Stop Loss: 70.05
Target(s): 60.00
Current Option Gain/Loss: + 4.0%
Time Frame: exit PRIOR to earnings in late October
New Positions: see below

Comments:
10/09/13: The weakness in CTXS continued and today's -1.4% decline underperformed the broader market. Our trigger to buy puts was hit at $67.30.

Tomorrow could be exciting for put holders. After the closing bell tonight CTXS lowered its Q3 earnings guidance. After hours this evening shares have fallen toward $58 a share. We do not know where CTXS will open tomorrow morning but odds are good we will see it gap down. I am adjusting our exit target to $60.00. More aggressive traders may want to aim lower. If CTXS gaps open below $60.00 we will exit immediately.

- Suggested Positions -

Long NOV $65 PUT (CTXS1316w65) entry $2.50

10/09/13 adjust exit target to $60.00.
CTXS is trading near $58.00 a share after hours following an earnings warning.
*option entry price is an estimate since the option did not trade at the time our play was opened.

Entry on October 09 at $67.30
Average Daily Volume = 1.4 million
Listed on October 08, 2013


McDonald's Corp. - MCD - close: 93.27 change: -0.67

Stop Loss: 94.85
Target(s): 90.25
Current Option Gain/Loss: + 2.1%
Time Frame: 2 to 3 weeks
New Positions: see below

Comments:
10/09/13: After flirting with a breakdown below support near $94.00 yesterday MCD finally confirmed it today with a -0.7% decline. Today's drop hit our suggested trigger to buy puts at $93.75.

Earlier Comments:
Our time frame is only two, maybe three weeks as we do not want to hold over MCD's earnings report expected in late October.

- Suggested Positions -

Long NOV $90 PUT (MCD1316W90) entry $0.93

Entry on October 09 at $93.75
Average Daily Volume = 4.3 million
Listed on October 07, 2013


Raytheon Co. - RTN - close: 73.97 change: -0.08

Stop Loss: 75.25
Target(s): 70.25
Current Option Gain/Loss: - 5.4%
Time Frame: exit PRIOR to earnings in late October
New Positions: see below

Comments:
10/09/13: RTN continued to slip lower today but I was expecting more weakness. Today's decline was very mild. Shares did hit our trigger to buy puts at $73.90 this morning. I would still consider new bearish positions now at current levels.

- Suggested Positions -

Long NOV $72.50 PUT (RTN1316w72.5) entry $1.64

Entry on October 09 at $73.90
Average Daily Volume = 1.63 million
Listed on October 08, 2013



Longer-Term Play Updates



Chicago Bridge & Iron - CBI - close: 68.36 change: +0.35

Stop Loss: 64.00
Target(s): 79.00
Current Option Gain/Loss: +131.3%
Time Frame: 4 to 6 months
New Positions: see below

Comments:
10/09/13: CBI garnered more bullish analyst comments. One firm initiated coverage with a "buy" rating. Another firm raised their price target to $90.00. Technically shares bounced off their simple 20-dma and outperformed the market with a +0.5% gain.

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: 53.55 change: -0.17

Stop Loss: 50.95
Target(s): 58.50
Current Option Gain/Loss: -16.6%
Time Frame: exit PRIOR to 2014 March option expiration
New Positions: see below

Comments:
10/09/13: The VGK dipped to technical support at its simple 50-dma before paring its losses. There is no change from my prior comments.

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

Gulfport Energy - GPOR - close: 64.66 change: -0.22

Stop Loss: 63.95
Target(s): 72.50
Current Option Gain/Loss: -38.1%
Time Frame: exit PRIOR to GPOR's earnings in November
New Positions: see below

Comments:
10/09/13: GPOR pared its loss to just 22 cents by the closing bell. Unfortunately some intraday weakness pulled shares below support at $64.00 and GPOR hit our stop at $63.95.

- Suggested Positions -

NOV $70 call (GPOR1316K70) entry $2.75 exit $1.70*(-38.1%)

10/09/13 stopped out
*option exit price is an estimate since the option did not trade at the time our play was closed.

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: 103.64 change: -0.42

Stop Loss: 103.40
Target(s): 110.95
Current Option Gain/Loss: -27.1%
Time Frame: 6 to 9 weeks
New Positions: see below

Comments:
10/09/13: Yesterday's sell-off continued into Wednesday morning and by lunchtime the IWM had tested the $103.00 level. Our stop loss was hit at $103.40 along the way.

- Suggested Positions -

2014 Jan $110 call (IWM1418a110) entry $2.10 exit $1.53 (-27.1%)

10/09/13 stopped out
*option exit price is an estimate since the option did not trade at the time our play was closed.
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


Whole Foods Market - WFM - close: 58.42 change: -0.67

Stop Loss: 57.90
Target(s): 64.75
Current Option Gain/Loss: -38.0%
Time Frame: exit PRIOR to earnings in early November
New Positions: see below

Comments:
10/09/13: After yesterday's intraday reversal lower the weakness continued in WFM. The stock traded down toward the $5.75 area before trimming its losses. Our stop was hit at $57.90.

Our play is closed but I would keep WFM on your watch list. A dip near its 50-dma or the $55 level could be a potential entry point to buy calls. Or shares could reverse higher again and a close above resistance near $60.00 could be an alternative entry point.

- Suggested Positions -

NOV $60 call (WFM1316K60) entry $2.50 exit $1.55 (-38.0%)

chart:

Entry on October 08 at $60.25
Average Daily Volume = 2.4 million
Listed on October 05, 2013