Editor's Note:

Expectations that the U.S. Senate might get a deal done on the shutdown and debt ceiling helped lift stocks. The NASDAQ hit new multi-year highs and the Russell 2000 index hit a new all-time high.

DRQ and IWM hit our entry triggers. MCD was stopped out.


Current Portfolio:


CALL Play Updates

Buffalo Wild Wings, Inc. - BWLD - close: 119.60 change: -0.74

Stop Loss: 118.40
Target(s): 129.00
Current Option Gain/Loss: Unopened
Time Frame: exit PRIOR to earnings on Oct. 29th
New Positions: Yes, see below

Comments:
10/16/13: BWLD shot higher from the opening bell. Shares hit a new all-time high on an intraday basis but reversed at $121.75. The stock closed lower on the session and shares are at risk of forming a bearish double top pattern. The relative weakness today against the broader market indices doesn't bode well.

At the moment we're still on the sidelines with a suggested entry trigger at $122.00. We'll give BWLD another day and re-evaluate. For now our strategy is unchanged.

Earlier comments:
The most recent data listed short interest at 9% of the very small 18 million share float. A breakout to another new high could spark more short covering. More aggressive traders may want to buy calls if BWLD can trade above $121.25, which would be a new high. I want to see a bit more follow through since a failure here would look like a potential bearish double top pattern. Tonight we're suggesting small bullish positions if BWLD can trade at $122.00. If triggered we'll start with a stop loss at $118.40. Our target is $129.00.

Trigger @ 122.00 *small positions*

- Suggested Positions -

Buy the NOV $125 call (BWLD1316K125)

Entry on October -- at $---.--
Average Daily Volume = 324 thousand
Listed on October 15, 2013


Dril-Quip, Inc. - DRQ - close: 119.22 change: +1.50

Stop Loss: 114.75
Target(s): 124.50
Current Option Gain/Loss: Nov120c: -13.7% & Dec125c +00.0%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
10/16/13: The stock market's broad-based rally this morning lifted DRQ to a new all-time high. The stock hit our trigger at $118.25 early this morning. I don't see any changes from my earlier comments.

Earlier comments:
Our target is $124.50. However, we will most likely exit prior to DRQ's earnings report expected in early November. If you are willing to hold over the earnings announcement then you may want to use the December options instead of November options. I am suggesting small positions because the spread on DRQ's November options are a bit wide.

*small positions* - Suggested Positions -

Long NOV $120 call (DRQ1316k120) entry $2.90*

- or -

Long DEC $125 call (DRQ1322L125) entry $1.95

*option price is an estimate.

Entry on October 16 at $118.25
Average Daily Volume = 281 thousand
Listed on October 14, 2013


Helmerich & Payne, Inc. - HP - close: 75.26 change: +0.68

Stop Loss: 71.75
Target(s): 79.50
Current Option Gain/Loss: - 2.5%
Time Frame: 4 to 5 weeks
New Positions: see below

Comments:
10/16/13: Today's market rally lifted HP to another new all-time high. Readers may want to start raising their stop loss.

We do not want to hold over the mid-November earnings report. FYI: The Point & Figure chart for HP is bullish with an $82 target.

- Suggested Positions -

Long NOV $75 call (HP1316K75) entry $2.31

Entry on October 14 at $74.50
Average Daily Volume = 1.1 million
Listed on October 12, 2013


iShares Russell 2000 ETF - IWM - close: 108.49 change: +1.33

Stop Loss: 104.80
Target(s): 114.00
Current Option Gain/Loss: - 5.0%
Time Frame: 8 to 12 weeks
New Positions: see below

Comments:
10/16/13: News that the U.S. senate was close to passing a budget and debt ceiling deal helped lift the market. The IWM surged +1.24% and hit new all-time highs. Shares also hit our suggested entry point at $108.55. I would still consider new positions now at current levels.

Earlier comments:
A deal in Washington will get done eventually and that could turn on the "all clear signal" for market participants to jump back in with both feet. I am suggesting a trigger to buy calls at $108.55. If triggered our target is $114.00. We'll start with a stop loss at $104.80, just below last Thursday's low.

- Suggested Positions -

Long 2014 Jan $110 call (IWM1418a110) entry 2.80

Entry on October 16 at $108.55
Average Daily Volume = 41 million
Listed on October 14, 2013


Starbucks Corp. - SBUX - close: 78.04 change: +1.33

Stop Loss: 75.75
Target(s): 82.50
Current Option Gain/Loss: -12.7%
Time Frame: exit PRIOR to earnings in very late October
New Positions: see below

Comments:
10/16/13: Today's bounce in SBUX almost completely erased yesterday's drop. With shares back above $78.00 I would consider new positions. Or you could wait for a new relative high above $78.32 before buying calls.

Earlier Comments:
Our target is $82.50. Yes, it's possible that the $80.00 level could be round-number, psychological resistance but after a three-week consolidation sideways under the $78.00 level we suspect that $80 is not going to stop the rally in SBUX. We do not want to hold over SBUX's earnings, which will likely occur at the end of the month of early November.

- Suggested Positions -

Long NOV $80 call (SBUX1316k80) entry $1.65

Entry on October 14 at $78.25
Average Daily Volume = 3.7 million
Listed on October 12, 2013


Constellation Brands - STZ - close: 63.27 change: +0.97

Stop Loss: 59.75
Target(s): 67.50
Current Option Gain/Loss: +44.9%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
10/16/13: STZ added +1.5% today and shares tagged a new high on an intraday basis. I am raising our stop loss to $59.75.

Earlier Comments:
Our target is $67.50 but we may end up exiting near $65.00, which could be potential round-number resistance.

- Suggested Positions -

Long NOV $62.50 call (STZ1316k62.5) entry $1.38

10/16/13 new stop loss @ 59.75
10/11/13 trade opened on gap higher at $61.25,
trigger was $61.10

Entry on October 11 at $61.25
Average Daily Volume = 1.9 million
Listed on October 10, 2013


Zimmer Holdings - ZMH - close: 87.72 change: +1.34

Stop Loss: 84.40
Target(s): 89.50
Current Option Gain/Loss: +40.7%
Time Frame: exit PRIOR to earnings on Oct. 24th
New Positions: see below

Comments:
10/16/13: ZMH managed to outperform the market with a +1.5% gain. The stock closed at its high for the day, which should bode well for tomorrow morning. I am raising our stop loss up to $84.40.

Earlier Comments:
FYI: The medical device stocks could see a little volatility surrounding the political wrangling in Washington. The republicans and some democrats support repealing the recent medical device tax. Yet Senate Majority Leader Harry Reid and President Obama has rejected any suggestions to repeal this tax. It could be a bargaining chip in the negotiations between both sides over the budget and debt ceiling. Although it's worth noting that shares of ZMH have been ignoring all the drama lately.

- Suggested Positions -

Long NOV $85 call (ZMH1316k85) entry $2.70

10/16/13 new stop loss @ 84.40
10/14/13 adjust exit target to $89.50

Entry on October 10 at $85.55
Average Daily Volume = 1.2 million
Listed on October 09, 2013


PUT Play Updates

Newmont Mining - NEM - close: 25.88 change: -0.22

Stop Loss: 27.10
Target(s): 21.00
Current Option Gain/Loss: -14.1%
Time Frame: Exit PRIOR to earnings on October 31st
New Positions: , see below

Comments:
10/16/13: NEM tried to bounce midday but failed twice near $26.25. The stock eventually closed in the red, underperforming the major indices. There is no change from my prior comments.

Earlier comments:
Our target is $21.00 but we will plan to exit prior to NEM's earnings report scheduled on October 31st.

- Suggested Positions -

Long NOV $25 PUT (NEM1316W25) entry $0.92

Entry on October -- at $---.--
Average Daily Volume = 9.1 million
Listed on October 12, 2013



Longer-Term Play Updates



Chicago Bridge & Iron - CBI - close: 71.91 change: +0.76

Stop Loss: 64.00
Target(s): 79.00
Current Option Gain/Loss: +221.5%
Time Frame: 4 to 6 months
New Positions: see below

Comments:
10/16/13: CBI was stuck inside of yesterday's trading range. Shares still managed a +1.0% gain. I am not suggesting new positions at this time.

FYI: CBI is due to report earnings on October 29th.

*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: 55.30 change: +0.38

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:
10/16/13: European stock markets produced a mixed performance on Wednesday but that didn't stop the VGK from breaking out past short-term resistance at the $55.00 level.

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 BEARISH PLAYS

McDonald's Corp. - MCD - close: 95.22 change: +1.42

Stop Loss: 95.05
Target(s): 90.25
Current Option Gain/Loss: -60.2%
Time Frame: 2 to 3 weeks
New Positions: see below

Comments:
10/16/13: The stock market's widespread rally helped lift MCD to a +1.5% gain. Traders ignored the negative analyst report on MCD yesterday. Today's move broke through some overhead resistance and hit our stop loss at $95.05.

- Suggested Positions -

Long NOV $90 PUT (MCD1316W90) entry $0.93 exit $0.37 (-60.2%)

10/16/13 stopped out
10/12/13 adjust stop loss to $95.05

chart:

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