Editor's Note:

The stock market rallied on news of a extension for the U.S. debt ceiling and temporary funding for the U.S. government.

VIPS was triggered. NEM hit our stop.


Current Portfolio:


CALL Play Updates

Buffalo Wild Wings, Inc. - BWLD - close: 118.49 change: -1.11

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:
10/17/13: BWLD garnered more bullish analyst comments today but that didn't stop shares from seeing some profit taking this morning. BWLD did manage a nearly $2 bounce off its intraday lows. If BWLD doesn't show some improvement tomorrow we might drop it as a candidate.

At the moment we're still on the sidelines with a suggested entry trigger at $122.00.

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: 118.00 change: -1.22

Stop Loss: 114.75
Target(s): 124.50
Current Option Gain/Loss: Nov120c: -36.2% & Dec125c -23.0%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
10/17/13: It was a disappointing session for DRQ. The stock briefly traded to a new high and then reversed to underperform the market with a -1.0% drop. DRQ could be struggling with round-number resistance at the $120.00 mark. I am not suggesting new positions at this time.

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: 75.84 change: +0.58

Stop Loss: 71.75
Target(s): 79.50
Current Option Gain/Loss: + 8.2%
Time Frame: 4 to 5 weeks
New Positions: see below

Comments:
10/17/13: HP has extended its gains to five out of the last six days. Thursday's session marks a new multi-year closing 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: 109.44 change: +0.95

Stop Loss: 104.80
Target(s): 114.00
Current Option Gain/Loss: + 8.5%
Time Frame: 8 to 12 weeks
New Positions: see below

Comments:
10/17/13: The Russell 2000 small cap index rallied to a new all-time high and outperformed its large cap peers with a +0.87% gain. It is possible that the $110 level could be short-term round-number resistance.

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. Our target is $114.00.

- 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: 78.74 change: +0.70

Stop Loss: 75.75
Target(s): 82.50
Current Option Gain/Loss: -00.6%
Time Frame: exit PRIOR to earnings in very late October
New Positions: see below

Comments:
10/17/13: It looks like SBUX is finally starting to escape the gravitational pull of the $76-78 zone. Shares hit a new all-time with today's +0.89% gain.

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: 63.89 change: +0.62

Stop Loss: 59.75
Target(s): 67.50
Current Option Gain/Loss: +66.6%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
10/17/13: The rally in STZ continues. Shares continued to show relative strength and added another +0.97% on Thursday. Readers may want to raise their stop loss again.

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


Vipshop Holdings Limited - VIPS - close: $73.49 change: +2.94

Stop Loss: 68.40
Target(s): 77.50
Current Option Gain/Loss: +16.6%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
10/17/13: VIPS delivered another big day with a +4.1% gain. The stock actually started weak, recovered, and spent most of the day drifting sideways in the $70.50-71.00 zone before surging in the last 90 minutes. Our suggested entry trigger was hit at $71.55. If you missed you may want to wait for a dip before considering new positions.

Surprisingly the option traded at $4.80 when VIPS hit our trigger. I would have expected it to be higher.

Earlier Comments:
If this rally continues the stock could see some short covering. The most recent data listed short interest at 8.7% of the very small 20.5 million share float.

- Suggested Positions -

Long NOV $75 call (VIPS1316K75) entry $4.80

Entry on October 17 at $71.55
Average Daily Volume = 1.25 million
Listed on October 16, 2013


Zimmer Holdings - ZMH - close: 87.88 change: +0.16

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:
10/17/13: ZMH delivered a very quiet session on Thursday. Shares merely drifted sideways below short-term resistance at the $88 level. I am not suggesting new positions at this time.

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


Currently we do not have any active put trades.




Longer-Term Play Updates



Chicago Bridge & Iron - CBI - close: 72.82 change: +0.91

Stop Loss: 64.00
Target(s): 79.00
Current Option Gain/Loss: +249.0%
Time Frame: 4 to 6 months
New Positions: see below

Comments:
10/17/13: Traders quickly bought the dip in CBI this morning. The stock closed at a new high. 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: 56.22 change: +0.92

Stop Loss: 50.95
Target(s): 58.50
Current Option Gain/Loss: +44.4%
Time Frame: exit PRIOR to 2014 March option expiration
New Positions: see below

Comments:
10/17/13: The European markets delivered a mixed session on Thursday. Yet the VGK surged to a new 52-week high on news of a deal in the U.S. The VGK gained +1.65%. 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


CLOSED BEARISH PLAYS

Newmont Mining - NEM - close: 27.06 change: -1.18

Stop Loss: 27.10
Target(s): 21.00
Current Option Gain/Loss: -55.4%
Time Frame: Exit PRIOR to earnings on October 31st
New Positions: , see below

Comments:
10/17/13: The U.S. dollar plunged on news of a deal in Washington. This drop in the dollar sparked a bounce in gold. The rally in gold fueled a rally in the miners and NEM gapped open higher at $26.88. Shares hit $27.42 intraday. Our stop loss was $27.10.

- Suggested Positions -

NOV $25 PUT (NEM1316W25) entry $0.92 exit $0.41 (-55.4%)

10/17/13 stopped out

chart:

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