Editor's Note:

The market's major indices drifted sideways on Monday. Investors could be waiting for the jobs report out tomorrow morning.

JCOM hit our entry trigger. We closed our ZMH trade this morning to lock in gains.


Current Portfolio:


CALL Play Updates

Ctrip.com - CTRP - close: 58.21 change: +1.37

Stop Loss: 58.25
Target(s): 68.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
10/21/13: CTRP garnered new bullish analyst comments this morning. The stock spiked higher but failed at resistance near its early October high. Today's move looks like a bearish reversal at resistance at what could be the beginning of a bearish double top formation. If CTRP sees any follow through lower tomorrow we will likely drop it as a candidate.

Earlier Comments:
The October 2nd high was $61.09. I am suggesting a trigger to buy calls at $61.25. If triggered our target is $68.50. However, we will plan to exit prior to CTRP's earnings report in early November.

NOTE: CTRP can be a volatile stock. I do consider this a more aggressive, higher-risk trade. We want to use small positions to limit our risk.

FYI: The Point & Figure chart for CTRP is bullish with a $67.50 target.

Trigger @ 61.25 *small positions*

- Suggested Positions -

Buy the NOV $65 call (CTRP1316K65)

Entry on October -- at $---.--
Average Daily Volume = 2.65 million
Listed on October 19, 2013


3D Systems - DDD - close: 57.70 change: +0.93

Stop Loss: 53.45
Target(s): 64.00
Current Option Gain/Loss: + 6.6%
Time Frame: exit PRIOR to earnings on Oct. 29th
New Positions: see below

Comments:
10/21/13: DDD displayed some relative strength with a +1.6% gain on Monday. If you were waiting for a rally past $57.00 then you got it today.

Earlier Comments:
DDD could see some short covering. The most recent data listed short interest at 32.5% of the 94.5 million share float.

Our target is $64.00. However, we will plan to exit prior to DDD's earnings report on October 29th.

- Suggested Positions -

Long NOV $60 call (DDD1316K60) entry $2.25

Entry on October 18 at $57.05
Average Daily Volume = 6.8 million
Listed on October 17, 2013


Dril-Quip, Inc. - DRQ - close: 117.81 change: -1.57

Stop Loss: 114.75
Target(s): 124.50
Current Option Gain/Loss: Nov120c: -43.1% & Dec125c -35.8%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
10/21/13: Uh-oh! It was a bearish day for DRQ. The stock failed at round-number resistance near $120.00 and underperformed the market with a -1.3% decline. More conservative traders may want to raise their stops. 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: 76.49 change: -0.27

Stop Loss: 71.75
Target(s): 79.50
Current Option Gain/Loss: +19.0%
Time Frame: 4 to 5 weeks
New Positions: see below

Comments:
10/21/13: It was a quiet session for HP. The stock followed the market's sideways move today. There is no change from my weekend comments. Shares are starting to look a little short-term overbought. I would not be surprised to see a dip back toward the $75.00 area but given the rally in the oil stocks HP may not see a dip. I am not suggesting new positions at this time.

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: 110.47 change: -0.22

Stop Loss: 104.80
Target(s): 114.00
Current Option Gain/Loss: +19.6%
Time Frame: 8 to 12 weeks
New Positions: see below

Comments:
10/21/13: The IWM briefly tagged a new high this morning but shares spent the rest of the day drifting lower. The market is arguably short-term overbought. I wouldn't be surprised to see a short-term dip. Look for support near $108.00.

- 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


J2 Global, Inc. - JCOM - close: 55.17 change: +0.62

Stop Loss: 53.25
Target(s): 59.75
Current Option Gain/Loss: - 6.9%
Time Frame: exit PRIOR to earnings on November 5th
New Positions: see below

Comments:
10/21/13: Our new play on JCOM has been triggered. The stock continued to rally and outperformed the broader market with a +1.1% gain on Monday. JCOM hit our suggested entry point at $55.05.

Earlier Comments:
The stock looks ready to launch its next leg higher. New highs could spark a short squeeze. The most recent data listed short interest at 31% of the 43.7 million share float. Our target is $59.75 but more aggressive traders could aim higher. The Point & Figure chart for JCOM is bullish with a $77 target.

- Suggested Positions -

Long NOV $55 call (JCOM1316K55) entry $2.15

Entry on October 21 at $55.05
Average Daily Volume = 329 thousand
Listed on October 19, 2013


Starbucks Corp. - SBUX - close: 79.31 change: +0.58

Stop Loss: 75.75
Target(s): 82.50
Current Option Gain/Loss: +15.7%
Time Frame: exit PRIOR to earnings in very late October
New Positions: see below

Comments:
10/21/13: SBUX was making headlines today with a story in the state-run China Central Television and the China Daily newspaper that alleged SBUX was making Chinese consumers pay more for their products than in other markets (source: CNN). The stock really didn't react to the news and shares actually tagged a new high before paring its gains.

It looks like the $80.00 level could be round-number resistance.

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: 64.42 change: +0.09

Stop Loss: 59.75
Target(s): 67.50
Current Option Gain/Loss: +81.1%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
10/21/13: STZ eked out another gain. That extends the rally to seven up days in the last eight sessions. There is no change from my weekend comments.

It is possible that the $65.00 level could be round-number, psychological resistance. If that's true then STZ may be close to a pullback. More conservative traders might want to take some money off the table here. I am not suggesting new positions.

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


Thor Industries - THO - close: 58.54 change: -0.41

Stop Loss: 57.75
Target(s): 64.75
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
10/21/13: THO issued a press release this evening after the closing bell. The company completed its sales of its bus business to Allied Specialty Vehicles, Inc. for $100 million. The Board of Directors announced a special dividend of $1.00 per share payable on November 19th, 2013 to shareholders on record as of November 5th.

There is no change from my weekend comments. The stock is currently trading below short-term resistance in the $59-60 zone. I am suggesting a trigger to buy calls at $60.25. If triggered our target is $64.75.

Trigger @ 60.25

- Suggested Positions -

Buy the NOV $60 call (THO1316K60) current ask $1.15

Entry on October -- at $---.--
Average Daily Volume = 528 thousand
Listed on October 19, 2013


Vipshop Holdings Limited - VIPS - close: $76.48 change: -0.03

Stop Loss: 69.75
Target(s): 78.50
Current Option Gain/Loss: +45.8%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
10/21/13: The rally in VIPS took the day off. Shares did hit new highs on an intraday basis but the stock closed virtually unchanged on the session. It might be time for a little pullback. I am not suggesting new positions.

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

10/19/13 new stop loss @ 69.75, adjust exit target from 77.50 to 78.50

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


PUT Play Updates


Currently we do not have any active put trades.




Longer-Term Play Updates



Chicago Bridge & Iron - CBI - close: 75.00 change: +1.62

Stop Loss: 68.40
Target(s): 79.00
Current Option Gain/Loss: +311.7%
Time Frame: 4 to 6 months
New Positions: see below

Comments:
10/21/13: Another day, another gain for CBI. Shares hit potential round-number resistance at the $75.00 mark today. More conservative investors may want to lock in gains now. 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

10/19/13 new stop loss @ 68.40
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: 56.72 change: +0.15

Stop Loss: 52.75
Target(s): 58.50
Current Option Gain/Loss: +58.3%
Time Frame: exit PRIOR to 2014 March option expiration
New Positions: see below

Comments:
10/21/13: The VGK continues to climb. Shares of this ETF are up seven out of the last eight sessions. It's starting to look short-term overbought and due for a pullback. 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*

10/19/13 new stop loss @ 52.75
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

Zimmer Holdings - ZMH - close: 88.32 change: -0.63

Stop Loss: 84.40
Target(s): 89.50
Current Option Gain/Loss: +66.6%
Time Frame: exit PRIOR to earnings on Oct. 24th
New Positions: see below

Comments:
10/21/13: Our plan was to exit our ZMH trade this morning at the opening bell to lock in gains. The stock opened slightly lower at $88.83 and then fell -0.7% by the close.

The long-term trend is up. I would keep ZMH on your radar screen for another entry point. Keep in mind that shares could be volatile after the earnings report on Oct. 24th.

- Suggested Positions -

Long NOV $85 call (ZMH1316k85) entry $2.70 exit $4.50* (+66.6%)

10/21/13 planned exit this morning
*option exit price is an estimate since the option did not trade at the time our play was closed.
10/19/13 prepare to exit on Monday, Oct 21st to lock in gains
10/16/13 new stop loss @ 84.40
10/14/13 adjust exit target to $89.50

chart:

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