Option Investor
Newsletter

Daily Newsletter, Thursday, 11/7/2013

Table of Contents

  1. Market Wrap
  2. New Option Plays
  3. In Play Updates and Reviews

Market Wrap

Economic Strength Sends Markets Lower

by Thomas Hughes

Click here to email Thomas Hughes
A combination of economic strength and a rate cut from the ECB strengthens the dollar and sent the major indexes into free fall.

Introduction

Today was a big day for traders. The ECB surprised some with a quarter point rate cut and the U.S. economy grew faster than expected. Both helped to strengthen the dollar and lift futures trading ahead of the open of today's trading. Trading was mixed around the world. Asian stocks ended the day down, their markets closing before the key event of the day. European stocks were up initially but lost most their gains by the time those markets closed. The futures trade was basically flat in the early morning hours. The first boost came when the ECB announced the cut in interest rates, the second once unemployment and GDP numbers were released.


The first sign of trouble came at the open. Although indicated to open about 7 points higher, the S&P only managed to get about 3 points higher before sellers stepped in to drive prices lower. At first I thought that the market was just watching the Twitter IPO. It was kind of important to see for more than one reason. For one it is the first major social media IPO since Facebook. There were a lot of questions about what the stock was worth since the company doesn't make any profits. Apparently it's worth a lot since it opened $19 higher than it was originally priced. The second reason it was important was because of all the problems that Nasdaq has been having. It was reassuring to see it go down the way it did, very smoothly.

Twitter was a smoke screen. While everyone was focused on that the market simply began to move lower. The major indices hit an early low around 11:30 AM, moved back up and then moved back down to make a lower afternoon low. Market breadth was poor but volume on some stocks was high. I have been expecting another pullback of some sort and this may be it. One thing to note is that it is not being driven on fear. No negative catalyst sparked today's sell off. Better than expected data and the reassuring move from the ECB should have helped to reduce fear and maybe it did, to the point that some regular profit taking is setting in. The S&P for one is well extended from the long term trend and in an attractive place for taking some money off the table. The most recent all time high of 1771.95 is about 2.5% above the previous all time high and 7.5% above the most recent low.

The Data

Third quarter GDP was a real surprise today. This figure is one of the last pieces of data delayed by the shut down and is a lagging indicator at best. This is the first estimate for the third quarter and includes the three months ending September 30, just prior to California's unemployment claims problems and the government shut down. Estimates were low, the consensus was around 2% GDP, down from the prior estimate of 2.5%. The actual 2.8% was far above the expectations and helped to lift futures trading going into the open. The better than expected number led some to speculate that the impact of October events on fourth quarter and full year GDP would not be as bad as previously thought.


Initial claims fell from last weeks upwardly revised figures. Claims fell by 9,000 to hit a 5 low of 336,000. The four week moving average also declined from an upward revision and fell below the 350,000 mark. This is the fifth week since the spike in claims attributed to California and Nevada computer maintenance issues caused a huge back log. The decline from the peak is steady and has brought the number of first time claims back in line with the levels we saw just prior to the issues. On average the number of claims over the last two months has been steady around the 335,000 mark. Taking into account the California/Nevada issue it looks like the number of jobs being lost remained stable during the government shut down. Only two states reported a decline in claims greater than 1,000 with California topping the list with -4,460. There were 6 states with an increase greater than 1,000 for a combined gain near 14,000 claims.


Continuing claims rose by 5,000 but since the previous weeks number was revised lower by a similar amount the number of claims held steady. Continuing claims remains near long term low levels with no indications at this time of any increases. The government shut down has, so far, not shown itself in the data. There is speculation that some of the data we will be receiving won't be entirely accurate until next month but claims data is compiled on the state level so should not be affected. Total claims also gained, adding about 75,000 and bringing the total up to 3.958 million. This is still below the 4 million mark and in line with the longer term down trend in unemployment. The total number of people claiming unemployment held steady during the shut down with no as yet seen affects. This data is lagging the initial claims figures by two weeks so a few more weeks will help to solidify belief that the shut down and it's affects are small and soon forgotten.



Dollar Strengthens

Today two major central banks made policy statements. The Bank of England held rates steady as expected but the ECB surprised some with an unexpected quarter point cut in the prime interest rate. This move wasn't so much unexpected but just a little quicker than some had thought. There had been growing speculation of a possible cut or at least a hint of a cut at this meeting due to lower than expected inflation numbers last month. Mario Draghi's statements after the announcement echo that sentiment, “...the decision to lower rates was in line with guidance...”. The euro fell sharply on the news at the same time European markets were lifted. The EUR/USD broke the 1.3500 support and then the 1.3400 level testing long term support just above the 1.3250 level. This pair is indicated lower and could move down to 1.3250 or lower.

EUR/USD

The Dollar Index, which is euro heavy, moved up and tested resistance at 81 level. The index made a strong move up, breaking out of a short term bullish flag. The target for this break out is the length of the flag pole above the point of the break. This would be roughly $1.75 with an upside target near $82.50, contingent on a move above resistance. Now that the ECB meeting is in the past the next central bank meeting (BOJ) that could affect the index is in two weeks. Indicators are bullish at this time and are consistent with higher prices.

Dollar Index

The yen weakened initially, touching a 1 1/2 month high, but soon trading equalized and the pair returned to trade even with yesterday's closing prices. By the days end the pair had given up gains seen over the past few days. Today's action brought the pair back to retest, again, the 98 support level. Abenomics relies on a weaker yen, the ECB move could add pressure to the BOJ to enhance its own QE policies sooner than the expected spring of 2014. Indicators are still bullish and indicate support at the current level.

USD/JPY

Gold Weakens

Dollar strength means gold weakness and that is what we got today. Gold prices fell hard early on, breaking the $1,300 level for the first time in over three weeks. Once breached prices found some support and lifted gold back to around the $1,310 for most of the day. If data stays strong then taper talk could come back to the forefront and add some more pressure to gold. Tomorrow's NFP and unemployment numbers could play a part in this scenario. The Gold Index traded to the downside today as well. The index is trading along the 30 day moving average with a series of small candles getting smaller. This level is just above the lower boundary of the long term pennant formation the index has been stuck in. Short term indicators are now bearish and could be leading the index lower. The long term trend is still down for this index. The bullish momentum that came along with the pennant is declining and could lead to a break down of support. If the index does fall out of the pennant downside targets exists around the $66 level and the 100% retracement of the 2009-2011 bull market in gold.

Gold Index

The Oil Index

The price of oil fell again today. Rising supply, stronger dollar and easing tension with Iran are keeping prices low. The price of oil has been at or near a four month low for over a week and could keep moving lower. The shale oil boom is adding to the supply issue, reports, some conflicting, are pointing to U.S. oil independence as early as the next year or so. Low oil prices are great for the economy and the consumer but pose a problem for oil producers. Downstream retail sales could increase due to lower end prices but up stream profits could be adversely affected. The Oil Index has begun to show sign that it is not impervious to a sharp decline in the price of it's underlying commodity. Today the index dropped nearly 2% and is forming a short term triple top. The index could find support just below the short term moving average at the 1430 level but is more likely to retest the long term trend around 1400.

Oil Index

Tweet Tweet

Twitter has finally opened for sale. The stock priced late yesterday evening around $26 and was met with great enthusiasm this morning. Early indications pointed to the stock opening higher, about $5, but soon it was clear that TWTR was going to open much higher than first thought. The opening was very orderly, the price discovery took about an hour or so once the general market was opened. After some jockeying around the stock's first trade was for $45.10 and quickly moved up from there. During the morning it traded up as high as $50 and bounced around the $45-$48 range for a while. A late afternoon peak was met by sellers but prices held above the opening price.

Twitter

The Indices

The major indices fell today with the Nasdaq leading the charge. The tech heavy index,which has been a market leader for the past months, dropped close to 2% and just below the short term moving average. The candle stick formed on today's chart is an ominous engulfing candle that has consumed the past three weeks of candles. Bearish momentum is picking up and stochastic is moving below the upper signal line, suggesting some follow through selling could come tomorrow or next week. The next support is just below the current levels at the previous 13 year highs around 3800. If this level does not hold then the next target would be the long term trend line around 3600. MACD and stochastic peak analysis on the daily charts suggest that the most recent high will be tested again but this is not a guarantee. The next few days could determine if this is a small pull back or a more lengthy correction.

Nasdaq

The Dow Transports, another recent market leader, fell nearly 1.5% today. The trannies have not yet, and may not, form a H&S similar to the one seen on the Nasdaq chart. However, momentum has also turned bearish here indicating near to short term weakness in this market. Looking back over the past year this index is trending upward more strongly than the Nasdaq, the MACD peaks are much stronger and more highly convergent with the current all time highs. I am cautious in the near to short term on this index, a correction to the long term trend may be in the works but longer term I am still bullish. Support exists around the 6850 and 6750 levels.

Dow Transports

The Industrials fell from the top of the 6 month trading range. I have been watching this level for the past weeks and months, expecting the Trannies to lead the index higher and out this range. It looks like it may not be happening now. However, while momentum is turning bearish on the Nasdaq and the Transport the Dow Jones Industrial Average is still mildly bullish. The MACD is in decline and near the zero line but not necessarily going to do so. This index is also right above a potential support zone that happens to be coincident with the short term moving average. The longer term trend is still up but the index appears to remain range bound for the time being.

Dow Industrials

The S&P 500 fell just over -1.25% coming to rest on the upper boundary of the rising wedge it broke out of three weeks ago. Short term momentum has turned bearish and stochastic is about to fall below the upper signal line. Today's candle is a Dark Cloud Cover/bearish engulfing pattern that when combined with the bearish indicators and the index's position relative to the long term trend suggest a correction to trend is possible. There are several potential lines of support for the index on the way down that could halt the decline. The longer term trend is still up for this index but I am cautious going into tomorrow and next week.

S&P 500

We've finally gotten to the end of the data delays caused by the government shut down. Tomorrow's release of NFP and Unemployment rates are the last. There is not a lot of hope for a good NFP, the consensus is somewhere around 100K new jobs. This is a far cry lower than what the expectations for this number were before the government shut down. So far the data we have gotten suggests that the economy was growing stronger than expected going into the shut down and that job losses did not accelerate during the shut down so, at least to me, seems as though job creation during the month of October could be better than expected. Even if it isn't the underlying trends of slow to moderate economic growth are still in place and corporate earnings are OK. There is no sign of longer term correction yet, divergences on the charts are cause for concern but not yet reasons to trade.

Until then, remember the trend!

Thomas Hughes


New Option Plays

Technology & Consumer Goods

by James Brown

Click here to email James Brown


NEW DIRECTIONAL PUT PLAYS

Equinix, Inc. - EQIX - close: 159.75 change: -3.51

Stop Loss: 162.75
Target(s): 150.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
EQIX is in the technology sector. The company provides data center and Internet-related services around the globe. The company reported earnings on October 23rd that were significantly better than Wall Street expected. Management even raised their Q4 guidance. The stock initially spiked higher on these results but traders sold the rally and EQIX resumed the longer-term trend of lower highs.

Currently EQIX is flirting with a breakdown below support at the $160.00 level. Today's low was $159.34. I am suggesting a trigger to buy puts at $159.00. If triggered our target is $150.50.

Please note that I am suggesting small positions to limit our risk. The most recent data listed short interest at 28% of the relatively small 39.0 million share float. That raises the risk of a short squeeze. FYI: The Point & Figure chart for EQIX is bearish with a $142 target.

Trigger @ 159.00 *small positions*

- Suggested Positions -

Buy the DEC $150 PUT (EQIX1322X150) current ask $3.00

Annotated Chart:

Entry on November -- at $---.--
Average Daily Volume = 1.1 million
Listed on November 07, 2013


Green Mountain Coffee Roasters - GMCR - close: 58.18 change: -1.75

Stop Loss: 61.55
Target(s): 51.50
Current Option Gain/Loss: Unopened
Time Frame: Exit PRIOR to earnings on Nov. 20th
New Positions: Yes, see below

Company Description

Why We Like It:
GMCR is in the consumer goods sector. The company provides over 200 varieties of coffee, tea, cocoa and other drinks in a single-serving packaging. There are lots of opinions about GMCR's future and the K-cup product line. The price action seems to be saying that investors are losing confidence. The stock peaked back in August and has been underperforming the market ever since.

The most recent bounce from support near $60.00 has failed at the $65.00 level. Now with today's market decline GMCR has broken down below support at $60.00. I am suggesting we buy put options at the opening bell tomorrow. However, I am suggesting we keep our position size small to limit our risk. The most recent data listed short interest at more than 40% of the 130 million share float. That does raise the risk of a short squeeze if the market bounces.

Our target is $51.50.

buy puts at the opening bell *small positions*

- Suggested Positions -

Buy the Dec $55 PUT (GMCR1322x55) current ask $4.35

Annotated Chart:

Entry on November -- at $---.--
Average Daily Volume = 4.7 million
Listed on November 07, 2013



In Play Updates and Reviews

Taper Concerns Return

by James Brown

Click here to email James Brown

Editor's Note:

New worries about the Fed potentially tapering their QE program sparked widespread profit taking on Thursday. Meanwhile Twitter's IPO (TWTR) hogged the financial media spotlight.

HOT, HP, and IWM hit our stop losses. LMT was triggered.


Current Portfolio:


CALL Play Updates

Aon Plc. - AON - close: 79.43 change: -0.62

Stop Loss: 78.25
Target(s): 85.00
Current Option Gain/Loss: Unopened
Time Frame: 4 to 6 weeks
New Positions: Yes, see below

Comments:
11/07/13: The market turned lower on Thursday and AON retreated from resistance near the $80.00 level. At the moment our plan is unchanged. I am suggesting a trigger to buy calls at $80.50. If triggered our target is $85.00.

Trigger @ 80.50

- Suggested Positions -

buy the 2014 Jan $82.50 call (AON1418a82.5)

Entry on November -- at $---.--
Average Daily Volume = 2.3 million
Listed on November 06, 2013


B/E Aerospace Inc. - BEAV - close: 80.41 change: -2.10

Stop Loss: 79.60
Target(s): 89.50
Current Option Gain/Loss: -51.7%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
11/07/13: Many of the market's high-flyers were hit hard by profit taking. BEAV gave up -2.5% and closed below short-term technical support at its 10-dma. The next level of support should be $80.00. If $80 fails we'll see BEAV hit our stop loss.

Earlier Comments:
Our target is $89.50. FYI: The Point & Figure chart for BEAV is bullish with a $90 target.

- Suggested Positions -

Long DEC $85 call (BEAV1322L85) entry $1.45

Entry on November 05 at $82.75
Average Daily Volume = 894 thousand
Listed on November 02, 2013


Costco Wholesale - COST - close: 122.78 change: -1.29

Stop Loss: 118.40
Target(s): 129.00
Current Option Gain/Loss: + 66.9%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
11/07/13: Many retailers reported their October same-store sales numbers today. Wall Street was expecting COST to announced +2.4% growth but the company beat expectations with +3.0% same-store sales growth. If the market wasn't in sell-off mode I would have expected COST to rally on this news. Instead shares gave back about one third of yesterday's gains.

- Suggested Positions -

Long 2014 Jan $125 call (COST1418a125) entry $1.30

Entry on November 06 at $120.50
Average Daily Volume = 1.9 million
Listed on November 02, 2013


GNC Holdings - GNC - close: 57.61 change: -1.27

Stop Loss: 57.95
Target(s): 64.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
11/07/13: It was not a good day for GNC. Shares lost -2.1% and closed below short-term support near $58.00. Currently our plan is unchanged with a suggested trigger to buy calls at $60.50. However, we may want to consider buying calls on a dip or a bounce near support in the $55 area around its rising 50-dma.

Trigger @ 60.50

- Suggested Positions -

Buy the DEC $60 call (GNC1322L60)

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


Kansas City Southern - KSU - close: 122.49 change: -2.03

Stop Loss: 122.00
Target(s): 134.00
Current Option Gain/Loss: -40.2%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
11/07/13: Transportation stocks kept pace with the decline in the S&P 500 but KSU underperformed both with a -1.6% decline. Shares of KSU broke down below their 10-dma and look poised to hit our stop loss at $122.00 tomorrow.

- Suggested Positions -

Long DEC $125 call (KSU1322L125) entry $3.60

Entry on November 06 at $125.25
Average Daily Volume = 813 thousand
Listed on November 04, 2013


Lockheed Martin - LMT - close: 136.20 change: -0.67

Stop Loss: 134.40
Target(s): 148.50
Current Option Gain/Loss: -13.6%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
11/07/13: LMT was outperforming the major indices again this morning. Yet when the market rolled over LMT followed. The stock did hit new highs and our suggested entry point to buy calls at $137.25 this morning. If this pullback continues LMT could retest the $135.00 level soon. I would be tempted to buy calls near $135.00 or you could wait for a bounce off the $135.00 level.

- Suggested Positions -

Long 2014 Jan $140 call (LMT1418a140) entry $2.20

Entry on November 07 at $137.25
Average Daily Volume = 1.5 million
Listed on November 06, 2013


Pall Corp. - PLL - close: 80.80 change: -1.58

Stop Loss: 79.75
Target(s): 86.00
Current Option Gain/Loss: -18.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/07/13: Uh-oh! PLL underperformed the market with a -1.9% decline. It looks like traders are trying to lock in profits and selling their winners. PLL just erased three and a half days worth of gains. The close below its 10-dma is short-term bearish.

- Suggested Positions -

Long DEC $85 call (PLL1321L85) entry $1.10

11/06/13 new stop loss @ 79.75

Entry on October 28 at $80.50
Average Daily Volume = 551 thousand
Listed on October 23, 2013


Constellation Brands - STZ - close: 65.65 change: -0.76

Stop Loss: 64.75
Target(s): 68.50
Current Option Gain/Loss: +124.6%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
11/07/13: I have been suggesting that traders may want to lock in gains on our STZ trade. After today's move I would definitely consider an early exit. Technically today's -1.1% decline in STZ has produced a bearish engulfing candlestick reversal pattern. Although it's worth noting that the up trend is still intact and STZ has yet to touch short-term technical support at its 10-dma. I am raising our stop loss to $64.75.

- Suggested Positions -

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

11/07/13 new stop loss @ 64.75
11/06/13 new stop loss @ 64.25
11/05/13 new stop loss @ 63.85
10/30/13 new stop loss @ 63.40
10/29/13 new stop loss @ 63.25
10/28/13 adjust exit target to $68.50
10/22/13 new stop loss @ 61.90, readers may want to take profits now. Our option is up +84%.
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


PUT Play Updates

F5 Networks - FFIV - close: 80.39 change: -0.81

Stop Loss: 82.75
Target(s): 76.00
Current Option Gain/Loss: + 4.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/07/13: Shares of FFIV tagged overhead technical resistance at the 10-dma and 150-dma and reversed lower. More conservative traders might want to lower their stops closer to the $82 level.

- Suggested Positions -

Long DEC $80 PUT (FFIV1322X80) entry $3.15

11/06/13 new stop loss @ 82.75
11/04/13 new stop loss @ 83.25

Entry on October 31 at $82.00
Average Daily Volume = 2.2 million
Listed on October 30, 2013


Garmin Ltd. - GRMN - close: 46.35 chane: -1.60

Stop Loss: 48.55
Target(s): 43.50
Current Option Gain/Loss: + 3.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/07/13: Shares of GRMN were downgraded from a "buy" to a "neutral" this morning. That helped the stock spiked lower and underperformed the market with a -3.3% decline today.

Earlier Comments:
I do consider this an aggressive trade. GRMN has obviously been volatile the last couple of days. Plus the most recent data listed short interest at 13% of the 121 million share float.

Our target is $43.50. At this point GRMN should be nearing significant support in the $43.00 area and we might switch directions and buy calls.

*Small Positions!* - Suggested Positions -

Long DEC $45 PUT (GRMN1322X45) entry $1.08

11/06/13 new stop loss @ 48.55

Entry on November 01 at $46.82
Average Daily Volume = 1.2 million
Listed on October 31, 2013



Longer-Term Play Updates



Vanguard FTSE Europe ETF - VGK - close: 55.88 change: -0.90

Stop Loss: 53.90
Target(s): Sell half @ $58.00, sell the rest at $63.00
Current Option Gain/Loss: +33.3%
Time Frame: exit PRIOR to 2014 March option expiration
New Positions: see below

Comments:
11/07/13: The European Central Bank reduced their interest rate to a record low of 0.25% in an effort to fight off deflation. The European markets were mixed on the session. French and British markets edged lower while Germany closed in the green. Yet the VGK followed the weakness in the U.S. market and closed near its lows for the session with a -1.5% loss. Look for support near $55.00 or its 50-dma.

Earlier Comments:
Don't forget that we have two exit targets for this trade! More conservative traders could lock in gains now with our option up +94%.

We are taking a multi-month time frame with this trade. FYI: The Point & Figure chart for VGK is bullish with a $63 target.

- Suggested Positions -

Long 2014 Mar $55 call (VGK1422C55) entry $1.80*

10/22/13 Strategy Update: Plan to exit half @ $58.00 and exit the rest at $63.00. New stop loss @ 53.90
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

Starwood Hotels & Resorts - HOT - close: 73.07 change: -1.69

Stop Loss: 73.40
Target(s): 79.75
Current Option Gain/Loss: -42.8%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
11/07/13: I cautioned readers last night that yesterday's intraday spike above resistance and failure to close above $75.00 could be trouble. HOT underperformed the market today with a -2.2% decline. The stock hit our stop loss at $73.40.

- Suggested Positions -

DEC $75 call (HOT1322L75) entry $2.10 exit $1.20* (-42.8%)

11/07/13 stopped out
*option exit price is an estimate since the option did not trade at the time our play was closed.

chart:

Entry on November 06 at $75.25
Average Daily Volume = 1.8 million
Listed on November 04, 2013


Helmerich & Payne, Inc. - HP - close: 75.67 change: -1.98

Stop Loss: 75.75
Target(s): 79.50
Current Option Gain/Loss: -24.2%
Time Frame: 4 to 5 weeks
New Positions: see below

Comments:
11/07/13: HP was no exception to the market's widespread sell-off. Shares actually underperformed the market with a -2.5% decline that broke down through its bullish trend of higher lows. Our stop was hit at $75.75.

- Suggested Positions -

NOV $75 call (HP1316K75) entry $2.31 exit $1.75 (-24.2%)

11/07/13 stopped out
10/29/13 new stop loss @ 75.75
10/24/13 new stop loss @ 74.25
10/22/13 new stop loss @ 73.75

chart:

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


iShares Russell 2000 ETF - IWM - close: 107.28 change: -1.84

Stop Loss: 107.75
Target(s): 114.00
Current Option Gain/Loss: -29.2%
Time Frame: 8 to 12 weeks
New Positions: see below

Comments:
11/07/13: It was a rough day for the small cap stocks. The Russell 2000 index and the IWM continued to underperform their large-cap peers. The IWM broke down below support near $108.00 and hit our stop loss at $107.75.

- Suggested Positions -

2014 Jan $110 call (IWM1418a110) entry 2.80 exit $1.98 (-29.2%)

11/07/13 stopped out
10/29/13 new stop loss @ 107.75
10/23/13 new stop loss @ 105.95

chart:

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