Editor's Note:

Both HAL and STZ hit our bullish targets to exit our 2014 January calls. Elsewhere NTAP was stopped out.

I have updated several stop losses tonight. Plus, NOV joined the active play list.

We want to exit our DECK trade immediately.


Closed Plays


NTAP hit our stop loss.



Play Updates


American Intl. Group - AIG - close: 52.30

Comments:
10/20/13: The stock market's rally has fueled big gains for AIG. The stock added +4.6% last week and closed at new multi-year highs. AIG is due to report earnings on October 31st. More conservative traders might want to exit our 2014 calls prior to the earnings report to avoid the risk of a post-earnings sell-off.

I am raising our stop loss to $46.40.

- Suggested Positions -
JUL 15, 2013 - entry price on AIG @ 46.99, option @ 2.50
symbol: AIG1418a50 2014 JAN $50 call - current bid/ask $3.60/3.70

- or -

JUL 15, 2013 - entry price on AIG @ 46.99, option @ 4.05
symbol: AIG1517a55 2015 JAN $55 call - current bid/ask $4.65/4.75

10/20/13 new stop loss @ 46.40
10/13/13 exit strategy update: exit 2014 calls at $54.50
adjust the exit target for the 2015 calls to $59.00
09/15/13 new stop loss @ 44.65
08/04/13 new stop loss @ 43.75
...please see earlier updates for more history...

Current Target:$ exit 2014 calls @ 54.50, exit 2015 calls @ 59.00
Current Stop loss: 46.40
Play Entered on: 07/15/13
Originally listed on the Watch List: 06/01/13


Bank of America - BAC - close: 14.63

Comments:
10/20/13: BAC reported earnings on the 16th. The company beat estimates by one cent on revenues that were in-line with expectations. Traders bought the news and shares closed up +3.1% for the week. The next level of resistance is the $14.80-15.00 zone.

- Suggested Positions -
(exit target hit on 07/23/13 @ $15.00)
MAR 18, 2013 - entry price on BAC @ 12.29, option @ 0.44
symbol: BAC1418a15 2014 JAN $15 call - exit $1.04 (+136.3%)

- or -

MAR 18, 2013 - entry price on BAC @ 12.29, option @ 1.13
symbol: BAC1517a15 2015 JAN $15 call - current bid/ask $1.52/1.55

07/23/13 $15.00 exit target hit for the 2014 Jan. $15 calls.
07/20/13 new stop loss @ 12.75. Adjust the exit target for the 2014 calls to exit when BAC hits $15.00. Our exit for the 2015 calls is $18.00 on BAC
07/07/13 new stop loss @ 11.35
05/04/13 BAC did not participate in the market's rally this past week. Investors should turn more defensive here.

Current Target: BAC @ 15.00 for 2014 calls. BAC @ $18 for 2015 call
Current Stop loss: 12.75
Play Entered on: 03/18/13

Originally listed on the Watch List: 03/09/13


Deckers Outdoor Corp. - DECK - close: 59.51

Comments:
10/20/13: Warning! Danger, Will Robinson! Shares of DECK are clearly not participating in the stock market's widespread rally. This past week has seen shares breakdown below technical support at their 50-dma and the $60.00 level.

I am suggesting we abandon ship and exit immediately on Monday morning.

- Suggested Positions -
SEP 05, 2013 - entry price on DECK @ 61.47, option @ 4.30
symbol: DECK1418a65 2014 JAN $65 call - current bid/ask $3.10/3.30

- or -

SEP 05, 2013 - entry price on DECK @ 61.47, option @ 8.15*
symbol: DECK1517a70 2015 JAN $70 call - current bid/ask $7.50/ 8.00

10/20/13 Exit immediately on Monday morning, October 21st
09/29/13 new stop loss @ 57.40
*entry price on the 2015 call is an estimate as it did not trade at the time our play was opened.

Current Target: 74.00
Current Stop loss: 57.40
Play Entered on: 09/05/13
Originally listed on the Watch List: 08/25/13


Dollar General Corp. - DG - close: 58.89

Comments:
10/20/13: DG managed to hit a new all-time high by the end of the week. Depending on your investing style we can use this new high as an entry point or use another bounce from the 50-dma as an entry point.

Earlier Comments:
Our long-term target is $64.00 for the 2014 calls. Our target is $69.00 for the 2015 calls. FYI: The point & figure chart is bullish with a $78.00 target.

- Suggested Positions -
SEP 06, 2013 - entry price on DG @ 57.61, option @ 2.58
symbol: DG1418a60 2014 JAN $60 call - current bid/ask $2.40/2.60

- or -

SEP 06, 2013 - entry price on DG @ 57.61, option @ 3.48
symbol: DG1517a70 2015 JAN $70 call - current bid/ask $2.65/3.30

09/22/13 new stop loss @ 53.60

Current Target: 64.00 for the 2014s, 69.00 for the 2015s
Current Stop loss: 53.60
Play Entered on: 09/06/13
Originally listed on the Watch List: 08/04/13


Eastman Chemical Co. - EMN - close: 81.61

Comments:
10/20/13: It was a strong week for EMN with shares finally breaking out past resistance near the $80.00 level. We've only got a few days before EMN reports earnings on October 24th. I am suggesting we immediately exit our 2014 January $80 calls to lock in a gain by exiting the positions on Monday morning, October 21st. You could hold over the earnings report but you risk EMN disappointing and seeing the stock plunge and crush our option. We still have the 2015 call as well, which we will leave unchanged.

Earlier Comments:
Our long-term target for the 2015 call is $95.00. FYI: The Point & Figure chart is bullish with a $91 target.

- Suggested Positions -
JUL 18, 2013 - entry price on EMN @ 75.34, option @ 3.60*
symbol: EMN1418a80 2014 JAN $80 call - current bid/ask $ 4.80/5.00

- or -

JUL 18, 2013 - entry price on EMN @ 75.34, option @ 4.90*
symbol: EMN1517a90 2015 JAN $90 call - current bid/ask $ 6.60/6.80

10/20/13 prepare to exit the 2014 calls on Monday. Oct. 21st at the opening bell
08/04/13 new stop loss @ 74.40
07/18/13 Trade opened. EMN opens at $75.34
*option entry price is an estimate since the option did not trade at the time our play was opened.
07/17/13 EMN meets our entry requirement with a close above $75.25

Current Target: 2014 calls: target $84 on EMN. 2015 calls: target $95
Current Stop loss: 74.40
Play Entered on: 07/18/13
Originally listed on the Watch List: 07/14/13


Ford Motor Co. - F - close: 17.53

Comments:
10/20/13: So far so good. Ford added +2.4% last week. Shares are nearing resistance at their September highs in the 17.65-17.75 area. I would expect F to drift sideways or slowly drift toward this resistance level until its earnings report. Ford reports on October 24th. Shares could see a big move either way on its results.

The late August low was $15.71. I am raising our stop loss to $15.65.

- Suggested Positions -
(closed the 2014 calls on May 20th, at the open)
APR 29, 2013 - entry price on F @ 13.73, option @ 0.60
symbol: F1418a15 2014 JAN $15 call - exit $1.18 (+96.6%)

- or -

APR 29, 2013 - entry price on F @ 13.73, option @ 1.22
symbol: F1517a15 2015 JAN $15 call - current bid/ask $ 3.35/3.40

10/20/13 new stop loss @ 15.65
09/15/13 adjust exit target on 2015 calls to $19.50 (on Ford stock)
09/08/13 new stop loss @ 15.35
08/04/13 new stop loss @ 14.85
07/07/13 new stop loss @ 14.25
...please see earlier updates for more history...

Current Target:$ 19.50
Current Stop loss: 15.65
Play Entered on: 04/29/13
Originally listed on the Watch List: 04/20/13


Fluor Corp. - FLR - close: 77.19

Comments:
10/20/13: It was a very bullish week for FLR. The stock added +5.7% and surged to new multi-year highs. The breakout past resistance in the $74-75 zone is definitely bullish but now shares look short-term overbought. This broken resistance should be new support. We are raising our stop loss to $68.80, which is just below the October low.

Please note that I am adjusting our exit strategy. We want to exit our 2014 calls when FLR trades at $79.00. We will plan to exit our 2015 calls when FLR trades at $88.00.

FYI: FLR is scheduled to report earnings on October 31st.

- Suggested Positions -
SEP 12, 2013 - entry price on FLR @ 67.14, option @ 2.90
symbol: FLR1418a70 2014 JAN $70 call - current bid/ask: 8.40/8.60

- or -

SEP 12, 2013 - entry price on FLR @ 67.14, option @ 5.70*
symbol: FLR1517a75 2015 JAN $75 call - current bid/ask: 10.30/10.60

10/20/13 new stop loss @ 68.80
adjust exit targets: Target for 2014 call is $79.00
target for 2015 call is $88.00
09/22/13 new stop loss @ 64.75
09/22/13 adjust exit target from $74.75 to $79.50
09/20/13 high for the day was $74.72
*option entry price is an estimate since the option did not trade at the time our play was opened.

Current Target:$ Target for 2014 call is $79.00, Target for 2015 is $88.00
Current Stop loss: 68.80
Play Entered on: 09/12/13
Originally listed on the Watch List: 08/11/13


Halliburton Company - HAL - close: 52.47

Comments:
10/20/13: Target achieved. HAL hit $52.93 on Friday. Our target to exit the 2014 calls was $52.50.

These are new two-year highs for the stock. The company is due to report earnings on Monday morning, October 21st. I would not be surprised to see some profit taking. Prior resistance near $50.00 should be new support. If that level fails then look for support at the 50-dma near $49.00.

I am raising our stop loss to $45.75.

- Suggested Positions -
AUG 21, 2013 - entry price on HAL @ 47.22, option @ 1.82
symbol: HAL1418a50 2014 JAN $50 call - exit @ $4.00 (+119.7%)

- or -

AUG 21, 2013 - entry price on HAL @ 47.22, option @ 4.80
symbol: HAL1517a50 2015 JAN $50 call - current bid/ask $ 7.40/7.50

10/20/13 new stop loss @ 45.75
10/18/13 target hit to exit our 2014 calls at $52.50
2014 Jan. $50 call exit @ $4.00 (+119.7%)
09/08/13 new stop loss @ 44.75

Current Target:$ 52.50 for the 2014 calls, $56.0 for the 2015 calls
Current Stop loss: 45.75
Play Entered on: 08/21/13
Originally listed on the Watch List: 08/18/13


Harley-Davidson - HOG - close: 65.75

Comments:
10/20/13: HOG tried to rally last week but the stock has been stuck under resistance near $66.00. Investors are likely waiting for HOG's earnings report. The company is scheduled to announce on Tuesday morning, October 22nd. Wall Street expect a profit of 73 cents a share.

This past week HOG closed unchanged. Previously shares were up eight weeks in a row. I suspect that it will not matter what HOG reports and that traders will sell the news whatever it is. Look for a dip into the $62-60 zone if the profit taking gets really bad.

- Suggested Positions -
SEP 04, 2013 - entry price on HOG @ 61.01, option @ 2.36
symbol: HOG1418a65 2014 JAN $65 call - current bid/ask $ 3.45/3.55

- or -

SEP 04, 2013 - entry price on HOG @ 61.01, option @ 4.35*
symbol: HOG1517a70 2015 JAN $70 call - current bid/ask $ 5.65/5.85

10/20/13 do not be surprised to see some profit taking after HOG reports earnings on Oct. 22nd.
09/22/13 new stop loss @ 59.00
*note the entry price on our 2015 call is an estimate since the option did not trade at the time our play opened.

Current Target: 69.00
Current Stop loss: 59.00
Play Entered on: 09/04/13
Originally listed on the Watch List: 08/25/13


Honeywell Intl. - HON - close: 84.58

Comments:
10/20/13: HON spent most of the week churning sideways as investors waiting for HON's earnings report. By Thursday's close the stock was up on the week. Traders sold the news when the company reported on Friday morning. HON's results bested estimates by one cent. Yet revenues were a miss at $9.65 billion versus analysts estimates of $9.91 billion. HON narrowed their 2013 guidance to the top end of its range but did not raise its guidance. That could have fueled the profit taking on Friday.

I am raising our stop loss to $79.40.

Earlier Comments:
Our initial plan was to keep our position size small to limit risk.

- Suggested Positions -
(closed the 2014 calls on May 20th at the open)
MAY 07, 2013 - entry price on HON @ 76.20, option @ 2.68
symbol: HON1418a80 2014 JAN $80 call - exit $5.10 (+90.2%)

- or -

MAY 07, 2013 - entry price on HON @ 76.20, option @ 4.10
symbol: HON1517a85 2015 JAN $85 call - current bid/ask $ 6.90/7.05

10/20/13 new stop loss @ 79.40
10/13/13 investors might want to take profits on our 2015 calls, which have doubled in value.
08/25/13 new stop loss @ 78.40
08/04/13 new stop loss @ 77.45
07/14/13 new stop loss at $75.75
05/20/13 closed the 2014 calls at the open. option @ +90.2%
05/18/13 prepare to exit 2014 Jan. calls immediately on Monday, May 20th
05/18/13 new stop loss @ 74.50
05/07/13 Our trade opens
05/06/13 HON meets our entry requirement with a close above $76.00

Current Target:$ 95.00
Current Stop loss: 79.40
Play Entered on: 05/07/13
Originally listed on the Watch List: 05/04/13



Intel Corp. - INTC - close: 23.88

Comments:
10/20/13: INTC reported earnings on the 15th. The company beat estimates by 5 cents with 58 cents a share. Revenues also beat at $13.48 billion for the quarter. The stock initially gapped down on the news but quickly recovered. INTC is now testing resistance near the $24.00 level and its September high. I am not suggesting new positions at this time.

- Suggested Positions -
SEP 16, 2013 - entry price on INTC @ 23.63, option @ 0.93
symbol: INTC1418a24 2014 JAN $24 call - current bid/ask $0.73/0.75

- or -

SEP 16, 2013 - entry price on INTC @ 23.63, option @ 1.75
symbol: INTC1517a25 2015 JAN $25 call - current bid/ask $1.46/1.49

Current Target: $26-29 zone
Current Stop loss: 21.75
Play Entered on: 09/16/13
Originally listed on the Watch List: 09/08/13


JPMorgan Chase & Co. - JPM - close: 54.30

Comments:
10/20/13: JPM helped lead the financial sector higher. After churning sideways in the $50-54 zone for a few weeks we are finally seeing JPM breakout past resistance.

- Suggested Positions -
JUN 24, 2013 - entry price on JPM @ 50.25, option @ 1.60
symbol: JPM1418a55 2014 JAN $55 call - current bid/ask $ 1.77/1.81

- or -

JUN 24, 2013 - entry price on JPM @ 50.25, option @ 3.80
symbol: JPM1517a55 2015 JAN $55 call - current bid/ask $ 4.15/4.60

09/01/13 adjust stop loss to $48.99
07/21/13 new stop loss @ 49.65
07/14/13 new stop loss @ 48.75
Current Target: $64.00
Current Stop loss: 48.99
Play Entered on: 06/24/13
Originally listed on the Watch List: 05/25/13


National Oilwell Varco - NOV - close: 82.16

Comments:
10/20/13: NOV is a watch list candidate that has graduated to our active play list. The plan was to wait for shares to close above $80.25 and then buy calls the next day. Shares closed at $81.15 on Oct. 16th. Our trade opened the next day at $81.00. Since then NOV has continued to climb and shares ended the week at new highs for the year. If you missed our entry point consider waiting for a dip back toward $80.00, which should be new support.

NOTE: More conservative investors might want to wait until after NOV reports earnings on October 25th before initiating positions.

FYI: NOV is planning a spinoff of its oilfield production equipment business by late 2014. We will likely exit positions prior to the spinoff.

- Suggested Positions -
OCT 17, 2013 - entry price on NOV @ 81.00, option @ 5.00
symbol: NOV1517a90 2015 JAN $90 call - current bid/ask $ 5.25/5.40

Chart of NOV:

Current Target: $89.75
Current Stop loss: 76.75
Play Entered on: 10/17/13
Originally listed on the Watch List: 10/13/13


NVIDIA Corp. - NVDA - close: 15.81

Comments:
10/20/13: Hmm... did we just witness a new higher low for NVDA. I was expecting a dip closer to the $15.00 mark but shares rallied four out of the last five days. Last week's bounce erased most of the prior three-week decline. I remain bullish here and would be tempted to launch new positions.

Earlier Comments:
Due to NVDA's recent volatility I am labeling this a more aggressive, higher-risk trade and thus suggest we use smaller positions to limit our risk. Our target to exit the 2014 calls is $18.00. Our target to exit the 2015 calls is $19.75. Currently the point & figure chart is bullish and forecasting at $23 target.

- Suggested *Small* Positions -
SEP 12, 2013 - entry price on NVDA @ 15.63, option @ 0.88
symbol: NVDA1418a16 2014 JAN $16 call - current bid/ask $0.71/0.73

- or -

SEP 12, 2013 - entry price on NVDA @ 15.63, option @ 1.54
symbol: NVDA1517a17 2015 JAN $17 call - current bid/ask $1.40/1.46

09/22/13 new stop loss @ 14.45

Current Target: exit for 2014 calls is $18.00, exit for 2015s is $19.75
Current Stop loss: 14.45
Play Entered on: 09/12/13
Originally listed on the Watch List: 08/18/13


Old Dominion Freight Line - ODFL - close: 47.81

Comments:
10/20/13: The action in ODFL last week was a bit underwhelming. Shares did hit new all-time highs but the stock only gained 60 cents for the week. It's another reminder that ODFL moves slowly and we will need patience for this trade to work.

ODFL could see some volatility this week as the company reports earnings on October 24th. The announcement should come out before the opening bell.

NOTE: I am raising our stop loss to $43.75.

- Suggested Positions -
AUG 14, 2013 - entry price on ODFL @ 45.62, option @ 1.25
symbol: ODFL1418a50 2014 JAN $50 call - current bid/ask $1.30/1.45

10/20/13 new stop loss @ 43.75
09/15/13 What a difference two weeks can make.
09/01/13 conservative traders may want to cut their losses now
08/14/13 trade opens. ODFL opens at $45.62.
08/13/13 ODFL meets our entry requirement with close at $45.65
08/11/13 adjust the entry trigger. Wait for ODFL to close above $45.50 instead of $45.25.

Current Target: $54.00
Current Stop loss: 43.75
Play Entered on: 08/14/13
Originally listed on the Watch List: 07/28/13


Constellation Brands - STZ - close: 64.33

Comments:
10/20/13: Target hit.

The slow and steady march higher in STZ continues with another weekly gain and another new all-time high. The stock hit our $64.00 target to exit the 2014 Jan $60 calls. This occurred on October 17th. We still have the 2015 call position.

- Suggested Positions -
SEP 06, 2013 - entry price on STZ @ 57.56, option @ 2.00
symbol: STZ1418a60 2014 JAN $60 call - exit $5.55 (+177.5%)

- or -

SEP 06, 2013 - entry price on STZ @ 57.56, option @ 4.35*
symbol: STZ1517a65 2015 JAN $65 call - current bid/ask $7.90/8.20

10/17/13 target hit @ 64.00 to exit the 2014 calls
2014 January $60 call exit @ $5.55 (+177.5%)
10/13/13 new stop loss @ 55.90
10/06/13 new stop loss @ 54.90
adjust exit target to 64.00 for the 2014 calls
adjust exit target to 69.00 for the 2015 calls
09/29/13 new stop loss @ 52.90
09/22/13 new stop loss @ 52.45
09/08/13 new stop loss @ 51.75
*option entry price is an estimate since the option did not trade at the time our play was opened.

Current Target: Exit 2014 calls @ 64.00, exit 2015 calls @ 69.00
Current Stop loss: 55.90
Play Entered on: 09/06/13
Originally listed on the Watch List: 08/25/13


VeriSign, Inc. - VRSN - close: 53.08

Comments:
10/20/13: The bounce in VRSN has turned into a rally. Shares broke through resistance near $52.00. The stock displayed relative strength on Friday with a +1.88% gain and a close at new multi-year highs. More conservative traders may want to raise their stop loss. VRSN could see some volatility this week. The company is due to report earnings on October 24th, after the closing bell. Wall Street expects a profit of 57 cents a share.

Earlier Comments:
Our target to exit the 2014 calls is $57.50. Our target to exit the 2015 calls is $64.50. Currently the point & figure chart is bullish with a $76 target.

- Suggested Positions -
SEP 19, 2013 - entry price on VRSN @ 51.40, option @ 1.16
symbol:VRSN1418a55 2014 JAN $55 call - current bid/ask $ 1.46/1.50

- or -

SEP 19, 2013 - entry price on VRSN @ 51.40, option @ 4.25*
symbol:VRSN1517a55 2015 JAN $55 call - current bid/ask $ 4.85/5.05

*option entry price is an estimate since the option did not trade at the time our play was opened.
09/15/13 adjust entry trigger: wait for a close over $50.50 instead of $50.25

Current Target:
Exit 2014 calls when VRSN hits $57.50, 2015 calls @ $64.50
Current Stop loss: 47.40
Play Entered on: 09/19/13
Originally listed on the Watch List: 08/18/13


Whole Foods Market - WFM - close: 63.85

Comments:
10/20/13: Shares of WFM are in turbo mode with the stock racing higher. WFM is up six out of the last seven sessions and shares closed at a new all-time high on Friday. The stock is also up seven weeks in a row. That means WFM is overbought and likely due for some profit taking. I would expect some round-number resistance at $65.00. We will raise our stop loss to $57.40.

- Suggested Positions -
(2014 calls closed on Oct. 2nd @ 59.75 target)
JUL 10, 2013 - entry price on WFM @ 54.53, option @ 2.10
symbol: WFM1418a60 2014 JAN $60 call - exit $2.85 (+35.7%)

- or -

JUL 10, 2013 - entry price on WFM @ 54.53, option @ 6.20
symbol: WFM1517a60 2015 JAN $60 call - current bid/ask $ 9.90/10.10

10/20/13 new stop loss @ 57.40
10/13/13 new stop loss @ 55.75,
adjust exit target for 2015 calls to $69.00
10/06/13 new stop loss @ 53.85
10/02/13 correction: WFM hit our $59.75 exit target for the 2014 calls.
exit 2014 Jan. $60 call @ 09/22/13 new stop loss @ 52.40

Current Target: $59.75 for the 2014 calls, $69.00 for the 2015 calls
Current Stop loss: 57.40
Play Entered on: 07/10/13
Originally listed on the Watch List: 07/07/13


CLOSED Plays


NetApp, Inc. - NTAP - close: 41.37

Comments:
10/20/13: Unfortunately NTAP has been in correction mode. The stock has posted declines five weeks in a row. Just a slow and steady slide lower that broke through multiple layers of support. Shares finally hit our stop loss at $39.80 this past week with an intraday spike below round-number support at $40.00. Naturally shares have since rebounded but the intermediate trend is still down.

- Suggested *Small* Positions -
MAY 17, 2013 - entry price on NTAP @ 38.93, option @ 3.35
symbol: NTAP1418a40 2014 JAN $40 call - exit $2.50 (-25.3%)

- or -

MAY 17, 2013 - entry price on NTAP @ 38.93, option @ 5.20
symbol: NTAP1517a40 2015 JAN $40 call - exit $5.25 (+0.9%)

10/17/13 stopped out at $39.80
10/13/13 new stop loss @ 39.80, more conservative investors may want to exit early right now
09/15/13 Exit strategy update:
target to exit the 2014 calls is $44.75.
target to exit the 2015 calls is $49.50.
08/11/13 new stop loss @ 39.25
08/04/13 new stop loss @ 38.75
07/21/13 new stop loss @ 36.85
05/18/13 adjust stop loss to $34.90
05/17/13 trade opens on NTAP's gap open higher at $38.93
05/16/13 NTAP met our entry requirement with a close above $37.15

Chart of NTAP:

Current Target: exit for 2014 calls is $44.75, exit for 2015s is $49.50
Current Stop loss: 39.80
Play Entered on: 05/17/13
Originally listed on the Watch List: 05/11/13