Editor's Note:

The S&P 500, the NASDAQ, and the Russell 2000 managed to hit new relative highs last week. The trend is up but the rally is starting to look a little fragile. I've updated a few stop losses tonight.

Plus we've added four new candidates from the watch list: CRUS, DD, DIS, JDSU.


Closed Plays


DECK was closed.
We also took profits on the 2014 EMN calls.



Play Updates


American Intl. Group - AIG - close: 51.85

Comments:
10/27/13: AIG looks due for a pullback. The action on Monday and Tuesday both looked like a potential bearish reversal. Shares did follow the market lower on Wednesday but there wasn't any follow through lower with AIG holding above its 10-dma. I would expect a dip toward $50.00.

Keep in mind that AIG could see increased volatility this week after the company reports earnings on October 31st (after the closing bell).

- Suggested Positions -
JUL 15, 2013 - entry price on AIG @ 46.99, option @ 2.50
symbol: AIG1418a50 2014 JAN $50 call - current bid/ask $3.20/3.30

- or -

JUL 15, 2013 - entry price on AIG @ 46.99, option @ 4.05
symbol: AIG1517a55 2015 JAN $55 call - current bid/ask $4.40/4.50

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: 14.26

Comments:
10/27/13: Shares of BAC struggled last week. The market's sell-off on Wednesday hit shares of BAC hard. The stock is back to testing suport near $14.00 and its 100-dma. The company said they plan to cut up to 4,000 mortgage-related jobs, which might suggest their mortgage business is slowing down.

I am not suggesting new positions. More conservative investors may want to raise their stop closer to the $13.50 area.

- 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 $1.33/1.34

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


Cirrus Logic - CRUS - close: 25.04

Comments:
10/27/13: CRUS is a watch list candidate that has graduated to our active play list. The stock rallied through resistance last Monday and hit our suggested entry point to open bullish positions at $25.50. Unfortunately there wasn't any follow through higher. The semiconductor industry was crushed on Wednesday during the market's pullback. Shares of CRUS followed its peers lower with a drop back toward $24.00. Fortunately, investors have been buying the dip.

This stock could see more volatility after the company reports earnings on October 29th, after the closing bell. Readers may want to wait and see how shares perform on the 30th before considering new positions.

- Suggested Positions -
OCT 21, 2013 - entry price on CRUS @ 22.50, option @ 4.15
symbol: CRUS1517a30 2015 JAN $30 call - current bid/ask 3.90/4.20

*option entry price is an estimate since the option did not trade at the time our play was opened.

Chart of CRUS:

Current Target: CRUS @ 32.50
Current Stop loss: 22.40
Play Entered on: 10/21/13
Originally listed on the Watch List: 10/20/13


E.I. du Pont - DD - close: 61.90

Comments:
10/27/13: DD is another watch list candidate that has graduated to our play list. The company reported better than expected earnings results last Tuesday and continued to rally the rest of the week. Our plan was to wait for shares to close above $60.75 and then buy calls the next day. DD closed at $61.38 on Thursday. Shares gapped open higher on Friday morning at $62.57 (our entry point) before paring its gains. Investors will want to consider waiting for a dip back into the $61.00-60.00 zone as an alternative entry point.

- Suggested Positions -
OCT 25, 2013 - entry price on DD @ 62.57, option @ 0.74
symbol: DD1418a65 2014 JAN $65 call - current bid/ask $0.66/0.68

- or -

OCT 25, 2013 - entry price on DD @ 62.57, option @ 3.15
symbol: DD1517a65 2015 JAN $65 call - current bid/ask $3.20/3.30

10/25/13 trade opens. DD gaps higher a $62.57
10/24/13 DD closed above our trigger @ 60.75
09/22/13 adjust entry: wait for a close above $60.75
instead of a close above $60.50

Chart of DD:

Current Target: DD @ 69.00
Current Stop loss: 57.90
Play Entered on: 10/25/13
Originally listed on the Watch List: 08/11/13


Dollar General Corp. - DG - close: 59.50

Comments:
10/27/13: DG kept the up trend alive with another gain for the week. Shares hit new all-time highs as they approach potential round-number resistance at the $60.00 level. We can look for support near the 50-dma if shares see any profit taking.

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 $2.70/2.85

- or -

SEP 06, 2013 - entry price on DG @ 57.61, option @ 3.48
symbol: DG1517a70 2015 JAN $70 call - current bid/ask $2.90/3.30

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


The Walt Disney Co. - DIS - close: 69.26

Comments:
10/27/13: DIS displayed relative strength last week with a bullish breakout past major resistance. This stock was on our watch list. The plan was to wait for shares to close above $68.05 and then buy calls the next morning. DIS closed at $69.00 on October 22nd. Our trade opened on the 23rd. Shares retested broken resistance near $68.00 as new support and then rebounded.

Nimble traders could look for another dip near $68.00 as an entry point. Keep in mind that DIS could see some volatility following its earnings report due out on November 7th.

- Suggested Positions -
OCT 23, 2013 - entry price on DIS @ 68.81, option @ 3.70
symbol: DIS1517a75 2015 JAN $75 call - current bid/ask $3.90/4.00

Chart of DIS:

Current Target: DIS @ 84.00
Current Stop loss: 62.90
Play Entered on: 10/23/13
Originally listed on the Watch List: 10/13/13


Eastman Chemical Co. - EMN - close: 77.94

Comments:
10/27/13: By midweek EMN had rallied to resistance near its early August peak in the $83 area. The company reported earnings on Thursday night and beat estimates. Unfortunately EMN lowered their full-year guidance. Traders sold the news and shares gapped open lower on Friday morning and eventually closed with a -5.1% decline.

We knew that holding over the earnings report was a potential risk, which is why we had planned to exit our 2014 January $80 calls on Monday, October 21st, at the opening bell. We still have the 2015 call position but I am not suggesting new positions. Our stop loss remains at $74.40.

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 - exit $4.90 (+36.1%)

- or -

JUL 18, 2013 - entry price on EMN @ 75.34, option @ 4.90*
symbol: EMN1517a90 2015 JAN $90 call - current bid/ask $ 4.50/4.90

10/21/13 planned exit for the 2014 calls. $4.90 (+36.1%)
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: 17.60

Comments:
10/27/13: Ford reported earnings last week. The company beat bottom line estimates and raised its full-year guidance. Yet gains were limited as traders sold the post-earnings pop. Ford did hit new multi-year highs near $18.00 before paring its gains. I am not suggesting new positions at this time.

- 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: 76.31

Comments:
10/27/13: After a string of weekly gains shares of FLR hit some profit taking. The stock peaked near $78 and spent much of the week chopping sideways. The stock appears to have found some short-term support near $75.25. However, if the market declines I would expect a dip closer to $70.00.

Investors should be aware that FLR could see extra volatility this week following its earnings report, which is due out on October 31st, after the closing bell. More conservative investors holding the 2014 calls will want to seriously consider exiting prior to the earnings announcement to lock in gains.

Earlier Comments:
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.

- Suggested Positions -
SEP 12, 2013 - entry price on FLR @ 67.14, option @ 2.90
symbol: FLR1418a70 2014 JAN $70 call - current bid/ask: 7.60/7.80

- or -

SEP 12, 2013 - entry price on FLR @ 67.14, option @ 5.70*
symbol: FLR1517a75 2015 JAN $75 call - current bid/ask: 9.70/ 9.90

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: 51.69

Comments:
10/27/13: HAL experienced some profit taking last week. The company reported earnings last Monday and the results were mostly in-line with expectations. Traders sold the news but losses were mild. HAL was actually upgraded a couple of times following the earnings report. Shares have spent the last few days consolidating sideways in the $50-52 zone.

- 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 $ 6.65/6.75

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 call, $56.00 for the 2015 call
Current Stop loss: 45.75
Play Entered on: 08/21/13
Originally listed on the Watch List: 08/18/13


Harley-Davidson - HOG - close: 64.98

Comments:
10/27/13: Not surprisingly HOG saw some volatility surrounding its earnings report last week. Results were in-line with expectations. The stock initially popped higher only to see traders sell into strength. There wasn't much follow through lower either with HOG finding support near its rising 40-dma.

Looking at the weekly chart it seems HOG's upward momentum may have stalled. I would not be surprised to see a dip back into the $62-60 zone. If you're holding the 2014 calls you may want to take some money off the table.

- Suggested Positions -
SEP 04, 2013 - entry price on HOG @ 61.01, option @ 2.36
symbol: HOG1418a65 2014 JAN $65 call - current bid/ask $ 2.63/2.66

- or -

SEP 04, 2013 - entry price on HOG @ 61.01, option @ 4.35*
symbol: HOG1517a70 2015 JAN $70 call - current bid/ask $ 5.05/5.25

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: 87.50

Comments:
10/27/13: HON resumed its rally with a display of relative strength last week. The stock added almost three points. Friday's close marks a new all-time closing high. The next obstacle is pushing past the intraday high from mid September.

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 $ 8.50/8.65

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: 24.24

Comments:
10/27/13: The semiconductor industry underperformed when the market tumbled lower on Wednesday. INTC was no exception with shares piercing short-term technical support at the 10-dma. Fortunately, traders bought the dip and INTC ended the week at a new three-month high.

Tonight I am raising our stop loss to $22.40.

- Suggested Positions -
SEP 16, 2013 - entry price on INTC @ 23.63, option @ 0.93
symbol: INTC1418a24 2014 JAN $24 call - current bid/ask $0.89/0.91

- or -

SEP 16, 2013 - entry price on INTC @ 23.63, option @ 1.75
symbol: INTC1517a25 2015 JAN $25 call - current bid/ask $1.59/1.60

10/27/13 new stop loss @ 22.40

Current Target: $26-29 zone
Current Stop loss: 22.40
Play Entered on: 09/16/13
Originally listed on the Watch List: 09/08/13


JDS Uniphase - JDSU - close: 15.30

Comments:
10/27/13: Buckle your seatbelt. Last week was a volatile one for JDSU and it may not be over. Shares surged past resistance in the $15.50 area and hit new multi-year highs above $16.50 by Tuesday. JDSU was a watch list candidate. Our plan was to wait for the stock to close above $15.75 and open positions the next day. Shares closed at $16.27 on October 21st. Our trade opened the next day at $16.36. Unfortunately Tuesday through Thursday was nothing but profit taking that erased a large chunk of JDSU's recent gains. The stock found support near $15.00 on Friday but it's back below resistance.

JDSU could see more volatility this week. The company reports earnings on October 30th with results coming out after the closing bell. Wall Street expects a profit of 12 cents a share. I would hesitate to launch new positions until after we see how the market reacts to JDSU's report.

FYI: The point & figure chart is bullish with a $20 target.

- Suggested Positions -
OCT 22, 2013 - entry price on JDSU @ 16.36, option @ 1.62*
symbol: JDSU1517a20 2015 JAN $20 call - current bid/ask $1.20/1.27

10/22/13 trade opens. JDSU @ 16.36
10/21/13 JDSU graduates from our watch list, closing above $15.75
*option entry price is an estimate since the option did not trade at the time our play was opened.

Chart of JDSU:

Current Target: $20 zone
Current Stop loss: 14.40
Play Entered on: 10/22/13
Originally listed on the Watch List: 10/20/13


JPMorgan Chase & Co. - JPM - close: 52.77

Comments:
10/27/13: It was a down week for JPM. The stock produced a bearish reversal pattern on Tuesday and continued to slip until traders started buying the dip near $52.00 on Thursday and Friday. While we remain long-term bullish on JPM the parade of negative headlines regarding the number and amount of potential settlements that JPM is negotiating with regulators could be hurting investor enthusiasm.

- Suggested Positions -
JUN 24, 2013 - entry price on JPM @ 50.25, option @ 1.60
symbol: JPM1418a55 2014 JAN $55 call - current bid/ask $ 0.99/1.00

- or -

JUN 24, 2013 - entry price on JPM @ 50.25, option @ 3.80
symbol: JPM1517a55 2015 JAN $55 call - current bid/ask $ 3.65/3.75

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: 82.72

Comments:
10/27/13: NOV delivered a volatile week. The stock plunged on Wednesday, below what should have been support near $80.00. Fortunately shares rebounded thanks to earnings. The company reported on October 25th and beat estimates. NOV also said their backlog of orders hit a new record high. The stock gapped higher on Friday and closed at a new 52-week high.

Investors may want to give NOV a couple of days before considering new 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 $ 5.20/5.50

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: 15.24

Comments:
10/27/13: Ouch! What happened to NVDA. Shares are definitely underperforming the market. The stock produced a bearish failed rally at resistance near $16.00 on Monday and has been down every day since. Investors may want to raise their stop loss closer to the $15.00 level. I am not suggesting new positions.

FYI: NVDA is scheduled to report earnings on November 7th.

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 $0.46/0.48

- or -

SEP 12, 2013 - entry price on NVDA @ 15.63, option @ 1.54
symbol: NVDA1517a17 2015 JAN $17 call - current bid/ask $1.16/1.21

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: 47.21

Comments:
10/27/13: ODFL gave up 60 cents for the week but that doesn't tell the whole story. Shares underperformed the transportation sector index, which has been up almost every single day from its October 8th low. ODFL peaked on the 22nd of October and produced a sharp spike lower on Thursday as traders reacted to its earnings report. The company managed to beat estimates on both the top and bottom line. Traders did buy the dip on Thursday and the move reinforces the $45.00 level as support. I am raising our stop loss up to $44.75.

- Suggested Positions -
AUG 14, 2013 - entry price on ODFL @ 45.62, option @ 1.25
symbol: ODFL1418a50 2014 JAN $50 call - current bid/ask $0.90/1.10

10/27/13 new stop loss @ 44.75
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: 44.75
Play Entered on: 08/14/13
Originally listed on the Watch List: 07/28/13


Constellation Brands - STZ - close: 63.91

Comments:
10/27/13: The rally in STZ stalled at round-number resistance near $65.00. Shares have been slowly drifting lower but they have still managed to cling to the simple 10-dma for now. I would not be surprised to see a dip into the $62-60 zone, which should offer some support. We will raise our stop loss to $59.00.

- 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 $7.40/7.70

10/27/13 new stop loss @ 59.00
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: 59.00
Play Entered on: 09/06/13
Originally listed on the Watch List: 08/25/13


VeriSign, Inc. - VRSN - close: 53.76

Comments:
10/27/13: VRSN spent the week consolidating sideways as investors wait for the earnings report. VRSN announced earnings on Thursday night and beat estimates on both the top and bottom line. Shares reacted with a spike higher on Friday morning. I would be tempted to launch new bullish positions here but investors may want to wait and see if there is any follow through higher.

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 $ 1.49/1.54

- or -

SEP 19, 2013 - entry price on VRSN @ 51.40, option @ 4.25*
symbol:VRSN1517a55 2015 JAN $55 call - current bid/ask $ 5.15/5.40

*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: 65.24

Comments:
10/27/13: WFM continues to march higher and ended the week with another string of new highs. Shares look overbought, extended and due for some profit taking. We are raising the stop loss to $59.00. More conservative traders may want to take profits now. I am tempted to exit our remaining 2015 call position prior to WFM's earnings report, which is due out on November 6th.

- 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 $10.80/10.95

10/27/13 new stop loss @ 59.00
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: 59.00
Play Entered on: 07/10/13
Originally listed on the Watch List: 07/07/13


CLOSED Plays


Deckers Outdoor Corp. - DECK - close: 69.99

Comments:
10/27/13: DECK has been seriously underperforming the stock market since its early October highs. We decided last weekend to exit positions Monday morning, October 21st to cut our losses. Shares eventually dipped into the area around its 100-dma and 150-dma.

Our play was closed on Oct. 21st with DECK gapping down at $59.19 from $59.51.

The company reported earnings on Thursday night (Oct. 24th) and beat estimates by 23 cents a share. Management lowered their Q4 guidance but raised its full-year outlook. The combination of an earnings beat and the higher long-term guidance sent shares soaring on Friday (+20.4%).

- Suggested Positions -
SEP 05, 2013 - entry price on DECK @ 61.47, option @ 4.30
symbol: DECK1418a65 2014 JAN $65 call - exit $3.00 (-30.2%)

- or -

SEP 05, 2013 - entry price on DECK @ 61.47, option @ 8.15*
symbol: DECK1517a70 2015 JAN $70 call - exit $7.40* (-9.2%)

10/21/13 planned exit on Oct. 21st.
*option exit price is an estimate since the option did not trade at the time our play was closed.
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.

Chart of DECK:

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