Editor's Note:

Thursday's sell off looked pretty ugly but there was no follow through lower on Friday.


Closed Plays


WFM was stopped out.



Play Updates


American Intl. Group - AIG - close: 48.54

Comments:
11/10/13: Financials were some of the market's best performers last week. Yet AIG really didn't participate until Friday. The stock added +2.6% on Friday, which was enough to push it to a gain for the week. The mid-week drop below $48 and its 100-dma looked pretty ominous. More conservative investors might want to adjust their stop toward Thursday's low ($47.11).

- Suggested Positions -
JUL 15, 2013 - entry price on AIG @ 46.99, option @ 2.50
symbol: AIG1418a50 2014 JAN $50 call - current bid/ask $1.10/1.13

- or -

JUL 15, 2013 - entry price on AIG @ 46.99, option @ 4.05
symbol: AIG1517a55 2015 JAN $55 call - current bid/ask $2.79/3.00

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: 14.32

Comments:
11/10/13: We have a similar story with BAC. This banking stock was slipping lower until the banking sector reversed sharply higher on Friday. BAC surged +3.7% on Friday's session, which was enough to lift the stock back above its simple 50-dma. Given BAC's long-term bullish trend of higher lows I would almost be tempted to buy calls again here. More conservative investors might want to adjust their stop loss closer to the $13.25 or $13.50 levels.

- 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 $1.26/1.27

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


E.I. du Pont - DD - close: 62.00

Comments:
11/10/13: DD flirted with a break below the $60 level early in the week but there was no follow through lower. When the market plunged on Thursday DD actually managed a gain. Shares continued to show relative strength on Friday with a +1.8% gain. Previously I suggested buying a dip near $60 and we got it.

- Suggested Positions -
OCT 25, 2013 - entry price on DD @ 62.57, option @ 0.74
symbol: DD1418a65 2014 JAN $65 call - current bid/ask $0.52/0.53

- or -

OCT 25, 2013 - entry price on DD @ 62.57, option @ 3.15
symbol: DD1517a65 2015 JAN $65 call - current bid/ask $3.10/3.20

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

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: 57.28

Comments:
11/10/13: Retail-related stocks were crushed on Thursday's market sell-off. The same day DG broke down below technical support at its 50-dma. The stock underperformed the market's bounce on Friday, which doesn't bode well for the bulls. I would expect shares to retest support near the $56.00 area soon.

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 $1.45/1.55

- or -

SEP 06, 2013 - entry price on DG @ 57.61, option @ 3.48
symbol: DG1517a70 2015 JAN $70 call - current bid/ask $2.30/2.50

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: 68.58

Comments:
11/10/13: DIS had a rough day on Thursday. Not only did the market see a sell off but DIS shares were reacting to the company's latest earnings report. The company beat Wall Street's profit estimates by a penny and also beat the revenue estimate. Traders sold the news and DIS closed below support near $68.00. Yet there was no follow through on Friday and shares produced a pretty good bounce.

Investors might want to wait for DIS to close above the $70.00 level before initiating new positions.

- Suggested Positions -
OCT 23, 2013 - entry price on DIS @ 68.81, option @ 3.70
symbol: DIS1517a75 2015 JAN $75 call - current bid/ask $3.50/3.55

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: 79.11

Comments:
11/10/13: EMN spent most of the week churning sideways. The stock was upgraded on Friday morning and that accelerated EMN's bounce. The stock ended Friday with a +2.99% gain for the day. There is still short-term overhead resistance near the $80.00 mark. I am not suggesting new positions at this time.

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 -
(2014 call position closed on Oct. 21st)
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 $ 4.80/5.00

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: 16.85

Comments:
11/10/13: The S&P 500 managed to post a gain for the week. Unfortunately the same cannot be said for Ford although losses were pretty mild. Thursday's session was ugly with a break below its 100-dma. Friday's bounce (+1.8%) is an inside day, which doesn't qualify as a reversal. At the moment F's long-term trend is up but the three-week trend is still down. More conservative investors may want to raise their stop loss. 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 $ 2.84/2.87

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: 77.92

Comments:
11/10/13: It was a good week for shares of FLR. Traders bought the bounce from Friday the first. Shares were showing relative strength on Friday the 8th. The stock is on the verge of a breakout past resistance near $78.00. Our exit target for the 2014 calls is $79.00. More aggressive traders may want to aim higher.

Please note the new stop loss at $71.40.

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: 8.50/8.70

- or -

SEP 12, 2013 - entry price on FLR @ 67.14, option @ 5.70*
symbol: FLR1517a75 2015 JAN $75 call - current bid/ask: 10.50/10.60

11/10/13 new stop loss @ 71.40
10/31/13 FLR reported earnings and management lowered guidance
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: 71.40
Play Entered on: 09/12/13
Originally listed on the Watch List: 08/11/13


Halliburton Company - HAL - close: 55.32

Comments:
11/10/13: HAL was also a strong performer last week. Shares continued to rally and surged to new two-year highs. Midweek HAL announced that they were raising their quarterly cash dividend by 20% to 15 cents a share.

Please note our new stop loss at $49.40.

- 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 $ 8.85/9.00

11/10/13 new stop loss @ 49.40
11/03/13 new stop loss @ 47.25
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: 49.40
Play Entered on: 08/21/13
Originally listed on the Watch List: 08/18/13


Harley-Davidson - HOG - close: 64.26

Comments:
11/10/13: Hmm... it looks like HOG's upward momentum has stalled. Shares actually delivered a relatively quiet week. Shares are flirting with a breakdown below their simple 50-dma. I would not be surprised to see a correction toward what should be support near $60.00. I am not suggesting new positions at this time.

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 $ 1.94/1.99

- or -

SEP 04, 2013 - entry price on HOG @ 61.01, option @ 4.35*
symbol: HOG1517a70 2015 JAN $70 call - current bid/ask $ 4.55/4.70

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: 87.44

Comments:
11/10/13: HON managed to eke out a gain for the week thanks to a big bounce on Friday (+2.3%). Shares are still facing short-term resistance near $88.00. Please note our new stop loss at $81.75.

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 $ 8.25/8.40

11/10/13 new stop loss @ 81.75
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: 81.75
Play Entered on: 05/07/13
Originally listed on the Watch List: 05/04/13



Intel Corp. - INTC - close: 24.09

Comments:
11/10/13: It was a choppy week for shares of INTC. I am not convinced the correction is over. INTC underperformed the broader market with its bounce on Friday. 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 $0.88/0.90

- or -

SEP 16, 2013 - entry price on INTC @ 23.63, option @ 1.75
symbol: INTC1517a25 2015 JAN $25 call - current bid/ask $1.60/1.64

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


JPMorgan Chase & Co. - JPM - close: 53.96

Comments:
11/10/13: JPM spent last week churning sideways above technical support at its simple 200-dma. That changed on Friday when the banking stocks led the market higher. JPM outperformed with a +4.4% gain. I am not suggesting new positions at this time.

- Suggested Positions -
JUN 24, 2013 - entry price on JPM @ 50.25, option @ 1.60
symbol: JPM1418a55 2014 JAN $55 call - current bid/ask $ 1.21/1.22

- or -

JUN 24, 2013 - entry price on JPM @ 50.25, option @ 3.80
symbol: JPM1517a55 2015 JAN $55 call - current bid/ask $ 3.90/4.00

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


Level 3 Communications - LVLT - close: 30.11

Comments:
11/10/13: LVLT held up relatively well last week. Shares essentially consolidated sideways and digested its previous gains. If you are looking for a new entry point you may want to wait for a pullback into the $28.00-29.00 area.

- Suggested Positions -
OCT 31, 2013 - entry price on LVLT @ 29.39, option @ 4.40*
symbol:LVLT1517a30 2015 JAN $30 call - current bid/ask $ 4.50/4.80

*option entry price is an estimate since the option did not trade at the time our play was opened.
Current Target: $39.00
Current Stop loss: 25.75
Play Entered on: 10/31/13
Originally listed on the Watch List: 10/20/13


National Oilwell Varco - NOV - close: 82.20

Comments:
11/10/13: NOV's performance last week is encouraging. The stock held support near $80.00 (actually there were a couple of intraday dips to $79.80). Shares outperformed the major indices on Friday with a +2.2% gain. If you were looking for a new bullish entry point then I would consider buying calls now!

Earlier Comments:
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 $ 5.05/5.15

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: 15.56

Comments:
11/10/13: NVDA delivered a 30-cent gain for the week all thanks to a huge move (+6.9%) on Friday. Shares were actually sinking and breaking down through support prior to its earnings report. The stock almost hit our stop loss on Thursday. The company reported earnings on Thursday night. NVDA's profit and revenues were in-line with estimates. Management issued cautious, arguably bearish guidance going forward. The stock rallied anyway. The bounce could have been a reaction to management raising their dividend and a stock buyback program. Volume was pretty strong on Friday's rally, which is a good sign. NVDA still has overhead resistance near $16.00. I am not suggesting new positions prior to earnings.

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 $0.42/0.45

- or -

SEP 12, 2013 - entry price on NVDA @ 15.63, option @ 1.54
symbol: NVDA1517a17 2015 JAN $17 call - current bid/ask $1.21/1.26

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: 47.58

Comments:
11/10/13: It was another quiet week for shares of ODFL. The stock was bouncing off its rising 50-dma on Friday. I am not suggesting new positions.

- Suggested Positions -
AUG 14, 2013 - entry price on ODFL @ 45.62, option @ 1.25
symbol: ODFL1418a50 2014 JAN $50 call - current bid/ask $0.80/1.00

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: 66.76

Comments:
11/10/13: STZ is still flexing its relative strength muscle. Traders continue to buy the dips at STZ's rising 10-dma and the stock closed the week at a new all-time high. More conservative investors may want to raise their stop loss.

- 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 $8.90/9.20

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: 54.15

Comments:
11/10/13: After some volatility on Thursday (down) and Friday (up) VRSN is virtually unchanged for the week. If the market rolls over again we can watch for likely support near $52 and $50. I am not suggesting new positions at current levels.

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 $ 5.30/5.50

11/03/13 new stop loss @ 48.40
*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: 48.40
Play Entered on: 09/19/13
Originally listed on the Watch List: 08/18/13


CLOSED Plays


Whole Foods Market - WFM - close: 58.55

Comments:
11/10/13: WFM was crushed following its earnings report. The company reported earnings on November 6th. They beat profit estimates by a penny but revenues were a miss. Management lowered their 2014 guidance. The company acknowledged that there is growing competition in the organic food space. Shares gapped down from $64.47 on Wednesday night to open at $58.00 on Thursday morning. Since our stop loss was at $59.00 our play was closed immediately.

- 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 - exit $5.75 (-7.2%)

11/07/13 stopped out on gap down at $58.00. Stop was $59.00
11/06/13 WFM reports earnings and guides lower.
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

Chart of WFM:

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