Editor's Note:

We added three new trades from our watch list. BBT, MGM, and MTW all graduated to our active play list.

NOTE: We want to exit our CZR and DLTR trades on Monday morning, Dec. 23rd. We also want to exit our JPM 2014 calls on Monday morning.


Closed Plays


F & NOV hit our stop loss.



Play Updates


American Intl. Group - AIG - close: 51.03

Comments:
12/22/13: It was a good week for AIG. The trend of higher lows has produced a trend of higher highs. Shares also broke out past resistance near $50 and its 50-dma. We only have four weeks left on our 2014 January calls. I am not suggesting new positions at this time.

- Suggested Positions -
JUL 15, 2013 - entry price on AIG @ 46.99, option @ 2.50
symbol: AIG1418a50 2014 JAN $50 call - current bid/ask $1.74/1.78

- or -

JUL 15, 2013 - entry price on AIG @ 46.99, option @ 4.05
symbol: AIG1517a55 2015 JAN $55 call - current bid/ask $3.65/3.75

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


Avago Technologies - AVGO - close: 51.65

Comments:
12/22/13: AVGO produced big gains last week. Just Monday and Tuesday last week saw a +17.3% gain in AVGO. The move appears to be a positive reaction to news that AVGO is buying LSI Logic. Normally the stock of the acquiring company goes down but this time Wall Street applauded the merger.

Tonight we are raising the stop loss to $44.90. More conservative investors may want to raise their stop higher. I am also adjusting our exit target to $58.50 from $55.00. I am not suggesting new positions at this time.

- Suggested Positions -
NOV 11, 2013 - entry price on AVGO @ 44.44, option @ 3.60
symbol: AVGO1517a50 2015 JAN $50 call - current bid/ask $7.00/7.40

12/22/13 new stop loss @ 44.90, adjust exit target to $58.50
12/08/13 new stop loss @ 42.40
11/24/13 AVGO is not participating in the market rally.
investors may want to exit early now to cut their losses.
11/11/13 trade opens.
11/10/13 promoted from watch list to new play.
11/03/13 adjust trigger to $43.00
10/27/13 removed the 2014 call
10/20/13 adjust the buy-the-dip trigger to $43.50
adjust the stop loss to $39.40 & adjust the option strikes
adjust the 2014 exit target to $49.50
adjust the 2015 exit target to $54.00
10/13/13 adjust the buy-the-dip trigger from $40.00 to $40.50

Current Target: $58.50
Current Stop loss: 44.90
Play Entered on: 11/11/13
Originally listed on the Watch List: 09/22/13


Bank of America - BAC - close: 15.60

Comments:
12/22/13: As expected shares of BAC bounced from support near the $15.00 level. On a short-term basis I would not be surprised to see another dip near $15.50. I'm not suggesting new positions.

FYI: BAC is scheduled to report earnings on January 15th.

- 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 $2.10/2.15

11/24/13 new stop loss @ 13.70
11/17/13 new stop loss @ 13.35
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: 13.70
Play Entered on: 03/18/13

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


BB&T Corp. - BBT - close: 36.38

Comments:
12/22/13: BBT is a new watch list candidate that has graduated to our active play list. The plan was to wait for shares to close above $35.75 and then buy calls the next day. BBT closed at $35.87 on December 16th. Our trade opened on Tuesday at $35.81. Shares have since continued to climb and Friday's close is a new multi-year closing high. If you're looking for an entry point I would consider buying dips near the $36.00 level.

FYI: BBT is scheduled to report earnings on January 16th.

- Suggested Positions -
DEC 17, 2013 - entry price on BBT @ 35.81, option @ 0.99
symbol: BBT1517a40 2015 JAN $40 call - current bid/ask $1.12/1.20

Chart of BBT:

Current Target: BBT @ 42.50
Current Stop loss: 32.95
Play Entered on: 12/17/13
Originally listed on the Watch List: 12/15/13


Capital One Financial - COF - close: 74.73

Comments:
12/22/13: COF has been showing relative strength once the market started to rally on Wednesday afternoon. Shares have broken out past resistance to close at new multi-year highs. Tonight I am raising our stop loss to $68.35.

FYI: COF is scheduled to report earnings on January 16th.

- Suggested Positions -
NOV 29, 2013 - entry price on COF @ 71.69, option @ 5.80*
symbol: COF1517a75 2015 JAN $75 call - current bid/ask $6.95/7.15

12/22/13 new stop loss @ 68.35
*option entry price is an estimate since the option did not trade at the time our play was opened.

Current Target: COF @ 84.00 for 2015 calls
Current Stop loss: 68.35
Play Entered on: 11/29/13
Originally listed on the Watch List: 11/17/13


Caesars Entertainment - CZR - close: 20.26

Comments:
12/22/13: Caution! I am disappointed with CZR's performance last week. The market is breaking out to new highs and yet CZR barely moved. We should take this relative weakness as a warning signal. I am suggesting an immediate exit on Monday morning. There are better candidates for our capital.

- Suggested Positions -
DEC 03, 2013 - entry price on CZR @ 20.91, option @ 4.70*
symbol: CZR1517a25 2015 JAN $25 call - current bid/ask $3.70/4.20

12/22/13 prepare to exit immediately on Monday morning, Dec. 23rd
12/05/13 CZR warns that online gaming could negatively impact its business. Investors should re-evaluate their strategy
12/03/13 trade opens. CZR @ $20.91
12/02/13 CZR closes at $21.01, above our close above $21.00 trigger

Current Target: CZR @ 26.00
Current Stop loss: 18.75
Play Entered on: 12/03/13
Originally listed on the Watch List: 12/01/13


E.I. du Pont - DD - close: 62.55

Comments:
12/22/13: We were running out of time on our 2014 DD calls. The rally this past week was a gift from the trading gods. Shares have rallied toward their October high near $62.50. More conservative investors may want to exit these calls now. We only have four weeks left before the 2014 January options expire. I am not suggesting new positions.

- Suggested Positions -
OCT 25, 2013 - entry price on DD @ 62.57, option @ 0.74
symbol: DD1418a65 2014 JAN $65 call - current bid/ask $0.30/0.34

- or -

OCT 25, 2013 - entry price on DD @ 62.57, option @ 3.15
symbol: DD1517a65 2015 JAN $65 call - current bid/ask $3.40/3.55

12/08/13 new stop loss @ 58.90
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: 58.90
Play Entered on: 10/25/13
Originally listed on the Watch List: 08/11/13


Deer & Co - DE - close: 90.08

Comments:
12/22/13: DE extended its rally last week. Shares are up three weeks in a row and up five out of the last six weeks. The stock added almost three points and is hovering near round-number resistance at the $90.00 level. While the trend is up DE is due for a pullback. I am raising our stop loss to $83.75. More conservative investors might want to raise their stop closer to $86.00 since broken resistance at $86 should be new support.

- Suggested Positions -
DEC 10, 2013 - entry price on DE @ 87.26, option @ 5.85*
symbol: DE1517a90 2015 JAN $90 call - current bid/ask $6.90/7.05

12/22/13 new stop loss @ 83.75
12/10/13 trade opens. DE @ 87.26
*option entry price is an estimate since the option did not trade at the time our play was opened.
12/09/13 DE closed @ 87.20, above our suggested entry of a close above $86.25

Current Target: DE @ 98.50
Current Stop loss: 83.75
Play Entered on: 12/10/13
Originally listed on the Watch List: 12/08/13


Dollar General Corp. - DG - close: 60.08

Comments:
12/22/13: Last week saw DG dip toward technical support near its 50-dma and bounce. Overall shares actually lost ground for the week (about 40 cents). The relative weakness is a bit worrisome but I'm not willing to give up just yet. I am not suggesting new positions.

We only have four weeks left before our 2014 January options expire.

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 $1.65/1.75

- or -

SEP 06, 2013 - entry price on DG @ 57.61, option @ 3.48
symbol: DG1517a70 2015 JAN $70 call - current bid/ask $3.30/3.60

11/17/13 new stop loss @ 54.75
09/22/13 new stop loss @ 53.60

Current Target: 64.00 for the 2014s, 69.00 for the 2015s
Current Stop loss: 54.75
Play Entered on: 09/06/13
Originally listed on the Watch List: 08/04/13


The Walt Disney Co. - DIS - close: 72.40

Comments:
12/22/13: DIS had a good week with shares up Monday through Thursday. After hitting new all-time highs the stock experienced a little profit taking on Friday. I am not suggesting new positions at this time. More conservative investors may want to consider adjusting their stop loss closer to the $68.00 level.

- Suggested Positions -
OCT 23, 2013 - entry price on DIS @ 68.81, option @ 3.70
symbol: DIS1517a75 2015 JAN $75 call - current bid/ask $5.55/5.70

12/08/13 new stop loss @ 65.75
11/24/13 new stop loss @ 64.75

Current Target: DIS @ 84.00
Current Stop loss: 65.75
Play Entered on: 10/23/13
Originally listed on the Watch List: 10/13/13


Dick's Sporting Goods - DKS - close: 57.11

Comments:
12/22/13: DKS is looking a lot better with its rebound off of Tuesday's low near $55.00. The last four weeks is looking like a consolidation phase and DKS is poised to breakout from this range. I would be tempted to buy calls on a close above $57.50 or you could wait for a rally past the intraday high from November 19th at $58.40.

Our long-term target is $65.00. More aggressive traders could aim higher. The point & figure chart is already bullish and forecasting at $71 target.

- Suggested Positions -
NOV 12, 2013 - entry price on DKS @ 54.73, option @ 4.00*
symbol: DKS1517a60 2015 JAN $60 call - current bid/ask $4.50/4.80

11/12/13 trade opens. DKS opens at $54.73
*option entry price is an estimate since the option did not trade at the time our play was opened.
11/11/13 closed about our suggested entry trigger (above 54.50)
10/27/13 removed the 2014 call.

Current Target: DKS @ 65.00
Current Stop loss: 49.95
Play Entered on: 11/12/13
Originally listed on the Watch List: 10/06/13


Dollar Tree, Inc. - DLTR - close: 55.45

Comments:
12/22/13: DLTR is not working for us. Shares seem stuck under resistance near $56 and its 100-dma. The market's rally to new highs failed to inspire any bargain buying in this stock. I am suggesting an immediate exit to cut our losses on Monday morning, Dec. 23rd.

- Suggested Positions -
NOV 21, 2013 - entry price on DLTR @ 55.50, option @ 2.75*
symbol: DLTR1517a65 2015 JAN $65 call - current bid/ask $2.00/2.20

12/22/13 prepare to exit immediately on Monday morning, Dec. 23rd
12/08/13 DLTR is not performing. Investors may want to exit early now. I am raising the stop loss to $54.45
11/21/13 trade opened on gap down at $55.50. Trigger was $56.25.
gap down was a reaction to earnings news
10/27/13 removed the 2014 call
10/20/13 adjust the trigger to $56.25 and the stop to $52.40

Current Target: DLTR @ 65.00
Current Stop loss: 54.45
Play Entered on: 11/21/13
Originally listed on the Watch List: 09/22/13


Freeport-McMoRan - FCX - close: 35.69

Comments:
12/22/13: Good news! It looks like FCX could be turning the corner after a seven-week correction lower. Shares held support near $34.00 for two weeks in a row. This past week saw the stock rebound and appear to break through the intermediate trend of lower highs.

We still need to be careful here given the volatility in gold and copper. Gold has been weak but it's near support. Meanwhile copper has been rising but this last week saw a pullback.

I am not suggesting new positions in FCX at the moment. I might reconsider launching bullish positions if FCX can close above $36.00 again.

- Suggested Positions -
NOV 13, 2013 - entry price on FCX @ 35.25, option @ 2.60*
symbol: FCX1517a39 2015 JAN $39 call - current bid/ask $2.29/2.36

11/13/13 FCX hits our buy-the-dip entry point at $35.25
*option entry price is an estimate since the option did not trade at the time our play was opened.
10/27/13 strategy update: removed the 2014 calls
adjust the buy-the-dip trigger to $35.25 and the stop to $32.25.
adjust the option strike to the 2015 Jan $39 call

Current Target:$ 42.50
Current Stop loss: 32.25
Play Entered on: 11/13/13
Originally listed on the Watch List: 09/15/13


Fluor Corp. - FLR - close: 79.37

Comments:
12/22/13: FLR was an outperformer last week with a big bounce. The stock added almost five points. Shares are once again nearing overhead resistance at the $80.00 level. I am not suggesting new positions at this time. I am raising our stop loss to $74.40.

Earlier Comments:
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 - exit $9.30 (+220.6%)

- or -

SEP 12, 2013 - entry price on FLR @ 67.14, option @ 5.70*
symbol: FLR1517a75 2015 JAN $75 call - current bid/ask: 10.80/11.10

12/22/13 new stop loss @ 74.40
11/24/13 new stop loss @ 72.75
11/13/13 exit target hit for 2014 Jan. $70 calls
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: 74.40
Play Entered on: 09/12/13
Originally listed on the Watch List: 08/11/13


HollyFrontier Corp. - HFC - close: 48.39

Comments:
12/22/13: HFC produced a nice bounce last week. Yet the volatility continues. I was tempted to drop HFC as a trade due to all the erratic movement. I remain cautious here and we're not suggesting new positions.

Earlier Comments:
NOTE: The options for HFC have changed. Due to a 50-cent special dividend the option strikes have all been adjusted down by 50 cents. Our listed option strike 2015 January $49.50 has become $49.00.

- Suggested Positions -
NOV 26, 2013 - entry price on HFC @ 47.17, option @ 5.00*
symbol: HFC1517a49 2015 JAN $49 call - current bid/ask $5.70/6.20

12/15/13 new stop loss @ 43.75
*option entry price is an estimate since the option did not trade at the time our play was opened.

Current Target: HFC @ 59.00
Current Stop loss: 43.75
Play Entered on: 11/26/13
Originally listed on the Watch List: 11/24/13


Harley-Davidson - HOG - close: 68.05

Comments:
12/22/13: Gains in HOG were pretty mild last week. Shares underperformed on Friday with a -0.2% decline. Overall the bullish trend of higher lows remains in place. I am not suggesting new positions.

Earlier Comments:
Our exit target for the 2015 calls remains $74.50 for now.

- Suggested Positions -
(exited 2014 calls on Monday, December 9th, 2013)
SEP 04, 2013 - entry price on HOG @ 61.01, option @ 2.36
symbol: HOG1418a65 2014 JAN $65 call - closed @ 3.70 (+56.7%)

- or -

SEP 04, 2013 - entry price on HOG @ 61.01, option @ 4.35*
symbol: HOG1517a70 2015 JAN $70 call - current bid/ask $ 5.95/6.20

12/09/13 planned exit for 2014 calls. option @ $3.70 (+56.7%)
12/08/13 prepare to exit 2014 calls immediate on Monday morning
12/08/13 new stop loss @ 62.75
11/17/13 new stop loss @ 61.45
adjust the exit target for 2015 calls to $74.50
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: exit 2014 calls @ 69.00, exit 2015 calls @ 74.50
Current Stop loss: 62.75
Play Entered on: 09/04/13
Originally listed on the Watch List: 08/25/13


Honeywell Intl. - HON - close: 89.55

Comments:
12/22/13: Hmm... the trading gods have blessed us again. On Wednesday HON lowered their 2014 earnings guidance. News like this normally sparks a big drop lower. Yet HON barely moved on this news. Instead when the market rallied on the taper news HON outperformed to the upside. When investors are buying bad news it's a good sign for the stock. HON shares surged to new all-time highs. The $90.00 level could be round-number resistance so don't be surprised to see a short-term dip.

Please note that I am adjusting our exit target to $98.00.

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 $ 9.55/9.70

12/22/13 adjust the exit target to $98.00
11/24/13 new stop loss @ 83.75
11/17/13 new stop loss @ 82.75
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.
...please see earlier newsletter for prior comments...

Current Target:$ 98.00
Current Stop loss: 83.75
Play Entered on: 05/07/13
Originally listed on the Watch List: 05/04/13



Helmerich & Payne, Inc. - HP - close: 82.03

Comments:
12/22/13: Shares of oil and gas drilling company HP continued to push higher and ended the week at all-time highs. Momentum traders looking for a breakout higher now have their entry point.

- Suggested Positions -
DEC 05, 2013 - entry price on HP @ 81.00, option @ 5.60*
symbol: HP1517a90 2015 JAN $90 call - current bid/ask $ 5.30/5.70

12/05/13 trade opens with HP opening at $81.00
*option entry price is an estimate since the option did not trade at the time our play was opened.
12/04/13 HP closes at $80.97, above our suggested trigger @ 80.25
11/17/13 strategy change: Wait for HP to close above $80.25 and then buy calls the next day with a stop loss at $74.75. Our new long-term target is $95.00. New option strike at 2015 $90 call

Current Target:$ 95.00
Current Stop loss: 74.75
Play Entered on: 12/05/13
Originally listed on the Watch List: 10/27/13


JPMorgan Chase & Co. - JPM - close: 57.70

Comments:
12/22/13: JPM produced a big bounce following the Fed's taper news. The stock has continued to rally and is now testing resistance near $58.00 at multi-year highs. Please note that we only have about four weeks left on our 2014 January calls. They currently trade with a bid/ask of $3.00/3.10. I am suggesting an immediate exit for these 2014 calls to lock in gains. More aggressive traders may want to risk it and hold on for the potential for more gains before expiration.

I am not suggesting new positions.

Earlier Comments:
Our target to exit the 2015 calls is $64.00.

- Suggested Positions -
JUN 24, 2013 - entry price on JPM @ 50.25, option @ 1.60
symbol: JPM1418a55 2014 JAN $55 call - current bid/ask $ 3.00/3.10

- or -

JUN 24, 2013 - entry price on JPM @ 50.25, option @ 3.80
symbol: JPM1517a55 2015 JAN $55 call - current bid/ask $ 6.25/6.40

12/22/13 prepare to exit the 2014 calls on Monday morning, Dec. 23rd
12/01/13 adjust exit target for the 2014 calls to exit when JPM hits $59.50
11/24/13 new stop loss @ 51.95
Consider taking profits on the 2014 calls now
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: exit 2014 calls when JPM hits $59.50
exit 2015 calls when JPM hits $64.00
Current Stop loss: 51.95
Play Entered on: 06/24/13
Originally listed on the Watch List: 05/25/13


Level 3 Communications - LVLT - close: 32.21

Comments:
12/22/13: LVLT spent weeks consolidating below resistance at the $31.00 level. Shares finally broke out this past week to close at new multi-year highs. Nimble traders could use a dip near $31.00, which should now be support, as an alternative entry point.

- Suggested Positions -
OCT 31, 2013 - entry price on LVLT @ 29.39, option @ 4.40*
symbol:LVLT1517a30 2015 JAN $30 call - current bid/ask $ 5.40/5.80

12/08/13 new stop loss @ 27.75
11/24/13 new stop loss @ 26.75
*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: 27.75
Play Entered on: 10/31/13
Originally listed on the Watch List: 10/20/13


MGM Resorts - MGM - close: 22.72

Comments:
12/22/13: MGM is a new trade from our watch list. The plan was to wait for shares to close above $21.50 and then buy calls the next morning. MGM closed at $21.71 on December 16th. Our trade opened on Tuesday at $21.79. MGM has continued to see upward momentum with a strong three-week rally.

Our trade is open but if you're just now looking at MGM you might want to wait for a dip. The stock looks short-term overbought here. Consider waiting to buy calls on a dip in the $21.50-21.00 zone. Look for broken resistance near $21.00 to offer some support.

- Suggested Positions -
DEC 17, 2013 - entry price on MGM @ 21.79, option @ 2.00
symbol: MGM1517a25 2015 JAN $25 call - current bid/ask $ 2.42/2.47

12/17/13 trade opens. MGM @ 21.79
12/16/13 MGM meets our entry requirement with a close above $21.50

Chart of MGM:
Current Target: $26.00-28.00 zone
Current Stop loss: 19.35
Play Entered on: 12/17/13
Originally listed on the Watch List: 12/15/13


The Manitowoc Co. - MTW - close: 22.50

Comments:
12/22/13: MTW displayed relative strength with a +4.65% gain last week. MTW was a watch list candidate. Our plan was to buy calls if shares could close above $22.10. MTW closed at $22.36 on December 18th. Our trade opened on the 19th at $22.33. The move past $22.00 is a bullish breakout past resistance and a new multi-year high for MTW.

If you're looking for a new entry point I would consider waiting to buy calls on a dip near $22.00 or its simple 10-dma.

- Suggested Positions -
DEC 19, 2013 - entry price on MTW @ 22.33, option @ 2.85*
symbol: MTW1517a25 2015 JAN $25 call - current bid/ask $ 2.80/2.85

12/19/13 trade opens. MTW @ 22.33
*option entry price is an estimate since the option did not trade at the time our play was opened.
12/18/13 triggered with MTW close at $22.36, above our $22.10 trigger

Chart of MTW:
Current Target: $28.00-30.00 zone
Current Stop loss: 19.90
Play Entered on: 12/19/13
Originally listed on the Watch List: 12/15/13


NVIDIA Corp. - NVDA - close: 15.69

Comments:
12/22/13: The up and down whipsaws in NVDA continues. I am tempted to drop NVDA as an active trade based on all the volatility. This past week shares tested round-number support near $15.00 and bounced. I am not suggesting new positions.

Don't forget that we only have about four weeks left on the 2014 January options.

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 $0.25/0.26

- or -

SEP 12, 2013 - entry price on NVDA @ 15.63, option @ 1.54
symbol: NVDA1517a17 2015 JAN $17 call - current bid/ask $1.25/1.31

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


QUALCOMM Inc. - QCOM - close: 72.91

Comments:
12/22/13: QCOM's performance last week was a little bit disappointing. Shares did bounce near the $72 area and its rising 30-dma. If you're looking for a new entry point you might want to consider waiting for a close above $74.00. Otherwise, a dip near $70.00 would be an attractive entry point.

Earlier Comments:
I want to remind readers that QCOM does a lot of business with Apple (AAPL), and if AAPL encounters any bad news (example: lower iPhone sales) it could influence trading in shares of QCOM.

- Suggested Positions -
NOV 15, 2013 - entry price on QCOM @ 71.34, option @ 4.90
symbol: QCOM1517a75 2015 JAN $75 call - current bid/ask $5.25/5.40

12/08/13 new stop loss @ 67.75
11/15/13 trade opens. QCOM @ 71.34
11/14/13 QCOM closes above entry trigger (above 70.50)

Current Target: $85.00
Current Stop loss: 67.75
Play Entered on: 11/15/13
Originally listed on the Watch List: 11/03/13


Starbucks - SBUX - close: 77.66

Comments:
12/22/13: SBUX did manage a gain last week but it looks more like an oversold bounce. I am not suggesting new positions. I'm worried that the $80 level and the simple 50-dma are now new overhead resistance.

More conservative investors will want to seriously consider an early exit from our SBUX trade or as an alternative consider raising your stop closer to the $76.00 level.

- Suggested Positions -
DEC 04, 2013 - entry price on SBUX @ 80.00, option @ 4.70
symbol: SBUX1517a90 2015 JAN $90 call - current bid/ask $3.55/3.70

12/15/13 The breakdown in SBUX this past week throws the up trend in question. Investors might want to exit early now to minimize losses
12/04/13 triggered on a dip at $80.00
12/01/13 adjust the trigger to $80.00
11/24/13 adjust the trigger to $79.25
adjust the option strike to the 2015 January $90 call
11/17/13 adjust the trigger to $78.25
11/10/13 adjust the buy-the-dip entry to $78.00 and stop to $74.75
11/03/13 adjust buy-the-dip entry from $76 to $77.00

Current Target: exit calls when SBUX hits $98.00
Current Stop loss: 74.75
Play Entered on: 12/04/13
Originally listed on the Watch List: 10/27/13


VeriSign, Inc. - VRSN - close: 59.27

Comments:
12/22/13: You could say slow and steady wins the race for VRSN. Yet the stock's rally has accelerated this past week. The stock is nearing what could be round-number resistance at the $60.00 level and more conservative investors may want to exit their 2015 calls to lock in gains now. I am raising our stop loss to $54.40.

Earlier Comments:
We will still have the 2015 calls and our exit target remains $64.50 for this position.

- Suggested Positions -
(option exit on December 2nd, 2013)
SEP 19, 2013 - entry price on VRSN @ 51.40, option @ 1.16
symbol:VRSN1418a55 2014 JAN $55 call - exit @ $2.80** (+141.3%)

- or -

SEP 19, 2013 - entry price on VRSN @ 51.40, option @ 4.25*
symbol:VRSN1517a55 2015 JAN $55 call - current bid/ask $ 8.15/8.40

12/22/13 new stop loss @ $54.40
12/02/13 planned exit for the 2014 calls, option @ +141.3%
**option exit price is an estimate since the option did not trade at the time our play was closed.
12/01/13 prepare to exit our 2014 Jan. $55 calls on Monday, Dec. 2nd.
11/24/13 new stop loss @ 52.40
11/17/13 new stop loss @ 49.75
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: 54.40
Play Entered on: 09/19/13
Originally listed on the Watch List: 08/18/13


Western Digital Corp. - WDC - close: 82.68

Comments:
12/22/13: The rally in WDC continues. Shares surged to new highs before the market moved on Wednesday. WDC almost hit $85 as the stock reacted to an analyst upgrade. The stock actually garnered a lot of bullish analyst comments this past week. I am raising our stop loss up to $74.25.

Our long-term target is $94.00. FYI: The Point & Figure chart is bullish with a $91 target.

- Suggested Positions -
DEC 10, 2013 - entry price on WDC @ 77.00, option @ 6.00*
symbol: WDC1517a90 2015 JAN $90 call - current bid/ask $ 8.25/8.50

12/22/13 new stop loss at $74.25
12/10/13 triggered on our buy-the-dip entry at $77.00
*option entry price is an estimate since the option did not trade at the time our play was opened.
12/08/13 adjust the entry point strategy to buy calls on a dip at $77.00 since we missed the breakout (see the December 8th, watch list update)
12/01/13 adjust entry point to a close above $76.50 instead of 76.25
adjust the stop loss to $69.75

Current Target: Exit 2015 calls when WDC hits $94.00
Current Stop loss: 74.25
Play Entered on: 09/19/13
Originally listed on the Watch List: 11/17/13


Wyndham Worldwide - WYN - close: 72.97

Comments:
12/22/13: WYN was another strong performer last week. The stock bounced from support near $70.00 and closed at a new high. Shares look ready for the next leg higher. I am raising our stop loss to $67.40.

Earlier Comments:
The point & figure chart is bullish and currently forecasting a $93.00 target.

- Suggested Positions -
NOV 18, 2013 - entry price on WYN @ 68.97, option @ 4.20
symbol: WYN1517a75 2015 JAN $75 call - current bid/ask $ 5.50/6.10

12/22/13 new stop loss @ 67.40
12/01/13 new stop loss @ 65.40
11/24/13 new stop loss @ 64.75
11/18/13 trade opens. WYN opens @ 68.97

Current Target: 85.00
Current Stop loss: 67.40
Play Entered on: 11/18/13
Originally listed on the Watch List: 11/10/13



CLOSED Plays


Ford Motor Co. - F - close: 15.42

Comments:
12/22/13: Ouch! It was an ugly week for shares of Ford. Ford held an analyst meeting on Wednesday. The company issued a profit warning for 2014 as Ford expects North American sales could see a drop in their profit margins thanks in part to tougher competition. The stock plunged on this outlook. Shares gapped down on Wednesday morning at $15.99 and then spiked down to $15.17. Our stop loss was hit at $15.65.

We were fortunate that our remaining position, the 2015 calls, still managed a potential gain (+59.0%).

- 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 - exit $1.94 (+59.0%)

12/18/13 stopped out
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...

Chart of F:

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


National Oilwell Varco - NOV - close: 78.37

Comments:
12/22/13: The correction in NOV continued last week and the stock broke down under support near $78.00. Our stop loss was hit at $76.75 on December 18th. NOV didn't hit our stop loss until the brief little spike lower that the market produced just after the Fed's taper announcement. The market, and NOV, spiked to new relative lows and then immediately reversed higher. That was the move that stopped us out.

- Suggested Positions -
OCT 17, 2013 - entry price on NOV @ 81.00, option @ 5.00
symbol: NOV1517a90 2015 JAN $90 call - exit $3.15* (-37.0%)

12/18/13 NOV hit our stop loss at $76.75

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