Current Portfolio:


CALL Play Updates

Bed Bath & Beyond Inc. - BBBY - close: 60.99 change: +0.74

Stop Loss: 58.90
Target(s): 64.75
Current Option Gain/Loss: - 6.0%
Time Frame: 2 to 4 weeks
New Positions: see below

Comments:
10/18 update: BBBY dipped to $59.79 this morning before rebounding. Shares closed up +1.2% on the session. I would still consider new bullish positions now if both BBBY and the S&P 500 index open positive tomorrow morning. More conservative traders could tighten their stops toward today's low.

*Small Positions*- Suggested Positions -

Long NOV $62.50 call (BBBY1119K62.5) Entry $1.50

Entry on October 14 at $61.00
Earnings Date 12/21/11 (unconfirmed)
Average Daily Volume = 3.4 million
Listed on October 12, 2011


Hewlett Packard - HPQ - close: 25.61 change: +0.75

Stop Loss: 24.45
Target(s): 29.50
Current Option Gain/Loss: +54.2%
Time Frame: 8 to 12 weeks
New Positions: see below

Comments:
10/18 update: I am honestly surprised that HPQ did not hit our stop loss this morning. The sell-off in IBM could have been a catalyst to send HPQ significantly lower. Instead HPQ only dipped to $24.55 before bouncing back. This stock actually saw a significant bounce and closed with a +3.0% gain.

- Suggested Positions -

Long 2012 Jan. $24 call (HPQ1221A24) Entry $2.14

10/17 HPQ could gap open lower tomorrow on IBM's earnings news
10/15 new stop loss @ 24.45
10/11 new stop loss @ 22.90
10/11 planned to sell half at the open
bid 2012 Jan. $24 call @ $3.60 (+68.2%)
10/10 Take some $$ off the table. Sell 1/2 at the open tomorrow
09/27 new stop loss @ 21.45

Entry on September 23 at $22.52
Earnings Date 11/21/11 (unconfirmed)
Average Daily Volume = 26.6 million
Listed on September 22, 2011


SPX Corp. - SPW - close: 51.65 change: +0.94

Stop Loss: 49.90
Target(s): 57.75
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
10/18 update: The stock market weakness this morning fueled a spike down in SPW. Shares dipped to $49.22 before bouncing back just as quickly. This afternoon rally looks like a new bullish entry point. I am suggesting small bullish positions now but we only want to launch positions if both SPW and the S&P 500 index both open positive tomorrow morning. We'll adjust our stop loss to $49.15.

Earlier Comments:
This is an aggressive trade so we want to keep our position size small. If triggered our target is $57.75. FYI: The Point & Figure chart for SPW is bullish with a $78 target.

*See Entry Details Above* (Small Positions)

- Suggested Positions -

buy the NOV $55 call (SPW1119K55) current ask $1.85

10/18 New entry point on this bounce. See entry details above
10/17 Trade not open. Remove entry point for 24 hours, then re-evaluate.

Entry on October xx at $ xx.xx
Earnings Date 11/02/11 (unconfirmed)
Average Daily Volume = 701 thousand
Listed on October 15, 2011


PUT Play Updates

Edwards Lifesciences - EW - close: 70.16 change: +1.63

Stop Loss: 72.30
Target(s): 66.00
Current Option Gain/Loss: - 4.8%
Time Frame: exit prior to earnings on Oct. 19th
New Positions: see below

Comments:
10/18 update: EW dipped to $68.12 before immediately rebounding. The stock has recouped most of yesterday's losses. While the overall trend looks bearish I am not suggesting new positions at this time.

Our plan is to exit tomorrow, Oct. 19th, at the closing bell.

- Suggested Positions -

Long NOV $65 PUT (EW1119W65) Entry $2.05

10/18 plan to exit tomorrow at the close.
10/17 new stop loss @ 72.30
10/15 plan to exit before earnings on Oct. 19th.
10/13 EW gapped open lower at $70.29

Entry on October 13 at $70.29
Earnings Date 10/19/11 (confirmed)
Average Daily Volume = 1.3 million
Listed on October 12, 2011


CLOSED BULLISH PLAYS

Alexion Pharma - ALXN - close: 66.72 change: +0.51

Stop Loss: 64.90
Target(s): 74.00
Current Option Gain/Loss: -59.3%
Time Frame: exit on Wednesday 10/19 at the close
New Positions: see below

Comments:
10/18 update The market weakness this morning was strong enough to push ALXN down past support near $65.00. Shares hit our stop loss at $64.90 on its way to $64.67. The stock reversed higher as the market recovered and ALXN eventually closed up on the session.

I would keep ALXN on your watch list. The afternoon surge almost looks like a breakout above the short-term trendline of lower highs.

(Small Positions) - Suggested Positions -

NOV $70 call (ALXN1119K70) Entry $3.20, exit $1.30 (-59.3%)

10/18 stopped out at $64.90
10/15 adjusted time frame. plan to exit on Wednesday
10/14 trade opened

chart:

Entry on October 14 at $68.08
Earnings Date 10/20/11 (confirmed)
Average Daily Volume = 1.9 million
Listed on October 13, 2011


CLOSED BEARISH PLAYS

Goldman Sachs - GS - close: 102.25 change: +5.35

Stop Loss: n/a
Target(s): TBD
Current Option Gain/Loss: see below
Time Frame: less than 5 days
New Positions: see below

Comments:
10/18 update: At first look there was no reason for shares of GS to rally today. The company just reported its second quarterly loss in the last 12 years. The company lost 84 cents a share versus estimates for a loss of 16 cents. Revenues plunged -60% to $3.59 billion. Normally when a company misses estimates and revenues the stock plunges. Shares of GS dipped toward $90 in pre-market trading. Yet by the time the market opened shares were trading higher and opened at $98.19. The stock eventually rallied to a +5.5% gain.

This is one speculative trade that did not work! Talk about fickle markets. GS should miss estimates every quarter if investors are going to buy this type of news. Going into this we knew it was going to be a win big or loss big proposition.

- Suggested Positions -

OCT $95 PUT (GS1122V95) Entry $2.30, exit $0.22 (-90.4%)

- or -

OCT $90 PUT (GS1122V90) Entry $0.94, exit $0.06 (-93.6%)

10/18 GS missed earnings yet instead of falling the stock rallied. Exit early.

chart:

Entry on October 17 at $96.90
Earnings Date 10/18/11 (confirmed)
Average Daily Volume = 7.9 million
Listed on October 15, 2011