Editor's Note:

After one of the best months in years the stock market is seeing some heavy profit taking in the last couple of sessions.

We had several stocks get stopped out today, many on the gap down at the open. Plus, we're suggesting an early exit for our DLTR put play since shares aren't moving very fast.

-James

Current Portfolio:


CALL Play Updates

Bed Bath & Beyond Inc. - BBBY - close: 61.52 change: -0.32

Stop Loss: 59.75
Target(s): 64.75
Current Option Gain/Loss: -12.0%
Time Frame: 2 to 4 weeks
New Positions: see below

Comments:
11/01 update: BBBY held up pretty well today. Traders bought the dip near $60.00 this morning. The stock's relative strength (-0.5% versus -2.7% in the S&P500) is encouraging but if the market continues to drop we should expect BBBY to follow it lower.

I am not suggesting new positions at this time.

*Small Positions*- Suggested Positions -

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

10/27 new stop loss @ 59.75

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


Costco Wholesale - COST - close: 83.35 change: +0.10

Stop Loss: 81.80
Target(s): 97.50
Current Option Gain/Loss: Nov$85 call: -30.9% & Jan $90 call: +17.8%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
11/01 update: COST managed to eke out a gain. Shares spike lower toward support near $82.00 this morning and bounced. Unfortunately the bounce stalled at short-term resistance near $84.00. I am not suggesting new positions at this time. More conservative traders may want to go ahead and exit early now since technical indicators on COST seem to be getting worse.

Earlier Comments:
Our multi-week exit target is $97.50. Cautious traders will want to consider an exit near $90 or $94 instead. Keep positions small.

(small positions)- Suggested Positions -

Long NOV $85 call (COST1119K85) Entry $1.52

- or -

Long 2012 Jan $90 call (COST1221A90) Entry $1.01

11/01 COST bounced at short-term support near $82 but readers may want to exit positions early right now
10/27 trade opened on gap higher at $85.00
10/26 Adjusted entry point strategy. Buy calls tomorrow if COST and S&P 500 index open positive. New stop loss at $81.80.

Entry on October xx at $ xx.xx
Earnings Date 12/07/11 (unconfirmed)
Average Daily Volume = 2.9 million
Listed on October 22, 2011


Goldman Sachs - GS - close: 103.54 change: -6.01

Stop Loss: 97.45
Target(s): 113.75
Current Option Gain/Loss: + 2.2%
Time Frame: 2 to 3 weeks
New Positions: see below

Comments:
11/01 update: It was another ugly day for financials. GS lost another six points and is down over $12 in just two days. The stock gapped open lower at $103.49. That is under our buy-the-dip trigger at $105.25 but still above our stop loss so the play has been opened. Thanks to this better entry point and the spike in volatility we are adjusting our stop loss on this trade to $97.45. More conservative traders may want to consider a stop loss closer to the $99.75-99.50 area instead.

I would wait for a bounce from the $100 level before considering new positions.

Earlier Comments:
We do want to keep our position small because GS can be a volatile stock.

- Suggested Positions - (small positions)

Long NOV $105 call (GS1119K105) Entry $1.76

11/01 new stop loss @ 97.45
11/01 GS gapped open lower at $103.49, under our trigger. Play opened.

Entry on November 1 at $103.49
Earnings Date 01/19/12 (unconfirmed)
Average Daily Volume = 8.5 million
Listed on October 31, 2011


Visa, Inc. - V - close: 90.03 change: -3.23

Stop Loss: 88.75
Target(s): 99.75
Current Option Gain/Loss: Nov$95c: -15.4% & Dec$95c: -22.9%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/01 update: Our call trade on Visa has been opened. Shares gapped open lower at $91.16, which was under our trigger at $92.25. The stock managed to hold support near $90.00 and the bottom of its recent trading range. I would buy calls here if the S&P 500 opens positive tomorrow.

Please note that we are adjusting our stop loss to $88.75.

- Suggested Positions -

Long Nov. $95 call (V1119K95) Entry $1.10

- or -

Long Dec. $95 call (V1117L95) Entry $2.75

11/01 new stop loss @ 88.75
11/01 Visa gapped lower at $91.16
10/31 adjusted trigger to $92.25

Entry on November 1 at $91.16
Earnings Date 10/26/11
Average Daily Volume = 5.0 million
Listed on October 29, 2011


PUT Play Updates

Shutterfly, Inc. - SFLY - close: 40.84 change: -0.83

Stop Loss: 44.15
Target(s): 35.25
Current Option Gain/Loss: +31.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/01 update: SFLY continues to drop and gave up -2% today. Yet shares are nearing potential support at the $40.00 level. The low today was $40.14. I would not be surprised to see a little oversold bounce. Please note that we are adjusting our stop loss down to $44.15.

FYI: The spread on our put is a bit wide, which makes an impact on our gain/loss for this trade. Today the bid has bounced back and we're at breakeven.

Earlier Comments:
The $40 level could offer potential support but we're aiming for $35.25 as our exit target.

- Suggested Positions -

Long NOV $40 PUT (SFLY1119W40) Entry $0.95

11/01 new stop loss @ 44.15

Entry on October 28 at $42.88
Earnings Date 10/26/11 (confirmed)
Average Daily Volume = 1.1 million
Listed on October 27, 2011


CLOSED BULLISH PLAYS

Deere & Co. - DE - close: 73.70 change: -2.20

Stop Loss: 73.75
Target(s): 82.00
Current Option Gain/Loss: Nov$77.50c: -53.8% & Dec$80c: -45.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/01 update: Stocks were weak in pre-market trading as investors reacted to negative headlines and selling pressure from Europe. Shares of DE gapped open lower at $72.62 and dipped to $71.76 before paring its losses. Unfortunately our stop loss was $73.75 so the opening print today closed our trade.

- Suggested Positions -

NOV $77.50 calls (DE1119K77.5) Entry $1.80 exit $0.83 (-53.8%)

- or -

DEC $80 calls (DE1117L80) Entry $2.15 exit $1.18 (-45.1%)

11/01 stopped out. DE gapped down at $72.62, under our stop
10/31 adjusting stop loss to $73.75.
10/31 trade opened at $76.00

chart:

Entry on October 31 at $76.00
Earnings Date 11/23/11 (unconfirmed)
Average Daily Volume = 5.6 million
Listed on October 29, 2011


iShares U.S.Financials ETF - IYF - close: 47.97 change: -2.19

Stop Loss: 48.40
Target(s): 54.00
Current Option Gain/Loss: Nov$50c: -50.0% & Dec $53c: -62.9%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/01 update: Financial stocks were getting crushed overseas in Europe as investors reacted to the news of a Greek referendum vote on the EU bailout package. When the U.S. markets open the financial stocks plunged. The IYF gapped open lower at $47.99. This is below our stop loss of $48.40 so the play was close immediately.

- Suggested Positions -

NOV $50 call (IYF1119K50) Entry $2.00 exit $1.00 (-50.0%)

- or -

DEC $53 call (IYF1117L53) Entry $1.35 exit $0.50 (-62.9%)

11/01 IYF gapped open lower at $47.99, below our stop loss
10/31 adjusted stop loss to $48.40
10/31 Trade opened at $50.50

chart:

Entry on October 31 at $50.50
Earnings Date --/--/--
Average Daily Volume = 697 thousand
Listed on October 29, 2011


Roper Industries - ROP - close: 78.92 change: -2.18

Stop Loss: 79.45
Target(s): 84.90
Current Option Gain/Loss: -51.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/01 update: The stock market's weak open prompted ROP to gap down at $78.65. This is under support at $80.00 and its 200-dma. It was also underneath our stop loss. The play was closed immediately.

The combination of a gap open entry and gap down exit makes it very tough to trade and definitely impacts our potential profit or loss.

- Suggested Positions -

NOV $80 call (ROP1119K80) Entry $3.30 exit $1.60 (-51.1%)

11/01 ROP gapped open lower, under our stop loss
10/29 wait for a dip near $80 before considering new positions.
10/27 new stop loss @ 79.45
10/27 gap higher at $82.03 is our entry point. Plan was to buy calls at $80.25.

chart:

Entry on October 27 at $82.03
Earnings Date 01/31/12 (unconfirmed)
Average Daily Volume = 740 thousand
Listed on October 26, 2011


Tractor Supply Co - TSCO - close: 70.99 change: +0.05

Stop Loss: 69.90
Target(s): 79.00
Current Option Gain/Loss: Nov$75c: -77.1% & Jan$80c: -80.4%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/01 update: TSCO managed to eke out a gain but shares were extremely volatile this morning. The stock gapped open lower at $69.36 and dipped to $66.15 before bouncing back within minutes. TSCO's gap open this morning was underneath our stop loss so the play was closed immediately.

The combination of a gap open entry and gap down exit makes it very tough to trade and definitely impacts our potential profit or loss.

(small positions)- Suggested Positions -

NOV $75 call (TSCO1119K75) Entry $1.75 exit $0.40 (-77.1%)

- or -

Jan $80 call (TSCO1221A80) Entry $2.30 exit $0.45 (-80.4%)

11/01 TSCO gapped open lower, under our stop loss
10/27 TSCO gapped open higher at $74.36 (up from $72.41)

chart:

Entry on October 27 at $74.36
Earnings Date 10/19/11
Average Daily Volume = 904 thousand
Listed on October 26, 2011


United Technologies - UTX - close: 75.19 change: -2.79

Stop Loss: 74.45
Target(s): 79.85
Current Option Gain/Loss: -28.5%
Time Frame: 2 to 3 weeks
New Positions: see below

Comments:
11/01 update: The trading in UTX was just a little too volatile for us today. The stock gapped open lower at $76.13 and then plunged to $74.36 before trimming its losses. The gap open was under our buy-the-dip trigger at $76.25 so the play was opened this morning. Unfortunately the intraday low was also below our stop loss at $74.45 so our play was closed on the same move down.

- Suggested Positions -

NOV $77.50 call (UTX1119K77.5) entry $1.33 exit $0.95 (-28.5%)

11/01 trade stopped out at $74.45
11/01 trade opened on gap down at $76.13

chart:

Entry on November 1 at $76.13
Earnings Date 01/26/11 (unconfirmed)
Average Daily Volume = 5.2 million
Listed on October 31, 2011


CLOSED BEARISH PLAYS

Dollar Tree - DLTR - close: 79.20 change: -0.76

Stop Loss: 82.65
Target(s): 75.10
Current Option Gain/Loss: + 7.6%
Time Frame: 2 to 3 weeks
New Positions: see below

Comments:
11/01 update: It's time we threw in the towel on our DLTR put play. The S&P 500 index is down more than -5% in just two days and yet DLTR is not moving. Shares continue to churn sideways. That's not a stock we want to be bearish on. I'd keep DLTR on your watch list for a breakout past $82.00. In the meantime we are closing this trade.

- Suggested Positions -

NOV $80 put (DLTR1119W80) Entry $2.60 exit $2.80 (+ 7.6%)

11/01 exit early. DLTR is not moving

chart:

Entry on October 28 at $79.46
Earnings Date 11/17/11 (unconfirmed)
Average Daily Volume = 1.4 million
Listed on October 27, 2011