Current Portfolio:


CALL Play Updates

Bed Bath & Beyond Inc. - BBBY - close: 61.90 change: +0.38

Stop Loss: 59.75
Target(s): 64.75
Current Option Gain/Loss: -14.6%
Time Frame: 2 to 4 weeks
New Positions: see below

Comments:
11/02 update: BBBY is still bouncing but shares underperformed the market today. That's a bit worrisome and volume was light. Our call options actually declined in value in spite of the stock's gain. Investors could be worried about tomorrow's same-store sales numbers for October. More conservative traders may want to consider an early exit now.

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: 84.43 change: +1.08

Stop Loss: 81.80
Target(s): 97.50
Current Option Gain/Loss: Nov$85 call: -15.1% & Jan $90 call: +30.6%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
11/02 update: The rebound in COST continued. Shares gapped open higher and closed the day up +1.29%. Shares could see some volatility tomorrow as investors react to same-store sales data from several major retailers Thursday morning.

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


SPDR Gold Shares - GLD - close: 169.06 change: +1.68

Stop Loss: 163.40
Target(s): 182.50
Current Option Gain/Loss: + 0.0%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
11/02 update: Gold continued to bounce and the GLD gapped open higher at $168.59. Shares did manage to close above their 50-dma. I would still consider new positions now. More nimble traders might want to consider waiting for a dip near $166.00. While more conservative traders may want to wait for a close over potential resistance at $170.00.

Our multi-week target is $182.50.

- Suggested Positions - (Small Positions)

Long 2012 Jan $175 call (GLD1221A175) Entry $6.00

Entry on November 2 at $168.59
Earnings Date --/--/--
Average Daily Volume = 15.3 million
Listed on November 1, 2011


Goldman Sachs - GS - close: 106.13 change: +2.59

Stop Loss: 97.45
Target(s): 113.75
Current Option Gain/Loss: +48.5%
Time Frame: 2 to 3 weeks
New Positions: see below

Comments:
11/02 update: Financials saw a strong bounce today. GS added +2.5%. Yet the stock seemed to struggle with the $107 area midday. If you're looking for a new entry point I'd wait for a dip into the $102-100 zone or better yet a bounce out of that zone.

More conservative traders may want to consider a stop loss closer to the $99.75-99.50 area instead.

Correction: I have corrected our entry point. GS has both normal options and the one-week options available. I accidentally listed the price for the one-week option instead of the normal option that expires on Nov. 19th. (our entry price is $3.40, not $1.76)

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 $3.40

11/02 corrected our entry price for the correct November call
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


SPDR S&P 500 ETF - SPY - close: 123.99 change: +1.99

Stop Loss: 118.40
Target(s): 124.90
Current Option Gain/Loss: Unopened
Time Frame: up to November expiration
New Positions: Yes, see below

Comments:
11/02 update: Traders bought the dip sooner than expected. I wouldn't chase it yet. We will keep our buy-the-dip entry point at $120.50 (which is 1,205 on the S&P 500 index).

Earlier Comments:
If triggered we'll use a stop loss at $118.40. Stocks could see a sharp bounce so we'll try and limit our investment by using November calls.

buy-the-dip Trigger @ $120.50

- Suggested Positions -

buy the NOV $122 call (SPY1119K122)

Entry on November xx at $---.--
Earnings Date --/--/--
Average Daily Volume = 267 million
Listed on November 1, 2011


Visa, Inc. - V - close: 91.50 change: +1.47

Stop Loss: 88.75
Target(s): 99.75
Current Option Gain/Loss: Nov$95c: - 2.7% & Dec$95c: - 9.8%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/02 update: Rival Mastercard (MA) reported a very strong quarter this morning. This fueled the gap open higher in Visa. Unfortunately the gains faded and V fell from $93.99 to $91.50.

- 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: 41.92 change: +1.08

Stop Loss: 44.15
Target(s): 35.25
Current Option Gain/Loss: + 0.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/02 update: Widespread market gains helped fuel an oversold bounce in SFLY. The stock added +2.6%. I am not suggesting new positions at this time. With the market looking poised to bounce more conservative traders may want to exit now (currently at breakeven +0%).

Earlier Comments:
FYI: The spread on our put is a bit wide, which makes an impact on our gain/loss for this trade.

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