Editor's Note:

The market's bounce continues in spite of the fervor in Europe over the potential for a Greek referendum vote on the EU bailout.

I am concerned with BBBY and we want to exit tomorrow.

-James

Current Portfolio:


CALL Play Updates

Bed Bath & Beyond Inc. - BBBY - close: 61.99 change: +0.09

Stop Loss: 59.95
Target(s): 64.75
Current Option Gain/Loss: -18.0%
Time Frame: 2 to 4 weeks
New Positions: see below

Comments:
11/03 update: The S&P 500 rallied another 1.8% but BBBY only gains 9 cents (+0.1%)? This is not a good sign. I am growing increasingly worried about this stock's lack of movement. I am suggesting an early exit tomorrow at the closing bell. We will raise our stop loss to $59.95 tonight.

*Small Positions*- Suggested Positions -

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

11/03 new stop loss @ 59.95
11/03 prepare to exit tomorrow at the closing bell
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: 84.70 change: +0.27

Stop Loss: 81.80
Target(s): 97.50
Current Option Gain/Loss: Nov$85 call: -17.7% & Jan $90 call: +26.7%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
11/03 update: This morning COST announced October same-store sales growth of +9.0%. That was just a little bit under analysts estimates of +9.2%. The stock saw a spike down to $82.88 before rebounding and closing in positive territory.

I am not suggesting new positions at this time.

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: 171.72 change: +2.66

Stop Loss: 163.40
Target(s): 182.50
Current Option Gain/Loss: +19.1%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
11/03 update: The U.S. dollar declined today and that helped boost gold prices. Of course all the confusion and frustration and fear in Europe is also lifting gold prices. Today the GLD gapped higher at $171.17 and closed up +1.5%. The breakout past potential resistance at $170 is bullish. More conservative traders might want to consider inching up their stop loss.

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: 107.68 change: +1.55

Stop Loss: 97.45
Target(s): 113.75
Current Option Gain/Loss: +63.2%
Time Frame: 2 to 3 weeks
New Positions: see below

Comments:
11/03 update: It was a volatile session for GS, especially the first hour. Shares saw an early spike toward $109, which failed and then shares plunged toward $102 only to reverse again. GS eventually closed higher on the session. If you can stomach all the volatility then today's bounce might be a new bullish entry point.

We have a stop loss at $97.45 but more conservative traders may want to consider using a stop loss closer to $100.00 or near $102.00 instead.

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


Schnitzer Steel Industries - SCHN - close: 48.83 change: +1.23

Stop Loss: 44.49
Target(s): 52.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/03 update: Our new trade on SCHN is open. Unfortunately the stock's gap higher this morning had a negative impact on our entry point. The stock opened at $48.38 but if you were nimble shares offered a better entry point on a dip back to $47.13 before rebounding again. Shares ended the session up a strong +2.5%. FYI: The Point & Figure chart for SCHN is bullish with a $61 target.

- Suggested Positions -

Long DEC $50 call (SCHN1117L50) Entry $2.50

11/03 SCHN gapped open at $48.38

Entry on November 3 at $48.38
Earnings Date 01/05/12 (unconfirmed)
Average Daily Volume = 311 thousand
Listed on November 2, 2011


SPDR S&P 500 ETF - SPY - close: 126.25 change: +2.26

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:
11/03 update: Hmm... it's starting to look like we may have missed the move. The SPY is bouncing a lot faster than expected. Shares have not hit our entry point yet at $120.50. I would not chase it here. We will re-evaluate this trade after Friday's session. For the moment our strategy is unchanged.

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


Tech Data Corp - TECD - close: 50.40 change: +0.97

Stop Loss: 47.49
Target(s): 53.75
Current Option Gain/Loss: Unopened
Time Frame: up to November earnings
New Positions: see below

Comments:
11/03 update: It was another strong day for TECD. Unfortunately the stock's gap open higher this morning is negative for our entry point. The stock did see an immediate dip back to $49.01 before reversing higher again and closing with a +1.9% gain.

Earlier Comments:
We'll set our stop loss at 47.49. Our target is $53.75. Don't be surprised if the $52.00 level acts as short-term resistance. FYI: The Point & Figure chart for TECD is bullish with a $67 target.

- Suggested Positions -

Long DEC $50 call (TECD1117L50) Entry $2.85

11/03 TECD gapped open at $50.03

Entry on November 3 at $50.03
Earnings Date 11/21/11 (confirmed)
Average Daily Volume = 650 thousand
Listed on November 2, 2011


Visa, Inc. - V - close: 93.18 change: +1.68

Stop Loss: 88.75
Target(s): 99.75
Current Option Gain/Loss: Nov$95c: +21.8% & Dec$95c: + 7.2%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/03 update: Influential analyst Meredith Whitney downgraded both Visa and MasterCard from "buy" to "outperform" today. Shares of V dipped to $90.28 on the news but bounced back into positive territory. If you were looking for another entry point that was it. I am not suggesting new positions at this time.

- 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: 41.89 change: -0.03

Stop Loss: 44.15
Target(s): 35.25
Current Option Gain/Loss: -10.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/03 update: SFLY is still underperforming the market but I would not initiate new positions here. The stock saw a spike higher this morning to $43.00, which immediately failed and shares retested the $40.50 level intraday.

I am not suggesting new positions at this time.

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