Editor's Note:

After a very volatile week the market slipped lower into the weekend.

We closed our BBBY trade as planned. I have removed the SPY trade, unopened.

-James

Current Portfolio:


CALL Play Updates

Costco Wholesale - COST - close: 83.81 change: -0.89

Stop Loss: 81.80
Target(s): 97.50
Current Option Gain/Loss: Nov$85 call: -46.7% & Jan $90 call: + 3.9%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
11/05 update: There was no follow through on Thursday's intraday bounce. COST is essentially churning sideways but I'm worried about the short-term trend of lower highs, which is bearish. If stocks continue to pull back then we could see COST retest support near $82 again.

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.

chart:

Entry on October 27 at $85.00
Earnings Date 12/07/11 (unconfirmed)
Average Daily Volume = 2.9 million
Listed on October 22, 2011


SPDR Gold Shares - GLD - close: 170.85 change: -0.87

Stop Loss: 163.40
Target(s): 182.50
Current Option Gain/Loss: + 6.6%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
11/05 update: Gold experienced a little bit of profit taking on Friday probably due to a small bounce in the U.S. dollar. The overall trend for the GLD remains bullish although if you're looking for a new entry point I'd probably wait for a dip or a bounce in the $168-165 area. 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

chart:

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


Goldman Sachs - GS - close: 105.04 change: -2.64

Stop Loss: 97.45
Target(s): 113.75
Current Option Gain/Loss: +13.2%
Time Frame: 2 to 3 weeks
New Positions: see below

Comments:
11/05 update: Financials hit some profit taking on Friday and GS, being one of the more volatile issues in this group, fell -2.4%. This stock has essentially been chopping sideways in the $102.00-108.00 range for the last four days. Nimble traders may want to consider buying a dip near $102.00.

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.

chart:

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: 49.07 change: +0.24

Stop Loss: 44.49
Target(s): 51.90
Current Option Gain/Loss: +12.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/05 update: SCHN managed to buck the trend on Friday with a gain. Shares did dip toward their rising 10-dma before rebounding to close up +0.5%. It is worth noting that the rally on Friday failed to get past the exponential 200-dma. If you're looking for a new entry point consider waiting for a dip into the $46-45 zone.

Please note that I am changing our exit target to $51.90. FYI: The Point & Figure chart for SCHN is bullish with a $61 target.

- Suggested Positions -

Long DEC $50 call (SCHN1117L50) Entry $2.50

11/05 adjusted exit target to $51.90
11/03 SCHN gapped open at $48.38

chart:

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


Tech Data Corp - TECD - close: 50.45 change: +0.05

Stop Loss: 47.49
Target(s): 53.75
Current Option Gain/Loss: -12.2%
Time Frame: up to November earnings
New Positions: see below

Comments:
11/05 update: TECD managed to eke out a gain after traders bought the dip near TECD's rising 10-dma on Friday morning. The short-term trend is still higher. I would be tempted to buy calls on Monday if both TECD and the S&P 500 index both open positive. More conservative traders may want to raise their stop loss.

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

chart:

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: 92.64 change: -0.54

Stop Loss: 88.75
Target(s): 99.75
Current Option Gain/Loss: Nov$95c: + 3.6% & Dec$95c: + 0.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/05 update: Shares of Visa are right in the middle of their $92.00-94.50 trading range. I would not launch positions here. Wait for a dip into the $90.50-90.00 zone or wait for a breakout past $94.50 as alternative entry points.

- 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

chart:

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


VMware, Inc. - VMW - close: 100.32 change: +0.31

Stop Loss: 93.95
Target(s): 104.75
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
11/05 update: Hmm... VMW didn't see much of a dip on Friday. Shares slipped to $98.55 before bouncing and actually closing higher on the session. Shares look poised to break away from magnetic pull of the $100 level. More aggressive traders may want to buy calls on a breakout at $101.00. I am keeping our trigger at $97.00 for the moment. You never know what headlines might emerge from the weekend.

Earlier Comments:
I am suggesting we open small bullish positions in VMW on a dip at $97.00 with a stop loss at $93.95. Recent support has been the $94.00-95.00 area. If triggered at $97.00 we'll aim for the $104.75 mark.

buy-the-dip Trigger @ $97.00

- Suggested Positions -

buy the NOV $100 call (VMW1119K100)

- or -

buy the DEC $100 call (VMW1117L100)

chart:

Entry on November xx at $ xx.xx
Earnings Date 01/24/11 (unconfirmed)
Average Daily Volume = 2.2 million
Listed on November 3, 2011


PUT Play Updates

Shutterfly, Inc. - SFLY - close: 41.79 change: -0.10

Stop Loss: 44.15
Target(s): 35.25
Current Option Gain/Loss: -21.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/05 update: SFLY has spent the last four days (almost five) trading sideways in the $40.50-42.50 zone. There have been a couple of brief spikes outside of this range. Is SFLY building a base to rally from? Or is this just a speed bump on the way down? The larger trend for SFLY is definitely bearish and shares have been underperforming the broader market.

We will keep this trade open but we're 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

chart:

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

Bed Bath & Beyond Inc. - BBBY - close: 62.03 change: +0.04

Stop Loss: 59.95
Target(s): 64.75
Current Option Gain/Loss: -22.0%
Time Frame: 2 to 4 weeks
New Positions: see below

Comments:
11/05 update: BBBY has not been moving. It was our plan to exit this position on Friday at the closing bell. Readers may want to keep BBBY on their watch list for a dip toward the long-term trendline of support near its 200-dma as a possible entry point.

*Small Positions*- Suggested Positions -

NOV $62.50 call (BBBY1119K62.5) Entry $1.50, exit $1.17 (-22.0%)

11/04 planned exit on Friday at the close
11/03 new stop loss @ 59.95
11/03 prepare to exit tomorrow at the closing bell
10/27 new stop loss @ 59.75

chart:

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


SPDR S&P 500 ETF - SPY - close: 125.48 change: -0.77

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:
11/05 update: Our buy-the-dip trade on the SPY was never opened. The S&P 500 is still trending higher but it's been a very volatile week. We are dropping this play with it unopened.

buy-the-dip Trigger @ $120.50

Trade never Opened.

chart:

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