Editor's Note:

Gold, silver, and oil all rallied on Monday. Meanwhile stocks faltered early on but managed to bounce back this afternoon.

Our MCD trade is now open. COG, UA, and VMW are not open yet. Please note that we've adjusted our entry point strategy for the VMW play.

-James

Current Portfolio:


CALL Play Updates

Cabot Oil & Gas - COG - close: 83.64 change: +1.55

Stop Loss: 79.65
Target(s): 89.75
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
11/07 update: Technically our trade is not open yet. COG opened higher but the S&P 500 did not. COG essentially traded sideways the rest of the session. We will try again. The plan is to buy calls (small positions) if both COG and the S&P 500 index open positive tomorrow morning. Remember, this is an aggressive, higher-risk trade so let's keep our position size small.

I am listing both November and December calls but bear in mind that Novembers will expire in about two weeks. FYI: The Point & Figure chart for COG is bullish with a $116 target.

*See Entry Details Above* (small positions)

- Suggested Positions -

buy the NOV $85 call (COG1119K85)

- or -

buy the DEC $90 call (COG1117L90)

11/07 not open yet. try again

Entry on November xx at $ xx.xx
Earnings Date 02/22/12 (unconfirmed)
Average Daily Volume = 2.6 million
Listed on November 5, 2011


Costco Wholesale - COST - close: 84.16 change: +0.35

Stop Loss: 81.80
Target(s): 97.50
Current Option Gain/Loss: Nov$85 call: -49.3% & Jan $90 call: + 0.0%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
11/07 update: Traders bought the dip twice near $83.25 today. If COST can just break through its short-term trend of lower highs the stock could see a strong move higher. More conservative traders might want to move their stop loss closer to the 50-dma near $82.29.

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 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: 174.98 change: +4.13

Stop Loss: 164.95
Target(s): 182.50
Current Option Gain/Loss: +41.6%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
11/07 update: Gold made a lot of headlines today with the precious metal's relative strength. The GLD rallied +2.4% to close at new multi-week highs. After a five-day bounce from the $164 area it might be time for a little dip. Readers may want to consider buying calls on a bounce from the $170 area.

We will adjust our stop loss higher to $164.95. More conservative traders may want to raise theirs higher. Cautious traders might also want to consider an exit target near $179.00 instead.

Our multi-week target is $182.50.

- Suggested Positions - (Small Positions)

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

11/07 new stop loss @ 164.95

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


Goldman Sachs - GS - close: 105.57 change: +0.53

Stop Loss: 97.45
Target(s): 113.75
Current Option Gain/Loss: + 7.3%
Time Frame: 2 to 3 weeks
New Positions: see below

Comments:
11/07 update: It was a generally quiet day for GS with the stock trading sideways in a narrow range. I don't see any changes from my weekend comments. 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.

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


McDonald's Corp. - MCD - close: 94.62 change: +0.81

Stop Loss: 91.60
Target(s): 99.75
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/07 update: Our new MCD trade has been opened. The stock rallied past $94.00 this morning, hit our trigger at $94.05 and then pulled back midday. Traders bought the dip near $93.25 and then MCD surged to a new record high. The close above $94.00 is bullish. Thus we got two chances to buy a breakout past $94.00.

Earlier Comments:
I am suggesting small positions to limit our risk. We will list both November calls and Decembers, but keep in mind that Novembers will expire in about two weeks. FYI: The Point & Figure chart for MCD is bullish with a $112 target.

(small positions)- Suggested Positions -

Long NOV $95 call (MCD1119K95) Entry $0.70

- or -

Long DEC $95 call (MCD1117L95) Entry $1.55

11/07 MCD hit our trigger at $94.05

Entry on November 7 at $94.05
Earnings Date 01/24/12 (unconfirmed)
Average Daily Volume = 6.0 million
Listed on November 5, 2011


Schnitzer Steel Industries - SCHN - close: 48.05 change: -1.02

Stop Loss: 44.49
Target(s): 51.90
Current Option Gain/Loss: -10.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/07 update: Hmm... SCHN underperformed the market on Monday. The stock failed at its exponential 200-dma again and slipped to $46.79 intraday before paring its losses. The stock closed down -2.0% and looks like it's poised for a dip into the $46-45 zone. I am not suggesting new positions at this time.

Earlier Comments:
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

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: 49.73 change: -0.72

Stop Loss: 47.49
Target(s): 53.75
Current Option Gain/Loss: -24.5%
Time Frame: up to November earnings
New Positions: see below

Comments:
11/07 update: TECD had a rough morning thanks to an analyst downgrade. Shares gapped lower and dipped to $48.92 before rebounding. The stock closed with a loss of -1.4%. I would not be surprised to see TECD dip toward $48.00 on any market weakness.

Earlier Comments:
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


Under Armour, Inc. - UA - close: 83.50 change: -0.80

Stop Loss: 81.90
Target(s): 92.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
11/07 update: UA underperformed the major indices today with a -0.9% decline. Today's breakdown under the simple 10-dma is also short-term bearish. Currently our plan is to launch small bullish call positions when UA hits $86.25. However, we will also be on the look out for a dip toward what should be support near $80.00. Nimble traders may want to go ahead and prepare for a rebound off the $80 level.

Earlier Comments:
We do want to keep our position size small to limit risk since UA can be a volatile stock. FYI: The Point & Figure chart for UA is bullish with a $106 target.

Trigger @ 86.25 (small positions)

- Suggested Positions -

buy the NOV $87.50 call (UA1119K87.5)

- or -

buy the DEC $90 call (UA1117L90)

Entry on November xx at $ xx.xx
Earnings Date 01/26/12 (unconfirmed)
Average Daily Volume = 1.4 million
Listed on November 5, 2011


Visa, Inc. - V - close: 92.96 change: +0.32

Stop Loss: 88.75
Target(s): 99.75
Current Option Gain/Loss: Nov$95c: -12.7% & Dec$95c: - 5.4%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/07 update: Monday proved to be a quiet session for V. The stock rebounded off its intraday lows and closed up +0.3%. I don't see any changes from my weekend comments. 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

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: 99.59 change: -0.73

Stop Loss: 96.75
Target(s): 107.75
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
11/07 update: We are making an adjustment to our strategy. Instead of waiting for a dip to $97.00 I am suggesting we buy calls on a breakout at $101.00 and we'll aim for $107.75. I will adjust our stop loss up to $96.75.

I have updated our strike prices below.

Trigger @ $101.00

- Suggested Positions -

buy the NOV $105 call (VMW1119K105) (aggressive)

- or -

buy the DEC $105 call (VMW1117L105)

11/07 Adjust strategy. Instead of buy the dip at $97.00 we want to buy calls on a rally at $101.00. Stop loss at $96.75. Target 107.75.

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: 41.11 change: -0.68

Stop Loss: 44.15
Target(s): 35.25
Current Option Gain/Loss: + 5.2%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/07 update: SFLY is still underperforming the major indices. The S&P 500 looks poised to rally higher while SFLY looks poised to breakdown under support at $40.00. Nimble traders may want to launch new positions on a new dip at $39.85. Cautious traders might want to lower their stop loss on current positions.

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