Editor's Note:

Our put play on Shutterfly (SFLY) has been stopped out just before shares dropped to new relative lows. Our trade was successful but the morning spike dented our potential profits.

We also saw COST and TECD get stopped out.

-James

Current Portfolio:


CALL Play Updates

Anadarko Petroleum - APC - close: 79.49 change: +1.68

Stop Loss: 77.45
Target(s): 98.50
Current Option Gain/Loss: Unopened
Time Frame: 8 to 12 weeks
New Positions: Yes, see below

Comments:
11/10 update: After a $6 plunge yesterday APC continued to fall and hit $77.32 before rebounding. The stock remains under potential resistance at $80 and $81. Our plan is unchanged. I am suggesting we open small bullish positions at $81.05.

FYI: Our target is for the January position. We will likely exit the December calls at a lower price.

Earlier Comments:
Shares of APC are on the verge of a major breakout past resistance near $85.00. This would produce a new all-time, record high for the stock. We want to be ready when that happens.

Trigger @ $81.05

- Suggested Positions -

buy the DEC $85 call (APC1117L85)

- or -

buy the JAN $90 call (APC1221A90)

11/09 adjusting our trigger to buy calls down to $81.05 and stop loss to $77.45.

Entry on November xx at $ xx.xx
Earnings Date 01/31/12 (unconfirmed)
Average Daily Volume = 5.0 million
Listed on November 8, 2011


Cabot Oil & Gas - COG - close: 86.55 change: +6.21

Stop Loss: 79.65
Target(s): 89.75
Current Option Gain/Loss: Nov$85c: +31.7% & Dec$90c: +55.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/10 update: Hmm... I could not find any specific catalyst for today's +7.7% rally in COG but we're not complaining. The stock gapped open higher and then surged to a new high. If this rally continues tomorrow we could see COG hit our exit target at $89.75. I am not suggesting new positions after such a big one-day move.

NOTE: More conservative traders may want to exit any November options tomorrow (Friday) since they will see any time premium shrink over the weekend (with only a week left until expiration).

Earlier Comments:
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.

(small positions)

- Suggested Positions -

Long NOV $85 call (COG1119K85) Entry $2.58

- or -

Long DEC $90 call (COG1117L90) Entry $2.45

11/08 trade opened.
11/07 not open yet. try again

Entry on November 08 at $84.66
Earnings Date 02/22/12 (unconfirmed)
Average Daily Volume = 2.6 million
Listed on November 5, 2011


DaVita Inc. - DVA - close: 73.39 change: +0.71

Stop Loss: 72.25
Target(s): 79.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
11/10 update: DVA managed a minor bounce today. The early morning rally attempt failed at the $74.00 level. On a positive note shares still held above the 10-dma. I do not see any changes from my prior comments.

Earlier Comments:
I am suggesting a trigger to buy calls at $75.25. If triggered we'll aim for the $79.50 mark. More aggressive traders could aim for the May-June lows near $82.50 instead. FYI: The Point & Figure chart for DVA is bullish with a $97 target.

Trigger @ $75.25

- Suggested Positions -

buy the DEC $75 call (DVA1117L75)

Entry on November xx at $ xx.xx
Earnings Date 02/09/12 (unconfirmed)
Average Daily Volume = 1.3 million
Listed on November 8, 2011


Flowserve Corp. - FLS - close: 95.78 change: +0.89

Stop Loss: 93.95
Target(s): 109.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
11/10 update: After a -$5 drop yesterday I was expecting a bigger bounce today. Shares rebounded to $97.07 before fading lower. There is no change from my prior comments.

Earlier Comments:
We are going to take a more aggressive approach to bullish positions. More conservative traders will want to wait for the breakout past $100.00. I am suggesting a trigger to open small bullish positions at $97.30. We will adjust our stop loss to $93.95.

I do consider this a slightly more aggressive trade because FLS can be so volatile. We want to keep our position size small to limit our risk.

Trigger @ $97.30 (small positions)

- Suggested Positions -

buy the DEC $105 call (FLS1117L105)

- or -

buy the JAN $105 call (FLS1221A105)

11/09 New strategy: trigger to buy calls at $97.30, stop loss $93.95. Small positions only

Entry on November xx at $ xx.xx
Earnings Date 02/23/12 (unconfirmed)
Average Daily Volume = 712 thousand
Listed on November 8, 2011


SPDR Gold Shares - GLD - close: 171.14 change: -0.93

Stop Loss: 164.95
Target(s): 182.50
Current Option Gain/Loss: + 8.3%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
11/10 update: Gold hit some profit taking today with a -$32 drop to $1,759.60 an ounce. You would think that worries over Europe and a falling dollar would have fueled gains for the precious metal today.

The larger trend is still up. I have been suggesting readers look for a dip or a bounce near $170 as a new bullish entry point (we got it today).

Earlier Comments:
Cautious traders might also want to consider an exit target near $179.00 instead. Our 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


McDonald's Corp. - MCD - close: 93.26 change: +0.61

Stop Loss: 91.60
Target(s): 99.75
Current Option Gain/Loss: Nov95c: -60.0% & Dec95c: -27.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/10 update: MCD recouped about a third of yesterday's decline. If both MCD and the S&P 500 index open positive tomorrow I would be tempted to buy calls again in MCD. Otherwise, no new positions at this time.

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 soon. 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


Under Armour, Inc. - UA - close: 81.04 change: +0.15

Stop Loss: 79.35
Target(s): 92.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
11/10 update: UA dipped to $79.41 before bouncing back into positive territory. This does look like a rebound from prior resistance and what should be support near $80. Aggressive traders may want to buy calls now. We will wait for further strength. I am adjusting our trigger to buy calls from $83.50 down to $82.55 and moving our stop loss to $79.35. We still want to keep our position size small to limit our risk. We will adjust our strike price to the Dec $85 call.

Earlier Comments:
We do want to keep our position size small to limit risk since UA can be a volatile stock.

Trigger @ 82.55 (small positions)

- Suggested Positions -

buy the DEC $85 call (UA1117L85)

11/10 adjusted trigger to 82.55 and stop to 79.35
11/09 new strategy: use a trigger at $83.50 to buy calls, stop loss @ 79.90
11/08 adjusted entry trigger from $86.25 to 85.25 and moved stop loss from $81.90 to $80.90.

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: 93.04 change: -0.09

Stop Loss: 89.75
Target(s): 99.75
Current Option Gain/Loss: Nov$95c: -26.3% & Dec$95c: - 1.4%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/10 update: It was a quiet session for Visa. Outside of the opening gap higher shares spent the session churning sideways. There is no change from my prior comments.

Earlier Comments:
If shares see another dip toward the $91-90 zone I would use it as a new bullish entry point, or you could wait for a new breakout past $95.00 instead.

- Suggested Positions -

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

- or -

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

11/08 new stop loss @ 89.75
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: 97.19 change: +0.28

Stop Loss: 97.40
Target(s): 107.75
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
11/10 update: It was a volatile session for VMW. Shares hit $98.50 this morning and then fell to $95.41 before bouncing back into positive territory. Some of the technical indicators are starting to look more bearish. We want to keep our position size small to limit risk.

Our plan is to buy calls at $101.00.

Trigger @ $101.00 (small positions)

- Suggested Positions -

buy the DEC $105 call (VMW1117L105)

11/08 adjust stop loss to $97.40.
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

Currently we do not have any active put trades.


CLOSED BULLISH PLAYS

Costco Wholesale - COST - close: 82.72 change: -0.69

Stop Loss: 82.45
Target(s): 97.50
Current Option Gain/Loss: Nov$85 call: -81.5% & Jan $90 call: -30.6%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
11/10 update: COST continued to fade lower. Shares briefly traded under their simple 50-dma. The low today was $82.45, which just happens to be our stop loss. The play is closed.

I'd keep COST on your watch list for a bounce from $80 or a breakout past $85.

Earlier Comments:
Keep positions small.

(small positions)- Suggested Positions -

NOV $85 call (COST1119K85) Entry $1.52 exit $0.28 (-81.5%)

- or -

2012 Jan $90 call (COST1221A90) Entry $1.01 exit $0.70 (-30.6%)

11/10 stopped out at $82.45
11/09 new stop loss @ 82.45
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


Tech Data Corp - TECD - close: 47.41 change: -0.52

Stop Loss: 47.49
Target(s): 53.75
Current Option Gain/Loss: -61.4%
Time Frame: up to November earnings
New Positions: see below

Comments:
11/10 update: TECD continues to show weakness. The stock tried to rally this morning and then reversed. Today's close under its simple 200-dma is technically bearish. Our play has been stopped out at $47.49.

- Suggested Positions -

DEC $50 call (TECD1117L50) Entry $2.85, exit $1.10 (-61.4%)

11/10 stopped out at $47.49
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


CLOSED BEARISH PLAYS

Shutterfly, Inc. - SFLY - close: 36.84 change: -0.22

Stop Loss: 38.55
Target(s): 35.25
Current Option Gain/Loss: +110.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/10 update: SFLY almost hit our exit target (35.25) with the late day spike down to $35.38. Unfortunately, shares saw an early morning spike higher to $39.32 first. Our new stop loss was hit at $38.55 shortly after the opening gap higher (38.14). That's too bad too since the morning spike knocked over a $1.00 off our put. Instead of a +215% gain it's +110%.

- Suggested Positions -

NOV $40 PUT (SFLY1119W40) Entry $0.95, exit $2.00 (+110.5%)

11/10 stopped out at $38.55
11/09 new stop loss @ 38.55, readers may want to go ahead and take profits now
11/08 new stop loss @ 43.15
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