Editor's Note:

Shares of Cabot Oil & Gas (COG) tagged our exit target on Friday.

We also saw APC, FLS, OXY, and the UA trades all opened or triggered.

-James

Current Portfolio:


CALL Play Updates

Anadarko Petroleum - APC - close: 80.72 change: +1.23

Stop Loss: 77.45
Target(s): 98.50
Current Option Gain/Loss: Dec$85c: - 6.1% & Jan $90c: - 9.4%
Time Frame: 8 to 12 weeks
New Positions: see below

Comments:
11/12 update: A strong start this morning lifted APC past short-term resistance at $81.00. The stock actually gapped open higher at $81.00, hit our trigger to buy calls at $81.05, and made it to $81.73 before fading to a +1.5% gain. I would still consider new positions here if both APC and the S&P 500 index open positive on Monday morning.

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.

- Suggested Positions -

buy the DEC $85 call (APC1117L85) Entry $2.60

- or -

buy the JAN $90 call (APC1221A90) Entry $2.76

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

chart:

Entry on November 11 at $81.05
Earnings Date 01/31/12 (unconfirmed)
Average Daily Volume = 5.0 million
Listed on November 8, 2011


DaVita Inc. - DVA - close: 74.34 change: +0.95

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:
11/12 update: DVA has almost recovered from Wednesday's swoon. The stock has bounced back toward resistance near its 100-dma, its exponential 200-dma and the $75.00 level. We are waiting for a breakout.

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)

chart:

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: 99.37 change: +3.59

Stop Loss: 93.95
Target(s): 109.50
Current Option Gain/Loss: Dec$105c: - 3.3% & Jan$105c: + 5.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/12 update: Our FLS trade has been opened. The market's early morning strength pushed FLS to gap open higher at $97.26. Our trigger to buy calls at $97.30 was quickly hit. FLS ended the day up +3.7%. Now the stock faces resistance at $100 and its exponential 200-dma. I would wait for a breakout past $100 if you're still looking for an entry point.

It was our plan to keep our position size small. Please note that I am adjusting our exit target down to $106.00, essentially trying to stay under the simple 200-dma.

Earlier Comments:
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.

(small positions) - Suggested Positions -

Long DEC $105 call (FLS1117L105) Entry $2.95

- or -

Long JAN $105 call (FLS1221A105) Entry $4.65

11/12 adjusted exit target to $106.00
11/11 trade opened at $97.30
11/09 New strategy: trigger to buy calls at $97.30, stop loss $93.95. Small positions only

chart:

Entry on November 11 at $97.30
Earnings Date 02/23/12 (unconfirmed)
Average Daily Volume = 712 thousand
Listed on November 8, 2011


SPDR Gold Shares - GLD - close: 173.96 change: +2.82

Stop Loss: 164.95
Target(s): 182.50
Current Option Gain/Loss: +25.0%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
11/12 update: Gold continues to rebound thanks in part to a drop in the U.S. dollar. The GLD spent much of Friday churning sideways in a very narrow range under the $174.00 level.

The trend remains up but I am not suggesting new positions at this time.

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

chart:

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: 94.76 change: +1.50

Stop Loss: 91.95
Target(s): 99.75
Current Option Gain/Loss: Nov95c: - 7.1% & Dec95c: + 3.2%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/12 update: MCD gapped open higher on Friday and rallied to a +1.6% gain. Traders were buying the dips later Friday afternoon near $94.50. If the stock market rally continues on Monday I suspect we will see MCD hitting new record highs.

Please note that I am adjusting our stop loss to $91.95.

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

11/12 new stop loss @ 91.95
11/07 MCD hit our trigger at $94.05

chart:

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


Occidental Petroleum - OXY - close: 99.81 change: +1.71

Stop Loss: 95.75
Target(s): 104.50
Current Option Gain/Loss: Dec$100c: - 6.7% & Jan105c: - 9.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/12 update: Our new trade on OXY is open. Shares gapped higher at $99.67 on Friday. The stock closed up +1.7% but I'm a little surprised that on such a bullish day that OXY couldn't close above the $100.00 mark.

I don't see any changes from my prior comments. Nimble traders could try buying dips near the rising 10-dma. We do want to keep our position size small because the oil stocks can be a volatile bunch and OXY is arguably a little bit overbought here. FYI: The Point & Figure chart for OXY is bullish with a $116 target.

(small positions) - Suggested Positions -

Long DEC $100 call (OXY1117L100) Entry $5.04

- or -

Long JAN $105 call (OXY1221A105) Entry $4.79

11/11 trade opened.

chart:

Entry on November 11 at $99.67
Earnings Date 01/26/12 (unconfirmed)
Average Daily Volume = 5.4 million
Listed on November 10, 2011


Under Armour, Inc. - UA - close: 83.90 change: +2.86

Stop Loss: 79.35
Target(s): 92.50
Current Option Gain/Loss: + 9.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/12 update: Our trade on UA is finally open. Shares rallied hard on Friday and closed with a +3.5% gain. Our new trigger to buy calls was hit at $82.55. If you don't feel like chasing it here then wait for a small dip to launch positions.

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

(small positions) - Suggested Positions -

Long DEC $85 call (UA1117L85) Entry $3.75

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.

chart:

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: 95.16 change: +2.12

Stop Loss: 89.75
Target(s): 99.75
Current Option Gain/Loss: Nov$95c: +26.3% & Dec$95c: +23.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/12 update: Visa displayed a little relative strength on Friday with a +2.2% gain. The really past prior resistance near $94.50 is bullish but shares still have potential resistance near $96.00. If Visa can rally past $97.20 it would be a new all-time, record high.

We currently have an exit target at $99.75 but more aggressive traders may want to aim higher.

Don't forget that November options expire soon. Readers may want to consider an early exit for the November position.

- 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

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: 100.67 change: +3.48

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:
11/12 update: VMW has almost completely recovered from the market-wide sell-off on Wednesday. Now shares are nearing resistance under the $101 level. I don't see any changes from my prior comments.

The plan is to buy calls at $101.00. More conservative traders may want to use a trigger at $101.50 instead. Our exit target is $107.75. We want to keep our position size small to limit risk.

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.

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

Deutsche Bank - DB - close: 39.77 change: +2.29

Stop Loss: 41.55
Target(s): 30.50
Current Option Gain/Loss: Dec$35p: -17.3% & Jan$30p: - 6.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/12 update: I warned readers that this could be a volatile trade. Stocks rallied on Friday as investors reacted to positive headlines out of Europe, specifically a new Prime Minister in Greece and progress in Italy. Unfortunately new politicians are unlikely to solve the EU's problems but that doesn't mean stocks won't rally on short-term headlines.

Shares of DB gapped open higher at $39.00 on Friday morning but failed to breakout past round-number, psychological resistance at $40.00. I would still consider new positions now. The plan is to keep our position size small to limit our risk.

Please note that given our new entry point at $39.00 I am adjusting our stop loss higher to $41.55.

Earlier Comments:
Keep position size small to limit risk. This is going to be a volatile trade. FYI: The Point & Figure chart for DB is bearish with a $30 target.

- Suggested Positions - (small positions)

Long DEC $35 PUT (DB1117x35) Entry $2.60

- or -

Long JAN $30 PUT (DB1221m30) Entry $2.09

11/12 new stop loss @ 41.55
11/11 DB gapped open higher at $39.00

chart:

Entry on November 11 at $39.00
Earnings Date 02/02/12 (unconfirmed)
Average Daily Volume = 4.3 million
Listed on November 10, 2011


CLOSED BULLISH PLAYS

Cabot Oil & Gas - COG - close: 88.06 change: +1.51

Stop Loss: 79.65
Target(s): 89.75
Current Option Gain/Loss: Nov$85c: +78.2% & Dec$90c: +108.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/12 update: Target achieved.

COG continued to surge. Shares have rallied from $80 to $90 in three days. The stock hit our exit target at $89.75 on Friday. The November $85 call was trading with a bid of $4.60 (+78.2%) and the Dec. $90 call had a bid of $5.10 (+108.1%).

(small positions)

- Suggested Positions -

NOV $85 call (COG1119K85) Entry $2.58, exit $4.60 (+78.2%)

- or -

DEC $90 call (COG1117L90) Entry $2.45, exit $5.10 (+108.1%)

11/11 target hit @ 89.75
11/08 trade opened.
11/07 not open yet. try again

chart:

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