Editor's Note:

The mood in Europe soured a little bit over the weekend. There was no follow through on Friday's low-volume rally.

We did see VMW hit our trigger to buy calls at $101.00.

-James

Current Portfolio:


CALL Play Updates

Anadarko Petroleum - APC - close: 79.28 change: -1.44

Stop Loss: 77.45
Target(s): 98.50
Current Option Gain/Loss: Dec$85c: -26.9% & Jan $90c: -25.0%
Time Frame: 8 to 12 weeks
New Positions: see below

Comments:
11/14 update: Oil stocks could not escape the market-wide profit taking on Monday. APC lost -1.7% and closed back under the $80 level. It looks like it could be a different story tomorrow since APC is trading higher afterhours. The company issued a bullish statement regarding test well results from its oil and gas wells in Northeastern Colorado. APC is estimating this new find could hold 500 million to 1.5 billion barrels of oil equivalent (BOE).

If both APC and the S&P 500 index open positive tomorrow I would consider new positions on APC.

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.

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: 73.83 change: -0.51

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:
11/14 update: DVA edged down about -0.6%. We are still waiting for a breakout past resistance.

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: 97.33 change: -2.00

Stop Loss: 93.95
Target(s): 106.00
Current Option Gain/Loss: Dec$105c: -27.1% & Jan$105c: -13.9%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/14 update: FLS pulled back to retest its rising 10-dma. Shares gave up -2% on the session. Readers could use this dip to the 10-dma as a new entry point or wait for a dip toward the $95.00 level.

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

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: 173.20 change: -0.76

Stop Loss: 164.95
Target(s): 182.50
Current Option Gain/Loss: +12.5%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
11/14 update: Monday was a very quiet day for trading in the GLD. The gold ETF opened lower and traded sideways the rest of the session. Nimble traders might want to consider buying calls on another dip near the $171-170 zone.

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: 94.06 change: -0.70

Stop Loss: 91.95
Target(s): 99.75
Current Option Gain/Loss: Nov95c: -58.5% & Dec95c: -17.4%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/14 update: MCD faded lower this morning but spent the rest of the day drifting sideways on either side of the $94.00 level. If the S&P 500 and MCD open positive tomorrow we can use it as a new entry point.

NOTE: The November options are going to be very volatile if MCD flirts back and forth with the $95 strike price. November options expire this weekend.

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

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: 97.81 change: -2.00

Stop Loss: 95.75
Target(s): 104.50
Current Option Gain/Loss: Dec$100c: -28.5% & Jan105c: -27.9%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/14 update: OXY completely erased Friday's bounce with a -2.0% decline. The stock seemed to find some support near $97.00 and its rising 100-dma. Technically this looks like a new entry point but I would wait to see if both OXY and the S&P 500 index both open positive first.

Earlier Comments:
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.

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


Parker Hannifin Corp. - PH - close: 84.20 change: -0.02

Stop Loss: 81.45
Target(s): 89.75
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
11/14 update: PH didn't make any progress today but it didn't turn lower either. Shares merely churned sideways in a narrow range and closed virtually unchanged on the session. I don't see any changes from my prior comments.

Earlier Comments:
I am suggesting we use a trigger at $85.25 to open bullish positions with a stop at $81.45. More conservative traders will want to consider a higher stop loss. Our target is $89.75. More aggressive trades could aim higher (91.50 or the $97-99 zone). FYI: The Point & Figure chart for PH is currently bearish but a breakout past $85.00 would create a brand new quadruple-top breakout buy signal.

Trigger @ $85.25

- Suggested Positions -

buy the DEC $90 call (PH1117L90) current ask $1.60

- or -

buy the JAN $90 call (PH1221A90) current ask $3.20

Entry on November xx at $ xx.xx
Earnings Date 01/19/12 (unconfirmed)
Average Daily Volume = 2.6 million
Listed on November 12, 2011


Under Armour, Inc. - UA - close: 82.95 change: -0.95

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:
11/14 update: This pull back in UA can be used as a new entry point or readers can wait for a dip (or a bounce) near the $81-80 zone instead.

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.

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: 93.82 change: -1.34

Stop Loss: 89.75
Target(s): 99.75
Current Option Gain/Loss: Nov$95c: -40.9% & Dec$95c: +00.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/14 update: News that Warren Buffett's Berkshire Hathaway had initiated a position in Visa (V) last quarter did not have much impact on the stock price today. Shares faded back into its prior trading range thanks to the market-wide profit taking on Monday. It does look like shares have paused at their trendline of higher lows. Readers could buy this dip or buy a bounce from this level but if you do I'd consider a tighter stop loss.

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

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: 102.59 change: +1.92

Stop Loss: 97.40
Target(s): 107.75
Current Option Gain/Loss: +13.4%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/14 update: VMW outperformed the market today. Shares opened lower at $99.76 but immediately surged and hit $104.38 intraday. Our trigger to buy calls at $101.00 was hit pretty early this morning.

If you're looking for a new entry point I'd consider waiting for a dip into the $101.50-101.00 zone.

We want to keep our position size small to limit risk.

(small positions) - Suggested Positions -

Long DEC $105 call (VMW1117L105) Entry $3.35

11/14 trade opened at $101.00
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 14 at $101.00
Earnings Date 01/24/11 (unconfirmed)
Average Daily Volume = 2.2 million
Listed on November 3, 2011


Whole Foods Market, Inc. - WFM - close: 67.61 change: -1.09

Stop Loss: 67.40
Target(s): 74.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
11/14 update: There was no follow through on Friday's bounce. WFM underperformed the market with a -1.5% decline. I don't see any changes from my weekend comments.

Earlier Comments:
WFM can be a very volatile stock so trading options on it is a higher-risk trade. We want to keep our position size small. I am suggesting a trigger at $69.65 to open bullish positions with a stop loss at $67.40 (a tight stop for this stock). Our target is $74.00. More aggressive traders could aim higher.

Trigger @ $69.65

- Suggested Positions -

buy the DEC $70 call (WFM1117L70)

- or -

buy the JAN $75 call (WFM1221A75)

Entry on November xx at $ xx.xx
Earnings Date 02/09/12 (unconfirmed)
Average Daily Volume = 2.0 million
Listed on November 12, 2011


PUT Play Updates

Deutsche Bank - DB - close: 38.52 change: -1.25

Stop Loss: 41.55
Target(s): 30.50
Current Option Gain/Loss: Dec$35p: - 5.7% & Jan$30p: + 2.8%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/14 update: The mood in Europe soured over the weekend. Financials were big underperformers today. Shares of DB lost -3.1%. I would still consider new bearish positions now but keep in mind this is an aggressive trade on a volatile stock. I don't see any changes from my weekend comments.

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

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