Editor's Note:

Stocks recovered from their late morning lows and the markets close with widespread gains.

Our new play on PH has been triggered.

-James

Current Portfolio:


CALL Play Updates

Anadarko Petroleum - APC - close: 79.94 change: +0.66

Stop Loss: 77.45
Target(s): 98.50
Current Option Gain/Loss: Dec$85c: -24.6% & Jan $90c: -23.9%
Time Frame: 8 to 12 weeks
New Positions: see below

Comments:
11/15 update: APC recouped a good chunk of yesterday's decline. Yet shares seem to be merely churning sideways. Readers might want to wait for a move past $81.75 before considering new bullish positions.

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: 73.66 change: -0.17

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:
11/15 update: There is no change from my prior comments on DVA. The stock remains inside the $72.50-75.00 trading range.

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: 98.49 change: +1.12

Stop Loss: 93.95
Target(s): 106.00
Current Option Gain/Loss: Dec$105c: -20.3% & Jan$105c: - 5.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/15 update: FLS recovered more than half of yesterday's losses but shares remain under resistance near $100.00 and its exponential 200-dma. At this point I would wait for a breakout past $100 before considering new positions.

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: 173.36 change: +0.16

Stop Loss: 166.40
Target(s): 182.50
Current Option Gain/Loss: +11.6%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
11/15 update: Traders bought the dip midday near $172 and its rising 10-dma. A convincing rally past $174 could herald a new leg higher. We are raising our stop loss up to $166.40.

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

11/15 new stop loss @ 166.40
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: 94.47 change: +0.41

Stop Loss: 91.95
Target(s): 99.75
Current Option Gain/Loss: Nov95c: -55.7% & Dec95c: -10.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/15 update: The bounce in MCD almost kept pace with the rebound in the S&P 500 index. If you are looking to buy calls on a dip I would wait for a pull back into the $93.00-92.50 zone.

NOTE: We only have three days left on our November calls. If MCD sees any spike toward $95 or past $95 we will want to exit, especially if we can exit near 70 cents or better.

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: 98.81 change: +1.00

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:
11/15 update: Traders bought the dip in OXY and shares added +1%. Volume picked up a little bit but volume was still below the norm. More conservative traders may want to wait for a breakout past $100 before considering new positions.

Earlier Comments:
We do want to keep our position size small because the oil stocks can be a volatile bunch. 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: 85.33 change: +1.13

Stop Loss: 81.45
Target(s): 89.75
Current Option Gain/Loss: Dec$90c: - 5.7% & Jan $90c: - 5.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/15 update: Our new trade on PH is now open. Shares consolidated sideways almost all morning. Then right after twelve noon today PH shot higher and broke out to new relative highs. Our trigger to buy calls was hit at $85.25. I would still buy calls now if both PH and the S&P 500 open positive tomorrow morning.

Earlier Comments:
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.

- Suggested Positions -

Long DEC $90 call (PH1117L90) Entry $1.75

- or -

Long JAN $90 call (PH1221A90) Entry $3.60

11/15 trade triggered at $85.25

Entry on November 15 at $85.25
Earnings Date 01/19/12 (unconfirmed)
Average Daily Volume = 2.6 million
Listed on November 12, 2011


Tiffany & Co - TIF - close: 77.79 change: -0.44

Stop Loss: 74.15
Target(s): 84.25
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
11/15 update: Our new trade on TIF is not open yet. Investors could have been reacting to Walmart's earnings report (WMT) out this morning. Retailers underperformed the market overall. Shares of TIF opened lower but traders bought the dip at $76.44.

I am suggesting we try again. The plan is to buy calls if both TIF and the S&P 500 index open positive.

More conservative traders might want to consider a stop closer to the $76 level instead.

The $80.75-81.00 zone is short-term resistance but we are aiming for $84.25. Please note that we do not want to hold over the late November earnings report. FYI: The Point & Figure chart for TIF is bullish with a $103 target.

*See Entry Details Above*

- Suggested Positions -

buy the DEC $80 call (TIF1217L80) current ask $3.65

Entry on November xx at $ xx.xx
Earnings Date 11/29/11 (unconfirmed)
Average Daily Volume = 2.2 million
Listed on November 14, 2011


Under Armour, Inc. - UA - close: 83.28 change: +0.33

Stop Loss: 79.35
Target(s): 92.50
Current Option Gain/Loss: - 6.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/15 update: Traders bought the dip in UA near $81.50 midday. The afternoon bounce looks like a new entry point or readers could wait for a rally past $85.00 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: 95.63 change: +1.81

Stop Loss: 89.75
Target(s): 99.75
Current Option Gain/Loss: Nov$95c: +12.7% & Dec$95c: +25.4%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/15 update: Visa displayed relative strength today with a +1.9% gain. The stock looks poised to breakout past the $96.00 level soon. We only have three days left before November options expire and the bid on our Nov. $95 calls has closed at $1.24 (position: +12.7%). I am suggesting we exit these Nov. $95 calls at the open tomorrow morning. More aggressive traders could hold on since these calls will surge if Visa can breakout past $96.00.

Nimble traders could use a breakout past $96.00 as a new entry point to buy December calls.

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

- Suggested Positions -

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

- or -

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

11/15 plan to exit Nov.$95 calls at the open tomorrow morning.
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: 103.25 change: +0.66

Stop Loss: 97.40
Target(s): 107.75
Current Option Gain/Loss: +16.4%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/15 update: Bingo! Yesterday I suggested waiting for a dip near $101.50 as a new entry point. VMW spent the morning consolidating in the $101.50-101.35 zone before finally rebounding back into positive territory.

Earlier Comments:
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.

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: 68.33 change: +0.72

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:
11/15 update: WFM managed to eke out a +1% gain but remains under short-term resistance. There is no change from my earlier 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: 38.11 change: -0.41

Stop Loss: 41.55
Target(s): 30.50
Current Option Gain/Loss: Dec$35p: - 7.6% & Jan$30p: + 0.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/15 update: Stocks were initially weak this morning on worries over Europe. Yet selling pressure in DB wasn't that strong. Shares fell to 37.54 before paring its losses.

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