Editor's Note:

It was a "risk off" sort of day on Wall Street with investors selling stocks as the euro currency fell.

Looking at our newsletter we had PXD hit our trigger to buy calls. I am removing TIF as a bullish candidate with the trade unopened.

-James

Current Portfolio:


CALL Play Updates

Anadarko Petroleum - APC - close: 78.95 change: -0.99

Stop Loss: 77.45
Target(s): 98.50
Current Option Gain/Loss: Dec$85c: -37.6% & Jan $90c: -33.6%
Time Frame: 8 to 12 weeks
New Positions: see below

Comments:
11/16 update: Crude oil surged past the $100 a barrel mark today. Yet energy stocks saw no benefit from this rally in oil. APC fell -1.2% and looks poised to breakdown under short-term support near the $78.50-78.00 zone. I am not suggesting new positions at this time.

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: 73.35 change: -0.31

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:
11/16 update: DVA gapped open lower and dipped to $71.81 before surging back toward resistance near $75.00. The stock couldn't push through and rolled over under this resistance level again. There is no change 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: 97.96 change: -0.53

Stop Loss: 94.90
Target(s): 106.00
Current Option Gain/Loss: Dec$105c: -25.4% & Jan$105c: - 9.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/16 update: Traders bought the early morning dip, keeping the trend of higher lows alive. Yet FLS couldn't push through resistance near $100. Chart readers will note the MACD indicator on the daily chart is nearing a new sell signal.

I am not suggesting new positions at this time. We will raise our stop loss to $94.90.

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: 171.51 change: -1.85

Stop Loss: 168.45
Target(s): 182.50
Current Option Gain/Loss: - 2.5%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
11/16 update: A rally in the U.S. dollar could have been putting pressure on gold prices today. The GLD recovered off its morning low but rolled over late in the session, following stocks lower. Nimble traders can look for a dip or a bounce near the $170.00 level as a new bullish entry point.

Please note our new stop loss at $168.45.

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

11/16 new stop loss @ 168.45
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: 93.15 change: -1.32

Stop Loss: 91.95
Target(s): 99.75
Current Option Gain/Loss: Nov95c: -94.2% & Dec95c: -42.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/16 update: Hmm... after failing more than once to breakout past the $95.00 level the rally in MCD could be in jeopardy. MCD looks poised to drop toward the $92 area and if the $92 level breaks then we're looking at a drop toward $90.00 and the 50-dma.

Should we get stopped out at $91.95 I would consider buying calls again on a dip or a bounce near the 50-dma (near $90) or the 100-dma (near $88).

Unfortunately, with only two days left, it looks like our November calls may be dead.

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: 97.60 change: -1.21

Stop Loss: 95.75
Target(s): 104.50
Current Option Gain/Loss: Dec$100c: -34.5% & Jan105c: -31.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/16 update: Uh-oh! The trading action in OXY was not healthy today. The stock produced a bearish double top inside today's session under the $101 level. That doesn't bode well. More conservative traders may want to inch up their stop loss. Currently we have our stop just beneath the simple 200-dma. If that breaks down then we could see OXY correct toward stronger support near $90 and its 100-dma.

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: 83.18 change: -2.15

Stop Loss: 81.45
Target(s): 89.75
Current Option Gain/Loss: Dec$90c: -40.0% & Jan $90c: -27.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/16 update: The trading in PH today doesn't bode well either. The stock tried to rally midday but failed twice near the $85.30 level. Shares closed on their low for the session. Tomorrow could be challenging for the bulls. I wouldn't be surprised to see a dip toward the $82.00 level.

I am not suggesting new bullish positions at this time.

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


Pioneer Nat. Res. - PXD - close: 94.27 change: +1.03

Stop Loss: 89.45
Target(s): 99.75
Current Option Gain/Loss: Dec$100c: +23.4% & Jan$100c: -20.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/16 update: Our new trade on PXD has been opened. Shares rallied past resistance near $95.00 and hit $97.10 before paring its gains. The close back under $95.00 is troubling but shares ended the day up +1.1%. Our trigger was hit at $95.05 but I am not suggesting new positions with the stock under $95.00 tonight.

Earlier Comments:
We want to keep our position size small because PXD can be a volatile stock and we're using a wide stop loss. Our target is $99.75 since the $100 level and the July highs will be resistance. More aggressive traders may want to aim higher (I'd use the $104-105 area). FYI: The Point & Figure chart for PXD is bullish with a $108 target.

(Small Positions Only) - Suggested Positions -

Long DEC $100 call (PXD1117L100) Entry $3.20

- or -

Long JAN $100 call (PXD1221A100) Entry $5.50

Entry on November 16 at $95.05
Earnings Date 02/06/12 (unconfirmed)
Average Daily Volume = 2.6 million
Listed on November 15, 2011


Stanley Black & Decker Inc. - SWK - close: 67.84 change: +0.45

Stop Loss: 65.49
Target(s): 74.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes , see below

Comments:
11/16 update: Ouch! It was an ugly day for SWK. The stock gapped open lower. Shares recovered but the bounce failed at resistance near $68.00. Then stocks accelerated lower to lose -3.6%. I would watch for potential support near $64.00 or its exponential 200-dma.

Currently our plan is unchanged with a trigger to buy calls at $68.50 but we'll make adjustments depending on how SWK trades tomorrow.

Trigger @ $68.50

- Suggested Positions -

buy the DEC $70 call (SWK1117L70)

- or -

buy the JAN $72.50 call (SWK1221A72.5)

Entry on November xx at $ xx.xx
Earnings Date 01/26/12 (unconfirmed)
Average Daily Volume = 1.8 million
Listed on November 15, 2011


Under Armour, Inc. - UA - close: 80.85 change: -2.43

Stop Loss: 79.35
Target(s): 92.50
Current Option Gain/Loss: -36.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/16 update: The widespread stock market weakness today is pulling UA back down towards prior resistance and what should be support near $80.00. Readers could use a bounce from $80.00 as a new bullish entry point.

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: 93.40 change: -2.01

Stop Loss: 91.25
Target(s): 99.75
Current Option Gain/Loss: Nov$95c: -31.8% & Dec$95c: -12.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/16 update: The market is not cooperating. It was our plan to exit our November $95 calls at the open this morning. Unfortunately, Visa gapped open down at $94.55, thanks to the market's widespread weakness.

The stock is back inside its previous trading range. I am not suggesting new positions at this time. Please note our new stop loss at $91.25.

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

- Suggested Positions -

(exit November calls today at the open)
Nov. $95 call (V1119K95) Entry $1.10, exit $0.75 (-31.8%)

- or -

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

11/16 new stop loss @ 91.25
11/16 scheduled exit for Nov.$95 calls. exit $0.75 (-31.8%)
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: 101.11 change: -2.14

Stop Loss: 97.40
Target(s): 107.75
Current Option Gain/Loss: -11.9%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/16 update: Shares of VMW spent another day churning sideways in the $101-104 range. Look for a new bounce from $100 before considering new bullish positions.

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: 66.85 change: -1.48

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:
11/16 update: Hmm... WFM continues to struggle with a trend of lower highs. Aggressive traders might want to consider buying a dip in the $66.00-65.60 zone with a very tight stop loss. We are leaving our trigger to buy calls at $69.65 for the moment.

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: 37.11 change: -1.00

Stop Loss: 41.55
Target(s): 30.50
Current Option Gain/Loss: Dec$35p: - 1.9% & Jan$30p: +10.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/16 update: Investors remain nervous about the situation in Europe. Bearish comments from Fitch ratings agency and news that Moody's rating agency had downgraded several banks in Germany did not fuel optimism. Shares of DB lost another -2.6%. The stock is nearing possible technical support at the 50-dma as well as price support near $36.00. I wouldn't be surprised to see a bounce.

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


CLOSED BULLISH PLAYS

Tiffany & Co - TIF - close: 75.79 change: -2.00

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

Comments:
11/16 update: Our trade is still not open. TIF gapped open lower today negating our entry point strategy. The breakdown under support near $76.00 would suggest TIF could drop toward the next support level near $74.00.

We are giving up on TIF as a bullish candidate, at least this week. I am removing it from the newsletter with our trade unopened.

Trade Did Not Open

chart:

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