Editor's Note:

Stocks chopped sideways but eventually ended in negative territory again. Our new plays on EW and FDO are not open yet. I have adjusted our entry point strategy on FDO. Meanwhile our PM trade is open.

-James

Current Portfolio:


CALL Play Updates

Edwards Lifesciences - EW - close: 63.06 change: -1.06

Stop Loss: 61.49
Target(s): 69.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Comments:
11/22 update: Our trade in EW is not open yet. Shares gapped open lower at $63.86 and look headed for recent support near $62.00. Nimble traders may want to try and buy a dip near $62. I am suggesting we try again with the last night's strategy. I am suggesting we buy calls tomorrow morning but only if both EW and the S&P 500 open positive tomorrow. We'll use a stop loss at $61.49. Our exit target is $69.50.

*See Entry Details Above*

- Suggested Positions -

buy the DEC $65 call (EW1117L65)

- or -

buy the 2012Jan $70 call (EW1221A70)

11/22 not open yet

Entry on November xx at $ xx.xx
Earnings Date 02/02/12 (unconfirmed)
Average Daily Volume = 1.2 million
Listed on November 21, 2011


Family Dollar Stores - FDO - close: 57.40 change: -0.17

Stop Loss: 54.75
Target(s): 64.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Comments:
11/22 update: Our trade is not open yet. FDO gapped open lower but quickly saw a spike past short-term resistance near $58.00. Unfortunately the rally failed. I am adjusting our entry point strategy and listing a trigger to buy calls at $58.50 (today's high was $58.42).

I am setting our exit target at $64.00 using the January calls. We will list December calls as well but you may have to exit earlier. FYI: The Point & Figure chart for FDO is bullish with a $66 target.

Trigger @ 58.50

- Suggested Positions -

buy the DEC $60 call (FDO1117L60)

- or -

buy the JAN $60 call (FDO1221A60)

11/22 not open yet

Entry on November xx at $ xx.xx
Earnings Date 01/04/12 (unconfirmed)
Average Daily Volume = 1.0 million
Listed on November 21, 2011


Phillip Morris Intl. - PM - close: 72.01 change: +0.01

Stop Loss: 69.90
Target(s): 78.50
Current Option Gain/Loss: -12.5%
Time Frame: 6 to 9 weeks
New Positions: see below

Comments:
11/22 update: Our trade in PM is now open with this morning's positive open at $72.11. Technically the S&P 500 opened flat we're giving the bulls the benefit of the draw. Shares closed unchanged in spite of the market's decline today. I would still consider new positions now with PM at $72.00.

Our multi-week target is $78.50. FYI: The Point & Figure chart for PM is bullish with a $95 target.

- Suggested Positions -

Long 2012 Jan $75 call (PM1221A75) Entry $1.12

11/22 trade opened. PM opened at $72.11

Entry on November 22 at $72.11
Earnings Date 02/09/12 (unconfirmed)
Average Daily Volume = 7.3 million
Listed on November 19, 2011


PUT Play Updates

Deutsche Bank - DB - close: 33.59 change: -1.11

Stop Loss: 38.75
Target(s): 30.50
Current Option Gain/Loss: Dec$35p: +30.7% & Jan$30p: +41.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/22 update: Continued worries over the situation in Europe continue to pressure financials lower. DB lost another -3% today. Meanwhile in the news DB announced the company was reviewing its asset management division and might consider a sale of the business.

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

11/21 new stop loss @ 38.75
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


Lululemon Athletica - LULU - close: 47.01 change: -0.43

Stop Loss: 51.25
Target(s): 42.50
Current Option Gain/Loss: Dec$47.50p: - 3.9% & Jan$45p: +00.0%
Time Frame: Seven Trading Days or 6 weeks
New Positions: see below

Comments:
11/22 update: LULU tried to rally this morning but didn't get very far. Shares spent most of the churning on either side of the $47.00 level. I don't see any changes from my prior comments. I would still consider put positions now or you could wait for an oversold bounce back into the $48.50-50.00 zone as their entry point to buy puts.

Earlier Comments:
TIME FRAME: Traders have to make a decision about their time frame with LULU. Normally I would give this trade a few weeks to work out but LULU is due to report earnings on December 1st. As a rule the newsletter almost never holds over an earnings report. At the moment we'll plan to exit this trade on November 30th if shares don't hit our exit before then.

- Suggested Positions -

Long DEC $47.50 PUT (LULU1117X47.5) Entry $3.54

- or -

Long 2012 JAN $45 PUT (LULU1221M45) Entry $3.63

11/21 trade opened on LULU's gap down at $47.63.

Entry on November 21 at $47.63
Earnings Date 12/01/11 (confirmed)
Average Daily Volume = 2.8 million
Listed on November 19, 2011


PACCAR Inc. - PCAR - close: 37.87 change: -0.52

Stop Loss: 41.50
Target(s): 35.50
Current Option Gain/Loss: +22.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/22 update: PCAR sank to new relative lows with a dip to $37.24 today. The stock trimmed its losses to close down -1.3%. PCAR continues to look short-term oversold here. I would wait for a bounce back toward likely resistance in the $39-40 zone before considering new bearish positions.

- Suggested (Small) Positions -

Long DEC $39 PUT (PCAR1117X39) Entry $1.75

11/21 new stop loss @ 41.50

Entry on November 18 at $39.42
Earnings Date 02/01/12 (unconfirmed)
Average Daily Volume = 3.7 million
Listed on November 17, 2011


Western Digital Corp. - WDC - close: 25.78 change: -0.33

Stop Loss: 27.75
Target(s): 21.00
Current Option Gain/Loss: Dec$25p: -16.7% & Jan22.50p: + 2.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/22 update: It was a quiet day for WDC. Shares drifted sideways in a narrow range but eventually closed down -1.2%. I don't see any changes from my prior comments. At this point I would wait for a breakdown under $25.00 before initiating new bearish positions.

Earlier Comments:
It is possible that the 2010 lows near $23.00 could be support but we're aiming for a drop to the $21.00-20.00 zone. We do want to keep our position size small because WDC has been very volatile the last few weeks.

- Suggested (Small) Positions -

Long DEC $25 PUT (WDC1117X25) Entry $1.49

- or -

Long JAN $22.50 PUT (WDC1221M22.5) Entry $1.13

Entry on November 18 at $26.04
Earnings Date 01/18/12 (unconfirmed)
Average Daily Volume = 6.4 million
Listed on November 17, 2011