Editor's Note:

Stocks produced a midday bounce off their lows and most of the market closed in positive territory. Is the correction over with the S&P 500 near support at 1400?

Meanwhile on our play list today RVBD hit our stop loss.

Current Portfolio:


CALL Play Updates

Peabody Energy - BTU - close: 28.03 change: +0.55

Stop Loss: 25.60
Target(s): 31.50
Current Option Gain/Loss: Unopened
Time Frame: several weeks
New Positions: Yes, see below

Comments:
10/25/12: Traders bought the dip in BTU near its simple 200-dma this morning. More aggressive traders might want to consider positions here. I still think BTU will see a dip to its simple 10-dma, which is currently near $27.00. I am suggesting we buy calls on a dip at $27.25. More conservative traders may want to wait for a deeper pullback, maybe $27.00 or even in the $27.00-26.50 area. Our multi-week target is $31.50.

Trigger @ 27.25

- Suggested Positions -

buy the 2013 Jan $30 call (BTU1319a30)

Entry on October xx at $ xx.xx
Average Daily Volume = 10.6 million
Listed on October 23, 2012


Deere & Co - DE - close: 84.69 change: +0.38

Stop Loss: 84.25
Target(s): 89.90
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
10/25/12: DE pierced support at the $84.00 level intraday but shares managed a rebound. After a week-long consolidation I suspect DE is ready to bounce. Please note that I am adjusting our entry trigger down to $85.55. I'll move the stop loss to $84.25.

Trigger @ 85.55

- Suggested Positions -

buy the NOV $87.50 call (DE1217k87.5)

10/25/12 adjust the entry trigger to $85.55, stop to $84.25

Entry on October xx at $ xx.xx
Average Daily Volume = 3.3 million
Listed on October 22, 2012


Green Mountain Coffee Roasters - GMCR - close: 24.41 change: +0.10

Stop Loss: 23.90
Target(s): 29.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
10/25/12: GMCR managed a gain today but failed to hit new relative highs. There is no change from my prior comments.

Earlier Comments:
GMCR could see a short squeeze. The most recent data listed short interest at 37% of the 127 million-share float. There is short-term technical resistance at the 50-dma. I am suggesting we open small bullish positions if GMCR trades at $25.50 or higher. If triggered our target is $29.50.

Trigger @ 25.50 *Small Positions*

- Suggested Positions -

buy the NOV $27 call (GMCR1217k27)

Entry on October xx at $ xx.xx
Average Daily Volume = 6.0 million
Listed on October 24, 2012


Medivation, Inc. - MDVN - close: 54.25 change: +0.61

Stop Loss: 49.95
Target(s): 57.00
Current Option Gain/Loss: +33.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
10/25/12: MDVN continues to drift higher and added another +1.1% today. More conservative traders may want to start adjusting their stop loss higher.

Earlier Comments:
We will plan to exit prior to the early November earnings report.

- Suggested Positions -

Long Nov $55 CALL (MDVN1217K55) Entry $2.00

10/20/12 Friday's bounce looks like a new entry point.
10/17/12 MDVN is not cooperating and closed under the 50-dma, readers may want to exit immediately.
10/15/12 triggered @ 52.50

Entry on October 15 at $52.50
Average Daily Volume = 780 thousand
Listed on October 12, 2012


PUT Play Updates

Garmin Ltd. - GRMN - close: 39.26 change: -0.03

Stop Loss: 40.10
Target(s): 36.00
Current Option Gain/Loss: - 1.6%
Time Frame: exit prior to the Oct. 31st earnings report
New Positions: see below

Comments:
10/25/12: GRMN's rally attempt this morning failed at round-number resistance near the $40.00 mark. Readers could use today's reversal as a new bearish entry point. Just remember our time frame and plan to exit before earnings on Oct. 31st.

Earlier Comments:
We want to limit our position size since the most recent data listed short interest at 16% of the 123 million share float. We will plan to exit prior to the October 31st earnings report.

- Suggested *Small* Positions -

Long NOV $40 PUT (GRMN1217w40) Entry $1.85

10/23/12 lack of downward movement today is trouble. Readers may want to exit now. New stop loss @ 40.10

Entry on October 18 at $39.51
Average Daily Volume = 787 thousand
Listed on October 17, 2012


The Mosaic Co. - MOS - close: 53.25 change: +0.04

Stop Loss: 55.05
Target(s): 48.00
Current Option Gain/Loss: - 3.8%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
10/25/12: MOS spent the day consolidating sideways.

Honestly, I am surprised that MOS did not see more movement. This morning its rival POT reported earnings that beat by two cents. Yet POT also issued an earnings warning. Neither POT or MOS saw much movement.

- Suggested Positions -

Long NOV $55 PUT (MOS1217w55) entry $2.60

10/23/12 triggered @ 53.45

Entry on October 23 at $53.45
Average Daily Volume = 3.9 million
Listed on October 20, 2012


CLOSED BULLISH PLAYS

Riverbed Technology - RVBD - close: 22.82 change: -0.92

Stop Loss: 22.49
Target(s): 29.00
Current Option Gain/Loss: -44.3%
Time Frame: several weeks
New Positions: see below

Comments:
10/25/12: RVBD is seeing too much volatility. An intraday spike over resistance at $24.00 hit our entry trigger yesterday but there was no follow through. Today shares hit our stop loss at $22.49 before bouncing off its lows.

Earlier Comments:
I do consider this an aggressive, higher-risk trade.

- Suggested Positions -

2013 Jan $25 call (RVBD1319a25) Entry $1.85 exit $1.03 (-44.3%)

10/25/12 stopped out at $22.49

chart:

Entry on October 24 at $24.20
Average Daily Volume = 5.1 million
Listed on October 23, 2012