Editor's Note:

Most of the market saw a minor bounce as stocks hovered mostly sideways ahead of the U.S. election tomorrow.

DE and SRE hit our stops. LLL was triggered. WYNN was closed.

Current Portfolio:


CALL Play Updates

EV Energy Partners - EVEP - close: 65.01 change: +0.40

Stop Loss: 63.95
Target(s): 69.85
Current Option Gain/Loss: - 29.8%
Time Frame: exit prior to the Nov. 8th earnings report
New Positions: see below

Comments:
11/05/12: The gap down in EVEP this morning was due to the stock trading ex-dividend today. EVEP had a quarterly cash dividend of $0.766 a share. Traders bought the dip and EVEP outperformed the market with a +0.6% gain. I am not suggesting new positions at this time.

We want to exit prior to the Nov. 8th earnings report. Right now our exit will be on Nov. 8th at the closing bell.

- Suggested Positions -

Long NOV $65 call (EVEP1217k65) entry $2.85

11/05/12 prepare to exit on Nov. 8th at the close to avoid earnings
11/05/12 EVEP traded ex-dividend today ($0.776).

Entry on November 02 at $66.25
Average Daily Volume = 111 thousand
Listed on October 27, 2012


Green Mountain Coffee Roasters - GMCR - close: 25.15 change: -0.52

Stop Loss: 23.90
Target(s): 29.50
Current Option Gain/Loss: - 35.2%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/05/12: I cautioned readers to expect a dip toward $25.00. Sure enough GMCR gapped open lower at $25.40 and fell to $24.92 before paring its losses. A bounce from here could be used as a new bullish entry point. More conservative traders might want to consider raising their stops closer to $25.00.

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.

*Small Positions* - Suggested Positions -

Long NOV $27 call (GMCR1217k27) entry $0.85

11/01/12 triggered @ 25.50

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


Harley-Davidson - HOG - close: 47.34 change: +0.05

Stop Loss: 45.40
Target(s): 52.25
Current Option Gain/Loss: -13.4%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/05/12: Monday was a quiet session for HOG with shares drifting in a narrow range.

I would not be surprised to see shares dip back into the $47.00-46.00 zone. Wait for a bounce there before considering new bullish positions.

Earlier Comments:
The $50.00 level could be round-number resistance and conservative traders may want to exit near $50.00. I am setting our exit target at $52.25 instead.

- Suggested Positions -

Long DEC $50 call (HOG1222L50) entry $0.82

11/01/12 triggered at $47.50

Entry on November 01 at $47.50
Average Daily Volume = 2.5 million
Listed on October 31, 2012


L-3 Communications - LLL - close: 75.85 change: +0.00

Stop Loss: 73.75
Target(s): 79.75
Current Option Gain/Loss: + 2.5%
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Comments:
11/05/12: Bingo! Right on cue LLL produced a dip back toward broken resistance and now new support at $75.00. Shares hit our entry point at $75.25 and bounced back to close unchanged on the session. I would still consider new positions now at current levels.

- Suggested Positions -

Long Dec $75 call (LLL1222L75) entry 2.00*

11/05/12 triggered @ 75.25
*option entry price is an estimate since the option did not trade at the time our play was closed.

Entry on November 05 at $75.25
Average Daily Volume = 423 thousand
Listed on November 3, 2012


Stericycle, Inc. - SRCL - close: 94.52 change: -0.25

Stop Loss: 93.60
Target(s): 99.75 or $104.00
Current Option Gain/Loss: - 33.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/05/12: SRCL dipped to $93.69 and bounced. Readers may want to use this intraday rebound as a new entry point or wait for a new rise past today's high (95.02) as an alternative entry point.

Earlier Comments:
Please note that I am setting two exit targets. Our conservative exit target is $99.85 since the $100.00 level could be round-number, psychological resistance. Our more aggressive, longer-term target is $104.00.

- Suggested Positions -

Long DEC $100 call (SRCL1222L100) Entry $0.75

Entry on November 2 at $95.98
Average Daily Volume = 509 thousand
Listed on November 1, 2012


PUT Play Updates

The Mosaic Co. - MOS - close: 52.54 change: +0.35

Stop Loss: 54.25
Target(s): 48.00
Current Option Gain/Loss: + 2.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/05/12: MOS bounced off the $52 level today but shares didn't actually move that far. Tomorrow the stock could show more volatility as investors react to earnings from a rival in the fertilizer industry. CF reported earnings tonight after the closing bell. The results were in-line with estimates so it's unclear which way the industry stocks might move tomorrow. I am not suggesting new positions at this time.

- Suggested Positions -

Long NOV $55 PUT (MOS1217w55) entry $2.60

10/27/12 new stop loss @ 54.25
10/23/12 triggered @ 53.45

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


Oil States Intl. - OIS - close: 70.88 change: +1.14

Stop Loss: 72.25
Target(s): 65.25
Current Option Gain/Loss: -31.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/05/12: There was no follow through on Friday's bearish breakdown below support at $70.00. Yet the overall trend for OIS is still bearish and shares should find resistance at the $72.00 level. Readers may want to wait for a new low under $69.59 before opening new put positions.

- Suggested *Small* Positions -

Long DEC $65 PUT (OIS1222x65) entry $1.45

Entry on November 05 at $69.80
Average Daily Volume = 589 thousand
Listed on November 3, 2012


Schlumberger Ltd. - SLB - close: 69.95 change: +1.18

Stop Loss: 71.05
Target(s): 65.25
Current Option Gain/Loss: -17.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/05/12: SLB saw a similar lack of follow through on Friday's decline. Shares reversed higher and outperformed the market with a +1.7% gain. Shares are now testing resistance near $70.00 and its 150-dma. A failure here can be used as a new bearish entry point.

Earlier Comments:
SLB appears to have formed a bearish head-and-shoulders pattern, which would forecast a drop toward the $62 area. FYI: The Point & Figure chart for SLB is bearish with a $64 target.

- Suggested Positions -

Long NOV $70 PUT (SLB1217w70) entry $1.70

11/01/12 warning, today could be a bullish reversal
10/31/12 triggered @ 69.65

Entry on October 31 at $69.65
Average Daily Volume = 5.3 million
Listed on October 25, 2012


CLOSED BULLISH PLAYS

Deere & Co - DE - close: 85.89 change: +0.29

Stop Loss: 84.75
Target(s): 89.90
Current Option Gain/Loss: -60.2%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/05/12: DE saw a little too much volatility this morning. Shares gapped open lower at $84.23 but quickly bounced back to close in positive territory. It was too late since our stop loss was at $84.75.

- Suggested Positions -

NOV $87.50 call (DE1217k87.5) entry $0.88 exit $0.35 (-60.2%)

11/05/12 DE gapped open below our stop loss at $84.23
11/01/12 new stop loss @ 84.75
10/26/12 triggered @ 85.55
10/25/12 adjust the entry trigger to $85.55, stop to $84.25

chart:

Entry on October 26 at $85.55
Average Daily Volume = 3.3 million
Listed on October 22, 2012


Sempra Energy - SRE - close: 68.24 change: -0.89

Stop Loss: 68.40
Target(s): 72.00
Current Option Gain/Loss: -21.4%
Time Frame: Exit prior to the Nov. 6th earnings report
New Positions: see below

Comments:
11/05/12: We had prepared to exit our SRE positions today at the closing bell but over the weekend we raised our stop loss to $68.40. Unfortunately, SRE displayed relative weakness today with a -1.2% decline and hit our new stop loss.

- Suggested Positions -

DEC $70 call (SRE1222L70) Entry $0.70 exit $0.55 (-21.4%)

11/05/12 stopped out at $68.40
11/03/12 new stop loss @ 68.40, prepare to exit on Monday at the closing bell

chart:

Entry on October 26 at $68.65
Average Daily Volume = 939 thousand
Listed on October 25, 2012


Wynn Resorts - WYNN - close: 111.52 change: -1.28

Stop Loss: 117.75
Target(s): 129.75
Current Option Gain/Loss: - 0.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/05/12: Dividends are giving us trouble today. It looks like WYNN plunged 10 points today. Shares actually fell -1.28 following an $8.00 dividend. Yes, WYNN began trading ex-dividend this morning after an $8 dividend. Instead of a plunge from $120.48 to $110.80 the new price on Monday morning was $112.48. The $1.70 decline at its worst levels of the day would not have hit our stop loss had we adjusted it for the $8 dividend. You could argue the play is still open but we didn't specifically plan for the dividend so I'm closing this trade.

Shares opened at $114.00, which is actually a gap higher (a gain) adjusted for the -$8 dividend, before turning south, which means the option should have jumped higher at the open.

Earlier Comments:
WYNN can be a volatile stock so I am suggesting we keep our position size small to limit our risk.

- Suggested *Small* Positions -

Long DEC $125 call (WYNN1222L125) entry $3.00 exit $3.00 (+0.00%)

11/05/12 WYNN gapped down due to an $8.00 dividend. We are closing this trade. Shares opened at $114.00 (actually a gain before turning lower).

chart:

Entry on November 02 at $121.25
Average Daily Volume = 1.8 million
Listed on November 1, 2012