Editor's Note:

Monday's bounce in stocks continued on Tuesday and actually picked up speed. Yet the S&P 500 remains under technical resistance at the simple 50-dma.

Our SPW trade was triggered. SLB was stopped out.

Current Portfolio:


CALL Play Updates

EV Energy Partners - EVEP - close: 65.62 change: +0.61

Stop Loss: 63.95
Target(s): 69.85
Current Option Gain/Loss: - 12.2%
Time Frame: exit prior to the Nov. 8th earnings report
New Positions: see below

Comments:
11/06/12: EVEP continues to bounce but shares remain under resistance near $66.00. EVEP looks poised to breakout again but we're almost out of time. 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: 25.28 change: +0.13

Stop Loss: 23.90
Target(s): 29.50
Current Option Gain/Loss: - 40.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/06/12: It was a relatively quiet day for GMCR with shares consolidating sideways above the $25.00 level. Today's high was $25.57. Readers may want to wait for a rise past $25.60 as a new 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: 47.61 change: +0.27

Stop Loss: 45.40
Target(s): 52.25
Current Option Gain/Loss: - 7.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/06/12: HOG drifted higher on Tuesday but gains were mild. I am not suggesting new positions at this time.

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: 77.46 change: +1.61

Stop Loss: 74.75
Target(s): 79.75
Current Option Gain/Loss: +55.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/06/12: LLL continues to show relative strength. The stock soared to new 2012 highs with a +2.1% rally today. I am raising our stop loss to $74.75.

- Suggested Positions -

Long Dec $75 call (LLL1222L75) entry 2.00*

11/06/12 new stop loss @ 74.75
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


SPX Corp. - SPW - close: 71.21 change: +1.34

Stop Loss: 68.35
Target(s): 74.75
Current Option Gain/Loss: +13.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/06/12: The rebound in SPW continues and shares broke through resistance near $70 and its 200-dma. Our trigger to buy calls was hit at $70.25. If you missed it consider waiting for a dip back toward $70.00 as our next entry point.

- Suggested Positions -

Long Dec $75 call (SPW1222L75) entry $1.15

11/06/12 triggered @ 70.25

Entry on November 06 at $70.25
Average Daily Volume = 500 thousand
Listed on November 5, 2012


Stericycle, Inc. - SRCL - close: 94.81 change: +0.29

Stop Loss: 93.60
Target(s): 99.75 or $104.00
Current Option Gain/Loss: - 26.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/06/12: SRCL gapped open higher this morning and then spent most of the day drifting sideways. Shares seem to be stuck in this $94-96 range.

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: 53.64 change: +1.10

Stop Loss: 54.25
Target(s): 48.00
Current Option Gain/Loss: -34.2%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/06/12: Our MOS trade looks like it's in trouble. There was no follow through on Friday's bearish reversal. Now MOS has produced a two-day bounce. Shares are testing short-term resistance near $54.00 and its 150-dma. If there is any follow through tomorrow then MOS will likely hit our stop loss at $54.25. 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: 70.00 change: -0.88

Stop Loss: 72.25
Target(s): 65.25
Current Option Gain/Loss: -17.2%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/06/12: Good news! There was no follow through on yesterday's bounce in OIS. Shares underperformed the market today but they closed right on round-number support at $70.00. The recent lows have been near $69.60. Readers may want to wait for a drop below $69.50 as a new bearish entry point to buy puts.

- 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


CLOSED BEARISH PLAYS

Schlumberger Ltd. - SLB - close: 71.15 change: +1.20

Stop Loss: 71.05
Target(s): 65.25
Current Option Gain/Loss: -45.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/06/12: The bounce in SLB continues and shares pushed past the $71.00 level. Our stop loss was hit at $71.05.

- Suggested Positions -

NOV $70 PUT (SLB1217w70) entry $1.70 exit $0.92 (-45.8%)

11/06/12 stopped out at $71.05
11/01/12 warning, today could be a bullish reversal
10/31/12 triggered @ 69.65

chart:

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