Editor's Note:

Stocks were down for a second day following the U.S. election and worries that the U.S. could see another credit downgrade.

EVEP and HOG were stopped out. IWM was triggered.

Current Portfolio:


CALL Play Updates

American Tower Corp. - AMT - close: 74.48 change: -0.76

Stop Loss: 73.95
Target(s): 79.85
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Comments:
11/08/12: AMT gave back about half of yesterday's gains. Shares remain under resistance near the $76.00 level. I don't see any changes from my prior comments.

The early October high was $76.22. I am suggesting a trigger to buy calls at $76.25. Our target is $79.85. More aggressive traders could aim higher.

Trigger @ 76.25

- Suggested Positions -

buy the DEC $77.50 call (AMT1222L77.5)

Entry on November xx at $ xx.xx
Average Daily Volume = 2.3 million
Listed on November 7, 2012


Green Mountain Coffee Roasters - GMCR - close: 24.06 change: -0.68

Stop Loss: 23.90
Target(s): 29.50
Current Option Gain/Loss: - 81.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/08/12: The market continues to sink and GMCR is following it lower although today shares underperformed the major indices with a -2.7% decline. The stock stalled right at short-term support near $24.00. If there is any follow through tomorrow we'll see GMCR hit our stop loss at $23.90. The bigger risk now is that GMCR could gap open lower.

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


PUT Play Updates

Dow Jones Industrial Average (ETF) - DIA - close: 127.99 change: -1.26

Stop Loss: 131.10
Target(s): 125.25
Current Option Gain/Loss: +14.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/08/12: As expected the market's major indices continued to fall. The DIA failed at its 200-dma and closed at a new three-month low. I am moving our stop loss down to $130.60.

- Suggested Positions -

long DEC $125 PUT (DIA1222x125) entry $1.79

11/08/12 new stop loss @ 130.60

Entry on November 08 at $129.18
Average Daily Volume = 5.3 million
Listed on November 7, 2012


iShares Russell 2000 ETF - IWM - close: 79.21 change: -1.13

Stop Loss: 81.40
Target(s): 75.50
Current Option Gain/Loss: + 6.5%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
11/08/12: We see a similar story here with the IWM. The small cap index (& ETF) continued to fall. Shares of the IWM hit our trigger to buy puts at $79.85 about midday.

- Suggested Positions -

Long 2013 Jan $75 PUT (IWM1319m75) entry $1.53

Entry on November 08 at $79.85
Average Daily Volume = 36 million
Listed on November 7, 2012


The Mosaic Co. - MOS - close: 51.53 change: -0.70

Stop Loss: 54.25
Target(s): 48.00
Current Option Gain/Loss: +32.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/08/12: MOS sank to a new four-month low with today's breakdown below the $52.00 level. Keep in mind that the $50.00 level could prove to be round-number, psychological support. We might readjust our exit to close positions near $50 since we have November options, which expire a week from Friday. 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: 65.77 change: -1.71

Stop Loss: 70.05
Target(s): 65.25
Current Option Gain/Loss: +58.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/08/12: OIS is accelerating lower. Shares gave up -2.5% today and hit $65.72 at its lows. Our exit target is $65.25. Note our new stop loss at $70.05.

- Suggested *Small* Positions -

Long DEC $65 PUT (OIS1222x65) entry $1.45

11/08/12 new stop loss @ 70.05
11/07/12 new stop loss @ 71.05

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


CLOSED BULLISH PLAYS

EV Energy Partners - EVEP - close: 63.22 change: -1.73

Stop Loss: 63.95
Target(s): 69.85
Current Option Gain/Loss: - 43.8%
Time Frame: exit prior to the Nov. 8th earnings report
New Positions: see below

Comments:
11/08/12: EVEP broke down under the $64.00 level by lunchtime. The midday bounce failed and shares accelerated lower mid afternoon. Our stop was hit at $63.95 before the sharp sell-off.

- Suggested Positions -

NOV $65 call (EVEP1217k65) entry $2.85 exit $1.60 (-43.8%)

11/08/12 stopped out at $63.95
11/07/12 exit tomorrow at the close
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).

chart:

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


Harley-Davidson - HOG - close: 44.97 change: -1.54

Stop Loss: 45.60
Target(s): 52.25
Current Option Gain/Loss: -64.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/08/12: Shares of HOG underperformed the market with a sharp -3.3% decline and a breakdown below its 200-dma and the 150-dma. I couldn't find any specific news to account for today's relative weakness. Our stop loss was hit at $45.60.

- Suggested Positions -

DEC $50 call (HOG1222L50) entry $0.82 exit $0.29 (-64.6%)

11/08/12 stopped out at $45.60
11/07/12 adjust stop loss to $45.60
11/01/12 triggered at $47.50

chart:

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