Editor's Note:

Shares of Oil States Intl. (OIS) hit our bearish target on Friday. Elsewhere GMCR hit our stop loss.

Current Portfolio:


CALL Play Updates

American Tower Corp. - AMT - close: 74.84 change: +0.36

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:
11/10/12: AMT bounced off the $74 level on Friday morning and shares look poised to rebound. We're still waiting for a bullish breakout past resistance near $76.00.

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)

chart:

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


PUT Play Updates

Dow Jones Industrial Average (ETF) - DIA - close: 127.92 change: -0.07

Stop Loss: 130.60
Target(s): 125.25
Current Option Gain/Loss: +16.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/10/12: The stock market's intraday bounce on Friday failed and the DIA reversed under its exponential 200-dma. You might be able to argue that the DIA is short-term oversold with the sharp three-day decline so readers may want to wait for a failed rally closer to $129 or $130 before initiating new positions.

- Suggested Positions -

long DEC $125 PUT (DIA1222x125) entry $1.79

11/08/12 new stop loss @ 130.60

chart:

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


iShares Russell 2000 ETF - IWM - close: 79.38 change: +0.17

Stop Loss: 81.40
Target(s): 75.50
Current Option Gain/Loss: + 0.0%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
11/10/12: The story with IWM is similar to the DIA. This ETF gapped open lower on Friday morning but quickly bounced. Yet the intraday rebound reversed midday. IWM still managed a small gain but the move on Friday looks like a failed rally under broken support at $80.00. Readers can use Friday's intraday reversal as a new bearish entry point to buy puts.

- Suggested Positions -

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

chart:

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


Lufkin Industries - LUFK - close: 49.24 change: +0.18

Stop Loss: 51.85
Target(s): 45.15
Current Option Gain/Loss: -23.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/10/12: LUFK gapped open slightly lower on Friday morning at $48.95 and quickly bounced with the broader market. Yet like the market shares reversed midday. LUFK turned over underneath short-term technical resistance at the 10-dma. Readers can use this intraday reversal as a new bearish entry point to buy puts.

- Suggested Positions -

Long DEC $45 PUT (LUFK1222x45) entry $1.50

chart:

Entry on November 09 at $48.95
Average Daily Volume = 467 thousand
Listed on November 8, 2012


The Mosaic Co. - MOS - close: 51.57 change: +0.04

Stop Loss: 54.25
Target(s): 48.00
Current Option Gain/Loss: +30.7%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/10/12: MOS also saw its intraday rebound reverse midday. The stock looks poised to drop to new four-month lows. I want to remind you that we only have five trading days left on our November options. While we're currently aiming for $48.00 we may want to exit positions near $50.00 instead. I am not suggesting new positions at this time.

More conservative traders might want to tighten their stop loss.

- Suggested Positions -

Long NOV $55 PUT (MOS1217w55) entry $2.60

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

chart:

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


CLOSED BULLISH PLAYS

Green Mountain Coffee Roasters - GMCR - close: 23.81 change: -0.25

Stop Loss: 23.90
Target(s): 29.50
Current Option Gain/Loss: - 88.2%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/10/12: The bearish reversal from Thursday continued on Friday and shares of GMCR continued to sink. The stock hit our stop loss at $23.90.

*Small Positions* - Suggested Positions -

NOV $27 call (GMCR1217k27) entry $0.85 exit $0.10 (-88.2%)

11/09/12 stopped out at $23.90
11/01/12 triggered @ 25.50

chart:

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


CLOSED BEARISH PLAYS

Oil States Intl. - OIS - close: 66.09 change: +0.32

Stop Loss: 70.05
Target(s): 65.25
Current Option Gain/Loss: +72.4%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/10/12: Target achieved. The sell-off continued on Friday morning. OIS actually gapped open lower at $65.40 and then spiked down to $65.13. Our exit target was hit at $65.25 before OIS bounced.

The stock is arguably short-term oversold. I would not be surprised to see a bounce back toward $69 or its 10-dma.

- Suggested *Small* Positions -

DEC $65 PUT (OIS1222x65) entry $1.45 exit $2.50* (+72.4%)

11/09/12 target hit at $65.25
*option exit price is an estimate since the option did not trade at the time our play was closed.
11/08/12 new stop loss @ 70.05
11/07/12 new stop loss @ 71.05

chart:

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