Editor's Note:

The market lacked direction on Monday with the major indices churning sideways.

Current Portfolio:


CALL Play Updates

American Tower Corp. - AMT - close: 74.74 change: -0.10

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:
11/12/12: AMT is still churning between resistance near $76 and its bullish trend of higher lows. Traders bought the dip again today but we're waiting on a breakout over $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)

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


PUT Play Updates

Carpenter Tech. - CRS - close: 48.53 change: +1.16

Stop Loss: 50.05
Target(s): 42.50
Current Option Gain/Loss: -21.7%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/12/12: CRS gapped open higher at $48.23 this morning. Shares eventually rallied toward $49.00 but found resistance at its 10-dma. This move can be used as a new bearish entry point to buy puts. Our multi-week target is $42.50. CRS can be somewhat volatile so readers may want to limit their position size to reduce risk.

- Suggested Positions -

Long Dec $45 PUT (CRS1222x45) Entry $1.15

Entry on November 12 at $48.23
Average Daily Volume = 460 thousand
Listed on November 10, 2012


Dow Jones Industrial Average (ETF) - DIA - close: 128.04 change: +0.12

Stop Loss: 130.60
Target(s): 125.25
Current Option Gain/Loss: - 0.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/12/12: DIA did not see much change today. Shares just drifted sideways on either side of the $128 mark. Broken support near $130.00 should be new resistance.

- 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: 79.15 change: -0.23

Stop Loss: 81.40
Target(s): 75.50
Current Option Gain/Loss: - 3.2%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
11/12/12: The bounce attempt this morning didn't get very far. The IWM closed near its lows for the session. The $80.00 level should be overhead resistance.

- 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


Lufkin Industries - LUFK - close: 49.55 change: +0.31

Stop Loss: 51.85
Target(s): 45.15
Current Option Gain/Loss: -35.4%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/12/12: LUFK spent the day hovering under the $50 level. Shares still managed a +0.6% gain. The trend remains bearish and I would still consider new bearish positions at current levels.

- Suggested Positions -

Long DEC $45 PUT (LUFK1222x45) entry $1.50

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


The Mosaic Co. - MOS - close: 51.13 change: -0.44

Stop Loss: 54.25
Target(s): 50.25
Current Option Gain/Loss: +46.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/12/12: MOS continues to underperform the market with shares hitting new multi-month lows today. We have four trading days left on our November puts. I am adjusting our exit target to $50.25.

- Suggested Positions -

Long NOV $55 PUT (MOS1217w55) entry $2.60

11/12/12 adjust target to $50.25
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


Vornado Realty - VNO - close: 76.09 change: -1.23

Stop Loss: 80.15
Target(s): 72.50
Current Option Gain/Loss: Dec75p: - 3.5% & 2013Jan$75p: + 0.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/12/12: An analyst downgrade for shares of VNO this morning helped produce a gap down in the stock price. VNO opened at $76.89 and fell to a -1.59% decline. The stock is down four days in a row. If you don't feel like chasing it here then wait for a bounce back into the $77-78 zone and launch new bearish positions there.

- Suggested Positions -

Long DEC $75 PUT (VNO1222x75) entry $1.40*

- or -

Long 2013 Jan $75 PUT (VNO1319m75) entry $1.90*

11/12/12 trade opened on gap down at $76.89
*option entry price is an estimate since the option did not trade at the time our play was opened.

Entry on November 12 at $76.89
Average Daily Volume = 1.1 million
Listed on November 10, 2012