Editor's Note:

There is no deal yet in Washington but stocks continued to drift higher on hopes of a compromise soon.

We closed our DECK trade this morning.
HP and SBUX hit our entry triggers.


Current Portfolio:


CALL Play Updates

Helmerich & Payne, Inc. - HP - close: 75.11 change: +1.13

Stop Loss: 71.75
Target(s): 79.50
Current Option Gain/Loss: + 6.0%
Time Frame: 4 to 5 weeks
New Positions: see below

Comments:
10/14/13: The rally in HP continued on Monday. The stock outperformed the major indices with a +1.5% gain and broke out to new multi-year highs. Our trigger to buy calls was hit at $74.50.

We do not want to hold over the mid-November earnings report. FYI: The Point & Figure chart for HP is bullish with an $82 target.

- Suggested Positions -

Long NOV $75 call (HP1316K75) entry $2.31

Entry on October 14 at $74.50
Average Daily Volume = 1.1 million
Listed on October 12, 2013


Starbucks Corp. - SBUX - close: 78.10 change: +0.28

Stop Loss: 75.75
Target(s): 82.50
Current Option Gain/Loss: - 3.0%
Time Frame: exit PRIOR to earnings in very late October
New Positions: see below

Comments:
10/14/13: Traders steadily bought the dips in SBUX all day long. By the closing bell shares had broken out past resistance at the $78.00 level and hit our trigger at $78.25. I would still consider new positions now at current levels.

Earlier Comments:
Our target is $82.50. Yes, it's possible that the $80.00 level could be round-number, psychological resistance but after a three-week consolidation sideways under the $78.00 level we suspect that $80 is not going to stop the rally in SBUX. We do not want to hold over SBUX's earnings, which will likely occur at the end of the month of early November.

- Suggested Positions -

Long NOV $80 call (SBUX1316k80) entry $1.65

Entry on October 14 at $78.25
Average Daily Volume = 3.7 million
Listed on October 12, 2013


Constellation Brands - STZ - close: 63.18 change: +0.19

Stop Loss: 58.90
Target(s): 67.50
Current Option Gain/Loss: +52.1%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
10/14/13: STZ managed to eke out another all-time high by the closing bell. Shares look a little bit short-term overbought here. I would not be surprised to see a dip to $62.00.

Earlier Comments:
If triggered our target is $67.50 but we may end up exiting near $65.00, which could be potential round-number resistance.

- Suggested Positions -

Long NOV $62.50 call (STZ1316k62.5) entry $1.38

10/11/13 trade opened on gap higher at $61.25,
trigger was $61.10

Entry on October 11 at $61.25
Average Daily Volume = 1.9 million
Listed on October 10, 2013


Zimmer Holdings - ZMH - close: 87.65 change: +0.99

Stop Loss: 83.49
Target(s): 89.50
Current Option Gain/Loss: +40.7%
Time Frame: exit PRIOR to earnings on Oct. 24th
New Positions: see below

Comments:
10/14/13: ZMH continued to rally and actually showed relative strength (+1.1%) even though stories surfaced this afternoon that repealing the medical device tax may not be part of any grand deal in Washington.

More conservative traders may want to raise their stop loss. I am adjusting our exit target to $89.50.

Earlier Comments:
FYI: The medical device stocks could see a little volatility surrounding the political wrangling in Washington. The republicans and some democrats support repealing the recent medical device tax. Yet Senate Majority Leader Harry Reid and President Obama has rejected any suggestions to repeal this tax. It could be a bargaining chip in the negotiations between both sides over the budget and debt ceiling. Although it's worth noting that shares of ZMH have been ignoring all the drama lately.

- Suggested Positions -

Long NOV $85 call (ZMH1316k85) entry $2.70

10/14/13 adjust exit target to $89.50

Entry on October 10 at $85.55
Average Daily Volume = 1.2 million
Listed on October 09, 2013


PUT Play Updates

McDonald's Corp. - MCD - close: 94.72 change: -0.02

Stop Loss: 95.05
Target(s): 90.25
Current Option Gain/Loss: -51.6%
Time Frame: 2 to 3 weeks
New Positions: see below

Comments:
10/14/13: I remain cautious on our MCD trade. Shares underperformed the market again with a fractional loss today (virtually unchanged). MCD remains below resistance at the $95.00 level but the stock looks poised to breakout higher. More conservative traders may still want to abandon ship and exit early.

Earlier Comments:
Our time frame is only two, maybe three weeks as we do not want to hold over MCD's earnings report expected in late October.

- Suggested Positions -

Long NOV $90 PUT (MCD1316W90) entry $0.93

10/12/13 adjust stop loss to $95.05

Entry on October 09 at $93.75
Average Daily Volume = 4.3 million
Listed on October 07, 2013


Newmont Mining - NEM - close: 25.74 change: +0.12

Stop Loss: 27.10
Target(s): 21.00
Current Option Gain/Loss: + 4.3%
Time Frame: Exit PRIOR to earnings on October 31st
New Positions: , see below

Comments:
10/14/13: NEM spent Monday's session churning sideways. The early morning rally attempt failed near $26.00. I don't see any changes from my weekend new play comments. Our target is $21.00 but we will plan to exit prior to NEM's earnings report scheduled on October 31st.

- Suggested Positions -

Long NOV $25 PUT (NEM1316W25) entry $0.92

Entry on October -- at $---.--
Average Daily Volume = 9.1 million
Listed on October 12, 2013



Longer-Term Play Updates



Chicago Bridge & Iron - CBI - close: 72.50 change: +1.45

Stop Loss: 64.00
Target(s): 79.00
Current Option Gain/Loss: +245.0%
Time Frame: 4 to 6 months
New Positions: see below

Comments:
10/14/13: The relative strength continues with a +2.0% gain in CBI. I am not suggesting new positions at this time.

FYI: CBI is due to report earnings on October 29th.

*Small Positions* - Suggested Positions -

Long 2014 Jan $65 call (CBI1418A65) entry $2.55

10/01/13 new stop loss @ 64.00, adjust target to $79.00
09/21/13 new stop loss @ 59.75
09/11/13 new stop loss @ 57.65
07/20/13 new stop loss @ 55.75
06/29/13 CBI might be poised to dip into the $57-55 zone again.
06/24/13 triggered @ 56.75
06/22/13 adjust entry trigger to $56.75
06/15/13 entry strategy change: change the breakout trigger at $65.25 to a buy-the-dip trigger at $56.50. Adjust the stop loss to $53.75.
Adjust the option strike to the 2014 Jan. $65 call

Entry on June 24 at $56.75
Average Daily Volume = 1.8 million
Listed on June 01, 2013


Vanguard FTSE Europe ETF - VGK - close: 55.12 change: +0.13

Stop Loss: 50.95
Target(s): 58.50
Current Option Gain/Loss: +13.8%
Time Frame: exit PRIOR to 2014 March option expiration
New Positions: see below

Comments:
10/14/13: European markets were relatively quiet on Monday but that didn't stop the VGK from breaking out past short-term resistance near $55.00.

Earlier Comments:
We are taking a multi-month time frame with this trade. If we are triggered our target is $58.50 but we'll adjust it as the trade progresses. FYI: The Point & Figure chart for VGK is bullish with a $63 target.

- Suggested Positions -

Long 2014 Mar $55 call (VGK1422L55) entry $1.80*

09/11/13 trade opens. VGK @ 53.60
*option entry @ 1.80 is an estimate. Ask closed at $1.75 yesterday
09/10/13 entry trigger met. open positions tomorrow.
09/10/13 new stop loss @ 50.95
08/24/13 adjust the option strike from 2013 Dec $55 to $2014 Mar $55.

Entry on September 11 at $---.--
Average Daily Volume = 3.0 million
Listed on August 10, 2013


CLOSED BULLISH PLAYS

Deckers Outdoor - DECK - close: 61.51 change: +0.39

Stop Loss: 59.95
Target(s): 68.00
Current Option Gain/Loss: -34.2%
Time Frame: exit PRIOR to earnings in late October
New Positions: see below

Comments:
10/14/13: DECK has not been cooperating with us. Shares did not participate in the market's big two-day bounce last week. The stock did manage a bounce midday but our plan was to exit at the opening bell this morning. Unfortunately, DECK opened lower at $60.71.

- Suggested Positions -

Long NOV $65 call (DECK1316k65) entry $3.50 exit $2.30 (-34.2%)

10/14/13 planned exit
10/12/13 Prepare to exit on Monday morning (Oct. 14th)

chart:

Entry on October 10 at $62.65
Average Daily Volume = 1.1 million
Listed on October 09, 2013