Editor's Note:

Our long-term trade on Chicago Bridge & Iron Co. (CBI) was a big winner. Our plan was to exit the CBI trade today. We also closed our DDD trade.

We do want to exit our SBUX trade tomorrow at the closing bell.
PKG and PLL hit our entry triggers on Monday.


Current Portfolio:


CALL Play Updates

The Walt Disney Company - DIS - close: 69.00 change: -0.26

Stop Loss: 65.85
Target(s): 74.00
Current Option Gain/Loss: + 59.0%
Time Frame: exit PRIOR to earnings on November 7th.
New Positions: see below

Comments:
10/28/13: Monday was a quiet day for DIS. The stock erased Friday's minor gain. If shares continue to dip we could see DIS retest support near $68.00, which traders could use as a new entry point to buy calls.

Our target is $74.00 but we will plan to exit prior to DIS' earnings report on November 7th.

FYI: Tuesday's rally has produced a new buy signal on the Point & Figure chart that is currently suggesting an $80 price target.

- Suggested Positions -

Long NOV $70 call (DIS1316K70) entry $0.66

Entry on October 22 at $68.10
Average Daily Volume = 7.1 million
Listed on October 21, 2013


Honeywell Intl. - HON - close: 87.33 change: -0.17

Stop Loss: 84.75
Target(s): 98.50
Current Option Gain/Loss: Unopened
Time Frame: 8 to 10 weeks
New Positions: Yes, see below

Comments:
10/28/13: HON is still hovering just below its mid-September high. We are still waiting on a breakout higher. Today's intraday high was $87.55.

The intraday high was $87.55 from September 19th. I am suggesting a trigger to buy calls at $87.65. If triggered our multi-week target is $98.50.

Trigger @ 87.65

- Suggested Positions -

Buy the 2014 Jan $90 call (HON1418a90) current ask $1.35

Entry on October -- at $---.--
Average Daily Volume = 2.9 million
Listed on October 23, 2013


Helmerich & Payne, Inc. - HP - close: 77.17 change: +0.60

Stop Loss: 74.25
Target(s): 79.50
Current Option Gain/Loss: +29.8%
Time Frame: 4 to 5 weeks
New Positions: see below

Comments:
10/28/13: HP continued to bounce with shares now up three days in a row. The stock is nearing recent resistance in the $78.00 area. I am not suggesting new positions at this time.

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

10/24/13 new stop loss @ 74.25
10/22/13 new stop loss @ 73.75

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


iShares Russell 2000 ETF - IWM - close: 111.03 change: -0.05

Stop Loss: 105.95
Target(s): 114.00
Current Option Gain/Loss: +31.4%
Time Frame: 8 to 12 weeks
New Positions: see below

Comments:
10/28/13: Monday produced a quiet day for the IWM as well. The Russell 2000 merely drifted sideways. Traders could be waiting for Wednesday's FOMC announcement but no one expects any changes out of the Fed.

I am not suggesting new positions.

- Suggested Positions -

Long 2014 Jan $110 call (IWM1418a110) entry 2.80

10/23/13 new stop loss @ 105.95

Entry on October 16 at $108.55
Average Daily Volume = 41 million
Listed on October 14, 2013


J2 Global, Inc. - JCOM - close: 55.11 change: +0.05

Stop Loss: 53.25
Target(s): 59.75
Current Option Gain/Loss: -20.9%
Time Frame: exit PRIOR to earnings on November 5th
New Positions: see below

Comments:
10/28/13: JCOM dipped to short-term technical support at the simple 10-dma before bouncing back into positive territory. If you were looking for an entry point then today's move could work. Just remember that we plan to exit prior to earnings on November 5th.

Earlier Comments:
The stock looks ready to launch its next leg higher. New highs could spark a short squeeze. The most recent data listed short interest at 31% of the 43.7 million share float. Our target is $59.75 but more aggressive traders could aim higher. The Point & Figure chart for JCOM is bullish with a $77 target.

- Suggested Positions -

Long NOV $55 call (JCOM1316K55) entry $2.15

Entry on October 21 at $55.05
Average Daily Volume = 329 thousand
Listed on October 19, 2013


Medtronic, Inc. - MDT - close: 57.65 change: +0.29

Stop Loss: 55.40
Target(s): 59.75
Current Option Gain/Loss: +33.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
10/28/13: MDT displayed a little relative strength today with a +0.5% gain. Yet the rally stalled at what appears to be new short-term resistance near $58.00.

- Suggested Positions -

Long NOV $55 call (MDT1316K55) entry $2.07

Entry on October 22 at $56.75
Average Daily Volume = 3.4 million
Listed on October 21, 2013


Packaging Corp. of America - PKG - close: 62.20 change: -0.01

Stop Loss: 59.75
Target(s): 67.50
Current Option Gain/Loss: - 20.0%
Time Frame: 6 to 9 weeks
New Positions: see below

Comments:
10/28/13: PKG spiked higher this morning and hit our suggested entry point at $62.50 before giving back all of its early gains. I would wait for a new rally above $62.50 before initiating new positions.

- Suggested Positions -

Long 2014 Jan $65 call (PKG1418a65) entry $1.50

Entry on October 28 at $62.50
Average Daily Volume = 1.0 million
Listed on October 23, 2013


Pall Corp. - PLL - close: 80.66 change: +0.39

Stop Loss: 77.90
Target(s): 86.00
Current Option Gain/Loss: -13.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
10/28/13: The rally in PLL continued on Monday and shares hit an all-time high. The stock also hit our suggested entry point to buy calls at $80.50. I would still consider new positions now at current levels.

Earlier Comments:
Our target is $86.00. However, we will plan to exit prior to PLL's earnings report in late November (not date set yet). FYI: The Point & Figure chart for PLL is bullish with a long-term $113 target.

- Suggested Positions -

Long DEC $85 call (PLL1321L85) entry $1.10

Entry on October 28 at $80.50
Average Daily Volume = 551 thousand
Listed on October 23, 2013


Rockwell Automation Inc. - ROK - close: 109.69 change: -0.91

Stop Loss: 108.95
Target(s): 117.50
Current Option Gain/Loss: Unopened
Time Frame: Exit PRIOR to earnings on November 7th
New Positions: Yes, see below

Comments:
10/28/13: ROK underperformed the major indices today with a -0.8% decline. Shares did find some support at their 10-dma. We remain on the sidelines.

I am suggesting a trigger to buy calls at $112.25. If triggered our target is $117.50 but we will plan to exit prior to earnings on November 7th.

Trigger @ 112.25

- Suggested Positions -

buy the NOV $115 call (ROK1316K115)

Entry on October -- at $---.--
Average Daily Volume = 659 thousand
Listed on October 23, 2013


Starbucks Corp. - SBUX - close: 78.71 change: -1.25

Stop Loss: 77.75
Target(s): 84.00
Current Option Gain/Loss: - 9.0%
Time Frame: exit PRIOR to earnings on October 30
New Positions: see below

Comments:
10/28/13: Ouch! What happened to SBUX today? The stock lost -1.5%, underperformed the major indices, and produced a bearish engulfing candlestick reversal pattern. I couldn't find any specific news to account for this weakness.

Traders may want to exit immediately tomorrow morning. We are already planning to exit tomorrow at the closing bell to avoid holding over the earnings report.

- Suggested Positions -

Long NOV $80 call (SBUX1316k80) entry $1.65

10/28/13 prepare to exit tomorrow at the closing bell
10/26/13 new stop loss @ 77.75, prepare to exit on Tuesday, Oct. 29th at the closing bell
10/22/13 adjust exit target to $84.00

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


Constellation Brands - STZ - close: 65.01 change: +1.10

Stop Loss: 61.90
Target(s): 68.50
Current Option Gain/Loss: +99.2%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
10/28/13: It looks like the consolidation in STZ is over and the stock is back in rally mode. Shares outperformed the market with a +1.7% gain. I am adjusting our exit target to $68.50.

- Suggested Positions -

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

10/28/13 adjust exit target to $68.50
10/22/13 new stop loss @ 61.90, readers may want to take profits now. Our option is up +84%.
10/16/13 new stop loss @ 59.75
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


Thor Industries - THO - close: 59.22 change: +0.19

Stop Loss: 57.75
Target(s): 64.75
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
10/28/13: The sideways consolidation in THO continued on Monday. Traders once again bought the intraday dip. I don't see any changes from my earlier comments. I am suggesting a trigger to buy calls at $60.25. If triggered our target is $64.75.

Trigger @ 60.25

- Suggested Positions -

Buy the NOV $60 call (THO1316K60)

Entry on October -- at $---.--
Average Daily Volume = 528 thousand
Listed on October 19, 2013


Viacom, Inc. - VIAB - close: 84.53 change: -0.41

Stop Loss: 82.75
Target(s): 89.50
Current Option Gain/Loss: -19.3%
Time Frame: exit PRIOR to earnings on November 14th.
New Positions: see below

Comments:
10/28/13: VIAB gave back a large chunk of Friday's gains. Readers may want to wait for VIAB to rally above $85.50 before considering new bullish positions.

Earlier Comments:
Our target is $89.50. However, we will plan to exit prior to VIAB's earnings report in mid November.

- Suggested Positions -

Long DEC $85 call (VIAB1322L85) entry $3.10

Entry on October 24 at $85.30
Average Daily Volume = 2.6 million
Listed on October 22, 2013


PUT Play Updates


Currently we do not have any active put trades.




Longer-Term Play Updates



Vanguard FTSE Europe ETF - VGK - close: 57.20 change: -0.27

Stop Loss: 53.90
Target(s): Sell half @ $58.00, sell the rest at $63.00
Current Option Gain/Loss: +77.7%
Time Frame: exit PRIOR to 2014 March option expiration
New Positions: see below

Comments:
10/28/13: The VGK found new resistance near $57.50 last week. Today's session produced a mild pullback. I am not suggesting new positions.

Don't forget that we have two exit targets for this trade! More conservative traders could lock in gains now with our option up +94%.

Earlier Comments:
We are taking a multi-month time frame with this trade. FYI: The Point & Figure chart for VGK is bullish with a $63 target.

- Suggested Positions -

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

10/22/13 Strategy Update: Plan to exit half @ $58.00 and exit the rest at $63.00. New stop loss @ 53.90
10/19/13 new stop loss @ 52.75
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

3D Systems - DDD - close: 56.98 change: -1.66

Stop Loss: 55.75
Target(s): 64.00
Current Option Gain/Loss: -17.7%
Time Frame: exit PRIOR to earnings on Oct. 29th
New Positions: see below

Comments:
10/28/13: DDD has earnings coming up tomorrow. It was our plan to exit positions at the closing bell today. It seems we would have done better to exit this morning. Shares of DDD gapped open higher and then plunged -2.8%, underperforming the broader market. The stock garnered some bullish analyst comments and a higher price target this morning but that didn't help the rally. Today's move is a bearish reversal pattern but that could change depending on the earnings news.

- Suggested Positions -

NOV $60 call (DDD1316K60) entry $2.25 exit $1.85 (-17.7%)

10/28/13 exit at the closing bell
10/26/13 new stop loss @ 55.75, prepare to exit on Monday, Oct 28th at the closing bell

chart:

Entry on October 18 at $57.05
Average Daily Volume = 6.8 million
Listed on October 17, 2013



CLOSED LONG-TERM PLAYS

Chicago Bridge & Iron - CBI - close: 73.77 change: -0.75

Stop Loss: 71.75
Target(s): 79.00
Current Option Gain/Loss: +268.6%
Time Frame: 4 to 6 months
New Positions: see below

Comments:
10/28/13: CBI is due to report earnings tomorrow night (Oct. 29th). It was our plan to exit positions today at the closing bell to lock in gains. We didn't want to risk a post-earnings plunge in CBI.

We remain longer-term bullish on CBI and would definitely keep CBI on your watch list for another entry point.

*Small Positions* - Suggested Positions -

2014 Jan $65 call (CBI1418A65) entry $2.55 exit $9.40 (+268.6%)

10/28/13 planned exit at the closing bell.
10/26/13 new stop loss @ 71.75, prepare to exit on Monday, Oct. 28th at the closing bell
10/19/13 new stop loss @ 68.40
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

chart:

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