Editor's Note:

A plunging consumer confidence number failed to stop the rally in stocks on Tuesday.

ROK and THO have been removed.
SBUX was closed as planned. SNDK was triggered today.


Current Portfolio:


CALL Play Updates

The Walt Disney Company - DIS - close: 68.92 change: -0.08

Stop Loss: 65.85
Target(s): 74.00
Current Option Gain/Loss: + 48.4%
Time Frame: exit PRIOR to earnings on November 7th.
New Positions: see below

Comments:
10/29/13: DIS spent another day slowly drifting lower. Nimble traders may want to consider buying calls on a dip near support at $68.00 again.

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: 87.46 change: +0.13

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:
10/29/13: HON is still consolidating sideways below short-term resistance near $87.50.

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 $1.38

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


Helmerich & Payne, Inc. - HP - close: 78.66 change: +1.49

Stop Loss: 75.75
Target(s): 79.50
Current Option Gain/Loss: +77.4%
Time Frame: 4 to 5 weeks
New Positions: see below

Comments:
10/29/13: HP displayed some relative strength on Tuesday. The rally continued with the stock up four days in a row. Today saw a +1.9% gain and a breakout past short-term resistance near $78.00. I am raising our stop loss to $75.75.

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

10/29/13 new stop loss @ 75.75
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: 111.35 change: +0.32

Stop Loss: 107.75
Target(s): 114.00
Current Option Gain/Loss: +37.5%
Time Frame: 8 to 12 weeks
New Positions: see below

Comments:
10/29/13: The small cap index and ETF tagged a new record high this morning. There was some selling but traders bought the dip midday and shares rebounded back into positive territory. Please note our new stop loss at $107.75.

I am not suggesting new positions.

- Suggested Positions -

Long 2014 Jan $110 call (IWM1418a110) entry 2.80

10/29/13 new stop loss @ 107.75
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: 55.74 change: +0.63

Stop Loss: 53.75
Target(s): 59.75
Current Option Gain/Loss: + 2.3%
Time Frame: exit PRIOR to earnings on November 5th
New Positions: see below

Comments:
10/29/13: JCOM appears to have awakened from a four-day nap. Shares resumed its rally with a +1.1% gain with another bounce from its 10-dma. This is a new closing high. I am raising the stop loss to $53.75. 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

10/29/13 new stop loss @ 53.75

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


Medtronic, Inc. - MDT - close: 58.50 change: +0.85

Stop Loss: 56.45
Target(s): 59.75
Current Option Gain/Loss: +71.4%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
10/29/13: MDT delivered a strong session with a +1.4% gain and a new multi-year high. The move appears to be a reaction to positive news regarding a clinical trial for its CoreValue artificial heart valve system.

I am raising our stop loss to $56.45.

- Suggested Positions -

Long NOV $55 call (MDT1316K55) entry $2.07

10/29/13 new stop loss @ 56.45

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


Packaging Corp. of America - PKG - close: 61.74 change: -0.46

Stop Loss: 59.75
Target(s): 67.50
Current Option Gain/Loss: - 30.0%
Time Frame: 6 to 9 weeks
New Positions: see below

Comments:
10/29/13: Rival packing company MeadWestvaco (MWV) reported earnings this morning that disappointed estimates on both the top and bottom line. This news weighed on shares of PKG, which spiked down toward the 10-dma. Fortunately, traders bought the dip and PKG managed to pare its losses. Traders may want to wait for a rally above today's high (62.52) 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: 80.92 change: +0.26

Stop Loss: 77.90
Target(s): 86.00
Current Option Gain/Loss: -18.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
10/29/13: Traders bought the dip in PLL near round-number support at $80.00 and the stock rebounded to a new high. 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


SanDisk Corp. - SNDK - close: 70.80 change: +0.58

Stop Loss: 67.90
Target(s): 74.75
Current Option Gain/Loss: + 0.0%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
10/29/13: Our brand new play on SNDK was triggered this afternoon with its rally above the $70.50 level. I would still consider new positions now at current levels.

Our target is $74.75 but we may want to aim higher. The Point & Figure chart for SNDK is bullish with an $82 target.

NOTE: SNDK will begin trading ex-dividend on October 31st. The quarterly cash dividend should be 22.5 cents.

- Suggested Positions -

Long 2014 Jan $72.50 call (SNDK1418a72.5) entry $2.75

Entry on October 29 at $70.60
Average Daily Volume = 5.0 million
Listed on October 28, 2013


Constellation Brands - STZ - close: 65.64 change: +0.63

Stop Loss: 63.25
Target(s): 68.50
Current Option Gain/Loss: +139.1%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
10/29/13: STZ continues to push higher and closed at another record high. I am raising our stop loss to $63.25.

Our option is up almost +140%. Readers may want to just take profits now.

- Suggested Positions -

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

10/29/13 new stop loss @ 63.25
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


Viacom, Inc. - VIAB - close: 84.71 change: +0.18

Stop Loss: 83.40
Target(s): 89.50
Current Option Gain/Loss: -16.1%
Time Frame: exit PRIOR to earnings on November 14th.
New Positions: see below

Comments:
10/29/13: I am concerned with our VIAB trade. The market is pushing toward new highs but VIAB has been stuck drifting sideways the last few days. I would wait for a rally past $85.50 before considering new positions. Tonight we're raising the stop loss to $83.40.

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

10/29/13 new stop loss @ 83.40

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: 57.30 change: +0.10

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:
10/29/13: The VGK has spent the last few days consolidating sideways. Today was more of the same. 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

Rockwell Automation Inc. - ROK - close: 110.91 change: +1.22

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

Comments:
10/29/13: ROK is bouncing from a test of its simple 10-dma. Shares have not hit our suggested entry point and we only have a few days left for this trade to work. More aggressive traders may want to consider buying today's bounce and use a tight stop loss. We are choosing to remove ROK as a candidate. If triggered we would not have much time before exiting prior to their earnings report on November 7th.

Trade did not open.

10/29/13 removed from the newsletter.

chart:

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


Starbucks Corp. - SBUX - close: 79.62 change: +0.91

Stop Loss: 77.75
Target(s): 84.00
Current Option Gain/Loss: +12.1%
Time Frame: exit PRIOR to earnings on October 30
New Positions: see below

Comments:
10/29/13: SBUX delivered a little bounce for us just before our exit. The stock gapped higher and closed up +1.1%. Our plan was to exit today at the closing bell to avoid holding over the company's earnings report tomorrow night.

We remain bullish on SBUX but we'll wait to see how the market reacts to their earnings results before considering new positions.

- Suggested Positions -

NOV $80 call (SBUX1316k80) entry $1.65 exit $1.85 (+12.1%)

10/29/13 planned exit at the close
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

chart:

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


Thor Industries - THO - close: 58.92 change: -0.30

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

Comments:
10/29/13: The S&P 500 index continues to set new highs. Yet THO can't seem to participate. The stock has been stuck churning sideways in the $58-60 zone for over a week. Our trade has not opened yet and tonight we're removing it as a candidate.

Readers may want to keep THO on their watch list since the larger trend is still bullish and a breakout past $60.00 would look like a potential entry point.

Trade did not open.

10/29/13 removed from the newsletter. trigger was 60.25

chart:

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