Editor's Note:

The U.S. market started November in the green with all the major indices posting gains with the exception of small cap Russell 2000 index.


Current Portfolio:


CALL Play Updates

The Walt Disney Company - DIS - close: 69.01 change: +0.42

Stop Loss: 67.45
Target(s): 74.00
Current Option Gain/Loss: + 30.3%
Time Frame: exit PRIOR to earnings on November 7th.
New Positions: see below

Comments:
11/02/13: DIS outperformed the major indices on Friday with a +0.6% gain. The stock looks poised to rally after its recent sideways consolidation in the $68-70 zone. Unfortunately we are quickly running out of time. DIS is scheduled to report earnings on November 7th, after the closing bell. I am suggesting we exit positions on Wednesday, November 6th at the closing bell to avoid holding over the announcement.

Please note our new stop loss at $67.45.

- Suggested Positions -

Long NOV $70 call (DIS1316K70) entry $0.66

11/02/13 time is almost up. Prepare to exit on Nov. 6th at the close
new stop loss @ 67.45

chart:

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


Dover Corp. - DOV - close: 91.26 change: -0.53

Stop Loss: 89.95
Target(s): 99.50
Current Option Gain/Loss: Unopened
Time Frame: 4 to 8 weeks
New Positions: Yes, see below

Comments:
11/02/13: DOV pulled back on Friday but shares closed above their 10-dma with a small bounce off its intraday lows. We are still on the sidelines. The stock seems to have resistance near its mid-September highs. I am suggesting a trigger to buy calls at $93.00. If triggered our target is $99.50. The Point & Figure chart for DOV is bullish with a $105 target.

Trigger @ 93.00

- Suggested Positions -

Buy the DEC $95 call (DOV1322L95)

chart:

Entry on October -- at $---.--
Average Daily Volume = 1.0 million
Listed on October 29, 2013


Honeywell Intl. - HON - close: 86.91 change: +0.18

Stop Loss: 85.75
Target(s): 98.50
Current Option Gain/Loss: -24.1%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
11/02/13: Hmm... HON has spent the last few days consolidating sideways in the $86.50-88.00 zone. I am raising our stop loss to $85.75. Traders may want to wait for a rally above $88.00 before considering new positions.

- Suggested Positions -

Long 2014 Jan $90 call (HON1418a90) entry $1.45

11/02/13 new stop loss @ 85.75
10/30/13 Caution. HON hit our trigger but the stock produced a potential bearish reversal pattern today.

chart:

Entry on October 30 at $87.65
Average Daily Volume = 2.9 million
Listed on October 23, 2013


Helmerich & Payne, Inc. - HP - close: 77.43 change: -0.12

Stop Loss: 75.75
Target(s): 79.50
Current Option Gain/Loss: +21.2%
Time Frame: 4 to 5 weeks
New Positions: see below

Comments:
11/02/13: Traders bought the dip midday on Friday near HP's rising 10-dma. More conservative traders might want to inch up their stop loss higher. The trend is still bullish but I am not suggesting new positions.

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

chart:

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


iShares Russell 2000 ETF - IWM - close: 108.72 change: -0.48

Stop Loss: 107.75
Target(s): 114.00
Current Option Gain/Loss: -14.2%
Time Frame: 8 to 12 weeks
New Positions: see below

Comments:
11/02/13: I cautioned readers to expect a pullback toward support near $108.00. IWM did just that on Friday with shares bouncing after tagging an intraday low of $107.92. This could prove to be a new entry point but traders may want to wait and see if both the IWM and the S&P 500 index both open positive on Monday before initiating 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

chart:

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


J2 Global, Inc. - JCOM - close: 54.99 change: +0.01

Stop Loss: 53.75
Target(s): 59.75
Current Option Gain/Loss: -27.9%
Time Frame: exit PRIOR to earnings on November 5th
New Positions: see below

Comments:
11/02/13: JCOM rebounded off its Friday lows to end the day and the week virtually unchanged. Monday is our last day for this trade. We are planning to exit positions on November 4th to avoid holding over JCOM's earnings report on November 5th.

- Suggested Positions -

Long NOV $55 call (JCOM1316K55) entry $2.15

11/02/13 Exit on Monday, Nov. 4th at the close
10/31/13 prepare to exit on Nov. 4th
10/29/13 new stop loss @ 53.75

chart:

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


Medtronic, Inc. - MDT - close: 57.26 change: -0.14

Stop Loss: 56.45
Target(s): 59.75
Current Option Gain/Loss: +14.9%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/02/13: MDT is now down three days in a row. Friday's decline is a break below its 10-dma. Yet shares seemed to find short-term support near $57.00. More conservative traders could inch up their stop toward Friday's low (56.96). I'm not suggesting new positions at this time.

- Suggested Positions -

Long NOV $55 call (MDT1316K55) entry $2.07

10/29/13 new stop loss @ 56.45

chart:

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


Packaging Corp. of America - PKG - close: 62.61 change: +0.33

Stop Loss: 59.75
Target(s): 67.50
Current Option Gain/Loss: - 16.6%
Time Frame: 6 to 9 weeks
New Positions: see below

Comments:
11/02/13: PKG has outperformed the market two days in a row. The stock looks poised to breakout past short-term resistance near the $63.00 area soon. If you were looking for a new entry point then a rally past $63.00 could work.

- Suggested Positions -

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

chart:

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


Pall Corp. - PLL - close: 81.47 change: +0.95

Stop Loss: 77.90
Target(s): 86.00
Current Option Gain/Loss: - 4.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/02/13: PLL also displayed relative strength on Friday. Shares added +1.1% and closed at a new record high. More conservative traders may want to start raising their stop loss. I am not suggesting new positions at this time.

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

chart:

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


SanDisk Corp. - SNDK - close: 68.97 change: -0.53

Stop Loss: 67.90
Target(s): 74.75
Current Option Gain/Loss: -28.3%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
11/02/13: The profit taking in SNDK continued on Friday. Shares had closed at a new record high on Tuesday and now the stock is down three days in a row. If the weakness continues we could see SNDK hit our stop loss at $67.90 soon. I am not suggesting new positions at this time.

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

- Suggested Positions -

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

chart:

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


Constellation Brands - STZ - close: 65.60 change: +0.30

Stop Loss: 63.40
Target(s): 68.50
Current Option Gain/Loss: +117.3%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
11/02/13: Friday was a relatively quiet day for STZ but shares did close near their highs for the session. The stock also outperformed the major indices. More conservative traders may want to raise their stop loss again.

- Suggested Positions -

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

10/30/13 new stop loss @ 63.40
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

chart:

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


PUT Play Updates

F5 Networks - FFIV - close: 79.43 change: -2.11

Stop Loss: 85.01
Target(s): 76.00
Current Option Gain/Loss: +31.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/02/13: FFIV continues to slice through support levels. Shares underperformed the market's major indices with a -2.58% decline on Friday and a breakdown below the $80.00 level.

- Suggested Positions -

Long DEC $80 PUT (FFIV1322X80) entry $3.15

chart:

Entry on October 31 at $82.00
Average Daily Volume = 2.2 million
Listed on October 30, 2013


Garmin Ltd. - GRMN - close: 46.61 chane: -0.14

Stop Loss: 49.25
Target(s): 43.50
Current Option Gain/Loss: - 2.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/02/13: GRMN bounced around on Friday between its 30-dma overhead and its 40-dma below. The bounce off its lunchtime low on Friday may not be over yet. Traders may want to wait and see if GRMN produces a failed rally in the $47.50-48.00 zone before initiating new put positions.

Earlier Comments:
I do consider this an aggressive trade. GRMN has obviously been volatile the last couple of days. Plus the most recent data listed short interest at 13% of the 121 million share float.

Our target is $43.50. At this point GRMN should be nearing significant support in the $43.00 area and we might switch directions and buy calls.

*Small Positions!* - Suggested Positions -

Long DEC $45 PUT (GRMN1322X45) entry $1.08

chart:

Entry on November 01 at $46.82
Average Daily Volume = 1.2 million
Listed on October 31, 2013


Union Pacific Corp. - UNP - close: 152.77 change: +1.37

Stop Loss: 151.55
Target(s): 141.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 5 weeks
New Positions: Yes, see below

Comments:
11/02/13: UNP continues to bounce from significant support near the $150 area and its 200-dma. That's not surprising but if shares don't roll over soon then we'll drop UNP as a candidate. For now our strategy is unchanged.

Last Wednesday's low was $149.23. The June low was $148.45. I am suggesting a trigger to buy puts at $148.00. If triggered our target is $141.00.

Trigger @ 148.00

- Suggested Positions -

Buy the DEC $145 PUT (UNP1322X145)

chart:

Entry on October -- at $---.--
Average Daily Volume = 2.7 million
Listed on October 30, 2013



Longer-Term Play Updates



Vanguard FTSE Europe ETF - VGK - close: 56.42 change: -0.36

Stop Loss: 53.90
Target(s): Sell half @ $58.00, sell the rest at $63.00
Current Option Gain/Loss: +44.4%
Time Frame: exit PRIOR to 2014 March option expiration
New Positions: see below

Comments:
11/02/13: As expected the VGK continued to pullback toward support near $56.00 and investors bought the dip at $56.08. If you were looking for an entry point this might work if you're using our longer-term target ($63).

Earlier Comments:
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%.

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.

chart:

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