Editor's Note:

European markets were up today but the U.S. market was mixed. The Dow Industrials hit a new high but the small cap Russell 2000 underperformed. This relative weakness in the Russell is a potential warning signal.

COST, HOT and KSU hit our entry triggers.
DIS was closed as planned. SNDK hit our stop loss.


Current Portfolio:


CALL Play Updates

B/E Aerospace Inc. - BEAV - close: 82.51 change: -0.14

Stop Loss: 79.60
Target(s): 89.50
Current Option Gain/Loss: -10.3%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
11/06/13: BEAV followed the market's spike higher this morning but gains faded. Shares eventually closed in negative territory. Look for short-term support at its simple 10-dma (near $81.50).

Earlier Comments:
Our target is $89.50. FYI: The Point & Figure chart for BEAV is bullish with a $90 target.

- Suggested Positions -

Long DEC $85 call (BEAV1322L85) entry $1.45

Entry on November 05 at $82.75
Average Daily Volume = 894 thousand
Listed on November 02, 2013


Costco Wholesale - COST - close: 124.07 change: +3.94

Stop Loss: 118.40
Target(s): 129.00
Current Option Gain/Loss: +112.3%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
11/06/13: Our COST trade opened with a big show of relative strength. After flirting with a breakout past resistance near $120 the last few days the stock finally pushed higher and did so with a convincing rally to new all-time highs. Our trigger to buy calls was hit at $120.50 this morning.

NOTE: Our call option has already doubled in value.

- Suggested Positions -

Long 2014 Jan $125 call (COST1418a125) entry $1.30

Entry on November 06 at $120.50
Average Daily Volume = 1.9 million
Listed on November 02, 2013


GNC Holdings - GNC - close: 58.88 change: -0.88

Stop Loss: 57.95
Target(s): 64.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
11/06/13: Hmm... there was no follow through on GNC's rally yesterday. The stock reversed at the $60.00 level and dropped back toward its 10-dma. At the moment I don't see any changes from our Tuesday night new play comments.

I am suggesting a trigger to buy calls at $60.50. If triggered our target is $64.50.

Trigger @ 60.50

- Suggested Positions -

Buy the DEC $60 call (GNC1322L60)

Entry on November -- at $---.--
Average Daily Volume = 1.5 million
Listed on November 05, 2013


Starwood Hotels & Resorts - HOT - close: 74.76 change: +0.08

Stop Loss: 73.40
Target(s): 79.75
Current Option Gain/Loss: -17.6%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
11/06/13: I would be cautious here. HOT followed the market's spike higher this morning. Yet the rally in HOT reversed and shares traded back down below resistance at the $75.00 level. Unfortunately our trigger to buy calls was hit this morning at $75.25. Today's high was $75.45. Readers might want to wait for a rise past $75.50 before initiating new positions.

Earlier Comments:
More conservative traders may want to wait for a rally past $75.50 instead. If we are triggered at $75.25 our target is $79.75. More aggressive traders could aim higher. The Point & Figure chart for HOT is bullish with a $96 target.

- Suggested Positions -

Long DEC $75 call (HOT1322L75) entry $2.10

Entry on November 06 at $75.25
Average Daily Volume = 1.8 million
Listed on November 04, 2013


Helmerich & Payne, Inc. - HP - close: 77.65 change: -0.13

Stop Loss: 75.75
Target(s): 79.50
Current Option Gain/Loss: +29.8%
Time Frame: 4 to 5 weeks
New Positions: see below

Comments:
11/06/13: The stock market's early morning rally was strong enough to lift HP above short-term resistance near $78.00 but the rally didn't last. HP reversed and retested short-term support near its 10-dma. 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

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


iShares Russell 2000 ETF - IWM - close: 109.12 change: -0.47

Stop Loss: 107.75
Target(s): 114.00
Current Option Gain/Loss: -10.0%
Time Frame: 8 to 12 weeks
New Positions: see below

Comments:
11/06/13: Warning! The action in the small cap Russell 2000 index (and the IWM) does not bode well for the broader market. The IWM's early morning rally (gap higher) failed and shares closed near their lows. Technically this looks like a failed rally and a bearish engulfing candlestick reversal pattern. 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


Kansas City Southern - KSU - close: 124.52 change: -0.08

Stop Loss: 122.00
Target(s): 134.00
Current Option Gain/Loss: -16.6%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
11/06/13: Our new KSU trade has been triggered but I am urging caution. The stock spiked higher with the stock market this morning but the rally didn't last. KSU quickly traded back below resistance near $125.00 and closed almost unchanged on the session. Our trigger was hit at $125.25. I would wait for a new rally past $125.25 before considering new bullish positions.

Earlier Comments:
Our target is $134.00. More aggressive investors could aim higher. The Point & Figure chart for KSU is bullish with a $152 target.

- Suggested Positions -

Long DEC $125 call (KSU1322L125) entry $3.60

Entry on November 06 at $125.25
Average Daily Volume = 813 thousand
Listed on November 04, 2013


Pall Corp. - PLL - close: 82.38 change: +0.50

Stop Loss: 79.75
Target(s): 86.00
Current Option Gain/Loss: +13.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/06/13: PLL displayed some relative strength with a +0.6% gain and another new high. I am raising our stop loss to $79.75.

I do find it odd that our December $85 call is not moving very much.

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

11/06/13 new stop loss @ 79.75

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


Constellation Brands - STZ - close: 66.41 change: +0.34

Stop Loss: 64.25
Target(s): 68.50
Current Option Gain/Loss: +175.3%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
11/06/13: Another day, another new high for shares of STZ. I am raising our stop loss up to $64.25.

Our option is up +175%. Readers may want to take profits now.

- Suggested Positions -

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

11/06/13 new stop loss @ 64.25
11/05/13 new stop loss @ 63.85
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

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: 81.20 change: +1.46

Stop Loss: 82.75
Target(s): 76.00
Current Option Gain/Loss: - 3.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/06/13: I am growing concerned over our FFIV put play. The stock hasn't posted any real declines in the last three days. Shares outperformed the market today with a +1.8% gain. The stock should find resistance near $82.00 and its 10-dma near $82.15. I am adjusting our stop loss down to $82.75. I am not suggesting new positions.

- Suggested Positions -

Long DEC $80 PUT (FFIV1322X80) entry $3.15

11/06/13 new stop loss @ 82.75
11/04/13 new stop loss @ 83.25

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


Garmin Ltd. - GRMN - close: 47.95 chane: -0.04

Stop Loss: 48.55
Target(s): 43.50
Current Option Gain/Loss: -44.4%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/06/13: I am growing concerned about our GRMN put play. It is noteworthy that GRMN did not spike higher with the rest of the stock market this morning. Instead shares shot lower. Yet traders bought the dip midday and GRMN rebounded back to resistance near $48.00.

Tonight we are adjusting our stop loss down to $48.55.

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

11/06/13 new stop loss @ 48.55

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



Longer-Term Play Updates



Vanguard FTSE Europe ETF - VGK - close: 56.78 change: +0.54

Stop Loss: 53.90
Target(s): Sell half @ $58.00, sell the rest at $63.00
Current Option Gain/Loss: +58.3%
Time Frame: exit PRIOR to 2014 March option expiration
New Positions: see below

Comments:
11/06/13: After widespread declines yesterday the European markets reversed into widespread gains today. This helped the VGK gap higher and posted a +0.95% gain.

Traders should be aware that the European markets could see increased volatility tomorrow following the European Central Bank's interest rate decision and ECB President Mario Draghi's press conference.

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 (VGK1422C55) 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

The Walt Disney Company - DIS - close: 69.00 change: +0.15

Stop Loss: 67.45
Target(s): 74.00
Current Option Gain/Loss: + 1.5%
Time Frame: exit PRIOR to earnings on November 7th.
New Positions: see below

Comments:
11/06/13: Our plan was to exit our DIS positions at the closing bell today to avoid holding over earnings out tomorrow night. We might revisit DIS on Thursday or Friday if shares breakout past resistance near $70.00.

- Suggested Positions -

NOV $70 call (DIS1316K70) entry $0.66 exit $0.67 (+1.5%)

11/06/13 planned exit
11/05/13 prepare to exit tomorrow at the close
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


SanDisk Corp. - SNDK - close: 68.12 change: -0.86

Stop Loss: 67.90
Target(s): 74.75
Current Option Gain/Loss: -45.4%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
11/06/13: SNDK underperformed the stock market today with a -1.24% decline. The market spiked higher this morning but SNDK spiked lower. There are new concerns that the NAND flash memory market might suffer from oversupply issues in 2014. SNDK makes NAND chips so the news was bearish. Our stop loss was hit at $74.75.

- Suggested Positions -

2014 Jan $72.50 call (SNDK1418a72.5) entry $2.75 exit $1.50 (-45.4%)

11/06/13 stopped out

chart:

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