Editor's Note:

New worries about the Fed potentially tapering their QE program sparked widespread profit taking on Thursday. Meanwhile Twitter's IPO (TWTR) hogged the financial media spotlight.

HOT, HP, and IWM hit our stop losses. LMT was triggered.


Current Portfolio:


CALL Play Updates

Aon Plc. - AON - close: 79.43 change: -0.62

Stop Loss: 78.25
Target(s): 85.00
Current Option Gain/Loss: Unopened
Time Frame: 4 to 6 weeks
New Positions: Yes, see below

Comments:
11/07/13: The market turned lower on Thursday and AON retreated from resistance near the $80.00 level. At the moment our plan is unchanged. I am suggesting a trigger to buy calls at $80.50. If triggered our target is $85.00.

Trigger @ 80.50

- Suggested Positions -

buy the 2014 Jan $82.50 call (AON1418a82.5)

Entry on November -- at $---.--
Average Daily Volume = 2.3 million
Listed on November 06, 2013


B/E Aerospace Inc. - BEAV - close: 80.41 change: -2.10

Stop Loss: 79.60
Target(s): 89.50
Current Option Gain/Loss: -51.7%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
11/07/13: Many of the market's high-flyers were hit hard by profit taking. BEAV gave up -2.5% and closed below short-term technical support at its 10-dma. The next level of support should be $80.00. If $80 fails we'll see BEAV hit our stop loss.

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: 122.78 change: -1.29

Stop Loss: 118.40
Target(s): 129.00
Current Option Gain/Loss: + 66.9%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
11/07/13: Many retailers reported their October same-store sales numbers today. Wall Street was expecting COST to announced +2.4% growth but the company beat expectations with +3.0% same-store sales growth. If the market wasn't in sell-off mode I would have expected COST to rally on this news. Instead shares gave back about one third of yesterday's gains.

- 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: 57.61 change: -1.27

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:
11/07/13: It was not a good day for GNC. Shares lost -2.1% and closed below short-term support near $58.00. Currently our plan is unchanged with a suggested trigger to buy calls at $60.50. However, we may want to consider buying calls on a dip or a bounce near support in the $55 area around its rising 50-dma.

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


Kansas City Southern - KSU - close: 122.49 change: -2.03

Stop Loss: 122.00
Target(s): 134.00
Current Option Gain/Loss: -40.2%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
11/07/13: Transportation stocks kept pace with the decline in the S&P 500 but KSU underperformed both with a -1.6% decline. Shares of KSU broke down below their 10-dma and look poised to hit our stop loss at $122.00 tomorrow.

- 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


Lockheed Martin - LMT - close: 136.20 change: -0.67

Stop Loss: 134.40
Target(s): 148.50
Current Option Gain/Loss: -13.6%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
11/07/13: LMT was outperforming the major indices again this morning. Yet when the market rolled over LMT followed. The stock did hit new highs and our suggested entry point to buy calls at $137.25 this morning. If this pullback continues LMT could retest the $135.00 level soon. I would be tempted to buy calls near $135.00 or you could wait for a bounce off the $135.00 level.

- Suggested Positions -

Long 2014 Jan $140 call (LMT1418a140) entry $2.20

Entry on November 07 at $137.25
Average Daily Volume = 1.5 million
Listed on November 06, 2013


Pall Corp. - PLL - close: 80.80 change: -1.58

Stop Loss: 79.75
Target(s): 86.00
Current Option Gain/Loss: -18.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/07/13: Uh-oh! PLL underperformed the market with a -1.9% decline. It looks like traders are trying to lock in profits and selling their winners. PLL just erased three and a half days worth of gains. The close below its 10-dma is short-term bearish.

- 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: 65.65 change: -0.76

Stop Loss: 64.75
Target(s): 68.50
Current Option Gain/Loss: +124.6%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
11/07/13: I have been suggesting that traders may want to lock in gains on our STZ trade. After today's move I would definitely consider an early exit. Technically today's -1.1% decline in STZ has produced a bearish engulfing candlestick reversal pattern. Although it's worth noting that the up trend is still intact and STZ has yet to touch short-term technical support at its 10-dma. I am raising our stop loss to $64.75.

- Suggested Positions -

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

11/07/13 new stop loss @ 64.75
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: 80.39 change: -0.81

Stop Loss: 82.75
Target(s): 76.00
Current Option Gain/Loss: + 4.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/07/13: Shares of FFIV tagged overhead technical resistance at the 10-dma and 150-dma and reversed lower. More conservative traders might want to lower their stops closer to the $82 level.

- 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: 46.35 chane: -1.60

Stop Loss: 48.55
Target(s): 43.50
Current Option Gain/Loss: + 3.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/07/13: Shares of GRMN were downgraded from a "buy" to a "neutral" this morning. That helped the stock spiked lower and underperformed the market with a -3.3% decline today.

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: 55.88 change: -0.90

Stop Loss: 53.90
Target(s): Sell half @ $58.00, sell the rest at $63.00
Current Option Gain/Loss: +33.3%
Time Frame: exit PRIOR to 2014 March option expiration
New Positions: see below

Comments:
11/07/13: The European Central Bank reduced their interest rate to a record low of 0.25% in an effort to fight off deflation. The European markets were mixed on the session. French and British markets edged lower while Germany closed in the green. Yet the VGK followed the weakness in the U.S. market and closed near its lows for the session with a -1.5% loss. Look for support near $55.00 or its 50-dma.

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

Starwood Hotels & Resorts - HOT - close: 73.07 change: -1.69

Stop Loss: 73.40
Target(s): 79.75
Current Option Gain/Loss: -42.8%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
11/07/13: I cautioned readers last night that yesterday's intraday spike above resistance and failure to close above $75.00 could be trouble. HOT underperformed the market today with a -2.2% decline. The stock hit our stop loss at $73.40.

- Suggested Positions -

DEC $75 call (HOT1322L75) entry $2.10 exit $1.20* (-42.8%)

11/07/13 stopped out
*option exit price is an estimate since the option did not trade at the time our play was closed.

chart:

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


Helmerich & Payne, Inc. - HP - close: 75.67 change: -1.98

Stop Loss: 75.75
Target(s): 79.50
Current Option Gain/Loss: -24.2%
Time Frame: 4 to 5 weeks
New Positions: see below

Comments:
11/07/13: HP was no exception to the market's widespread sell-off. Shares actually underperformed the market with a -2.5% decline that broke down through its bullish trend of higher lows. Our stop was hit at $75.75.

- Suggested Positions -

NOV $75 call (HP1316K75) entry $2.31 exit $1.75 (-24.2%)

11/07/13 stopped out
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: 107.28 change: -1.84

Stop Loss: 107.75
Target(s): 114.00
Current Option Gain/Loss: -29.2%
Time Frame: 8 to 12 weeks
New Positions: see below

Comments:
11/07/13: It was a rough day for the small cap stocks. The Russell 2000 index and the IWM continued to underperform their large-cap peers. The IWM broke down below support near $108.00 and hit our stop loss at $107.75.

- Suggested Positions -

2014 Jan $110 call (IWM1418a110) entry 2.80 exit $1.98 (-29.2%)

11/07/13 stopped out
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