Editor's Note:

The U.S. market slowly drifted sideways on Monday, albeit with a slightly upward bias. Trading was slow thanks to the bond market being closed for Veteran's day.

CAH, DDD, and SPW all hit our entry triggers.
FFIV was closed this morning as planned.


Current Portfolio:


CALL Play Updates

Aon Plc. - AON - close: 81.70 change: +1.10

Stop Loss: 78.25
Target(s): 85.00
Current Option Gain/Loss: +17.6%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
11/11/13: The rally in AON continued on Monday and shares outperformed the major indices with a +1.3% gain and a new all-time high.

- Suggested Positions -

Long 2014 Jan $82.50 call (AON1418a82.5) entry $1.70

Entry on November 08 at $80.50
Average Daily Volume = 2.3 million
Listed on November 06, 2013


Cardinal Health, Inc. - CAH - close: 62.96 change: +0.66

Stop Loss: 59.90
Target(s): 67.50
Current Option Gain/Loss: +13.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/11/13: CAH continued to show relative strength on Monday with a +1.0% gain and another new high. The breakout past short-term resistance at $62.00 is bullish. Our trigger to open bullish positions was hit at $62.50.

- Suggested Positions -

Long 2014 Jan $65 call (CAH1418a65) entry $0.84

Entry on November 11 at $62.50
Average Daily Volume = 3.8 million
Listed on November 09, 2013


Costco Wholesale - COST - close: 123.02 change: +0.24

Stop Loss: 119.40
Target(s): 129.00
Current Option Gain/Loss: + 66.9%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
11/11/13: COST rallied off its morning lows but gains faded by the closing bell. The stock struggled with the $123.65 level midday. I don't see any changes from my prior comments.

- Suggested Positions -

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

11/09/13 new stop loss @ $119.40

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


3D Systems - DDD - close: 76.10 change: +5.70

Stop Loss: 68.75
Target(s): 78.50
Current Option Gain/Loss: +81.2%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/11/13: 3-D printing companies were popular on Wall Street today. Shares of DDD surged +8.0% and rival Stratasys (SSYS) advanced +6.7%. These are new all-time highs for both stocks. DDD opened at $70.85 and quickly sprinted higher. Our suggested trigger to buy calls was hit at $71.50. I would not chase it now.

Earlier Comments:
DDD shares could see more short covering. The most recent data (which may be out of date) has listed short interest at 33% of the 95.6 million share float. Definitely room for more short covering.

I would consider this a more aggressive, higher-risk trade. One of the most likely risks is an analyst downgrade that could generate some short-term volatility. I am suggesting we keep our position size small to limit our risk. FYI: The Point & Figure chart for DDD is bullish with an $82 target.

*small positions* - Suggested Positions -

Long DEC $75 call (DDD1322L75) entry $3.20

Entry on November 11 at $71.50
Average Daily Volume = 4.2 million
Listed on November 09, 2013


GNC Holdings - GNC - close: 59.06 change: +1.18

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:
11/11/13: GNC displayed relative strength today with a +2.0% gain. The stock has reclaimed the simple 10-dma. The next challenge for the bulls is resistance near the $60.00 mark.

Currently our plan is unchanged with a suggested trigger to buy calls at $60.50.

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


Lockheed Martin - LMT - close: 137.15 change: -0.96

Stop Loss: 134.40
Target(s): 148.50
Current Option Gain/Loss: - 6.8%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
11/11/13: Defense-related stocks were losers today. LMT, NOC, GD, and BA all underperformed the major indices. We can watch for LMT to retest short-term technical support at its rising 10-dma. More conservative traders might want to start raising their stops.

I would not be surprised to see LMT paused at the $140 level, which might be temporary round-number resistance.

- 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: 81.86 change: -0.01

Stop Loss: 79.75
Target(s): 86.00
Current Option Gain/Loss: - 4.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/11/13: It was a quiet session for PLL. The stock closed virtually unchanged on the day. If the stock dips I would look for support near $80.00.

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


SPX Corp. - SPW - close: 94.35 change: +0.43

Stop Loss: 91.75
Target(s): 99.00
Current Option Gain/Loss: -10.8%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/11/13: SPW also delivered a quiet session but shares rallied just enough to breakout past resistance near $94.00 and hit our suggested trigger to buy calls at $94.25. I would still consider new positions now or you could wait for a rally above today's high (94.52) before initiating positions.

FYI: The Point & Figure chart for SPW is bullish with a $113 target.

- Suggested Positions -

Long DEC $95 call (SPW1322L95) entry $2.30

Entry on November 11 at $94.25
Average Daily Volume = 304 thousand
Listed on November 09, 2013


Constellation Brands - STZ - close: 66.70 change: -0.06

Stop Loss: 64.75
Target(s): 68.50
Current Option Gain/Loss: +197.1%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
11/11/13: STZ took the day off as well with shares drifting sideways in a very narrow range. I am not suggesting new positions. More conservative traders may want to lock in gains now or raise their stop.

NOTE: We only have four trading days left for our November options.

- 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

Equinix, Inc. - EQIX - close: 157.22 change: +1.28

Stop Loss: 162.75
Target(s): 150.50
Current Option Gain/Loss: - 1.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/11/13: EQIX bounced this morning but the rally ran out of gas by 10:00 a.m. Shares spent the rest of the day drifting sideways. A failed rally near $160.00 could be used as a new bearish entry point.

Earlier Comments:
Please note that I am suggesting small positions to limit our risk. The most recent data listed short interest at 28% of the relatively small 39.0 million share float. That raises the risk of a short squeeze. FYI: The Point & Figure chart for EQIX is bearish with a $142 target.

*small positions* - Suggested Positions -

Long DEC $150 PUT (EQIX1322X150) entry $3.15*
*option entry price is an estimate since the option did not trade at the time our play was opened.

Entry on November 08 at $159.00
Average Daily Volume = 1.1 million
Listed on November 07, 2013


Green Mountain Coffee Roasters - GMCR - close: 59.96 change: +0.25

Stop Loss: 61.55
Target(s): 51.50
Current Option Gain/Loss: -20.6%
Time Frame: Exit PRIOR to earnings on Nov. 20th
New Positions: see below

Comments:
11/11/13: GMCR is still trying to bounce but shares struggled with resistance near $60.00 today. A failure here near $60.00 could be used as a new bearish entry point. Readers could use a drop below today's low (59.13) s a new entry point.

Earlier Comments:
I am suggesting we keep our position size small to limit our risk. The most recent data listed short interest at more than 40% of the 130 million share float. That does raise the risk of a short squeeze if the market bounces. Our target is $51.50.

*small positions* - Suggested Positions -

Long Dec $55 PUT (GMCR1322x55) entry $4.22

Entry on November 07 at $58.25
Average Daily Volume = 4.7 million
Listed on November 07, 2013


Garmin Ltd. - GRMN - close: 45.90 change: -0.35

Stop Loss: 48.55
Target(s): 43.50
Current Option Gain/Loss: +12.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/11/13: The relative weakness in GRMN continued on Monday. Shares lost -0.75% and they are now flirting with a breakdown below technical support at the simple 50-dma.

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: 56.35 change: +0.17

Stop Loss: 53.90
Target(s): Sell half @ $58.00, sell the rest at $63.00
Current Option Gain/Loss: +41.6%
Time Frame: exit PRIOR to 2014 March option expiration
New Positions: see below

Comments:
11/11/13: The major European markets were all higher today. The VGK managed a +0.3% gain. I am not suggesting new positions at this time.

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 BEARISH PLAYS

F5 Networks - FFIV - close: 82.86 change: +0.84

Stop Loss: 82.75
Target(s): 76.00
Current Option Gain/Loss: -24.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/11/13: FFIV has not been cooperating so over the weekend we decided our best move was to exit immediately on Monday morning. The stock saw a small gap higher at $82.23 this morning before climbing to a +1.0% gain.

- Suggested Positions -

DEC $80 PUT (FFIV1322X80) entry $3.15 exit $2.39 (-24.1%)

11/11/13 planned exit. FFIV gapped higher at $82.23
11/09/13 prepare to exit on Monday morning
11/06/13 new stop loss @ 82.75
11/04/13 new stop loss @ 83.25

chart:

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