Editor's Note:

Tuesday produced another relatively quiet session for stocks. On a positive note the major indices did bounce off their intraday low.

CTSH hit our entry trigger.
We want to exit our STZ trade tomorrow. See play for details.


Current Portfolio:


CALL Play Updates

Aon Plc. - AON - close: 80.57 change: -1.13

Stop Loss: 78.25
Target(s): 85.00
Current Option Gain/Loss: -11.7%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
11/12/13: After hitting all-time highs yesterday shares of AON hit some profit taking today and underperformed the market with a -1.38% decline. Look for support near $80.00 and its simple 10-dma.

- 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: 63.00 change: +0.04

Stop Loss: 59.90
Target(s): 67.50
Current Option Gain/Loss: + 7.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/12/13: The sideways drift in CAH continued on Tuesday. Shares just levitated in a narrow range. Look for prior resistance near $62.00 to offer some short-term support.

- 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: 122.45 change: -0.57

Stop Loss: 119.40
Target(s): 129.00
Current Option Gain/Loss: + 49.2%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
11/12/13: Shares of COST were downgraded this morning on valuation concerns. The stock reacted by gapping lower at $121.61. Fortunately traders bought the dip pretty quick. The stock did underperformed the broader market with a -0.4% decline.

- 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


Cognizant Technology - CTSH - close: 91.65 change: +0.93

Stop Loss: 89.25
Target(s): 99.00
Current Option Gain/Loss: + 4.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/12/13: CTSH displayed some relative strength today with a +1.0% gain. The stock also rose past short-term resistance near $91.00. CTSH hit our suggested entry point to buy calls at $91.25. I would still consider new positions now at current levels.

Our target is $99.00. More aggressive traders may want to aim higher. The Point & Figure chart for CTSH is bullish with a $107 target.

- Suggested Positions -

Long 2014 Jan $95 call (CTSH1418a95) entry $2.15

Entry on November 12 at $91.25
Average Daily Volume = 2.1 million
Listed on November 11, 2013


3D Systems - DDD - close: 77.94 change: +1.84

Stop Loss: 73.25
Target(s): 79.00
Current Option Gain/Loss: +109.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/12/13: DDD managed to keep the rally alive after yesterday's big move higher. If you look at an intraday chart you can see that traders were buying the dip all day long. I am raising our exit target to $79.00. More aggressive traders may want to aim higher. I am also adjusting our stop loss to $73.25.

NOTE: Our option has doubled in value (+109%) and readers may want to take profits 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

11/12/13 raise the exit target to $79.00, was 78.50
11/12/13 new stop loss @ 73.25

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


GNC Holdings - GNC - close: 59.70 change: +0.64

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:
11/12/13: The bounce in GNC continues. The stock is once again testing significant resistance near the $60.00 level.

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) current ask $1.80

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


Lockheed Martin - LMT - close: 137.23 change: +0.08

Stop Loss: 134.40
Target(s): 148.50
Current Option Gain/Loss: - 9.0%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
11/12/13: Hmm... LMT underperformed the market yesterday and shares merely drifted sideways today. After a five-week rally maybe sideways is a win for the bulls instead of profit taking. Look for short-term support near $136.00 or its 10-dma (near $135.85). 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: 81.87 change: +0.01

Stop Loss: 79.75
Target(s): 86.00
Current Option Gain/Loss: - 4.5%
Time Frame: Exit PRIOR to earnings on Nov. 26th
New Positions: see below

Comments:
11/12/13: No, that's not at typo. PLL has turned into a zombie. Yesterday shares were down one cent. Today they are up one cent. 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: 94.13 change: -0.22

Stop Loss: 91.75
Target(s): 99.00
Current Option Gain/Loss: -15.2%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/12/13: SPW spent Tuesday's session churning sideways on either side of the $94.00 level. Traders may want to wait for a rally above today's high (94.64) before initiating new 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: 67.04 change: +0.34

Stop Loss: 64.75
Target(s): 68.50
Current Option Gain/Loss: +226.0%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
11/12/13: We are almost out of time on our STZ trade. Our November options will expire after this Friday. I am suggesting we exit our positions tomorrow (Wednesday, November 13th) at the closing bell. Tonight I am raising our stop loss to $65.95.

- Suggested Positions -

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

11/12/13 new stop loss @ 65.95, prepare to exit positions tomorrow at the closing bell
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: 155.18 change: -2.04

Stop Loss: 162.75
Target(s): 150.50
Current Option Gain/Loss: +20.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/12/13: It looks like the bounce in EQIX is fading. Shares underperformed the market with a -1.29% decline today.

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: 59.82 change: -0.14

Stop Loss: 61.55
Target(s): 51.50
Current Option Gain/Loss: -20.8%
Time Frame: Exit PRIOR to earnings on Nov. 20th
New Positions: see below

Comments:
11/12/13: GMCR is still oscillating sideways near overhead resistance at the $60.00 level. A drop below $59.00 could be used as a new bearish 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: 45.85 change: -0.05

Stop Loss: 48.55
Target(s): 43.50
Current Option Gain/Loss: +10.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/12/13: Tuesday was a relatively quiet day for shares of GRMN. I don't see any changes from my earlier comments.

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: 56.02 change: -0.33

Stop Loss: 53.90
Target(s): Sell half @ $58.00, sell the rest at $63.00
Current Option Gain/Loss: +30.5%
Time Frame: exit PRIOR to 2014 March option expiration
New Positions: see below

Comments:
11/12/13: The VGK did not see any follow through higher today. It's bounce appear to be fading below its simple 10-dma. Look for additional support near $55.00 or its simple 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