Editor's Note:

During her Federal Reserve chairman nomination hearings Janet Yellen's dovish comments helped keep the U.S. market rally alive.

ATK and UPS hit our entry triggers.
EQIX and GMCR were stopped out.


Current Portfolio:


CALL Play Updates

The Andersons, Inc. - ANDE - close: 83.41 change: +0.74

Stop Loss: 79.40
Target(s): 88.00
Current Option Gain/Loss: +11.6%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
11/14/13: ANDE hit another new high on Thursday. I am raising our stop loss to $79.40.

Earlier Comments:
FYI: The Point & Figure chart for ANDE is bullish with an $89 target. NOTE: I am suggesting we keep our position size small. ANDE does not see a lot of volume in its stock or its options. The option spreads are a little wide.

*small positions* - Suggested Positions -

Long 2014 Mar $85 call (ANDE1421C85) entry $3.85*
11/14/13 new stop loss @ 79.40
*option entry price is an estimate since the option did not trade at the time our play was opened.

Entry on November 13 at $81.10
Average Daily Volume = 117 thousand
Listed on November 12, 2013


Aon Plc. - AON - close: 80.81 change: +0.64

Stop Loss: 78.75
Target(s): 85.00
Current Option Gain/Loss: - 8.8%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
11/14/13: Today's bounce in AON outperformed the major indices but shares are still trading below their highs from Monday. I am not suggesting new positions at this time.

- Suggested Positions -

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

11/13/13 new stop loss @ 78.75

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


Alliant Techsystems Inc. - ATK - close: 117.21 change: +0.86

Stop Loss: 113.90
Target(s): 120.00
Current Option Gain/Loss: + 5.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/14/13: As expected the rally in ATK continued on Thursday and shares broke out to new highs. Our entry trigger was $116.55 but shares gapped open higher at $116.80 this morning.

Earlier Comments:
You could certainly argue that ATK is overbought with a multi-week rally but thus far the momentum does not seem to be slowing down. The stock does have potential resistance at its 2007 highs in the $120.50-121.00 zone. I am setting our target at $120.00. More aggressive traders could aim higher.

FYI: ATK will begin trading ex-dividend on November 18th, 2013. The quarterly cash dividend should be 26 cents.

- Suggested Positions -

Long DEC $120 call (ATK1322L120) entry $1.80

11/14/13 trade opened on gap higher at $116.80. trigger was 116.55

Entry on November 14 at $116.80
Average Daily Volume = 321 thousand
Listed on November 13, 2013


Cardinal Health, Inc. - CAH - close: 64.51 change: +0.58

Stop Loss: 61.40
Target(s): 67.50
Current Option Gain/Loss: +66.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/14/13: CAH has extended its rally to five days in a row. The stock might see potential round-number resistance near the $65.00 mark. I would not be surprised to see a little profit taking after tagging $65. More conservative traders may want to just take profits early. Look for support near $62.00.

- Suggested Positions -

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

11/13/13 new stop loss @ 61.40

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


Costco Wholesale - COST - close: 123.74 change: +0.57

Stop Loss: 119.40
Target(s): 129.00
Current Option Gain/Loss: + 94.6%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
11/14/13: COST kept pace with the rally in the S&P 500 today but shares struggled with new short-term resistance near the $124.00 mark.

- 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: 93.44 change: +0.61

Stop Loss: 89.25
Target(s): 99.00
Current Option Gain/Loss: +34.8%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/14/13: Another day, another new all-time high for CTSH. Shares might see potential round-number resistance at the $95.00 mark. Do not be surprised to see CTSH trade near $95 and then pull back.

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


GNC Holdings - GNC - close: 58.85 change: -0.82

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:
11/14/13: GNC underperformed the market today with a -1.3% retreat from resistance near $60.00. If shares don't improve and breakout higher soon we will remove GNC as a candidate.

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: 138.29 change: +1.03

Stop Loss: 134.90
Target(s): 148.50
Current Option Gain/Loss: + 2.2%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
11/14/13: There were a lot of headlines for LMT today. The biggest one was probably news that LMT is closing four plants and cutting 4,000 jobs, or 3.4% of its workforce. The company claims the reduction is a response to a decline in U.S. government defense spending. That news failed to stop the rally in LMT shares, which set a new all-time closing high.

Earlier Comments:
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

11/13/13 new stop loss @ 134.90

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


Pall Corp. - PLL - close: 82.56 change: -0.40

Stop Loss: 79.75
Target(s): 86.00
Current Option Gain/Loss: +13.6%
Time Frame: Exit PRIOR to earnings on Nov. 26th
New Positions: see below

Comments:
11/14/13: It was an odd day for PLL. The stock failed to participate in the market's broad-based rally on Thursday. Shares just drifted sideways and eventually closed in the red. There could be short-term support near $82.00 if the dip continues.

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: 95.43 change: +1.39

Stop Loss: 91.75
Target(s): 99.00
Current Option Gain/Loss: + 6.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/14/13: The rally in SPW picked up some speed today. Shares outperformed the market with a +1.4% gain. More importantly shares rallied poast potential resistance near $95.00. This could be used as a new bullish entry point.

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


United Parcel Service - UPS - close: 100.97 change: +0.55

Stop Loss: 98.45
Target(s): 108.00
Current Option Gain/Loss: -12.2%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
11/14/13: That's not a typo. UPS closed at $100.97 with a +0.55 gain. Yet the stock closed at $101.04 yesterday. The odd pricing would suggest that UPS began trading ex-dividend today but I can't find any record of it. More importantly traders bought the dip this morning and UPS continues to look poised for more gains.

The stock did hit our suggested entry point at $101.25 intraday. Our trade is open and I would still consider new positions here.

- Suggested Positions -

Long 2014 Jan $105 call (UPS1418a105) entry $0.98

Entry on November 14 at $101.25
Average Daily Volume = 3.8 million
Listed on November 13, 2013


PUT Play Updates

SPDR Gold ETF - GLD - close: 124.27 change: +1.42

Stop Loss: 124.25
Target(s): 115.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Comments:
11/14/13: Nearly everything was in rally mode today. Gold was no exception. There is no change from my prior comments.

Traders may want to limit their position size to limit risk.

I am suggesting a trigger to buy puts at $121.00. If triggered our target is $115.50. More aggressive traders may want to aim lower since the Point & Figure chart for GLD is bearish with a $110 target.

Trigger @ 121.00

- Suggested Positions -

Buy the 2014 Jan $115 PUT (GLD1418m115)

Entry on November -- at $---.--
Average Daily Volume = 7.0 million
Listed on November 12, 2013


Garmin Ltd. - GRMN - close: 46.33 change: +0.44

Stop Loss: 47.25
Target(s): 43.50
Current Option Gain/Loss: -12.9%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/14/13: Bearish plays have been tough to trade in this bull market. Today saw GRMN outperform the market with a +0.9% gain and a close back above its 50-dma. More conservative traders might want to exit early. I am adjusting our stop loss down to $47.25.

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

11/14/13 new stop loss @ 47.25
11/13/13 new stop loss @ 48.05
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: 56.41 change: +0.15

Stop Loss: 53.90
Target(s): Sell half @ $58.00, sell the rest at $63.00
Current Option Gain/Loss: +38.8%
Time Frame: exit PRIOR to 2014 March option expiration
New Positions: see below

Comments:
11/14/13: The bounce continued in the VGK for a second day and shares closed above their simple 10-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 BEARISH PLAYS

Equinix, Inc. - EQIX - close: 162.24 change: +4.41

Stop Loss: 160.55
Target(s): 150.50
Current Option Gain/Loss: -34.9%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/14/13: I cautioned readers last night that Wednesday's session in EQIX looked like a bullish reversal pattern. Another high for the market today helped fuel the bounce in EQIX. The stock surged from almost $158 to nearly $165 intraday. Our stop was hit at $160.55.

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.

*small positions* - Suggested Positions -

Long DEC $150 PUT (EQIX1322X150) entry $3.15* exit $2.05** (-34.9%)
11/14/13 stopped out
**option exit price is an estimate since the option did not trade at the time our play was closed.
11/13/13 new stop loss @ $160.55
*option entry price is an estimate since the option did not trade at the time our play was opened.

chart:

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


Green Mountain Coffee Roasters - GMCR - close: 60.67 change: +0.85

Stop Loss: 61.00
Target(s): 51.50
Current Option Gain/Loss: -33.1%
Time Frame: Exit PRIOR to earnings on Nov. 20th
New Positions: see below

Comments:
11/14/13: GMCR spiked higher this morning and tested overhead technical resistance at its 20-dma before reversing all of its gains. Unfortunately our stop loss would have been hit early this morning at $61.00. Shares actually gapped open higher at $61.01.

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 exit $2.82 (-33.1%)

11/14/13 stopped out on gap higher at $61.01
11/13/13 warning! GMCR has produced a potential bullish reversal pattern. Traders might want to exit immediately. New stop loss @ 61.00

chart:

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