Editor's Note:

Big cap stock indices continue to lead the market higher. Fortunately gains were relatively widespread on Friday.

NOV has been triggered. GRMN was stopped out.


Current Portfolio:


CALL Play Updates

The Andersons, Inc. - ANDE - close: 80.91 change: -2.50

Stop Loss: 79.40
Target(s): 88.00
Current Option Gain/Loss: -16.8%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
11/16/13: Ouch! Shares of ANDE plunged -3.0% on Friday. Shares of ADM and BG also fell on news that the Environmental Protection Agency has proposed a reduction in the annual ethanol requirement to be used in gasoline. According to the Wall Street Journal the EPA is asking refiners to blend about 16% less than the standard set back in 2007.

ANDE should find support near $80.00 or its simple 10-dma. Readers may want to wait for a bounce before considering new bullish positions.

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.

chart:

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


Aon Plc. - AON - close: 81.58 change: +0.77

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:
11/16/13: The rebound in AON continued on Friday. The stock outperformed the market with a +0.95% gain. Shares are on the verge of hitting new record highs. Traders could use a new high as a new entry point.

- Suggested Positions -

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

11/13/13 new stop loss @ 78.75

chart:

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


Alliant Techsystems Inc. - ATK - close: 116.67 change: -0.54

Stop Loss: 113.90
Target(s): 120.00
Current Option Gain/Loss: -11.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/16/13: ATK encountered a little profit taking on Friday morning but traders were buying the dip by 10:00 a.m. Shares pared their losses to -0.4%. More conservative investors may want to adjust their stop closer to the $115 level.

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

chart:

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


Cardinal Health, Inc. - CAH - close: 64.84 change: +0.33

Stop Loss: 61.80
Target(s): 67.50
Current Option Gain/Loss: +84.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/16/13: CAH kept the rally going on Friday. Shares are up six days in a row and up six out of the last seven weeks. Tonight we are adjusting our stop loss to $61.80.

I would not be surprised to see a little profit taking after tagging $65. More conservative traders may want to just take profits early or investors could sell half their position to lock in some gains. Look for support near $62.00.

- Suggested Positions -

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

11/16/13 new stop loss @ 61.80
11/13/13 new stop loss @ 61.40

chart:

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


Costco Wholesale - COST - close: 124.29 change: +0.55

Stop Loss: 121.40
Target(s): 129.00
Current Option Gain/Loss: +110.0%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
11/16/13: It has taken over a week of trading but COST is finally retesting round-number resistance at the $125.00 level. I am not suggesting new positions at this time. We will adjust our stop loss to $121.40.

Our option has doubled in value. Traders may want to take some money off the table.

- Suggested Positions -

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

11/16/13 new stop loss @ $121.40
11/09/13 new stop loss @ $119.40

chart:

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


Cognizant Technology - CTSH - close: 94.37 change: +0.93

Stop Loss: 89.85
Target(s): 99.00
Current Option Gain/Loss: +48.8%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/16/13: CTSH also kept the rally going on Friday with its sixth daily gain in a row. The stock is also up ten out of the last eleven weeks. Shares might see potential round-number resistance at the $95.00 mark. I would not be surprised to see a brief pullback here. We are adjusting our stop loss up to $89.85.

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

11/16/13 new stop loss @ 89.85

chart:

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


The Walt Disney Co. - DIS - close: 70.00 change: -0.02

Stop Loss: 67.00
Target(s): 77.50
Current Option Gain/Loss: Unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Comments:
11/16/13: DIS delivered a quiet session on Friday. Shares drifted sideways along round-number resistance at the $70.00 level. There is no change from my Thursday night new play comments.

I am suggesting a trigger to buy calls at $70.25. If triggered our multi-week target is $77.50. More aggressive investors could aim higher. The Point & Figure chart for DIS is bullish with an $83 target.

Trigger @ 70.25

- Suggested Positions -

buy the 2014 Jan $70 call (DIS1418a70) current ask $1.75

chart:

Entry on November -- at $---.--
Average Daily Volume = 6.6 million
Listed on November 14, 2013


GNC Holdings - GNC - close: 59.63 change: +0.78

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:
11/16/13: We have been patiently waiting for shares of GNC to breakout past resistance near the $60.00 level. The stock has spent almost three weeks consolidating below this level. The good news is that the consolidation is narrowing, which would suggest a breakout, one way or the other, should be imminent.

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)

chart:

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


Lockheed Martin - LMT - close: 137.45 change: -0.84

Stop Loss: 134.90
Target(s): 148.50
Current Option Gain/Loss: -15.9%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
11/16/13: Just like shares of ATK, we saw a similar Friday morning drop in LMT. Traders bought the dip near its rising 10-dma and LMT pared its losses to -0.6%. I am not suggesting new positions at this time.

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

chart:

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


National Oilwell Varco, Inc. - NOV - close: 84.30 change: +0.74

Stop Loss: 81.25
Target(s): 88.50
Current Option Gain/Loss: + 3.1%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
11/16/13: We were expecting NOV to climb on Friday but we were not expecting shares to gap higher. The plan was to buy calls at $83.75 but NOV opened at $83.98. Shares outperformed the major indices with a +0.88% gain for the session. Our trade opened on the gap higher. More nimble traders might want to wait for NOV to fill the gap (dip to $83.60ish) and then launch positions.

- Suggested Positions -

Long 2014 Jan $85 call (NOV1418a85) entry $2.25

11/16/13 trade opened on gap higher at $83.98. suggested trigger was $83.75

chart:

Entry on November 15 at $83.98
Average Daily Volume = 3.0 million
Listed on November 14, 2013


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

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:
11/16/13: Hmm... that's two days in a row now that PLL has struggled with the $83.15 area. The rally might be a little tired. I would not be surprised to see another dip toward the $81.50 area.

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

chart:

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


SPX Corp. - SPW - close: 96.27 change: +0.84

Stop Loss: 93.45
Target(s): 99.00
Current Option Gain/Loss: +19.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/16/13: The surge in SPW continued on Friday with a +0.88% gain. This is another new multi-year high for the stock. The simple 10-dma has risen to $94.00. I am adjusting our stop loss to $93.45.

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

- Suggested Positions -

Long DEC $95 call (SPW1322L95) entry $2.30

11/16/13 new stop loss @ 93.45

chart:

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


United Parcel Service - UPS - close: 100.94 change: -0.03

Stop Loss: 98.45
Target(s): 108.00
Current Option Gain/Loss: -20.4%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
11/16/13: UPS really has not seen much follow through on Wednesday's breakout to new highs. Shares have spent the last couple of days churning sideways. Nimble traders could try and buy calls on a dip near the $100 level or its 10-dma (also near $100). Given the afternoon rebound on Friday I would still consider new positions now at current levels.

- Suggested Positions -

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

chart:

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:
11/16/13: Janet Yellen's dovish tone during her Federal Reserve Chairman confirmation hearings helped precious metals bounce. There was not any follow through on Friday. The overall trend for the GLD is still down. 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)

chart:

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



Longer-Term Play Updates



Vanguard FTSE Europe ETF - VGK - close: 56.71 change: +0.30

Stop Loss: 53.90
Target(s): Sell half @ $58.00, sell the rest at $63.00
Current Option Gain/Loss: +52.7%
Time Frame: exit PRIOR to 2014 March option expiration
New Positions: see below

Comments:
11/16/13: The major European stock markets were up across the board on Friday. That helped the VGK rally and shares are now up three days in a row.

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.

chart:

Entry on September 11 at $---.--
Average Daily Volume = 3.0 million
Listed on August 10, 2013


CLOSED BEARISH PLAYS

Garmin Ltd. - GRMN - close: 47.77 change: +1.44

Stop Loss: 47.25
Target(s): 43.50
Current Option Gain/Loss: -46.2%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/16/13: GRMN shot higher on Friday morning and continued to rally all day long. I couldn't find any news to account for GRMN's sudden display of relative strength. The stock is nearing what could be resistance near $48.00 but our play has been stopped out. We recently lowered our stop loss 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.

*Small Positions!* - Suggested Positions -

DEC $45 PUT (GRMN1322X45) entry $1.08 exit $0.58 (-46.2%)

11/15/13 stopped out
11/14/13 new stop loss @ 47.25
11/13/13 new stop loss @ 48.05
11/06/13 new stop loss @ 48.55

chart:

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