Editor's Note:

It was rumored today that the market's afternoon sell off was fueled by cautious comments from activist billionaire investor Carl Icahn.

Today's session with its early highs and then afternoon sell off has created a large number of bearish engulfing candlestick reversal patterns. These patterns need to see confirmation.

RRGB and WLP hit our entry triggers.
ANDE and KORS hit our stops.


Current Portfolio:


CALL Play Updates

Aon Plc. - AON - close: 81.17 change: -0.41

Stop Loss: 79.45
Target(s): 85.00
Current Option Gain/Loss: - 5.8%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
11/18/13: AON flirted with its highs from last week before paring its gains. I am raising our stop loss to $79.45.

- Suggested Positions -

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

11/18/13 new stop loss @ 79.45
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: 117.07 change: +0.66

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:
11/18/13: ATK tagged new all-time highs this morning. Shares did pare their gains but ATK managed to erased Friday's dip. 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

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


Cardinal Health, Inc. - CAH - close: 64.73 change: -0.11

Stop Loss: 61.80
Target(s): 67.50
Current Option Gain/Loss: +78.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/18/13: CAH stalled at resistance near the $65.00 level. We cautioned that shares might pause here. I would not be surprised to see a dip back toward its 10-dma near $63.00.

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

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


Costco Wholesale - COST - close: 123.31 change: -0.98

Stop Loss: 121.40
Target(s): 129.00
Current Option Gain/Loss: + 68.4%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
11/18/13: Uh-oh! Not only did COST's rally fail near resistance at $125 and its recent highs but today's session has also created a bearish engulfing candlestick reversal pattern. Readers may want to take profits now.

- Suggested Positions -

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

11/18/13 today's session has created a bearish reversal candlestick pattern. Traders may want to take profits now
11/16/13 new stop loss @ $121.40
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: 93.54 change: -0.83

Stop Loss: 91.45
Target(s): 99.00
Current Option Gain/Loss: +27.9%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/18/13: CTSH tagged new highs this morning but it turned out to be a bearish day. The stock's rally was immediately sold and CTSH closed near its lows for the session with a -0.8% decline. Today's performance has created a bearish engulfing candlestick reversal pattern. I am raising our stop loss up to $91.45.

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

11/18/13 new stop loss @ 91.45
11/16/13 new stop loss @ 89.85

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


The Walt Disney Co. - DIS - close: 69.50 change: -0.50

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:
11/18/13: DIS tried to rally this morning but the stock didn't get very far. Shares eventually closed near their lows for the day and created a bearish engulfing candlestick reversal pattern. The high today was only $70.09. 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) 5

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


GNC Holdings - GNC - close: 59.76 change: +0.13

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:
11/18/13: Bullish analyst comments and a new $70 price target this morning helped launch GNC over resistance near $60.00. Unfortunately the rally quickly ran out of steam. The high today was only $60.39. We are still on the sidelines.

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: 137.85 change: +0.40

Stop Loss: 134.90
Target(s): 148.50
Current Option Gain/Loss: -13.6%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
11/18/13: LMT tagged a new intraday high before trimming its gains. Readers might want to inch their stops closer to the $136 level. 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

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


National Oilwell Varco, Inc. - NOV - close: 83.45 change: -0.85

Stop Loss: 81.25
Target(s): 88.50
Current Option Gain/Loss: -13.7%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
11/18/13: I cautioned readers that we could see NOV fill the gap and shares accomplished that today. I would be tempted to buy calls now but traders may want to wait and watch for both NOV and the S&P 500 index to open positive before considering new 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

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


Pall Corp. - PLL - close: 82.79 change: +0.43

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:
11/18/13: PLL advanced to a new high before succumbing to the market's widespread sell off this afternoon. I don't see any changes from my prior comments. Do not be surprised to see a dip toward $82.00 or the $81.50 level.

Keep in mind that we plan to exit prior to the earnings report on November 26th.

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


Red Robin Gourmet Burgers Inc. - RRGB - close: 79.98 change: -1.17

Stop Loss: 78.70
Target(s): 88.00
Current Option Gain/Loss: -46.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/18/13: RRGB was showing some relative strength this morning. Unfortunately it didn't last. Shares gapped open higher at $81.62, traded to $82.26 and then plunged. RRGB ended the day with a drop back toward $80.00 and a -1.4% decline, which significantly underperformed the major indices.

Our plan was to buy calls at $81.55 so the gap higher this morning immediately triggered our play. RRGB has been finding consistent support in the $78.80 level the last several days. I am adjusting our stop loss down to $78.70. That way we'll only be stopped out on a breakdown below this support.

- Suggested Positions -

Long Dec $85 call (RRGB1322L85) entry $1.30*

11/18/13 new stop loss @ 78.70
11/18/13 trade opened on gap higher at $81.62, trigger was 81.55
*option entry price is an estimate since the option did not trade at the time our play was opened.

Entry on November 18 at $81.62
Average Daily Volume = 157 thousand
Listed on November 16, 2013


SPX Corp. - SPW - close: 93.93 change: -2.34

Stop Loss: 93.45
Target(s): 99.00
Current Option Gain/Loss: -32.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/18/13: Ouch! It was a painful day for SPW. The stock underperformed the market with a -2.4% decline that finally paused near short-term technical support at its 10-dma. I didn't see any news to account for this relative weakness.

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

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


United Parcel Service - UPS - close: 101.28 change: +0.34

Stop Loss: 98.45
Target(s): 108.00
Current Option Gain/Loss: -17.3%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
11/18/13: UPS managed to hit a new high but the stock was struggling with the $101.75 level and failed there twice today. If the market continues to slip lower I would expect UPS to dip toward the $100 level.

- 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


WellPoint Inc. - WLP - close: 90.40 change: +0.30

Stop Loss: 88.25
Target(s): 99.00
Current Option Gain/Loss: -4.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/18/13: Our brand new play on WLP has been triggered. The stock broke out past resistance near $90.00 and hit our suggested entry point at $90.50. I would consider new positions now but investors may want to wait and see if both WLP and the S&P 500 index both open positive tomorrow before initiating new positions.

FYI: The Point & Figure chart for WLP is bullish with a $103 target.

- Suggested Positions -

Long 2014 Jan $95 call (WLP1418a95) entry $1.15

Entry on November 18 at $90.50
Average Daily Volume = 2.6 million
Listed on November 16, 2013


PUT Play Updates

SPDR Gold ETF - GLD - close: 122.90 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:
11/18/13: The U.S. dollar continued to slip but that failed to lift gold prices. The GLD erased the last two days of gains with today's -1.14% decline. 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



Longer-Term Play Updates



Vanguard FTSE Europe ETF - VGK - close: 56.78 change: +0.08

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:
11/18/13: The VGK gapped open higher on Monday morning. Sadly shares spent the rest of the day fading lower. This ETF still has overhead resistance near the $57.50 level.

Earlier Comments:
Don't forget that we have two exit targets for this trade!

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

The Andersons, Inc. - ANDE - close: 79.46 change: -1.45

Stop Loss: 79.40
Target(s): 88.00
Current Option Gain/Loss: -33.7%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
11/18/13: Two bid down days in a row were enough to pull ANDE below what should have been support in the $80-81 zone and its 10-dma. The stock hit our stop loss at $79.40.

Earlier Comments:
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* exit $2.55 (-33.7%)
11/18/13 stopped out
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


Michael Kors - KORS - close: 80.95 change: -1.78

Stop Loss: 80.75
Target(s): 89.50
Current Option Gain/Loss: - 28.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/18/13: KORS was just a little too volatile for us today. The stock spiked higher at the open, hit our suggested entry trigger at $83.00, and then reversed. The stock market's widespread sell-off this afternoon pushed KORS lower and shares fell to their 10-dma. Our stop loss was hit at $80.75.

We are still bullish on KORS but investors may want to wait for a bounce near the $80.00 level before considering new positions.

- Suggested Positions -

Long 2014 Jan $85 call (KORS1418a85) entry $2.80 exit $2.00 (-28.5%)

11/18/13 stopped out at $80.75
11/18/13 trade opened at $83.00

chart:

Entry on November -- at $---.--
Average Daily Volume = 7.3 million
Listed on November 16, 2013