Editor's Note:

The major U.S. market indices pulled back for a second day on Tuesday.

Our SPW trade was stopped out.


Current Portfolio:


CALL Play Updates

Aon Plc. - AON - close: 80.53 change: -0.64

Stop Loss: 79.45
Target(s): 85.00
Current Option Gain/Loss: -23.5%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
11/19/13: AON followed the market lower for the second day in a row. Shares actually underperformed the major indices with a -0.78% decline. We're still looking for short-term support at the $80.00 mark. I would wait for a bounce before considering new positions.

- 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: 117.02 change: -0.05

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:
11/19/13: ATK held up relatively well. The stock managed to churn sideways while the rest of the market declined. If the market decline does continue I could see ATK testing the $115 level. 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: 64.94 change: +0.21

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:
11/19/13: Two days in a row shares of CAH have been hovering below round-number resistance at the $65.00 level. The fact that shares did not retreat lower today is a bullish signal. However, if the market sell off accelerates I would expect CAH to participate.

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

11/19/13 investors may want to take some money off the table with our option up +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


The Chubb Corp. - CB - close: 94.70 change: -0.02

Stop Loss: 93.75
Target(s): 99.75
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Comments:
11/19/13: CB held up pretty well in the face of a market decline. Shares consolidated sideways below resistance at the $95.00 level. There is no change from my new play comments on Monday night.

I am suggesting a trigger to buy calls at $95.25. If triggered our target is $99.75. FYI: The Point & Figure chart for CB is bullish with a $104 target.

Trigger @ 95.25

- Suggested Positions -

buy the 2014 Jan $95 call (CB1418a95) current ask $1.70

Entry on November -- at $---.--
Average Daily Volume = 967 thousand
Listed on November 18, 2013


Costco Wholesale - COST - close: 123.63 change: +0.32

Stop Loss: 121.40
Target(s): 129.00
Current Option Gain/Loss: + 77.6%
Time Frame: Exit PRIOR to earnings on Dec. 11th
New Positions: see below

Comments:
11/19/13: COST managed to outperform the market with a minor gain (+0.25%). Fortunately today's bounce does not confirm yesterday's bearish reversal pattern but that doesn't mean the pullback is over. 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: 93.42 change: -0.12

Stop Loss: 91.45
Target(s): 99.00
Current Option Gain/Loss: +25.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/19/13: I am a bit disappointed in CTSH' performance today. The stock was upgraded with a higher price target this morning but shares barely moved. There was a minor gap higher but the rally stalled near the $94.00 level. Granted the decline in CTSH was pretty mild today. More conservative traders may want to adjust their stop higher again.

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: 69.12 change: -0.38

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:
11/19/13: Shares of DIS continued to retreat from round-number resistance at the $70.00 level today. Nimble traders may want to try buying calls on a dip near the $68.00 level, which should be short-term support.

The newsletter is 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: 59.43 change: -0.33

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:
11/19/13: GNC dipped toward short-term technical support at its simple 10-dma before paring its gains.

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: 138.97 change: +1.12

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:
11/19/13: LMT displayed relative strength with a +0.8% gain and a new high. 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: 83.16 change: -0.29

Stop Loss: 81.25
Target(s): 88.50
Current Option Gain/Loss: -20.8%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
11/19/13: The pullback in NOV was relatively mild. Traders bought the dip twice near $82.75. If the S&P 500 opens positive tomorrow I would still be tempted to buy calls here in NOV.

- 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: 82.16 change: -0.63

Stop Loss: 81.25
Target(s): 86.00
Current Option Gain/Loss: -18.1%
Time Frame: Exit PRIOR to earnings on Nov. 26th
New Positions: see below

Comments:
11/19/13: I have cautioned readers to expect a dip into the $82.00-81.50 zone. Shares fell to $81.95 today. I am not suggesting new positions. Longer-term traders may want to keep their stop loss below $80.00 since $80 is likely round-number support. However, since we are planning to exit prior to earnings next week I am raising our stop loss to $81.25.

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

- Suggested Positions -

Long DEC $85 call (PLL1321L85) entry $1.10

11/19/13 new stop loss @ 81.25
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: 79.55 change: -0.43

Stop Loss: 78.70
Target(s): 88.00
Current Option Gain/Loss: -57.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/19/13: RRGB spent most of the day oscillating on either side of the $80.00 level. Unfortunately the stock turned lower in the last 30 minutes of trading. Nimble traders may want to try and buy calls on a bounce near $79.00 since the $78.80 area has been 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


United Parcel Service - UPS - close: 100.72 change: -0.56

Stop Loss: 98.45
Target(s): 108.00
Current Option Gain/Loss: -35.7%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
11/19/13: The transportation average lost -0.99% today. UPS only fell about half that much with a -0.55% decline. I would be tempted to buy calls on a bounce from 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: 92.00 change: +1.60

Stop Loss: 88.25
Target(s): 99.00
Current Option Gain/Loss: +35.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/19/13: The bullish breakout in shares of WLP continued on Tuesday thanks in part to some new bullish analyst comments. The stock outperformed the major indices with a +1.76% gain and closed at a new all-time high.

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: 122.95 change: +0.05

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:
11/19/13: Tuesday proved to be a quiet session for the GLD with shares moving in a very narrow range. 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: 56.67 change: -0.12

Stop Loss: 53.90
Target(s): Sell half @ $58.00, sell the rest at $63.00
Current Option Gain/Loss: +47.2%
Time Frame: exit PRIOR to 2014 March option expiration
New Positions: see below

Comments:
11/19/13: Most of the major European markets closed in the red today. The U.S. indices followed suit. The VGK drifted lower as well.

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

SPX Corp. - SPW - close: 93.03 change: -0.90

Stop Loss: 93.45
Target(s): 99.00
Current Option Gain/Loss: -41.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/19/13: Two down days in a row just erased over a week's worth of gains in SPW. I didn't see any news to account for today's relative weakness. Shares underperformed the market with a -0.95% loss. Our stop loss was hit at $93.45.

- Suggested Positions -

DEC $95 call (SPW1322L95) entry $2.30 exit $1.35 (-41.3%)

11/19/13 stopped out
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