Editor's Note:

Taper talk from a fed governor and the October FOMC minutes helped push stocks lower for a third day.

JNJ and GLD hit our entry triggers.
PLL and RRGB hit our stop loss.


Current Portfolio:


CALL Play Updates

Aon Plc. - AON - close: 80.43 change: -0.10

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:
11/20/13: AON is still holding up. Shares found some support near the $80.00 level late this afternoon. A bounce from here could be used as a new bullish entry point.

- 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: 116.02 change: -1.00

Stop Loss: 113.90
Target(s): 120.00
Current Option Gain/Loss: -25.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/20/13: Caution! Today's action in ATK feels a little bit like a top. The stock saw a very brief spike higher first thing this morning to a new all-time high and then reversed. The stock closed on its lows forming a bearish engulfing candlestick reversal pattern. ATK should have some support near $115 and its 10-dma but there is no guarantee. 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: 64.78 change: -0.16

Stop Loss: 61.80
Target(s): 67.50
Current Option Gain/Loss: +72.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/20/13: CAH is still holding up reasonably well. The stock managed to tag a new high this morning and then spent the rest of the session churning sideways.

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: 94.56 change: -0.14

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:
11/20/13: The intraday bounce in CB briefly traded above resistance near $95.00 but did not hit our suggested entry point. There is no change from my prior comments.

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 $1.61

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


Costco Wholesale - COST - close: 122.76 change: -0.87

Stop Loss: 121.40
Target(s): 129.00
Current Option Gain/Loss: + 49.2%
Time Frame: Exit PRIOR to earnings on Dec. 11th
New Positions: see below

Comments:
11/20/13: I probably would not panic yet but the action in COST today is bearish. Shares broke down under short-term technical support at its 10-dma and looks poised to test $122 soon. If that level breaks then COST is probably headed for likely support at $120.00. currently our stop is at $121.40. 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: 92.96 change: -0.46

Stop Loss: 91.45
Target(s): 99.00
Current Option Gain/Loss: +11.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/20/13: CTSH is down three days in a row but it looks like traders were buying the dip at the 10-dma late this afternoon. 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: 69.23 change: +0.11

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:
11/20/13: DIS' intraday bounce failed under resistance at the $70.00 level.

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: 58.15 change: -1.28

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:
11/20/13: It as kind of an ugly day for GNC with a drop below both its 10-dma and 20-dma. The next level of support could be $57.00 near its early November low or the 50-dma near $56.00. I would be tempted to buy a dip near its 50-dma (we'd have to adjust our stop loss).

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


Johnson & Johnson - JNJ - close: 95.15 change: +0.29

Stop Loss: 93.40
Target(s): 99.75
Current Option Gain/Loss: - 1.9%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/20/13: JNJ continues to show relative strength. The stock broke through the $95.00 level and hit our suggested entry trigger at $95.25.

Earlier Comments:
If JNJ can breakout past the $95.00 level the next logical spot for resistance is the $100.00 mark. Our multi-week target is $99.75.

- Suggested Positions -

Long 2014 Jan $95 call (JNJ1418a95) entry $1.51

Entry on November 20 at $95.25
Average Daily Volume = 6.8 million
Listed on November 19, 2013


Lockheed Martin - LMT - close: 137.19 change: -1.78

Stop Loss: 134.90
Target(s): 148.50
Current Option Gain/Loss: -25.0%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
11/20/13: LMT underperformed the market with a -1.28% decline. The stock closed on its lows, which doesn't really bode well for tomorrow morning. I am looking for some short-term support near $136.00. 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: 83.36 change: +0.20

Stop Loss: 81.25
Target(s): 88.50
Current Option Gain/Loss: -18.6%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
11/20/13: NOV gave back most of its gains today but the stock still managed to outperform the major indices with a +0.24% gain. I am not suggesting new positions at this time.

- 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


United Parcel Service - UPS - close: 100.13 change: -0.59

Stop Loss: 98.95
Target(s): 108.00
Current Option Gain/Loss: -48.9%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
11/20/13: UPS has pulled back to potential support at the $100.00 mark and its 10-dma. I would buy calls on a bounce from current levels. I am adjusting our stop loss to $98.95. More conservative traders may want to use a stop closer to $99.50.

- Suggested Positions -

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

11/20/13 new stop loss @ 98.95

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


WellPoint Inc. - WLP - close: 92.76 change: +0.76

Stop Loss: 88.25
Target(s): 99.00
Current Option Gain/Loss: +60.8%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/20/13: The rally in WLP continues. The stock outperformed the market with a +0.8% gain. WLP is now up six days in a row and up eight out of the last nine sessions. I would not chase it here. Wait for a pullback.

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: 120.12 change: -2.83

Stop Loss: 124.25
Target(s): 115.50
Current Option Gain/Loss: +10.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/20/13: The U.S. dollar saw a decent bounce today and gold plunged in response. The gold ETF gapped down at $121.67 and then fell to a -2.3% decline. This is a new four-month low. Shares hit our trigger to buy puts at $121.00 when gold and stocks turned lower following the release of the FOMC minutes this afternoon.

Earlier Comments:
Traders may want to limit their position size to limit risk.

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.

- Suggested Positions -

Long 2014 Jan $115 PUT (GLD1418m115) entry $1.80

Entry on November 20 at $121.00
Average Daily Volume = 7.0 million
Listed on November 12, 2013



Longer-Term Play Updates



Vanguard FTSE Europe ETF - VGK - close: 56.15 change: -0.52

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:
11/20/13: The German market eked out a gain but the rest of Europe was lower. Another down day in the U.S. didn't help. Shares of VGK slipped -0.9%.

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

Pall Corp. - PLL - close: 80.91 change: -1.25

Stop Loss: 81.25
Target(s): 86.00
Current Option Gain/Loss: -45.4%
Time Frame: Exit PRIOR to earnings on Nov. 26th
New Positions: see below

Comments:
11/20/13: PLL shot lower at the opening bell this morning. That may have been a reaction to lackluster analyst comments on the stock before the bell. PLL underperformed the market with a -1.5% decline and hit our new stop loss at $81.25.

- Suggested Positions -

DEC $85 call (PLL1321L85) entry $1.10 exit $0.60* (- 45.4%)

11/20/13 stopped out
11/19/13 new stop loss @ 81.25
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


Red Robin Gourmet Burgers Inc. - RRGB - close: 77.89 change: -1.66

Stop Loss: 78.70
Target(s): 88.00
Current Option Gain/Loss: -65.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/20/13: The stock market's afternoon sell off today helped push RRGB significantly lower. Shares underperformed the market with a -2.0% decline and broke down below support at the $78.80 level. Our stop was hit at $78.70.

- Suggested Positions -

Dec $85 call (RRGB1322L85) entry $1.30* exit $0.45** (-65.3%)

11/20/13 stopped out
**option exit price is an estimate since the option did not trade at the time our play was closed.
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.

chart:

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