Editor's Note:

The stock market bounced after a three-day pullback. The Dow Industrials closed above the 16,000 mark for the first time. Stocks look poised to resume the up trend.

CB and EBAY hit our entry triggers.


Current Portfolio:


CALL Play Updates

Aon Plc. - AON - close: 81.38 change: +0.95

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:
11/21/13: AON bounced and ended the session with a +1.1% gain. The stock is nearing short-term resistance in the $81.80 area.

- 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: 118.43 change: +2.41

Stop Loss: 113.90
Target(s): 124.00
Current Option Gain/Loss: + 8.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/21/13: Defense-related names performed well in Thursday's market bounce. ATK surged +2.0% and is challenging its recent highs.

STRATEGY UPDATE: I am adjusting our exit target for ATK. It is true that the 2007 highs near $120.50-121.00 could be resistance. More conservative traders may want to exit near $120.00. I am adjusting our exit target to $124.00.

- Suggested Positions -

Long DEC $120 call (ATK1322L120) entry $1.80

11/21/13 new exit target @ 124.00 (was $120.00)
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: 65.35 change: +0.57

Stop Loss: 62.80
Target(s): 67.50
Current Option Gain/Loss: +102.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/21/13: CAH weathered the market's recent dip very well. Today saw shares closed above potential round-number resistance at the $65.00 mark. I am raising our stop loss to $62.80.

- Suggested Positions -

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

11/21/13 new stop loss @ 62.80
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: 96.12 change: +1.56

Stop Loss: 93.75
Target(s): 99.75
Current Option Gain/Loss: + 25.9%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/21/13: Our CB play has been triggered. The stock was very strong today and shot through resistance near $95.00. Our suggested entry trigger was hit at $95.25. CB outperformed the market with a +1.6% gain and closed at a new record high.

FYI: The Point & Figure chart for CB is bullish with a $104 target.

- Suggested Positions -

Long 2014 Jan $95 call (CB1418a95) entry $1.85*

Entry on November 21 at $95.25
Average Daily Volume = 967 thousand
Listed on November 18, 2013


Costco Wholesale - COST - close: 123.89 change: +1.13

Stop Loss: 121.40
Target(s): 129.00
Current Option Gain/Loss: + 83.0%
Time Frame: Exit PRIOR to earnings on Dec. 11th
New Positions: see below

Comments:
11/21/13: Thankfully there was no follow through on yesterday's bearish performance in COST. The stock bounced with a +0.9% gain. Shares remain below resistance in the $125.00 area. I am not suggesting new positions

- 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: 93.74 change: +0.78

Stop Loss: 91.85
Target(s): 99.00
Current Option Gain/Loss: +18.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/21/13: CTSH ended its three-day pullback with a +0.8% bounce from its 10-dma. I am raising our stop loss up to $91.85.

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

11/21/13 new stop loss @ 91.85
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: 69.94 change: +0.71

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:
11/21/13: The bounce in DIS today left shares hovering just below resistance at the $70.00 mark. 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 $1.52

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


eBay Inc. - EBAY - close: 50.21 change: -0.18

Stop Loss: 49.45
Target(s): 56.00
Current Option Gain/Loss: -17.3%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
11/21/13: We were certainly expecting a better performance out of EBAY today. That's especially true given the widespread market bounce. Shares of EBAY gapped open higher at $50.77, almost immediately failed, and then traded back down to retest support near the $50 mark.

Our play was triggered on the gap higher since our suggested entry point was $50.65. I would still consider buying a bounce but traders may want to wait for a new rise past $50.75 before initiating new positions.

- Suggested Positions -

Long 2014 Jan $52.50 call (EBAY1418a52.5) entry $1.73

11/21/13 trade opened on gap higher at $50.77. suggested trigger was $50.65.

Entry on November 21 at $50.77
Average Daily Volume = 11 million
Listed on November 20, 2013


GNC Holdings - GNC - close: 58.53 change: +0.38

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:
11/21/13: The bounce in GNC was disappointing. If shares don't show more improvement tomorrow we will likely drop this stock in the weekend newsletter.

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: 95.20 change: +0.05

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:
11/21/13: JNJ garnered a new triple-digit price target today from an analyst but shares failed to see much movement on the announcement. I would still consider new positions at current levels.

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


Michael Kors - KORS - close: 80.44 change: +1.35

Stop Loss: 77.75
Target(s): 89.00
Current Option Gain/Loss: Unopened
Time Frame: 4 to 8 weeks
New Positions: Yes, see below

Comments:
11/21/13: KORS is bouncing as we expected just not where we expected. The market snapped a three-day losing streak and KORS outperformed with a +1.7% gain. Instead of waiting for a dip near its 50-dma we are adjusting our entry point strategy. Tonight we are suggesting a trigger to buy calls at $81.05. If triggered we will aim for $89.00. Please keep in mind that the prior highs near $83.00 could still be overhead resistance. More conservative traders may want to limit their position size. We will move the stop loss to $77.75. We will adjust the option strike to the 2014 Jan. $85 call.

Trigger: buy the dip @ $81.05

- Suggested Positions -

Buy the 2014 Jan $85 call (KORS1418a85) current ask $1.75

11/21/13 adjust entry strategy. Instead of buying a dip at $76.50, move the entry trigger to $81.05. Adjust the stop loss to $77.75. Adjust the option strike to 2014 Jan. $85 call.

Entry on November -- at $---.--
Average Daily Volume = 7.2 million
Listed on November 20, 2013


Lockheed Martin - LMT - close: 138.67 change: +1.48

Stop Loss: 134.90
Target(s): 148.50
Current Option Gain/Loss: + 4.5%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
11/21/13: Good news. There was no follow through on LMT's close below short-term support at its 10-dma yesterday. The stock bounced with a +1.0% gain. Although technically we can label today's move as an inside day. We should stay cautious. 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: 83.86 change: +0.50

Stop Loss: 81.25
Target(s): 88.50
Current Option Gain/Loss: -12.8%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
11/21/13: NOV continues to bounce from short-term technical support at its rising 10-dma. Given the market's rebound today I would be tempted to buy calls on NOV here at current levels.

- 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: 101.13 change: +1.00

Stop Loss: 98.95
Target(s): 108.00
Current Option Gain/Loss: -31.6%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
11/21/13: After a two-day dip UPS managed a +0.99% bounce from its 10-dma. It will be interesting to see how the stock trades tomorrow. After the closing bell tonight UPS it was raising its rates by an average of +4.9% in 2014. Pricing power is usually seen as a sign of confidence.

- 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: 92.08 change: -0.68

Stop Loss: 88.25
Target(s): 99.00
Current Option Gain/Loss: +36.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/21/13: After a multi-day rally in WLP the stock finally hit some profit taking. I would not be surprised to see WLP retest the $90.00 level, which should be new support.

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: 119.94 change: -0.18

Stop Loss: 124.25
Target(s): 115.50
Current Option Gain/Loss: + 1.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/21/13: It was a relatively quiet day for both the U.S. dollar and gold prices. The GLD did tag a new relative low. I don't see any changes from my earlier comments.

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: 56.64 change: +0.49

Stop Loss: 53.90
Target(s): Sell half @ $58.00, sell the rest at $63.00
Current Option Gain/Loss: +44.4%
Time Frame: exit PRIOR to 2014 March option expiration
New Positions: see below

Comments:
11/21/13: The VGK kept pace with the market's gains on Thursday with a +0.8% bounce.

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