Editor's Note:

The S&P 500 index has extended its gains to seven up weeks in a row. Tonight we are updating several stop losses.

DIS, KORS, and WDC hit our entry triggers.
GNC has been removed.


Current Portfolio:


CALL Play Updates

Aon Plc. - AON - close: 82.55 change: +1.17

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:
11/23/13: AON's rally on Friday managed to outpace the market's major indices. Shares added another +1.4% and broke through short-term resistance near $82.00. We are adjusting our stop loss up to $79.85.

- Suggested Positions -

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

11/23/13 new stop loss @ 79.85
11/18/13 new stop loss @ 79.45
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: 119.85 change: +1.42

Stop Loss: 114.90
Target(s): 124.00
Current Option Gain/Loss: +50.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/23/13: ATK was showing relative strength on Friday as well. The stock added +1.19% and closed just below potential round-number resistance at the $120.00 mark. I would not be surprised to see shares pull back and retest short-term technical support at the 10-dma near $116.75. Please note our new stop loss at $114.90.

Currently our option value has risen +50%. More conservative traders may want to take profits now with ATK near $120.

- Suggested Positions -

Long DEC $120 call (ATK1322L120) entry $1.80

11/23/13 new stop loss @ 114.90
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

chart:

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


Cardinal Health, Inc. - CAH - close: 65.02 change: -0.33

Stop Loss: 63.45
Target(s): 67.50
Current Option Gain/Loss: + 78.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/23/13: Shares of CAH saw a slow drift higher last week. The stock managed to tag a new all-time high on Friday before paring its gains. I am concerned that CAH is short-term overbought and due for a dip. With our option up almost + 80% readers may want to take profits now.

The $62.00 level is the closest thing to support but I am raising our stop loss up to $63.45.

- Suggested Positions -

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

11/23/13 new stop loss @ 63.45
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

chart:

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


The Chubb Corp. - CB - close: 96.84 change: +0.72

Stop Loss: 94.40
Target(s): 99.75
Current Option Gain/Loss: + 49.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/23/13: It proved to be a bullish week for CB. The stock broke out past short-term resistance on Thursday and the rally continued on Friday with an additional +0.74% gain. This is a new all-time high for the stock. Tonight we are adjusting our stop loss up to $94.40.

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

- Suggested Positions -

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

11/23/13 new stop loss @ 94.40

chart:

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


Costco Wholesale - COST - close: 125.21 change: +1.32

Stop Loss: 122.25
Target(s): 129.00
Current Option Gain/Loss: +130.7%
Time Frame: Exit PRIOR to earnings on Dec. 11th
New Positions: see below

Comments:
11/23/13: It looks like our patience on COST is going to pay off. The stock has been churning sideways below resistance at the $125 level for days. Fortunately the recent two-day rally has produced a bullish breakout above this resistance level. The next level of likely resistance is the $130 area. Tonight we are raising our stop loss up to $122.25.

- Suggested Positions -

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

11/23/13 new stop loss @ 122.25
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

chart:

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


Cognizant Technology - CTSH - close: 93.12 change: -0.62

Stop Loss: 91.85
Target(s): 99.00
Current Option Gain/Loss: + 4.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/23/13: We may need to turn more defensive on our CTSH trade. Monday's session saw a morning spike to $95.65 that quickly reversed. Friday's session just produced a spike to $95.75 that immediately reversed. Is this a new short-term bearish double top? More conservative investors may want to raise their stop loss again. I am not suggesting new positions.

- 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

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: 70.20 change: +0.26

Stop Loss: 67.00
Target(s): 77.50
Current Option Gain/Loss: - 5.4%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
11/23/13: We have been patiently waiting for DIS to breakout past resistance at the $70.00 level. Shares finally hit our suggested entry point at $70.25 on Friday. I would still consider new positions now at current levels.

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.

- Suggested Positions -

Long 2014 Jan $70 call (DIS1418a70) entry $1.66

chart:

Entry on November 22 at $70.25
Average Daily Volume = 6.6 million
Listed on November 14, 2013


eBay Inc. - EBAY - close: 50.33 change: +0.12

Stop Loss: 49.45
Target(s): 56.00
Current Option Gain/Loss: -14.4%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
11/23/13: I am starting to worry about our EBAY play. Shares are not seeing much of a bounce from support near $50.00. I am still suggesting that investors 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.

chart:

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


Johnson & Johnson - JNJ - close: 95.20 change: +0.05

Stop Loss: 93.40
Target(s): 99.75
Current Option Gain/Loss: +22.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/23/13: JNJ gapped down at the open on Friday but traders bought the dip near short-term technical support at its 10-dma. The stock quickly bounced back only to drift sideways the rest of the session. Friday's high was $95.58. More conservative traders might want to wait for a new rise past this level before initiating new positions.

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

chart:

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


Michael Kors - KORS - close: 80.64 change: +0.20

Stop Loss: 77.75
Target(s): 89.00
Current Option Gain/Loss: - 8.1%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
11/23/13: Wall Street's tone for the retail sector has turned significantly more cautious in the last few days. Suddenly everyone is worried that this holiday shopping season is going to be worse than expected. Next weekend we will hear market pundits expounding on the Black Friday shopping traffic and numbers. However, we are not seeing a lot of selling in the retail sector in spite of all this caution.

Shares of KORS underperformed the major indices on Friday but the bounce did continue. Our suggested trigger to buy calls was hit at $81.05. Cautious traders may want to wait for a rise past Friday's high at $81.26 before initiating new positions.

- Suggested Positions -

Long 2014 Jan $85 call (KORS1418a85) entry $1.85

11/22/13 trigger hit at $81.05
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.

chart:

Entry on November 22 at $81.05
Average Daily Volume = 7.2 million
Listed on November 20, 2013


Lockheed Martin - LMT - close: 140.88 change: +2.21

Stop Loss: 136.40
Target(s): 148.50
Current Option Gain/Loss: +36.3%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
11/23/13: LMT had positive headlines on Friday with news that South Korea will buy 40 of LockheedMartin's F-35 stealth fighter jets. This may have given shares a boost, which outperformed the major indices with a +1.59% gain and a bullish breakout past potential round-number resistance at the $140 mark.

Last week's low was near $137.00. I am raising our stop loss up to $136.40. I am not suggesting new positions at this time.

- Suggested Positions -

Long 2014 Jan $140 call (LMT1418a140) entry $2.20

11/23/13 new stop loss @ 136.40
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: 83.66 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:
11/23/13: It was a relatively quiet week for NOV. Shares spent most of it churning sideways inside the $83-84 zone. Traders were buying the dips at NOV's rising 10-dma. Thursday's high was $84.18. Traders may want to wait for a rise past $84.25 before initiating 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

chart:

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


United Parcel Service - UPS - close: 101.98 change: +0.85

Stop Loss: 99.75
Target(s): 108.00
Current Option Gain/Loss: -14.2%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
11/23/13: UPS continues to show relative strength. The stock outperformed the S&P 500 and the Dow Jones Transportation average on Friday with a +0.84% gain. It looks like Wall Street is applauding news that UPS will raise its rates in 2014. Tonight we are raising our stop loss up to $99.75.

- Suggested Positions -

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

11/23/13 new stop loss @ 99.75
11/20/13 new stop loss @ 98.95

chart:

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


Western Digital Corp. - WDC - close: 75.13 change: +0.30

Stop Loss: 72.75
Target(s): 79.75
Current Option Gain/Loss: - 3.4%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
11/23/13: Traders bought the dip in WDC near $74.00 and its 10-dma on Friday morning. The rebound pushed shares back above $75.00. WDC hit our suggested entry point to buy calls at $75.25 on Friday afternoon. I would still consider new positions now at current levels. More conservative traders may want to wait for a rally past the November 15th high at $76.10 before initiating positions.

Our target is $79.75 but more aggressive traders may want to aim higher. The Point & Figure chart for WDC is bullish with a $91 target.

- Suggested Positions -

Long 2014 Jan $80 call (WDC1418a80) entry $1.46

chart:

Entry on November 22 at $75.25
Average Daily Volume = 2.4 million
Listed on November 21, 2013


WellPoint Inc. - WLP - close: 93.03 change: +0.95

Stop Loss: 89.75
Target(s): 99.00
Current Option Gain/Loss: +62.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/23/13: WLP has extended its gains to four weeks in a row. Last week was important because WLP broke through significant resistance near the $90.00 mark. Traders bought the dip on Friday morning and shares rebounded to a new closing high. Tonight we are raising our stop loss to $89.75.

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

- Suggested Positions -

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

11/23/13 new stop loss @ 89.75

chart:

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: 119.92 change: -0.02

Stop Loss: 124.25
Target(s): 115.50
Current Option Gain/Loss: - 3.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/23/13: Usually a weaker dollar would be bullish for gold but the GLD did not react to Friday's decline in the dollar. Instead the GLD just drifted sideways along the $120 level.

I would still consider new bearish positions now at current levels. More nimble traders could try and buy puts on a failed rally near $122.00 or its 10-dma instead.

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

chart:

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: 56.95 change: +0.31

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:
11/23/13: Most of the European markets closed in positive territory on Friday. This helped the VGK gap higher on Friday morning. It looks like this ETF's longer-term bullish trend of higher lows and higher highs is still in place.

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.

chart:

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


CLOSED BULLISH PLAYS

GNC Holdings - GNC - close: 58.83 change: +0.30

Stop Loss: 57.95
Target(s): 64.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/23/13: GNC does not want to cooperate. We have been waiting for a breakout past resistance near $60.00. GNC has gotten close but continues to struggle. Our suggested entry point was $60.50 but GNC has not triggered it yet. Tonight we are removing GNC from the newsletter. Traders may want to keep an eye on it since a bounce from its 50-dma or a breakout past $60.00 could be used as new bullish entry points.

Trade did not open.

11/23/13 removed from the newsletter. suggested trigger was $60.50

chart:

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