Editor's Note:

The major indices churned sideways on Monday but we did see a few bearish reversals from this morning's high.

EBAY stopped out.
HBI and STZ hit our entry triggers.


Current Portfolio:


CALL Play Updates

Aon Plc. - AON - close: 81.37 change: -1.18

Stop Loss: 79.85
Target(s): 85.00
Current Option Gain/Loss: - 8.8%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
11/25/13: Monday's decline erases Friday's rally almost to the penny. I didn't see any news to account for today's relative weakness. Look for support in the $80.50-80.00 zone.

- 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

Entry on November 08 at $80.50
Average Daily Volume = 2.3 million
Listed on November 06, 2013


Alliant Techsystems Inc. - ATK - close: 119.37 change: -0.48

Stop Loss: 114.90
Target(s): 124.00
Current Option Gain/Loss: +36.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/25/13: ATK pierced the $120 level this morning. The gains didn't last. Shares eventually gave back about one third of Friday's rally. Watch for short-term support at its rising 10-dma near $117.20.

- 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

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


Cardinal Health, Inc. - CAH - close: 65.11 change: +0.09

Stop Loss: 63.45
Target(s): 67.50
Current Option Gain/Loss: + 84.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/25/13: CAH continues to drift sideways. I am growing concerned that its upward momentum has stalled. Chart readers will notice that CAH's MACD indicator on its daily chart is about to turn bearish. Readers may want to take profits now.

- 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

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


The Chubb Corp. - CB - close: 97.04 change: +0.20

Stop Loss: 94.40
Target(s): 99.75
Current Option Gain/Loss: + 55.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/25/13: CB inched to another new high. The stock gapped open higher and then spent the rest of the day hovering just above the $97.00 level. I am not suggesting new positions at this time.

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

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


Costco Wholesale - COST - close: 125.17 change: -0.04

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:
11/25/13: COST spiked to a new high this morning. Unfortunately gains faded and shares had erased all their gains by the closing bell. I am not suggesting new positions at this time. Our option has more than doubled and investors may want to take some money off the table.

- 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

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


Cognizant Technology - CTSH - close: 92.63 change: -0.49

Stop Loss: 91.85
Target(s): 99.00
Current Option Gain/Loss: - 7.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/25/13: I was urging caution over the weekend after CTSH reversed from its Friday morning high. I remain cautious today. If shares break down below support near $92.00 we should get stopped out quickly. 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

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


The Walt Disney Co. - DIS - close: 69.74 change: -0.46

Stop Loss: 67.00
Target(s): 77.50
Current Option Gain/Loss: -19.2%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
11/25/13: Don't blink but DIS just tagged another new record high. Unfortunately it didn't last. Shares underperformed the market with a -0.65% decline. Technically today's session has actually created a bearish engulfing candlestick reversal pattern.

Nimble traders could try and buy calls on a dip or a bounce near $69.00. Otherwise investors may want to wait for a new high (above $70.60) before initiating new positions.

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

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


Hanesbrands Inc. - HBI - close: 69.77 change: -0.52

Stop Loss: 68.90
Target(s): 74.75
Current Option Gain/Loss: -25.5%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
11/25/13: Our new play on HBI has been triggered at $70.65 but I am not suggesting new positions at the moment. The stock gapped open higher (just a bit) and hit $70.80 this morning. The rally was very short lived and shares reversed. I am adjusting our stop loss to $68.90. I suspect that HBI could dip to its simple 10-dma near $69.20 and then bounce.

Earlier Comments:
Our target is $74.75. More aggressive traders may want to aim a lot higher since the Point & Figure chart for HBI is bullish with a long-term $95 target.

- Suggested Positions -

Long 2014 Jan $70 call (HBI1418a70) entry $2.74

11/25/13 adjust the stop loss from $69.25 to $68.90

Entry on November 25 at $70.65
Average Daily Volume = 681 thousand
Listed on November 23, 2013


Johnson & Johnson - JNJ - close: 95.63 change: +0.38

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:
11/25/13: JNJ managed to outperform the broader market with a +0.39% gain. I don't see any changes from my weekend comments.

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: 80.15 change: -0.49

Stop Loss: 77.75
Target(s): 89.00
Current Option Gain/Loss: -18.9%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
11/25/13: Hmm... the rebound in KORS has reversed at its simple 10-dma. That doesn't inspire a lot of confidence. I would look for another dip toward the $78.50-79.00 area soon. Readers may want to wait for the next bounce before considering 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.

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


Lockheed Martin - LMT - close: 141.76 change: +0.88

Stop Loss: 136.40
Target(s): 148.50
Current Option Gain/Loss: +59.0%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
11/25/13: LMT continues to show relative strength with a +0.6% gain and another new record high. 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

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


National Oilwell Varco, Inc. - NOV - close: 82.61 change: -1.05

Stop Loss: 81.25
Target(s): 88.50
Current Option Gain/Loss: -37.7%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
11/25/13: Oil and energy-related stocks underperformed the market on Monday. News that the U.S. had reached a deal with Iran and would lift some of its sanctions impacted the oil market. Iran will soon start selling its oil on the open market again and that will increase supply, which should push oil prices lower. This could just be a one-day, kneejerk type of reaction. 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


Constellation Brands Inc. - STZ - close: 69.15 change: -1.21

Stop Loss: 68.40
Target(s): 74.75
Current Option Gain/Loss: -40.0%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
11/25/13: Ouch! It was a rough day for STZ. Shares underperformed with a -1.7% decline. More importantly the stock's early morning rally hit our suggested entry point at $70.55. What's even more concerning is that today's session has created a bearish engulfing candlestick reversal pattern. Look for support at its simple 10-dma near $68.75. I am not suggesting new positions at this time.

Earlier Comments:
Our plan was to limit our risk by using small positions.

*small positions* - Suggested Positions -

Long 2014 Jan $72.50 call (STZ1418a72.5) entry $1.75

Entry on November 25 at $70.55
Average Daily Volume = 1.3 million
Listed on November 23, 2013


United Parcel Service - UPS - close: 101.22 change: -0.76

Stop Loss: 99.75
Target(s): 108.00
Current Option Gain/Loss: -33.6%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
11/25/13: Shares of UPS also underperformed the market today with a -0.74% decline. This stock also produced a bearish engulfing candlestick reversal pattern. I would expect a dip toward the $100.50 area.

- 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

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


Western Digital Corp. - WDC - close: 74.81 change: -0.32

Stop Loss: 72.75
Target(s): 79.75
Current Option Gain/Loss: -15.7%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
11/25/13: WDC rallied toward its mid November highs near $76.00 and reversed. I am expecting another dip toward its 10-dma near $74.25.

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

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


WellPoint Inc. - WLP - close: 93.61 change: +0.58

Stop Loss: 89.75
Target(s): 99.00
Current Option Gain/Loss: +78.2%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/25/13: WLP continues to push higher and outperformed the market with a +0.6% gain. I am not suggesting new positions at current levels.

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

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: 120.46 change: +0.54

Stop Loss: 124.25
Target(s): 115.50
Current Option Gain/Loss: -16.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/25/13: It was an odd day with both the U.S. dollar and gold moving higher. Today's session in the GLD has actually created a bullish engulfing candlestick reversal pattern. Look for overhead resistance at its simple 10-dma near $122.00.

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


The St. Joe Company - JOE - close: 17.51 change: +0.05

Stop Loss: n/a *use small positions*
Target(s): $11.00-13.00 range
Current Option Gain/Loss: -13.4%
Time Frame: 2 to 3 months
New Positions: see below

Comments:
11/25/13: Monday proved to be a quiet day for shares of JOE. The stock opened at $17.50 and closed at $17.51. I don't see any changes from my weekend new play description.

Earlier Comments:
I do consider this an aggressive, higher-risk trade. Not everyone agrees with Einhorn. There are some big names in the stock on the bullish side. Plus, there are so many bears that any good news can produce these massive spikes higher. The most recent data listed short interest at 35% of the 92.1 million share float.

I am going to label this one a lottery ticket trade. We'll buy a cheap, out of the money option. If JOE continues to sink like we expect it to then great! We expect to more than double our money. If not, then we did not have that much invested. We definitely want to limit our position size to reduce our risk. I am not listing a stop loss because shares of JOE can be so volatile.

Our long-term target is $11.00 although we'll seriously consider exiting near the 2011 lows around $13.00.

*Small Positions* - Suggested Positions -

Long 2014 March $15 PUT (JOE1422o15) entry $0.52

Entry on November 25 at $17.50
Average Daily Volume = 627 thousand
Listed on November 23, 2013



Longer-Term Play Updates



Vanguard FTSE Europe ETF - VGK - close: 56.84 change: -0.11

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:
11/25/13: Monday was a quiet day for the VGK. Neither the ETF or the option moved very much.

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

eBay Inc. - EBAY - close: 49.04 change: -1.29

Stop Loss: 49.45
Target(s): 56.00
Current Option Gain/Loss: -30.6%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
11/25/13: EBAY is breaking down. According to a Barrons article EBAY's weakness today was fueled by data from market research firm ChannelAdvisor that said EBAY's same-store sales were only up +12.9% compared to the same period last year. Evidently Wall Street was expecting stronger numbers. The stock spiked down this morning and broke below support near $50.00. Our stop loss was hit at $49.45.

- Suggested Positions -

2014 Jan $52.50 call (EBAY1418a52.5) entry $1.73 exit $1.20 (-30.6%)

11/25/13 stopped out
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