Editor's Note:

The small cap Russell 2000 hit new record highs today. The NASDAQ closed above the 4,000 mark for the first time in years. Meanwhile the S&P 500 lagged to close almost unchanged on the session.

We want to exit our CAH trade tomorrow morning.
NOV was stopped out.


Current Portfolio:


CALL Play Updates

Aon Plc. - AON - close: 81.87 change: +0.50

Stop Loss: 79.85
Target(s): 85.00
Current Option Gain/Loss: + 2.9%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
11/26/13: There was no follow through on yesterday's pullback in AON. The stock outpaced the major indices with a +0.6% gain. I am not suggesting new positions at this time.

- 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: 120.07 change: +0.70

Stop Loss: 115.75
Target(s): 124.00
Current Option Gain/Loss: +52.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/26/13: ATK rebounded off its morning lows. Shares are still trying to breakout past round-number resistance at the $120.00 level. I am raising our stop loss up to $115.75. More conservative traders may want to raise theirs higher.

- Suggested Positions -

Long DEC $120 call (ATK1322L120) entry $1.80

11/26/13 new stop loss @ 115.75
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: 64.90 change: -0.21

Stop Loss: 63.45
Target(s): 67.50
Current Option Gain/Loss: + 66.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/26/13: It seems like the upward momentum in CAH has run out of fuel. The stock has been drifting sideways the last few days. We are suggesting an immediate exit tomorrow morning to lock in gains.

- Suggested Positions -

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

11/26/13 prepare to exit tomorrow morning to lock in gains
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: 97.11 change: +0.07

Stop Loss: 94.40
Target(s): 99.75
Current Option Gain/Loss: + 58.9%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/26/13: Tuesday marks two days in a row where CB has spent most of the session just hovering sideways 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: 125.18 change: +0.01

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:
11/26/13: COST has not made any progress the last couple of days. Shares have been struggling with new overhead resistance at the $126.00 level. Readers may want to raise their stops again. 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: 94.03 change: +1.40

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:
11/26/13: Thankfully there was no follow through on CTSH's recent bearish trading. The stock surged this morning and outperformed the market with a +1.5% gain today. I remain somewhat cautious in spite of today's strength. We are 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: 71.18 change: +1.44

Stop Loss: 67.95
Target(s): 77.50
Current Option Gain/Loss: +25.9%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
11/26/13: DIS displayed relative strength on Tuesday with a +2.0% surge to new all-time highs. I am raising our stop loss to $67.95. More conservative investors might want to consider a stop closer to the $69.00 level, which was support last week.

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

11/26/13 new stop loss @ 67.95

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


Hanesbrands Inc. - HBI - close: 70.51 change: +0.74

Stop Loss: 68.90
Target(s): 74.75
Current Option Gain/Loss: -14.2%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
11/26/13: Good news! There was no follow through on HBI's little bearish reversal candlestick yesterday. Shares actually outperformed the market today with a +1.0% gain. Traders may want to wait for a new high (above $70.80) before initiating new positions.

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: 95.06 change: -0.57

Stop Loss: 93.40
Target(s): 99.75
Current Option Gain/Loss: + 9.2%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/26/13: The stock market's late-day pullback hit shares of JNJ pretty hard. JNJ sank toward the $95.00 level and underperformed the market with a -0.59% decline. Look for short-term support near its 10-dma around $94.70. I am not suggesting new positions at this time.

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: 80.60 change: +0.45

Stop Loss: 77.75
Target(s): 89.00
Current Option Gain/Loss: -13.5%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
11/26/13: A bullish earnings report from luxury retailer Tiffany & Co. (TIF) last night helped boost some of the retail names today. KORS managed a +0.5% gain but is still struggling with short-term resistance at its 10-dma.

- 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: 143.06 change: +1.30

Stop Loss: 138.45
Target(s): 148.50
Current Option Gain/Loss: +100.0%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
11/26/13: LMT continues to show relative strength with another +0.9% gain and another new high. I am raising our stop loss to $138.45. I am not suggesting new positions at this time.

NOTE: Our option has doubled. Traders might want to take some money off the table.

- Suggested Positions -

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

11/26/13 new stop loss @ 138.45
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


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

Stop Loss: 68.40
Target(s): 74.75
Current Option Gain/Loss: -11.4%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
11/26/13: Tuesday was a good session for STZ bulls. There was no follow through on yesterday's bearish reversal candlestick. STZ bounced and outperformed the market with a +1.9% gain and a new closing high.

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: 102.29 change: +1.07

Stop Loss: 99.75
Target(s): 108.00
Current Option Gain/Loss: - 9.1%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
11/26/13: UPS had a good day. There was no follow through on yesterday's bearish reversal candlestick. Instead UPS bounced with a +1.0% gain and set a new record closing high.

- 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: 74.86 change: +0.06

Stop Loss: 72.75
Target(s): 79.75
Current Option Gain/Loss: -19.8%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
11/26/13: The technology sector rallied today but WDC underperformed its peers. Shares of WDC retested short-term technical support at its 10-dma again.

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: 93.66 change: +0.05

Stop Loss: 89.75
Target(s): 99.00
Current Option Gain/Loss: +76.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/26/13: Tuesday ended up a quiet day for WLP. The stock spent most of the session drifting sideways near the $94.00 level. 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: 119.82 change: -0.64

Stop Loss: 124.25
Target(s): 115.50
Current Option Gain/Loss: -13.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/26/13: The normal dollar/gold relationship didn't work today. Today's dollar weakness failed to lift gold prices. Instead the GLD just drifted sideways. There was no follow through on yesterday's bullish reversal candlestick. I remain bearish but nimble traders may want to wait for a new failed rally near its 10-dma before initiating new positions.

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: 17.47 change: -0.04

Stop Loss: n/a *use small positions*
Target(s): $11.00-13.00 range
Current Option Gain/Loss: -23.0%
Time Frame: 2 to 3 months
New Positions: see below

Comments:
11/26/13: There appears to be a tug of war in shares of JOE near the $17.50 level. The stock isn't moving much. 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


Twitter, Inc. - TWTR - close: 40.18 change: +1.12

Stop Loss: n/a
Target(s): 35.25
Current Option Gain/Loss: - 50.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/26/13: There was no follow through on TWTR's breakdown yesterday. Instead the stock saw a small gap open higher at $39.16 and then bounced to a +2.8% gain. Believe it or not but the overall pattern is still bearish in spite of today's bounce. You can see on the chart below that TWTR remains below its trend of lower highs. You may want to wait for a failure near that trend line or you could wait for a new relative low before initiating positions. Just remember that this is an aggressive, higher-risk trade. We have just under four weeks left before December options expire. You might want to buy 2014 January options instead. Fortunately, when stocks fall, then tend to fall faster than they climb.

Here's one more tidbit, if you're launching new positions now, you may want to buy the December or January $38 or $39 puts instead of the $35s.

Earlier Comments:
It looks like the IPO hype is finally wearing off as TWTR underperformed the market today and broke down to a new low. I am suggesting small bearish positions now at the opening bell tomorrow morning. I'm not listing a stop loss because TWTR can be pretty volatile. Therefore you'll need to manage your risk by adjusting your position size (if you want to use a stop I'd probably place one just above $41.00). We'll use the December options with just less than four weeks. You may want to buy Januarys instead. Our short-term target is $35.25.

*Small Positions* at the opening bell

- Suggested Positions -

Buy the Dec $35 PUT (TWTR1322x35) entry $0.60

Chart:

Entry on November 26 at $39.16
Average Daily Volume = 19.7 million
Listed on November 25, 2013



Longer-Term Play Updates



Vanguard FTSE Europe ETF - VGK - close: 56.85 change: +0.01

Stop Loss: 53.90
Target(s): Sell half @ $58.00, sell the rest at $63.00
Current Option Gain/Loss: +50.0%
Time Frame: exit PRIOR to 2014 March option expiration
New Positions: see below

Comments:
11/26/13: Tuesday was another quiet day for the VGK. The ETF closed almost unchanged.

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

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

Stop Loss: 81.25
Target(s): 88.50
Current Option Gain/Loss: -58.6%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
11/26/13: It was a mixed day for the oil-related stocks. NOV happened to fall into the camp of underperforming stocks. Shares spiked down toward technical support at the 50-dma and then bounced. Our stop loss was hit at $81.25.

- Suggested Positions -

2014 Jan $85 call (NOV1418a85) entry $2.25 exit $0.93 (-58.6%)

11/26/13 stopped out
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