Editor's Note:

The NASDAQ Composite and the small cap Russell 2000 index continue to set new highs. The S&P 500 drifted sideways.

Our plan was to close our CAH trade to lock in gains.
ENDP was triggered.


Current Portfolio:


CALL Play Updates

Aon Plc. - AON - close: 82.29 change: +0.42

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:
11/27/13: AON manage to outpace the market with a +0.5% gain on Wednesday. The stock is poised to make new all-time highs soon. 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: 120.78 change: +0.71

Stop Loss: 115.75
Target(s): 124.00
Current Option Gain/Loss: +63.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/27/13: Slow and measured seems to be the advance for ATK. Yesterday the stock was up 70 cents. Today it added 71 cents. Wednesday's move is a "breakout" above the $120 level and marks a new record high.

- 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


The Chubb Corp. - CB - close: 97.34 change: +0.23

Stop Loss: 94.90
Target(s): 99.75
Current Option Gain/Loss: + 64.8%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/27/13: Traders continued to buy the dips in CB near the $97.00 level today. The stock ended the session on an up note. I am raising our stop loss up to $94.90. 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*

11/27/13 new stop loss @ 94.90
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: 125.38 change: +0.20

Stop Loss: 123.40
Target(s): 129.00
Current Option Gain/Loss: +134.6%
Time Frame: Exit PRIOR to earnings on Dec. 11th
New Positions: see below

Comments:
11/27/13: Wednesday marks the third day in a row that COST has been drifting sideways inside the $125.00-126.00 zone. I am raising our stop loss up to $123.40. More conservative traders may want to raise their stop even higher or consider an early exit now to take some money off the table.

- Suggested Positions -

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

11/27/13 new stop loss @ 123.40
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: 94.42 change: +0.38

Stop Loss: 91.85
Target(s): 99.00
Current Option Gain/Loss: +25.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/27/13: The early morning gains faded but CTSH still managed a +0.4% gain. Today's move marks a new all-time closing high for the stock. Shares still appear to have short-term resistance near $96.00. 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: 70.77 change: -0.41

Stop Loss: 67.95
Target(s): 77.50
Current Option Gain/Loss: +14.4%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
11/27/13: DIS saw some profit taking on Wednesday and gave back -0.5%. I don't see any changes from my prior comments. 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


Endo Health Solutions - ENDP - close: 67.25 change: +0.28

Stop Loss: 64.45
Target(s): 74.00
Current Option Gain/Loss: - 8.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/27/13: It was a relatively quiet day for ENDP but the up trend did continue. The stock managed to tag our suggested entry point at $67.35 so the play is open.

Earlier Comments:
This is a momentum play. Our target is $74.00. Can the $70.00 level be overhead, round-number resistance? Yes, it could so traders may want to limit their position size.

- Suggested Positions -

Long 2014 Jan $70 call (ENDP1418a70) entry $2.40

Entry on November 27 at $67.35
Average Daily Volume = 4.6 million
Listed on November 26, 2013


Hanesbrands Inc. - HBI - close: 70.44 change: -0.07

Stop Loss: 68.90
Target(s): 74.75
Current Option Gain/Loss: -10.5%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
11/27/13: HBI spent Wednesday's drifting sideways. 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: 94.98 change: -0.08

Stop Loss: 93.40
Target(s): 99.75
Current Option Gain/Loss: + 4.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/27/13: JNJ drifted lower on Wednesday. If shares don't bounce soon the stock is on track for its first weekly loss in the last eight weeks. 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: 81.84 change: +1.24

Stop Loss: 77.75
Target(s): 89.00
Current Option Gain/Loss: + 5.4%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
11/27/13: KORS displayed some relative strength ahead of Thanksgiving with a +1.5% gain on Wednesday. This is a short-term bullish breakout above its simple 10-dma, which has been resistance recently.

- 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: 143.94 change: +0.88

Stop Loss: 138.45
Target(s): 148.50
Current Option Gain/Loss: +168.1%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
11/27/13: The rally continues for LMT with its fifth gain in a row. I am not suggesting new positions at this time.

- 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: 70.99 change: +0.55

Stop Loss: 68.40
Target(s): 74.75
Current Option Gain/Loss: - 2.8%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
11/27/13: STZ reaffirmed the up trend with a new all-time high. Shares displayed relative strength with a +0.7% gain on Wednesday.

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: 102.54 change: +0.25

Stop Loss: 99.75
Target(s): 108.00
Current Option Gain/Loss: + 3.0%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
11/27/13: There has been a lot of talk in the financial media about how much consumers will be shopping online this holiday season. UPS is expected to be a major beneficiary of this growing trend of shopping online. The stock hit another new high today.

- 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: 76.19 change: +1.33

Stop Loss: 73.40
Target(s): 79.75
Current Option Gain/Loss: + 4.7%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
11/27/13: WDC is finally starting to show the upward movement we've been expecting. The stock shot higher this morning and ended the session with a new all-time high. I would consider new positions here at current levels. Tonight we're adjusting the stop loss to $73.40.

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

11/27/13 new stop loss @ 73.40

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


WellPoint Inc. - WLP - close: 93.62 change: -0.04

Stop Loss: 89.75
Target(s): 99.00
Current Option Gain/Loss: +72.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/27/13: The last couple of days has seen the rally in WLP stall. Shares are just drifting sideways near the $94.00 level. There was a headline regarding Obamacare and how the government has delayed the healthcare exchanges for small business by another year. Obviously this news had little impact on WLP. 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: 119.46 change: -0.36

Stop Loss: 124.25
Target(s): 115.50
Current Option Gain/Loss: -11.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/27/13: Neither the U.S. dollar or gold prices saw much movement today. Although it might be noteworthy that the GLD's gap higher this morning was sold and shares drifted lower the rest of the session. Traders may want to look for a new drop under $119.00 as an alternative entry point to buy puts.

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: 17.70 change: +0.23

Stop Loss: n/a *use small positions*
Target(s): $11.00-13.00 range
Current Option Gain/Loss: -32.6%
Time Frame: 2 to 3 months
New Positions: see below

Comments:
11/27/13: After moving sideways the last couple of sessions we're starting to see some movement out of JOE. Unfortunately it's moving the wrong direction. Traders bought the gap down this morning and JOE bounced to its simple 10-dma. Readers may want to wait for the next failed rally or lower high before initiating new bearish positions. 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: 40.90 change: +0.72

Stop Loss: n/a
Target(s): 35.25
Current Option Gain/Loss: - 58.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/27/13: The bounce in TWTR continued this morning. The spike higher was likely a reaction to news that another analyst firm initiated coverage with a "buy" rating and a $50 price target. Readers might want to wait for a new drop below $40.00 before initiating new bearish positions.

Earlier Comments:
If you're launching new positions now, you may want to buy the December or January $38 or $39 puts instead of the $35s.

Even 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. 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* - Suggested Positions -

Long Dec $35 PUT (TWTR1321x35) 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: +58.3%
Time Frame: exit PRIOR to 2014 March option expiration
New Positions: see below

Comments:
11/27/13: European stock markets were up nearly across the board today. This helped the VGK gap open higher. The VGK is approaching October resistance near $57.50.

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

Cardinal Health, Inc. - CAH - close: 64.47 change: -0.43

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:
11/27/13: We've been worried about the slowdown in CAH's advance. In last night's newsletter we decided to exit immediately at the opening bell today. CAH actually gapped higher by six cents and then suddenly plunged toward the $64.00 level. Our decision to exit was right on time.

- Suggested Positions -

2014 Jan $65 call (CAH1418a65) entry $0.84 exit @ $1.40* (+66.6%)

11/27/13 planned exit at the opening bell
*option exit price is an estimate since the option did not trade at the time our play was closed.
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

chart:

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