Editor's Note:

The market delivered a mixed session on Friday but the NASDAQ composite and the Russell 2000 hit new record highs again.

FLT was triggered on Friday.
We want to sell half of our COST trade on Monday morning.
Prepare to exit our CTSH and JNJ trades on Monday morning.


Current Portfolio:


CALL Play Updates

Aon Plc. - AON - close: 81.64 change: -0.65

Stop Loss: 79.85
Target(s): 85.00
Current Option Gain/Loss: - 5.8%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
11/30/13: It was a relatively quiet week for shares of AON. The stock consolidated sideways below the $82.50 level. Shares did post a loss for the week, snapping a seven-week winning streak. If the dip continues we can watch for support near $80.00. 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

chart:

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


Alliant Techsystems Inc. - ATK - close: 121.23 change: +0.45

Stop Loss: 116.75
Target(s): 124.00
Current Option Gain/Loss: +77.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/30/13: Another day, another new high for shares of ATK. I am raising our stop loss to $116.75. More conservative traders might want to adjust their stop closer to the simple 10-dma (currently near $118.65) since the 10-dma has been support of the past few weeks.

- Suggested Positions -

Long DEC $120 call (ATK1322L120) entry $1.80

11/30/13 new stop loss @ 116.75
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

chart:

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


The Chubb Corp. - CB - close: 96.45 change: -0.89

Stop Loss: 94.90
Target(s): 99.75
Current Option Gain/Loss: + 31.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/30/13: Ouch! What happened to shares of CB on Friday? I couldn't find any news to explain the relative weakness. CB initially spiked higher and hit a new high at $97.79 before reversing. The sell off on Friday (-0.9%) erased more than three days of gains. CB also closed below what had been short-term support at the $97.00 level. More conservative traders may want to raise their stop closer to the simple 10-dma (currently near $96.00). 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

chart:

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


Costco Wholesale - COST - close: 125.43 change: +0.05

Stop Loss: 123.75
Target(s): 129.00
Current Option Gain/Loss: +134.6%
Time Frame: Exit PRIOR to earnings on Dec. 11th
New Positions: see below

Comments:
11/30/13: The rally in COST has stalled. Shares have been struggling to rise past the $126.00 level all week long. I will point out that COST did extend its gains to five up weeks in a row. Tonight I am suggesting we go ahead and sell half of our position on Monday morning to take some money off the table. For the remainder of our position we'll raise our stop loss up to $123.75. I'm not suggesting new positions at this time.

FYI: Don't forget that we plan to exit prior to earnings on December 11th.

- Suggested Positions -

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

11/30/13 sell half on Monday morning to lock in gains (Dec. 2nd)
11/30/13 new stop loss @ 123.75
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

chart:

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


Cognizant Technology - CTSH - close: 93.89 change: -0.53

Stop Loss: 91.85
Target(s): 99.00
Current Option Gain/Loss: +13.9%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/30/13: I am suggesting an early exit for our CTSH. Prepare to exit on Monday morning, Dec. 2nd.

The longer-term trend for CTSH is still higher and more aggressive investors may want to keep the play alive. We're choosing an early exit because CTSH has underperformed the broader market over the last two weeks.

- Suggested Positions -

Long 2014 Jan $95 call (CTSH1418a95) entry $2.15

11/30/13 prepare to exit on Monday morning, Dec. 2nd
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: 70.54 change: -0.23

Stop Loss: 68.45
Target(s): 77.50
Current Option Gain/Loss: + 3.0%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
11/30/13: DIS surged to new record highs last Tuesday but there hasn't been any follow through. The stock has seen some profit taking the last couple of sessions. That's good news if you're looking for an entry point. Broken resistance at the $70.00 level should be new support and a dip near $70.00 can be used as another chance to get in. Tonight I am adjusting our stop loss up to $68.45.

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

11/30/13 new stop loss @ 68.45
11/26/13 new stop loss @ 67.95

chart:

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


Endo Health Solutions - ENDP - close: 67.19 change: -0.06

Stop Loss: 64.45
Target(s): 74.00
Current Option Gain/Loss: -10.4%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/30/13: ENDP tagged a new high on an intraday basis on Friday morning. Unfortunately there was no follow through and shares just drifted sideways during the market's half day on Friday.

If the market were to dip I would not be surprised to see ENDP retest the $66.00 level. Depending on your patience you could buy calls now or wait and see if ENDP provides a dip.

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

chart:

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


FleetCor Technologies - FLT - close: 121.78 change: +0.58

Stop Loss: 119.70
Target(s): 128.50
Current Option Gain/Loss: - 16.6%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
11/30/13: Our new trade on FLT has been triggered. The stock shot higher at Friday's open and tagged a new high near $122.80 before paring its gains. Our suggested trigger to buy calls was hit at $122.50. If you missed the move on Friday readers may want to wait for a new rally above $122.50 before initiating positions.

Earlier Comments:
Our target is $128.50. More aggressive traders may want to aim higher since the Point & Figure chart for FLT is bullish with a $145 target.

- Suggested Positions -

Long 2014 Jan $125 call (FLT1418a125) entry $3.30*

*option entry price is an estimate since the option did not trade at the time our play was opened.

chart:

Entry on November 29 at $122.50
Average Daily Volume = 936 thousand
Listed on November 27, 2013


Hanesbrands Inc. - HBI - close: 70.10 change: -0.34

Stop Loss: 68.90
Target(s): 74.75
Current Option Gain/Loss: -21.5%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
11/30/13: It looks like shares of HBI are in sleep mode. The stock has been drifting sideways above the $70.00 level the last three days. More conservative traders might want to consider raising their stop closer to the simple 10-dma near $69.70. If you're looking for a new entry point I would consider waiting for a new rally past $70.75.

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

chart:

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


Johnson & Johnson - JNJ - close: 94.66 change: -0.32

Stop Loss: 93.40
Target(s): 99.75
Current Option Gain/Loss: - 5.9%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/30/13: Tonight we are suggesting an early exit for our JNJ trade. Plan to exit on Monday morning, Dec. 2nd.

The overall trend for JNJ is still higher but its upward momentum is waning. The stock just ended an eight-week winning streak.

- Suggested Positions -

Long 2014 Jan $95 call (JNJ1418a95) entry $1.51

11/30/13 prepare to exit on Monday morning, Dec. 2nd

chart:

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


Michael Kors - KORS - close: 81.55 change: -0.29

Stop Loss: 77.75
Target(s): 89.00
Current Option Gain/Loss: - 2.7%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
11/30/13: Before the opening bell on Friday shares of KORS were trading higher. This pre-market trading failed near the $83.00 level, which was resistance a couple of weeks ago. During the market's normal hours we saw KORS churn sideways. At the moment I am not suggesting new positions. If we see the market dip then KORS could test the $80.00 level again.

- 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: 141.67 change: -2.27

Stop Loss: 138.45
Target(s): 148.50
Current Option Gain/Loss: +104.5%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
11/30/13: After a multi-day rally shares of LMT hit some profit taking on Friday. Shares underperformed the broader market with a -1.5% decline. Watch for likely support at the $140.00 level. 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

chart:

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


Constellation Brands Inc. - STZ - close: 70.41 change: -0.58

Stop Loss: 68.40
Target(s): 74.75
Current Option Gain/Loss: -17.1%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
11/30/13: STZ also experienced some profit taking on Friday with a -0.8% decline. If this dip continues we can look for support at its 10-dma, which has been consistent support in recent weeks.

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

chart:

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


United Parcel Service - UPS - close: 102.38 change: -0.16

Stop Loss: 99.75
Target(s): 108.00
Current Option Gain/Loss: - 2.0%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
11/30/13: UPS tagged another new high on Friday morning before reversing gains. Shares settled with a minor loss. I would not be surprised to see another to short-term support at its rising 10-dma (near 101.50).

- 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: 75.04 change: -1.15

Stop Loss: 73.40
Target(s): 79.75
Current Option Gain/Loss: -18.4%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
11/30/13: The stock market's half day on Friday was not a good one for WDC. Shares hit new highs on Friday morning only to reverse and give them all back and more. The stock underperformed the market with a -1.5% decline. Furthermore Friday's move has produced a bearish engulfing candlestick reversal pattern. It's tough to put too much emphasis on Friday's move due to the lack of volume thanks to the holiday. I am not suggesting new positions at this time.

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

chart:

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


WellPoint Inc. - WLP - close: 92.88 change: -0.74

Stop Loss: 89.75
Target(s): 99.00
Current Option Gain/Loss: +46.9%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/30/13: Friday's -0.79% decline in WLP pushed the stock to a weekly loss that snapped a four-week winning streak. Currently we have our stop loss at $89.75 because the $90.00 level should be support. More conservative traders may want to raise their stop closer to the $92.00 area instead. 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

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: 120.70 change: +1.24

Stop Loss: 122.55
Target(s): 115.50
Current Option Gain/Loss: -31.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
11/30/13: The U.S. dollar hit a new three-week low on Friday. Gold managed a bounce but you'll notice that the GLD's rally stalled at short-term technical resistance at its 10-dma.

We are adjusting our stop loss down to $122.55.

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

11/30/13 new stop loss @ 122.55

chart:

Entry on November 20 at $121.00
Average Daily Volume = 7.0 million
Listed on November 12, 2013


The St. Joe Company - JOE - close: 17.74 change: +0.04

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:
11/30/13: JOE is still trying to bounce and eked out a fractional gain on Friday.

Remember, this is a lottery ticket style of trade.

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 last weekend's 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

chart:

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: - 66.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
11/30/13: Our aggressive put trade on TWTR is not panning out. There was no follow through on the November 25th breakdown to new lows. Instead TWTR has seen a three-day bounce (thanks in part to bullish analyst comments on Nov. 27th).

This coming Monday, December 2nd, could be interesting. TWTR's quiet period ends on Monday according to Wunderlich. They are bearish on the stock but warned TWTR could see a short-term rally.

More conservative investors might want to abandon ship and exit early now. I am not suggesting new positions at this time. If TWTR continues to rally we will probably close this trade soon.

Keep in mind that our December options only have three weeks left.

Earlier Comments: (November 25th)
It looks like the IPO hype is finally wearing off as TWTR underperformed the market today and broke down to a new low. 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: 57.36 change: +0.22

Stop Loss: 54.90
Target(s): Sell half @ $58.00, sell the rest at $63.00
Current Option Gain/Loss: +66.6%
Time Frame: exit PRIOR to 2014 March option expiration
New Positions: see below

Comments:
11/30/13: Friday was a mixed day for the European markets. Yet the VGK gapped open higher and traded at a new two-year high before paring its gains.

Please note our new stop loss at $54.90.

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*

11/30/13 new stop loss @ 54.90
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