Editor's Note:

The first couple of days of December are historically not the best for stocks but the month of December is usually bullish.

Our bullish trade on Costco Wholesale (COST) has been closed. We sold half this morning and then shares hit our stop in the last few minutes of trading.

We also closed our CTSH and JNJ trades today.
We want to exit our LMT trade tomorrow morning.
CTRP hit our bearish entry point today.


Current Portfolio:


CALL Play Updates

Aon Plc. - AON - close: 81.86 change: +0.22

Stop Loss: 79.85
Target(s): 85.00
Current Option Gain/Loss: + 0.0%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
12/02/13: AON bounced off its morning gap down but shares rolled over midday. The stock did still manage to outperform the major indices with a +0.2% gain. More conservative traders might want to adjust their stops closer to $81.00. 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

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


Alliant Techsystems Inc. - ATK - close: 122.44 change: +1.21

Stop Loss: 118.40
Target(s): 124.00
Current Option Gain/Loss: +77.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
12/02/13: ATK continued to show relative strength. Shares outperformed the market with a +0.99% gain and another new high. Tonight I am raising our stop loss to $118.40.

- Suggested Positions -

Long DEC $120 call (ATK1322L120) entry $1.80

12/01/13 new stop loss @ 118.40
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

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


The Chubb Corp. - CB - close: 95.45 change: -1.00

Stop Loss: 94.90
Target(s): 99.75
Current Option Gain/Loss: + 0.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
12/02/13: CB underperformed its peers in the insurance industry and the financial sector with a -1.0% decline. Today's drop is a bearish breakdown below its 10-dma and confirms the bearish reversal candlestick from Friday. Readers may want to abandon ship immediately. We're going to hold on one more day and see if shares bounce from what should be support at the $95.00 level. I am not suggesting new positions at this time.

- Suggested Positions -

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

12/02/13 CB is underperforming and traders may want to exit early now
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


The Walt Disney Co. - DIS - close: 70.91 change: +0.37

Stop Loss: 68.45
Target(s): 77.50
Current Option Gain/Loss: +15.0%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
12/02/13: DIS managed to outperform the market today with a +0.5% gain. I would still expect a dip toward $70.00, which should be support.

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

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


Endo Health Solutions - ENDP - close: 66.96 change: -0.23

Stop Loss: 64.45
Target(s): 74.00
Current Option Gain/Loss: -18.7%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
12/02/13: ENDP found support near its 10-dma about two weeks ago and traders bought the dip at its 10-dma again today. A bounce from current levels could be used as a new bullish entry point.

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


FleetCor Technologies - FLT - close: 122.70 change: +0.92

Stop Loss: 119.70
Target(s): 128.50
Current Option Gain/Loss: - 9.0%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
12/02/13: FLT displayed relative strength on Monday with a +0.75% gain and a new high. This looks like a new entry point although traders may want to wait and see that both FLT and the S&P 500 open positive tomorrow before initiating new 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.

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


Hanesbrands Inc. - HBI - close: 70.20 change: +0.10

Stop Loss: 68.90
Target(s): 74.75
Current Option Gain/Loss: -23.3%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
12/02/13: HBI temporarily traded below technical support at its 10-dma but shares rebounded to close in positive territory. More conservative traders could raise their stop closer to today's low (69.23).

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


Michael Kors - KORS - close: 81.76 change: +0.21

Stop Loss: 77.75
Target(s): 89.00
Current Option Gain/Loss: + 0.0%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
12/02/13: Most of the retail sector struggled today due to estimates for lowered than expected Thanksgiving sales. Yet KORS appears to be bucking the trend. Traders bought the dip near its 10-dma and the stock rebounded into positive territory.

- 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: 139.70 change: -1.97

Stop Loss: 138.45
Target(s): 148.50
Current Option Gain/Loss: + 59.0%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
12/02/13: Ouch! The profit taking in LMT continues and the stock is off more than four dollars in two days. Monday's decline is a bearish drop below $140.00 and its 10-dma. We are suggesting an immediate exit tomorrow morning.

- Suggested Positions -

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

12/02/13 prepare to exit tomorrow morning
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


Starbucks Corp. - SBUX - close: 81.07 change: -0.39

Stop Loss: 79.75
Target(s): 87.50
Current Option Gain/Loss: Unopened
Time Frame: 4 to 6 weeks
New Positions: Yes, see below

Comments:
12/02/13: SBUX retreated lower but nothing too serious. We want to buy a breakout but nimble traders could try and buy calls on a dip near $80.00 or its 50-dma near $79.25 as an alternative entry point.

Earlier Comments:
The long-term trend is up and SBUX appears to be ready for a bullish breakout into the next leg higher. I am suggesting a trigger to buy calls at $82.75. If triggered our multi-week target is $87.50. However, that might be a little bit optimistic so we'll need to be nimble with our exit strategy. We may end up exiting near SBUX's trend line of higher highs (see chart).

Trigger @ 82.75

- Suggested Positions -

Buy the 2014 Jan $85 call (SBUX1418a85)

Entry on November -- at $---.--
Average Daily Volume = 4.5 million
Listed on November 30, 2013


Constellation Brands Inc. - STZ - close: 70.72 change: +0.31

Stop Loss: 68.40
Target(s): 74.75
Current Option Gain/Loss: - 8.5%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
12/02/13: It was a relatively quiet session for STZ. Shares failed to breakout past the $71.00 level again. However, STZ did manage to outperform the market with a +0.44% gain on Monday.

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: 102.33 change: -0.05

Stop Loss: 99.75
Target(s): 108.00
Current Option Gain/Loss: - 4.0%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
12/02/13: Online shopping was the big winner over the weekend even if overall retail sales are expected to be lower than last year. All of those online sales means more shipping. FedEx (FDX) said Monday will be their busiest day of the year (and ever in the company's history) with over 22 million packages getting processed. UPS said they expect a +10% jump in packages today and will process over 32 million packages. That may have been why shares of UPS held up relatively well 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: 75.44 change: +0.40

Stop Loss: 73.40
Target(s): 79.75
Current Option Gain/Loss: -11.6%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
12/02/13: WDC initially gapped down this morning but traders bought the dip. Shares rebounded into positive territory and outperformed the market with a +0.5% gain. The low today was $74.38. More conservative traders may want to adjust their stops higher.

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: 93.92 change: +1.04

Stop Loss: 89.75
Target(s): 99.00
Current Option Gain/Loss: +79.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
12/02/13: WLP also outperformed the market on Monday. Traders bought the dip near its 10-dma and WLP rallied to a +1.1% gain.

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

Ctrip.com Intl. - CTRP - close: 47.28 change: -0.50

Stop Loss: 49.25
Target(s): 42.00
Current Option Gain/Loss: - 7.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
12/02/13: Our new trade on CTRP has been triggered. The stock saw a small gap down and then spiked lower before paring its losses. Our suggested entry point to buy puts was hit at $47.25.

Earlier Comments:
If triggered we'll start with a stop loss at $49.25. More aggressive traders may want to use a stop above the $50.00 level instead since $50 should be round-number resistance. Our target is $42.00 near its August 2013 lows. More aggressive traders could aim lower since the Point & Figure chart for CTRP is bearish with a $40 target.

- Suggested Positions -

Long 2014 Jan $45 PUT (CTRP1418m45) entry $2.10

12/02/13 triggered @ 47.25

Entry on December 02 at $47.25
Average Daily Volume = 3.7 million
Listed on November 30, 2013


SPDR Gold ETF - GLD - close: 117.58 change: -3.12

Stop Loss: 122.55
Target(s): 115.50
Current Option Gain/Loss: +17.7%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
12/02/13: Precious metals underperformed today. The GLD gapped open lower at $119.20 and then plunged to a -2.5% decline.

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

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


The St. Joe Company - JOE - close: 17.82 change: +0.08

Stop Loss: n/a *use small positions*
Target(s): $11.00-13.00 range
Current Option Gain/Loss: -42.3%
Time Frame: 2 to 3 months
New Positions: see below

Comments:
12/02/13: Monday proved to be somewhat of a volatile day for JOE. Shares spiked up above their 20-dma only to reverse and give back almost all of its gains. This could be the sort of failed rally we were looking for as a new entry point.

Remember, this is a lottery ticket style of trade.

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

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


Twitter, Inc. - TWTR - close: 40.78 change: -0.79

Stop Loss: n/a
Target(s): 35.25
Current Option Gain/Loss: - 75.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
12/02/13: It was an interesting session for TWTR. Today marked the end of the 25-day quiet period for underwriters of its IPO. The analyst opinions were mixed. Some listed TWTR with a "neutral" rating. A couple started coverage on it with a "buy". One firm slapped an "underperform" on the stock. According to Reuters, nine analyst firms have TWTR labeled with a "buy" rating, eight have issued a "hold" or neutral rating, and five firms have listed TWTR with a "sell" rating. The average analyst price target for TWTR a year from now is only $43.00. Yet I've been hearing a lot of chatter that many believe shares will trade down into the mid $30s.

Today's session is technically bearish with a failed rally at $42.00 and a bearish engulfing candlestick reversal pattern today. That's encouraging if you're bearish after a sharp, three-day bounce.

A new drop under $40.00 could be used as a bearish entry point but I'd buy the January puts. 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

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: 56.84 change: -0.52

Stop Loss: 54.90
Target(s): Sell half @ $58.00, sell the rest at $63.00
Current Option Gain/Loss: +55.5%
Time Frame: exit PRIOR to 2014 March option expiration
New Positions: see below

Comments:
12/02/13: It was a down day for the VGK. Nearly all the European markets closed in the red. A drop in the U.S. markets didn't help. The VGK gave up -0.9%. Look for support near $56 and its 50-dma.

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.

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


CLOSED BULLISH PLAYS

Costco Wholesale - COST - close: 123.69 change: -1.74

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

Comments:
12/02/13: A lot of retail-related names underperformed today thanks to news that retail sales over the Thanksgiving weekend were likely less than expected. Shares of COST underperformed the market with a -1.3% decline and hit our stop loss at $123.75. However, we had already decided to sell half of our position at the opening bell to lock in some gains.

COST opened at $125.66, which is actually a 23-cent jump from Friday's close. That allowed us to exit half of our call position at $3.20 (+146.1%). We exited the remainder when COST hit our stop at $123.75, option at $2.16 (+66.1%).

- Suggested Positions -

Long 2014 Jan $125 call (COST1418a125) entry $1.30 multiple exits, see below

12/02/13 (afternoon) stopped out. option @ $2.16 (+66.1%)
12/02/13 (morning) exit half at the open. Option @ $3.20 (+146.1%)
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: 93.56 change: -0.33

Stop Loss: 91.85
Target(s): 99.00
Current Option Gain/Loss: + 2.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
12/02/13: Over the weekend we decided to exit our CTSH trade at the opening bell on Monday morning. CTSH gapped down this morning at $93.14. The option gapped down to open at $2.20/2.30.

- Suggested Positions -

2014 Jan $95 call (CTSH1418a95) entry $2.15 exit $2.20 (+2.3%)

12/02/13 planned exit this morning
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


Johnson & Johnson - JNJ - close: 94.28 change: -0.38

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:
12/02/13: Upward momentum in JNJ seemed to be slowing. Over the weekend we decided to exit our JNJ positions at the opening bell on Monday morning. The stock gapped down at $94.41. The option actually saw a very small gap higher.

- Suggested Positions -

2014 Jan $95 call (JNJ1418a95) entry $1.51 exit $1.44 (- 4.6%)

12/02/13 planned exit
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