Editor's Note:

The U.S. market continued to see profit taking with its third decline in a row.

LMT was closed as planned. IBM hit our entry trigger.


Current Portfolio:


CALL Play Updates

Aon Plc. - AON - close: 81.88 change: +0.02

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:
12/03/13: Today's move in AON looks a lot like yesterday. Traders bought the morning dip but the bounce failed near resistance in the $82.50 area. Shares spent the rest of the session drifting sideways. 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: 120.39 change: -2.05

Stop Loss: 118.40
Target(s): 124.00
Current Option Gain/Loss: +25.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
12/03/13: ATK finally succumbed to a little profit taking. Traders started buying the dip near round-number support at $120.00. I am not suggesting new positions at this time.

- 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: 95.40 change: -0.05

Stop Loss: 94.90
Target(s): 99.75
Current Option Gain/Loss: - 1.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
12/03/13: CB flirted with a breakdown below support at $95.00. Shares almost hit our stop loss. A bounce from current levels could be used as a new bullish entry point.

- 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: 69.90 change: -1.01

Stop Loss: 68.45
Target(s): 77.50
Current Option Gain/Loss: -16.2%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
12/03/13: DIS underperformed today with a -1.4% decline thanks to an analyst downgrade. Shares were downgraded to a "neutral" because the firm believe DIS shares were fully valued at current levels. I remain bullish but look for a new rally above $70.25 before considering 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

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: 66.75 change: -0.21

Stop Loss: 64.45
Target(s): 74.00
Current Option Gain/Loss: -25.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
12/03/13: It was another quiet day for shares of ENDP. Nimble traders may want to look for another bounce from the $66.00 level before considering new positions.

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: 122.05 change: -0.65

Stop Loss: 119.70
Target(s): 128.50
Current Option Gain/Loss: - 13.6%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
12/03/13: FLT gave back about two-thirds of yesterday's gains. IF the dip continues we can look for likely support near the $120.00 mark and its simple 10-dma.

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: 70.12 change: -0.08

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:
12/03/13: HBI continues to churn sideways on either side of the $70.00 level. Traders may want to wait for a new rally past $70.80 before considering 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


Michael Kors - KORS - close: 80.39 change: -1.37

Stop Loss: 77.75
Target(s): 89.00
Current Option Gain/Loss: -24.3%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
12/03/13: KORS displayed some relative weakness today but it should have been stronger. New data came out for the Black Friday four-day weekend. Overall retail traffic was down -4% from last year. Yet apparel and accessories stores saw traffic up +9.4%. That should be bullish for a company like KORS.

More conservative traders may want to raise their stop closer to the $80.00 level.

- 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


Starbucks Corp. - SBUX - close: 80.55 change: -0.52

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:
12/03/13: SBUX continues to slowly retreat lower toward $80.00. Currently we are waiting on a breakout but more nimble traders may want to consider buying a dip near $80.00 or its 50-dma near $79.30.

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: 71.19 change: +0.47

Stop Loss: 69.40
Target(s): 74.75
Current Option Gain/Loss: + 5.7%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
12/03/13: STZ displayed relative strength with a +0.66% gain. This is also a new closing high for the stock. I am raising our stop loss to $69.40.

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

12/03/13 new stop loss at $69.40

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


United Parcel Service - UPS - close: 101.90 change: -0.43

Stop Loss: 99.75
Target(s): 108.00
Current Option Gain/Loss: -18.3%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
12/03/13: Amazon.com made headlines with a big surprise on the 60 minutes TV show that the company was experimenting with unmanned drones to deliver packages to your doorstep. This would cut out the deliveryman, like UPS. Believe it or not but UPS is also experimenting with drones. At least that's the chatter. UPS would not officially say they're experimenting with drones for delivery but they did say they spend more money on R&D than any of its competitors in the delivery business.

Shares of UPS tested short-term technical support at the rising 10-dma today. More conservative traders might want to raise their stop loss.

- 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: 75.53 change: +0.09

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:
12/03/13: It was a relatively mild session for WDC but shares did eke out a gain. 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: 92.56 change: -1.36

Stop Loss: 89.75
Target(s): 99.00
Current Option Gain/Loss: +36.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
12/03/13: Ouch! WLP completely erased yesterday's bounce. I didn't see any company-specific news to account for the morning weakness. It looks like the entire healthcare sector, especially the managed healthcare names, all turned lower this morning. WLP did bounce off its morning lows but it still underperformed the market with a -1.4% decline. I am not suggesting new positions.

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: 47.49 change: +0.21

Stop Loss: 49.25
Target(s): 42.00
Current Option Gain/Loss: -11.9%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
12/03/13: CTRP spent most of today's session drifting sideways in a very narrow range. However, by the closing bell the stock was up +0.4%. Readers might want to wait for a new drop below $46.00 before initiating positions.

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: + 7.2%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
12/03/13: The GLD saw a small bounce this morning but gains faded and shares spent most of the day meandering sideways.

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


Intl. Business Machines - IBM - close: 176.08 change: -1.40

Stop Loss: 181.25
Target(s): 170.25
Current Option Gain/Loss: +12.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
12/03/13: Our new IBM trade is off to a good start. Shares gapped open lower at $177.00 and then fell to a new four-week low with today's -0.78% decline. Our suggested entry point to buy puts was hit at $176.90.

Earlier Comments:
Our target is $170.25, a new lower low. However, more conservative traders may want to exit near the October lows near $172.50 since they could be potential support.

- Suggested Positions -

Long 2014 Jan $175 PUT (IBM1418m175) entry $3.15

Entry on December 03 at $176.90
Average Daily Volume = 5.1 million
Listed on December 02, 2013


The St. Joe Company - JOE - close: 17.97 change: +0.15

Stop Loss: n/a *use small positions*
Target(s): $11.00-13.00 range
Current Option Gain/Loss: -51.9%
Time Frame: 2 to 3 months
New Positions: see below

Comments:
12/03/13: Hmm... today is the second day in the last three sessions that traders have bought the dip near $17.50 in shares of JOE. The stock is clearly not cooperating with a four-day bounce. Yet the larger trend remains bearish.

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: 41.37 change: +0.59

Stop Loss: n/a
Target(s): 35.25
Current Option Gain/Loss: - 83.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
12/03/13: TWTR is not cooperating with our bearish designs on the stock. There was no follow through lower on yesterday's bearish reversal pattern. The stock outperformed the broader market today with a +1.4% gain. We only have 13 sessions left for our December options.

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: 56.34 change: -0.50

Stop Loss: 54.90
Target(s): Sell half @ $58.00, sell the rest at $63.00
Current Option Gain/Loss: +38.8%
Time Frame: exit PRIOR to 2014 March option expiration
New Positions: see below

Comments:
12/03/13: It was another down day for European markets and another drop for the U.S. markets. This helped the VGK shave off another half point. This ETF is nearing what should be short-term support near $56.00 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

Lockheed Martin - LMT - close: 138.77 change: -0.93

Stop Loss: 138.45
Target(s): 148.50
Current Option Gain/Loss: + 40.9%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
12/03/13: LMT continued to see profit taking on Tuesday. Our plan was to exit positions at the opening bell today. Unfortunately, LMT gapped lower at $139.31.

- Suggested Positions -

2014 Jan $140 call (LMT1418a140) entry $2.20 exit $3.10 (+40.9%)

12/03/13 planned exit
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

chart:

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