Editor's Note:

The equity markets were getting a little whipsawed today with stocks unable to pick a trend. However, by the closing bell, even with the big afternoon bounce, the S&P 500 still posted its fourth decline in a row.

ATK and CB were stopped out. TWTR has been removed.

We've adjusted the entry trigger on SBUX.


Current Portfolio:


CALL Play Updates

Aon Plc. - AON - close: 81.47 change: -0.41

Stop Loss: 79.85
Target(s): 85.00
Current Option Gain/Loss: -11.7%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
12/04/13: AON dipped toward its 20-dma before paring its losses. Upward momentum has definitely stalled with AON churning inside the $81.00-82.50 zone the last two weeks. 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


The Walt Disney Co. - DIS - close: 69.97 change: -0.07

Stop Loss: 68.45
Target(s): 77.50
Current Option Gain/Loss: -36.7%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
12/04/13: DIS managed to outperform the market with a positive close today. Gains were mild. Traders did buy the dip near its rising 30-dma again.

In other news DIS announced it was raising its quarterly dividend from 75 cents to 86 cents, a +15% raise. The dividend is payable on January 16th to shareholders on record as of December 16th.

Today's rally failed near yesterday's high. Investors may want to wait for a new rally above $70.50 before initiating 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: 66.45 change: -0.30

Stop Loss: 64.45
Target(s): 74.00
Current Option Gain/Loss: -33.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
12/04/13: ENDP continues to bounce from short-term support near $66.00. More conservative traders might want to consider raising their stop closer to $66.00.

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: 121.99 change: -0.06

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:
12/04/13: Traders bought the dip twice near $120.70 today (coincidentally near its simple 10-dma). FLT managed to bounce back and close almost unchanged.

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: 69.79 change: -0.33

Stop Loss: 68.90
Target(s): 74.75
Current Option Gain/Loss: -30.6%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
12/04/13: HBI is still drifting (mostly) sideways while the market moves lower. However, it is worth noting that HBI did close below its 10-dma for the first time in weeks. That is technically bearish. I am not suggesting new positions at this time.

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: 80.76 change: +0.37

Stop Loss: 77.75
Target(s): 89.00
Current Option Gain/Loss: -21.6%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
12/04/13: KORS traded below the $80.00 level midday but the market's afternoon bounce pulled KORS back above this key level. The low today was $79.10. More conservative traders may want to raise their stop loss closer to the $79.00 level. I am not suggesting new positions at this time.

- 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: 79.50 change: -1.05

Stop Loss: 78.75
Target(s): 87.50
Current Option Gain/Loss: Unopened
Time Frame: 4 to 6 weeks
New Positions: Yes, see below

Comments:
12/04/13: SBUX has followed the market lower with a four-day decline. Shares are below the $80.00 level but they're about to test what should be technical support at its simple 50-dma. We're expecting SBUX to bounce.

Today's high was $80.72. I am adjusting our suggested entry point from $82.75 down to $81.00. We'll adjust the stop loss to $78.75. We are also adjusting the option to the 2014 January $82.50 call.

Earlier Comments:
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.

Trigger @ 81.00

- Suggested Positions -

Buy the 2014 Jan $82.50 call (SBUX1418a82.5) current ask $1.15

12/04/13 adjust entry trigger from $82.75 to $81.00
adjust the stop loss from $79.75 to $78.75
adjust the option strike to the 2014 Jan. $82.50 call

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


Constellation Brands Inc. - STZ - close: 71.28 change: +0.09

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:
12/04/13: STZ seems a bit bullet proof. The stock has shrugged off the market's four-day decline. Traders bought the dip near its rising 10-dma and closed at a new 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

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


Universal Health Services - UHS - close: 82.81 change: -0.28

Stop Loss: 80.75
Target(s): 88.50
Current Option Gain/Loss: Unopened
Time Frame: 4 to 5 weeks
New Positions: Yes, see below

Comments:
12/04/13: UHS held up pretty well today. The stock churned sideways inside the $82-83 zone.

We are suggesting a trigger to buy calls at $83.60. If triggered our target is $88.50.

Trigger @ 83.60

- Suggested Positions -

buy the 2014 Jan $85 call (UHS1418a85)

Entry on December -- at $---.--
Average Daily Volume = 912 thousand
Listed on December 03, 2013


United Parcel Service - UPS - close: 101.72 change: -0.18

Stop Loss: 99.75
Target(s): 108.00
Current Option Gain/Loss: -23.4%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
12/04/13: UPS went from its 10-dma to its 20-dma with today's intraday dip. The stock bounced off its midday lows and almost made it back to breakeven. More conservative traders might want to consider a stop closer to today's low ($100.75). I am not suggesting new positions at this time.

- 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: 77.57 change: +2.04

Stop Loss: 74.75
Target(s): 79.75
Current Option Gain/Loss: +36.9%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
12/04/13: WDC surged following an analyst upgrade this morning. The stock hit $78.79 intraday (a +4.3% gain) but shares pared their gains by the close (+2.7%). I am raising our stop loss to $74.75.

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

12/04/13 new stop loss @ 74.75
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: 91.59 change: -0.97

Stop Loss: 89.75
Target(s): 99.00
Current Option Gain/Loss: - 1.7%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
12/04/13: WLP saw another sell off today. Shares dipped toward their 20-dma and hit $90.51 before paring its losses. The $90.00 level should be support so I would expect any declines to mellow from here. 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: 47.44 change: -0.05

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:
12/04/13: It was a quiet day for CTRP. The fact that shares are not sinking while the market sinks is troubling. The overall trend still looks bearish but I am growing more cautious here. Readers may want to scale back their position size or lower their stops. I am not suggesting new positions at this time.

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: 119.96 change: +2.00

Stop Loss: 122.55
Target(s): 115.50
Current Option Gain/Loss: -21.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
12/04/13: The U.S. dollar early morning gains faded but overall the dollar didn't see that much of a decline. Thus we can't blame today's big bounce in gold and silver on the dollar. There is talk that today's move in the GLD was actually a short covering rally, which would help explain the sudden midday surge.

I am not suggesting new positions at this time.

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: 175.74 change: -0.34

Stop Loss: 181.25
Target(s): 170.25
Current Option Gain/Loss: +17.4%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
12/04/13: IBM continues to sink with traders selling the midday rally. Yet losses were mild today.

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: 17.95 change: -0.02

Stop Loss: n/a *use small positions*
Target(s): $11.00-13.00 range
Current Option Gain/Loss: -61.5%
Time Frame: 2 to 3 months
New Positions: see below

Comments:
12/04/13: It was another quiet session for JOE. The stock traded up to its 20-dma and then pared its gains to close virtually unchanged.

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



Longer-Term Play Updates



Vanguard FTSE Europe ETF - VGK - close: 56.03 change: -0.31

Stop Loss: 54.90
Target(s): Sell half @ $58.00, sell the rest at $63.00
Current Option Gain/Loss: +25.0%
Time Frame: exit PRIOR to 2014 March option expiration
New Positions: see below

Comments:
12/04/13: A fourth down day in a row for both the European markets and the S&P 500 continues to pressure the VGK. Today this ETF saw a gap down below its 50-dma only to bounce back and close on its high for the session. I am not suggesting new positions at this time. If shares continue to sink it would look like a breakdown of the five-month trend of higher lows. More conservative investors may want to raise their stops tonight.

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

Alliant Techsystems Inc. - ATK - close: 118.50 change: -1.89

Stop Loss: 118.40
Target(s): 124.00
Current Option Gain/Loss: -16.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
12/04/13: Defense-related names continued to sell off on Wednesday and ATK was no exception with a breakdown below $120.00 and a breakdown below support at its rising 10-dma. Shares hit our stop at $118.40.

I would keep ATK on your watch list. The $110 level should be decent support and if this dip reaches the $110 area it could be a new bullish entry point.

- Suggested Positions -

DEC $120 call (ATK1322L120) entry $1.80 exit $1.50 (-16.6%)

12/04/13 stopped out
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

chart:

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


The Chubb Corp. - CB - close: 94.10 change: -1.30

Stop Loss: 94.90
Target(s): 99.75
Current Option Gain/Loss: -16.2%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
12/04/13: It was a rough day for CB. Shares underperformed both the financial sector and its peers in the insurance industry. I didn't see any company-specific news to account for today's relative weakness. The stock did breakdown below multiple layers of support. Our stop would have been hit at $94.90 but CB actually gapped down at $94.86.

- Suggested Positions -

2014 Jan $95 call (CB1418a95) entry $1.85* exit $1.55 (-16.2%)

12/04/13 stopped out
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

chart:

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


CLOSED BEARISH PLAYS

Twitter, Inc. - TWTR - close: 43.69 change: +2.32

Stop Loss: n/a
Target(s): 35.25
Current Option Gain/Loss: - 91.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
12/04/13: We are removing TWTR as an active bearish play. The stock shot higher this morning and the breakthrough above the $42.00 level is short-term bullish. There was no follow through on the November 25th breakdown to new lows and there was no follow through on Monday's (Dec. 2nd) failed rally at $42.00.

We had labeled this an aggressive, high-risk trade and did not use a stop loss. Currently the December $35 put has a bid/ask spread of $0.05/0.10. I wouldn't actually exit now since all the damage has been done but we are removing TWTR from the newsletter. You never know what could happen between now and December option expiration on December 20th.

*Small Positions* - Suggested Positions -

Dec $35 PUT (TWTR1321x35) entry $0.60 potential exit $0.05 (-91.6%)

12/04/13 removed from the newsletter

chart:

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