Editor's Note:

The U.S. major market indices all closed in the green but gains were mild.

Shares of Western Digital Corp. (WDC) hit our bullish exit target today.

We closed ENDP at the open this morning. NKE was triggered.


Current Portfolio:


CALL Play Updates

Allergan, Inc. - AGN - close: 98.04 change: -0.16

Stop Loss: 94.95
Target(s): 102.50
Current Option Gain/Loss: -15.0%
Time Frame: Exit prior to January option expiration
New Positions: see below

Comments:
12/09/13: Monday proved to be a quiet session for shares of AGN. The stock drifted sideways hovering near the $98.00 level.

Earlier Comments:
There is a chance that AGN could fill the gap and that would mean a dip back toward the $96.50-96.75 area. Nimble traders might want to consider waiting for a dip to launch new positions.

Our multi-week target is $102.50. More aggressive traders could aim higher. The Point & Figure chart for AGN is bullish with a $110 target.

- Suggested Positions -

Long 2014 Jan $100 call (AGN1418a100) entry $2.00

12/06/13 triggered on gap higher at $98.02, suggested trigger was $97.00

Entry on December 06 at $98.02
Average Daily Volume = 1.9 million
Listed on December 05, 2013


Aon Plc. - AON - close: 82.90 change: +0.15

Stop Loss: 80.75
Target(s): 85.00
Current Option Gain/Loss: +20.5%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
12/09/13: AON tagged a new all-time high above the $83.00 level midday. The stock pared its gains by the closing bell. I am not suggesting new positions at this time.

- Suggested Positions -

Long 2014 Jan $82.50 call (AON1418a82.5) entry $1.70

12/07/13 new stop loss @ 80.75
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: 71.11 change: -0.35

Stop Loss: 68.95
Target(s): 77.50
Current Option Gain/Loss: +10.8%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
12/09/13: DIS spent Monday's session drifting sideways along the $71.00 level. There appears to be short-term resistance near $71.70. If you like breakouts then a rally past this level could be a new entry point. If you like to buy dips then look for a dip near $70.00.

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

12/07/13 new stop loss @ 68.95
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


Russell 2000 ETF - IWM - close: 112.45 change: -0.03

Stop Loss: 109.95
Target(s): 116.00
Current Option Gain/Loss: - 7.6%
Time Frame: exit prior to January option expiration
New Positions: see below

Comments:
12/09/13: The small cap ETF shot lower at the ten o'clock hour but managed to pare its losses by the closing bell to close almost unchanged. I would still consider new positions now.

- Suggested Positions -

Long 2014 Jan $112 call (IWM1418a112) entry $2.62

12/06/13 trade opened on gap higher at $112.62, suggested trigger was $112.55

Entry on December 06 at $112.62
Average Daily Volume = 40.6 million
Listed on December 04, 2013


Michael Kors - KORS - close: 80.61 change: +0.93

Stop Loss: 78.49
Target(s): 89.00
Current Option Gain/Loss: -35.1%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
12/09/13: KORS displayed some relative strength today and almost erased Friday's decline. Shares do seem to have developed a short-term (six-day) trend of lower highs. Traders may want to wait for a new rally above $81.00 before considering new positions.

- Suggested Positions -

Long 2014 Jan $85 call (KORS1418a85) entry $1.85

12/07/13 new stop loss @ 78.49, readers may want to consider an early exit right here
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


Nike Inc. - NKE - close: 79.78 change: -0.08

Stop Loss: 78.45
Target(s): 84.75
Current Option Gain/Loss: - 10.4%
Time Frame: Exit PRIOR to earnings on Dec. 19th
New Positions: see below

Comments:
12/09/13: Thankfully we did not have to wait very long for NKE to hit our entry trigger. Shares rallied to a new high and traded to $80.26 this morning. Our trigger to buy calls was hit at $80.25 (coincidence?). Unfortunately the rally didn't last and NKE faded back under the $80.00 level.

At this point I would wait for a new rise above $80.30 before initiating new positions.

Earlier Comments:
This is a short-term trade. NKE is due to report earnings on December 19th and we do not want to hold over the announcement. Plan to exit prior to the report.

FYI: NKE will begin trading ex-dividend on December 12th. The quarterly cash dividend should be 24 cents.

- Suggested Positions -

Long 2014 Jan $80 call (NKE1418a80) entry $2.59

Entry on December 09 at $80.25
Average Daily Volume = 2.6 million
Listed on December 07, 2013


QUALCOMM Inc. - QCOM - close: 73.37 change: -0.39

Stop Loss: 71.75
Target(s): 79.50
Current Option Gain/Loss: Unopened
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
12/09/13: Shares of QCOM saw a very brief spike higher this morning but the rally stalled under $74.20. Shares traded back down toward short-term support near $73.00 before paring its losses. I do not see any changes from my weekend new play description.

Earlier Comments:
Currently QCOM has been consolidating sideways and actually weathered the market's recent five-day decline pretty well. Shares are now poised to breakout past resistance at $74.00. I am suggesting a trigger to buy calls at $74.25. If triggered our target is $79.50. More aggressive traders may want to aim higher since the Point & Figure chart for QCOM is bullish with a $93 target.

FYI: Don't forget that QCOM does significant amount of business with Apple (AAPL) and if AAPL has any bad headlines it could impact QCOM shares.

Trigger @ 74.25

- Suggested Positions -

Buy the 2014 Jan $75 call (QCOM1418a75)

- or -

Buy the 2014 Feb $75 call (QCOM1422b75)

Entry on December -- at $---.--
Average Daily Volume = 11.5 million
Listed on December 07, 2013


Constellation Brands Inc. - STZ - close: 70.65 change: +0.57

Stop Loss: 69.40
Target(s): 74.75
Current Option Gain/Loss: -17.1%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
12/09/13: Hmm... STZ tried to rally this morning but it failed near last week's highs. I would not be surprised to see another dip to the $70.00 level soon. I am not suggesting new positions at this time.

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: 83.00 change: +0.09

Stop Loss: 80.75
Target(s): 88.50
Current Option Gain/Loss: -22.1%
Time Frame: 4 to 5 weeks
New Positions: see below

Comments:
12/09/13: UHS saw a spike lower this morning. Yet traders bought the dip near short-term support around the $82.00 level.

At the moment I would wait for a new rise above $83.35 before initiating new positions. More conservative traders might want to consider a stop loss closer to the $81.50-82.00 area.

- Suggested Positions -

Long 2014 Jan $85 call (UHS1418a85) entry $1.67*

12/06/13 triggered at $83.60
*option entry price is an estimate since the option did not trade at the time our play was opened.

Entry on December 06 at $83.60
Average Daily Volume = 912 thousand
Listed on December 03, 2013


United Parcel Service - UPS - close: 102.34 change: -0.09

Stop Loss: 99.75
Target(s): 108.00
Current Option Gain/Loss: -17.3%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
12/09/13: It was another quiet day for UPS. The stock spiked up toward resistance near $103.00 and failed, just like Friday's session. Readers may want to inch their stop loss higher. 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




PUT Play Updates

SPDR Gold ETF - GLD - close: 119.72 change: +1.17

Stop Loss: 121.25
Target(s): 115.50
Current Option Gain/Loss: -27.2%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
12/09/13: Another decline in the U.S. dollar could be lifting gold prices. The GLD added +0.98% and looks poised to breakout past the $120.00 level soon.

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

12/05/13 new stop loss @ 121.25
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: 177.46 change: -0.21

Stop Loss: 178.65
Target(s): 170.25
Current Option Gain/Loss: -13.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
12/09/13: IBM is still trying to breakout past short-term resistance near $178.00. The stock did eventually underperform the market today with a minor decline. We are going to try and reduce our risk by lowering the stop loss to $178.65.

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

12/09/13 new stop loss @ 178.65

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


The St. Joe Company - JOE - close: 17.98 change: +0.38

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:
12/09/13: JOE is still not cooperating. The stock displayed relative strength today with a +2.1% gain that erased the last two days worth of declines.

We do not currently have a stop loss but you may want to add a stop in the $18.50-19.00 area.

Remember, this is a lottery ticket style of trade.

I don't see any changes from JOE'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


Kansas City Southern - KSU - close: 119.88 change: +1.73

Stop Loss: 120.50
Target(s): 114.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
12/09/13: Hmm... Monday was an interesting day for KSU. After underperforming the market late last week shares suddenly reversed higher. KSU actually saw a small spike below $118.00 but shares failed to hit our suggested entry point at $117.75 (the low was $117.80). Then suddenly KSU reversed sharply higher before stalling at round-number resistance near $120.00. I do not see any company-specific news to account for today's relative strength.

If we see KSU close above $120.00 we'll likely drop it as a bearish candidate. For the moment our plan is unchanged. I am suggesting a trigger to buy puts at $117.75. If triggered our target is $114.00. More aggressive traders may want to aim lower for the simple 200-dma instead.

Trigger @ 117.75

- Suggested Positions -

buy the 2014 Jan $115 PUT (KSU1418m115)

Entry on December -- at $---.--
Average Daily Volume = 486 thousand
Listed on December 07, 2013



Longer-Term Play Updates



Vanguard FTSE Europe ETF - VGK - close: 56.60 change: +0.06

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:
12/09/13: The major stock indices in Europe and the U.S. closed in the green today. Yet gains for the VGK were mild. This ETF seemed to struggle with its 10, 20, and 30-dma, all directly overhead near $56.60.

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

Endo Health Solutions - ENDP - close: 65.90 change: -0.04

Stop Loss: 64.75
Target(s): 74.00
Current Option Gain/Loss: -39.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
12/09/13: ENDP's upward momentum appears to have stalled. We wanted to exit positions on Monday morning. Shares opened at $66.10 (+16 cents) before dipping to their 20-dma.

- Suggested Positions -

2014 Jan $70 call (ENDP1418a70) entry $2.40 exit $1.70* (-39.5%)

12/09/13 planned exit this morning
12/07/13 prepare to exit on Monday morning, Dec. 9th
12/05/13 new stop loss @ 64.75

chart:

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


Western Digital Corp. - WDC - close: 78.80 change: -0.11

Stop Loss: 75.75
Target(s): 79.75
Current Option Gain/Loss: +85.6%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
12/09/13: Target achieved.

Shares of WDC rallied this morning and hit $79.89 before reversing its gains. Our exit target was hit at $79.75.

- Suggested Positions -

2014 Jan $80 call (WDC1418a80) entry $1.46 exit $2.71 (+ 85.6%)

12/09/13 target hit
12/07/13 new stop loss @ 75.75
12/04/13 new stop loss @ 74.75
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