Closed Plays


None. No closed plays this week.


Play Updates


Arch Coal Inc. - ACI - close: 35.06

01/01 update: Coal stocks and most resource-related stocks continued to perform well. ACI rallied to new two-year highs last week. Shares are somewhat overbought. When the market corrects ACI could see a significant pull back. On a short-term basis I see some support near $34, $32, and $30. Please note our new stop loss at $29.75. Our long-term target is $39.75. More aggressive traders could aim a lot higher, especially if you're holding the 2013 calls.

- Current Positions -
Nov 22, 2010 - entry price on ACI @ 30.15, option @ 3.90
symbol: ACI1221A35 2012 JAN $35 call - current bid/ask $ 5.95/ 6.05

- or -

Nov 22, 2010 - entry price on ACI @ 30.15, option @ 5.15
symbol: ACI1319A35 2013 JAN $35 call - current bid/ask $ 8.15/ 8.40

01/01/11 new stop loss @ 29.75
12/25/10 New stop loss @ 28.75
11/22/10 Play opened. ACI @ $30.15

Current Target: $39.75
Current Stop loss: 29.75
Play Entered on: 11/22/10
Originally listed in the New Plays 11/20/10


Akamai Technology - AKAM - close: 47.05

01/01 update: The correction in AKAM continues. The stock is now about -13% from its highs. The peaks in November and December are starting to look like a bearish double top. I have been warning readers to expect a pull back toward the 200-dma. AKAM might find some additional support near the $45.00 level. I am not suggesting new positions at this time. If AKAM does indeed find support near $45 then we'll reconsider new bullish positions.

Previous Comments:
We have already taken profits on our 2011 calls. That leaves the 2012 calls. FYI: AKAM has seen some takeover chatter in the last several months.

- Current Positions -
Oct 06, 2010 - entry price on AKAM @ 45.50, option @ 7.50
symbol: AKAM1221A50 2012 JAN $50 call - current bid/ask $ 7.25/ 7.50

- Third Position -

Dec. 20, 2010 - entry price on AKAM @ 50.49, option @ 5.40
symbol: AKAM1221A60 2012 JAN $60 call - current bid/ask $ 4.05/ 4.20

12/25/10 AKAM is breaking down. Cautious traders exit early.
12/18/10 New Entry point, AKAM @ $50.87, 2012 Jan. $60 call ask @ $6.35
11/27/10 New stop @ 43.75
10/30/10 Sell the 2011 Jan. calls, option bid @ 5.10 (+78.9%)
10/06/10 Play triggered when AKAM hit $45.50

Current Target: $69.00
Current Stop loss: 43.75
Play Entered on: 10/06/10
Originally listed on the Watch List 10/02/10


Baidu, Inc. (Baidu.com) - BIDU - close: 96.53

01/01 update: BIDU's oversold bounce has failed in the $100 area. This could be bad news for us. BIDU is back under its 100-dma and is now testing its long-term trendline of higher lows. At this point I would expect the dip to retest $95.00 again. Aggressive traders could buy the dip at $95.00 as long as they keep their stop at $94.00. Otherwise, I am not suggesting new bullish positions at this time. If stocks don't bounce this week BIDU may end up getting stopped out.

Previous Comments:
BIDU is a very volatile stock. This is an aggressive, higher-risk trade. Keep your position size small to limit your risk. We have already taken profits on the 2011 calls.

- Current Positions -
Only one position left.

Aug 02, 2010 - entry price on BIDU @ 83.50, option @ 13.00
symbol: BIDU1221A100 2012 JAN $100 call - current bid/ask $18.55/18.80

12/20/10 BIDU spikes down to $94.33 (our stop is $94.00)
10/30/10 Adjusted exit target to $129.00.
10/23/10 New stop loss @ 94.00
10/21/10 BIDU reports strong earnings.
10/02/10 Sell half of 2012 calls, BIDU @ 98.80, option @ 22.30 (+71.5%)
09/25/10 Take Profits on the 2011 calls, BIDU @ 97.83, option @ 14.75 (+84.3%)
09/25/10 New stop @ 79.00

Current Target: $129.00
Current Stop loss: 94.00
Play Entered on: 08/02/10
Originally listed on the Watch List 07/31/10


Berkshire Hathaway - BRK.B - close: 80.11

01/01 update: Another week has pasted and BRK.B is still dancing sideways along its simple 200-dma. Unfortunately shares are still building their bearish trend of lower highs too. Currently our stop loss is at $77.75. I would prefer to see a move over $81.00 or $82.00 before considering new bullish positions. We only have three weeks left on our 2011 January calls.

- Current Positions -
Oct 29, 2010 - entry price on BRK.B @ 79.00, option @ 1.25
symbol: BRKB1122A85 2011 JAN $85 call - current bid/ask $ 0.05/ 0.07

- or -

Oct 29, 2010 - entry price on BRK.B @ 79.00, option @ 5.00
symbol: BRKB1221A90 2012 JAN $90 call - current bid/ask $ 3.45/ 3.60

12/11/10 New stop loss @ 77.75.
11/20/10 New entry point on bounce from 200-dma
11/20/10 New stop @ 75.75
10/29/10 Play triggered on dip at $79.00.

Current Target: $ 99.00
Current Stop loss: 77.75
Play Entered on: 10/29/10
Originally listed on the Watch List 09/11/10


ConocoPhillips - COP - close: 68.10

01/01 update: COP almost hit our target on Friday. The high was $68.58. Our exit target is $69.00. More aggressive traders could aim higher. You certainly have more time. I'm not suggesting new bullish positions at this time but if COP does hit our exit target we'll put it back on the watch list for a dip toward support. More conservative traders may want to go ahead and exit now or raise their stops toward the $62.50 area.

Prior Comments:
We have already taken profits on the 2011 calls. That leaves the 2012 call position and our long-term target is $69.00.

- Current Positions -
May 20, 2010 - entry price on COP @ 51.00, option @ 4.75
symbol: COP 11A55.00 2012 JAN $60 call - current bid/ask $10.80/10.90

12/25/10 New stop loss @ 59.75
10/23/10 Exit the 2011 Jan. $55 calls @ 7.05 (+88%)
10/23/10 New stop loss @ 54.85
10/11/10 New stop loss @ 51.90
09/04/10 COP gave us a new entry with the move over $54.00
07/17/10 COP's bounce has failed. Consider an early exit!
07/03/10 More Conservative traders may want to exit early!

Current Target: $ 69.00
Current Stop loss: 59.75
Play Entered on: 05/20/10
Originally listed on the Watch List 05/08/10


Deere & Co - DE - close: 83.05

01/01 update: Nothing has changed for us with DE. The stock is still consolidating sideways and I'm expecting a pull back toward support near $80.00. This should also coincide with DE's multi-month bullish trend of higher lows. If you're looking for a new entry point a dip near $80.00 is where I would consider new positions. Cautious traders may want to move their stop closer to $78.00 instead. Our first target is $88.00.

- Current (very small) Positions -
Nov 26, 2010 - entry price on DE @ 75.50, option @ 4.75
symbol: DE1221A90 2012 JAN $90 call - current bid/ask $7.05/7.20

12/25/10 New stop loss @ 74.80
12/04/10 DE offered another entry point with the move over $77.50
11/26/10 DE hit our trigger @ 75.50

Current Target: $ 88.00, 94.00
Current Stop loss: 74.80
Play Entered on: 11/26/10
Originally listed on the Watch List --/--/--


Walt Disney Co. - DIS - close: 37.51

01/01 update: DIS is still consolidating under resistance near $38.00. Thankfully shares are still building their bullish trend of higher lows. This would suggest DIS will breakout higher soon. There is no change from my prior comments. Readers may want to wait for a close over resistance at $38.00 before considering new bullish positions. Bear in mind my editor's note and market wrap commentary this weekend (we could see a correction in January). Cautious traders might want to move their stop loss closer to $35.00.

- Current Positions -
Oct 27, 2010 - entry price on DIS @ 35.60, option @ 2.23
symbol: DIS1221A40 2012 JAN $40 call - current bid/ask $ 2.85/ 2.90

- or -

Oct 27, 2010 - entry price on DIS @ 35.60, option @ 3.63
symbol: DIS1319A40 2013 JAN $40 call - current bid/ask $ 4.30/ 4.60

10/27/10 Play opened, DIS opened @ $35.60

Current Target(s): $42.00
Current Stop loss: 32.75
Play Entered on: 10/27/10
Originally listed on the Watch List 10/24/10


EMC Corp. - EMC - close: 22.90

01/01 update: EMC tagged new three-year highs last week above the $23.00 mark. Upward momentum seems to be losing steam. I would expect a pull back toward the $22.00 level. If the market does see a correction in mid January like we think it might then EMC could see a correction toward its 100-dma closer to $21. I am not suggesting new bullish positions at this time. We might want to consider raising our long-term exit target since we have a year on our 2012 calls.

- Current Positions -
May 6, 2010 - entry price on EMC @ 18.25, option @ 2.50
symbol: EMC 12A20.00 2012 Jan $20 call - current bid/ask $4.30/4.35

12/13/10 New stop loss @ 19.95
12/13/10 Target hit @ 22.50, Exit 2011 Jan. $20 calls @ $2.51 (+79.2%)
12/13/10 Target hit @ 22.50, Sell half 2012 $20 calls @ $4.15 (+66%)
12/11/10 New stop loss @ 19.49
10/23/10 Sell Half of the 2011 calls, bid @ 2.06 (+47%)
10/23/10 New stop loss @ 18.40
09/04/10 EMC has provided a new entry point with the move over $19
07/03/10 More Conservative Traders may want to exit early!

Current Target(s): $22.50 & 24.75
Current Stop loss: 19.95
Play Entered on: 05/06/10
Originally listed on the Watch List 03/20/10


Express Scipts - ESRX - close: 54.05

01/01 update: ESRX has started to correct lower. Shares are developing a trend of lower highs and lower lows. I would still look for support in the $52-50 zone. I am not suggesting new bullish positions on ESRX at this time. Currently our exit target is $59.50.

- Current Positions -
Oct 25, 2010 - entry price on ESRX @ 49.30, option @ 4.85
symbol: ESRX1221A55 2012 Jan $55 call - current bid/ask $6.10/6.25

- or -

Oct 25, 2010 - entry price on ESRX @ 49.30, option @ 7.10
symbol: ESRX1319A55 2013 Jan $55 call - current bid/ask $8.90/ 9.75

12/18/10 new stop @ 49.75
12/04/10 new stop @ 47.90
11/06/10 New stop @ 46.90
10/25/10 Trade is opened. ESRX opens @ $49.30

Current Target(s): $59.50
Current Stop loss: 49.75
Play Entered on: 10/25/10
Originally listed on the Watch List 10/16/10


SPDR Gold ETF - GLD - close: 138.72

01/01 update: Recent weakness in the U.S. dollar has fueled big gains for the commodity space. Gold has rallied back toward its highs. The GLD is also nearing its highs set in early December. On a short-term basis the GLD should have support near its 50-dma around $135. If that fails then look for support near $130. Currently our final target is $149.00. I'm not suggesting new positions at this time.

FYI: Goldman Sachs is forecasting gold to hit $1,700 an ounce in 2011. We might want to reconsider raising our final exit target.

- Current Positions -
Aug 6, 2010 - entry price on GLD @ 118.00, option @ 10.75
symbol: GLD1221A130 2012 Jan $130 call - current bid/ask $17.90/18.30

11/09/10 Target hit - GLD opened at $138.70, 2011 Mar. Call opened @ $20.00 (+159%)
11/06/10 new stop @ 123.40
10/30/10 New stop @ 121.00. Readers may want to exit ahead of FOMC meeting
10/02/10 Sell half of the 2011 March calls, option @ 12.70 (+64.9%)
10/02/10 New stop $ 118.49
09/25/10 New stop @ 116.45, new target 138.50

Current Target(s): $149.00
Current Stop loss: 123.40
Play Entered on: 08/06/10
Originally listed on the Watch List 06/05/10


Goldman Sachs - GS - close: 168.16

01/01 update: There has not been much follow through on GS's failed rally near $171 last week. While this is positive I'm not convinced GS won't see a steeper pull back. If you are looking for a new entry point I'd probably wait to see where GS dips to during the mid to late January correction we're expecting in the market. Alternatively if you like to see strength then wait for a close over resistance near $171.00-172.00. FYI: GS is due to report earnings on January 19th.

- Current Positions -
Nov 22, 2010 - entry price on GS @ 160.75, option @ 4.25
symbol: GS1116D180 2011 Apr $180 call - current bid/ask $ 4.60/ 4.75

- or -

Nov 22, 2010 - entry price on GS @ 160.75, option @ 9.40
symbol: GS1221D190 2012 Jan $190 call - current bid/ask $10.95/11.15

12/11/10 New stop loss @ 152.75
11/22/10 GS hit our trigger @ $160.75

Current Target(s): $179.75, 199.50
Current Stop loss: 152.75
Play Entered on: 11/22/10
Originally listed on the Watch List 10/24/10


Humana Inc. - HUM - close: 54.74

01/01 update: HUM is still struggling with a bearish trend of lower highs. Before the month of January is over we might see this stock retest support near $51-50 and its simple 200-dma. Therefore I'm not suggesting new bullish positions at this time.

Previous Comments:
We have already sold (exited) our 2011 calls for a profit.

- Current Positions -
Sep 17, 2010 - entry price on HUM @ 50.50, option @ 6.40
symbol: HUM1221A55 2012 Jan $55 call - current bid/ask $ 6.60/ 6.90

12/11/10 New stop loss @ 49.75
11/20/10 Entry point on the dip.
10/23/10 Exit (sell) the 2011 Jan. $55 calls, bid @ 4.40 (+137%)
10/23/10 New stop loss $ 48.75
10/16/10 New stop loss @ 47.40
10/11/10 New Entry point - HUM is breaking out past $51.00.

Current Target(s): $69.00
Current Stop loss: 49.75
Play Entered on: 09/17/10
Originally listed on the Watch List 09/04/10


Intl.Business Machines - IBM - close: 146.76

01/01 update: IBM rallied midweek and tagged its November highs near $147.50. This is short-term resistance but IBM acts like it's ready to breakout higher. IBM has spent two months digesting its September-October gains. It should be ready to resume its move higher. If you're looking for a new entry point a close over $147.50 could work. Just keep in mind our expectation for a market-wide pull back in late January.

Prior Comments:
We have already exited the 2011 calls for a gain.

- Current Positions -
Sep 30, 2010 - entry price on IBM @ 136.00, option @ 7.80
symbol: IBM1221A150 2012 Jan $150 call - current bid/ask $10.50/10.70

10/29/10 IBM hit $144, our target to exit the 2011 calls (+71.8%)
10/18/10 IBM reported earnings
10/16/10 Short-term target for 2011 calls set at $144.00.
09/30/10 Play triggered $136.00, stop $129.50

Current Target(s): $159.00
Current Stop loss: 129.50
Play Entered on: 09/30/10
Originally listed on the Watch List 09/25/10


Infosys Technologies - INFY - close: 76.08

01/01 update: INFY continues to show relative strength. The stock hit another round of new ten-year highs this past week. Another good week and INFY will hit our final target at $79.00. More aggressive traders may want to aim higher. I am raising our stop loss to $69.00. I am not suggesting new positions at this time.

Previous Comments:
We have already sold the 2011 calls for a profit. We have also sold half of our 2012 calls. Our long-term target is $79.00.

- Current Positions -
July 1, 2010 - entry price on INFY @ 59.00, option @ 8.20
symbol: INFY 12A65.00 2012 Jan $65 call - current bid/ask $16.10/17.10

01/01/11 New stop loss @ 69.00
12/25/10 Take Profits, sell half of 2012 calls, option @ 14.20 (+73.1%)
12/25/10 New stop loss @ 66.75
12/18/10 New stop loss @ 63.90
10/15/10 INFY reports earnings.
10/02/10 Sell the 2011 Calls, INFY @ 70.52, option @ 11.20 (+49.3%)
10/02/10 New stop @ 61.75
09/25/10 New stop @ 58.75

Current Target(s): $79.00
Current Stop loss: 69.00
Play Entered on: 07/01/10
Originally listed on the Watch List 06/26/10


US Airways Group, Inc. - LCC - close: 10.01

01/01 update: I am still worried about the weakness in the airline index. The sector appears to be correcting and has developed a trend of lower highs and lower lows. We are seeing a similar move in LCC. The decline seemed to pause last week but the path of least resistance is still down. Odds are growing that LCC will decline toward its rising 200-dma (currently near $9.25), which would stop us out since our stop is at $9.49. Aggressive traders could lower their stops. I'm reluctant to do that just yet. Conservative traders may want to consider just cutting their losses early. Dollar weakness will continue to put upward pressure on commodities. Rising oil prices is normally bad news for the airline stocks.

- Current Positions -
Dec 3, 2010 - entry price on LCC @ 11.00, option @ 1.95
symbol: LCC1221A12.5 2012 Jan $12.50 call - current bid/ask $ 1.29/ 1.36

12/25/10 Readers may want to cut their losses early
12/03/10 Play triggered @ $11.00

Current Target(s): $14.90
Current Stop loss: 9.49
Play Entered on: 12/03/10
Originally listed on the Watch List: 11/27/10


L-3 Communications - LLL - close: 70.49

01/01 update: I've got bad news. The bounce in LLL two weeks ago did not see any follow through higher. Shares continue to languish in the $70-72 area. I am not suggesting new bullish positions at this time. Currently LLL seems to have some support near $69.50 and $68.50. More conservative traders could raise their stops toward the $69 level.

- Current Positions -
Nov 11, 2010 - entry price on LLL @ 71.87, option @ 5.80
symbol: LLL1221A75 2012 Jan $75 call - current bid/ask $ 4.20/ 4.40

11/11/10 Play triggered with LLL's gap open @ 71.87

Current Target(s): $79.50, 89.00
Current Stop loss: 67.75
Play Entered on: 11/11/10
Originally listed on the Watch List 11/06/10


McDonald's Corp. - MCD - close: 76.76

01/01 update: MCD lost 20 cents for the week. The stock is hovering near its rising 100-dma. I want to warn readers that if MCD bounces in the next couple of weeks it might fail near its 50-dma or the $80 level again. Then if the market does correct in the second half of January we'll likely see MCD retest the $76 area or possibly the $74 area. Thus I am not suggesting new positions at this time.
FYI: One of these days MCD might announce another stock split. The stock's last split was 2:1 back in March 1999 around the $80 zone.

Previous Comments:
We have already sold the 2011 calls for a gain. Our long-term target for the 2012 calls is $89.00.

- Current Positions -
June 29, 2010 - entry price on MCD @ 66.50, option @ 2.20
symbol: MCD 12A80.00 2012 Jan $80 call - current bid/ask $3.55/ 3.65

11/06/10 New stop @ 71.90
10/23/10 New stop @ 69.75
10/16/10 Sell the remaining 2011 calls, bid @ $8.00 (+201%)
10/16/10 New target for 2012 positions @ $89.00
10/02/10 New stop @ 67.90
08/28/10 New stop @ 66.75
07/17/10 Take Profits! 2011 Jan $70 call @ 4.00 (+51%), 2012 $80 call @ 3.50 (+59%)

Current Target(s): $89.00
Current Stop loss: 71.90
Play Entered on: 06/29/10
Originally listed on the Watch List 06/12/10


Microsoft Corp. - MSFT - close: 27.91

01/01 update: MSFT is slowly correcting lower. The stock remains overbought given its very strong December rally. I would look for a pull back toward the 200-dma before January is over. I am not suggesting new positions at this time.

- Current Positions -
Oct 18, 2010 - entry price on MSFT @ 25.59, option @ 3.30
symbol: MSFT1221A25 2012 Jan $25 call - current bid/ask $4.45/ 4.50

- or -

Oct 18, 2010 - entry price on MSFT @ 25.59, option @ 2.30
symbol: MSFT1319A30 2013 Jan $30 call - current bid/ask $3.10/ 3.65

12/11/10 New stop loss @ 24.40
11/20/10 Another Entry Point on the dip toward the 50-dma
10/28/10 MSFT delivers stronger than expected earnings.

Current Target(s): $31.00
Current Stop loss: 24.40
Play Entered on: 10/18/10
Originally listed in New Plays on 10/16/10


Nike Inc. - NKE - close: 85.42

01/01 update: The post-earnings sell-off in NKE continues. We were expecting a correction following the earnings report and I'm not convinced its over. Yet for now the stock is hovering near support near $85 and its rising 50-dma. This stock might test the $82-80 zone before the month of January is over. More aggressive traders might want to move their stop loss underneath the 200-dma. I am not suggesting new long-term bullish positions at this time. Our final target is $98.00.

Previous Comments:
We wanted to keep our initial position size small to limit our risk.

- Current Positions -
Nov 15, 2010 - entry price on NKE @ 82.91, option @ 5.40
symbol: NKE1221A90 2012 Jan $90 call - current bid/ask $5.90/ 6.20

12/18/10 New stop loss @ 83.90
11/15/10 Play opened on Monday morning, NKE @ 82.91

Current Target(s): $98.00
Current Stop loss: 79.75
Play Entered on: 11/15/10
Originally listed in New Plays on 11/13/10


NVIDIA Corp. - NVDA - close: 15.40

01/01 update: It was another very strong week for NVDA. The stock rebounded from its three-month trendline of higher lows. Friday saw a breakout to new seven-month highs. This relative strength is great but I wouldn't chase it here, not with long-term positions. I am raising our stop loss to $12.75.

Previous Comments:
We took profits on the 2011 calls in late September. All we have left are the 2012 calls. Overall this remains an aggressive, higher-risk trade. NVDA has been struggling and sales growth has been slowing down but we are betting the worse has already been priced in for this stock. Keep your positions very small to limit our risk.

- Current Positions -
Sep 13, 2010 - entry price on NVDA @ 10.75, option @ 1.69
symbol: NVDA1221A12.5 2012 Jan $12.50 call - current bid/ask $4.25/ 4.40

01/01/11 New stop loss @ 12.75
12/11/10 Decision - Sell now with option up +133% or Stay the course.
12/11/10 New long-term target at $17.75
12/04/10 New stop loss @ 12.25
11/20/10 New target at $15.75
11/20/10 new stop @ 11.40
11/13/10 New stop @ 10.89
11/06/10 New stop @ 10.40
11/04/10 Target hit @ 12.50, take profits: 2012 calls @ $2.40 (+42.0%)
09/25/10 Sell the 2011 calls, NVDA @ 12.26, option @ 2.70 (+70.8%)
09/25/10 new stop 9.95
09/13/10 Play Triggered @ $10.75

Current Target(s): $12.50 & 17.75
Current Stop loss: 12.25
Play Entered on: 09/13/10
Originally listed in New Plays on 08/28/10


Old Dominion Freight Line Inc. - ODFL - close: 31.99

01/01 update: ODFL added 30 cents on the week to tag new all-time highs. Keep an eye on the Dow Jones Transportation index ($TRAN). The $TRAN has been consolidating sideways the last four weeks and looks poised to breakout higher. If that breakout occurs then it could really give ODFL a boost. I am not suggesting new long-term bullish positions at current levels.

FYI: The spreads in the April options are ridiculous. Hopefully these will narrow as we get closer to expiration.

- Current Positions -
Nov 22, 2010 - entry price on ODFL @ 28.42, option @ 1.95
symbol: ODFL1116D30 2011 APR $30 call - current bid/ask $ 3.10/ 3.70

12/25/10 New stop loss @ 26.75
11/22/10 ODFL opens at $28.42

Current Target: $34.75
Current Stop loss: 26.75
Play Entered on: 11/22/10
Originally listed in the New Plays 11/20/10


Transocean Ltd. - RIG - close: 69.51

01/01 update: It was a quiet week for RIG with the stock moving less than 20 cents. The stock has found some technical support at the 40 and 50-dma. I am somewhat cautious on launching new positions since we might see a better entry point before the month of January is over.

Previous Comments:
We have taken profits twice, once at $59.00, and then we exited the 2011 calls at $67.00. We still have the 2012 calls and we're aiming for $78.50.

- Current Positions -
Jun 09, 2010 - entry price on RIG @ 43.50, option @ 7.25
symbol: RIG 12A60.00 2012 Jan $60 call - current bid/ask $14.85/15.30

12/11/10 New stop @ 61.90
12/04/10 New stop @ 59.90
11/13/10 new target @ 78.50
10/23/10 New stop @ 54.85
10/13/10 Target hit at $67.00 to exit the 2011 call option @ 17.40 (+167.6%)
10/02/10 New stop @ 53.90
09/10/10 Target Hit @ 59.00 (take some money off the table), 2011 Jan $50 call @ $11.45 (+76.1%), the 2012 Jan $60 call @ $10.35 (+42.7%)

Current Target(s): $78.50
Current Stop loss: 61.90
Play Entered on: 06/09/10
Originally listed on the Watch List 06/05/10


U S G Corp. - USG - close: 16.83

01/01 update: USG managed to post another gain for the week. I don't see any changes from my prior comments. We don't want to chase it here. If you're looking for a new entry point wait for a dip near $15.00 and its simple 200-dma. Of course it might be late January before we see a dip that low.

- Current Positions -
Dec 20, 2010 - entry price on USG @ 15.25, option @ 1.50*
symbol: USG1221A20 2012 Jan $20 call - current bid/ask $ 2.15/ 2.35

- or -

Dec 20, 2010 - entry price on USG @ 15.25, option @ 3.00
symbol: USG1319A20 2013 Jan $20 call - current bid/ask $ 3.50/ 4.00

12/20/10 Play triggered at $15.25
*entry price is an estimate.

Current Target(s): $19.90, 24.75
Current Stop loss: 12.75
Play Entered on: 12/20/10
Originally listed on the Watch List: 12/11/10


WellPoint Inc. - WLP - close: 56.86

01/01 update: There is nothing new to report on for WLP. The stock traded sideways in a very narrow range last week. WLP still has a short-term bearish trend of lower highs. I remain cautious and will repeat my previous comments. If WLP closes under $55.00 readers will want to seriously consider an early exit. I am not suggesting new positions at this time.

- Current Positions -
Oct 14th, 2010 - entry price on WLP @ 57.75, option @ $5.25
symbol: WLP1221A65 2012 Jan $65 call - current bid/ask $ 3.85/ 4.10

12/18/10 New stop loss @ 53.75.
11/20/10 Another entry point on the bounce from the 200-dma
10/14/10 Play Triggered when WLP hit $57.75, option @ $5.25

Current Target(s): $69.75
Current Stop loss: 53.75
Play Entered on: 10/14/10
Originally listed on the Watch List 10/11/10


Wynn Resorts - WYNN - close: 103.84

01/01 update: The last week of 2010 was a relatively quiet one for WYNN. Shares spent most of the week inside the $101-103 zone. The stock displayed some relative strength on Friday with a +2% gain. I am encouraged that WYNN held support near $100. However, if the market does correct in late January this stock could easily retest the $95 or even the $90 level. I am not suggesting new bullish positions at this time.

Previous Comments:
Keep your positions small. This is an aggressive trade.

OPTION STRIKES: Note, given the $8.00 dividend the option strikes have been adjusted. The $110 calls are now the $102 calls. The $120 calls are now $112 calls.

- Current Positions -
Nov 19th, 2010 - entry price on WYNN @ 101.33, option @ $10.50
symbol: WYNN1119C102 2011 MAR $102 call - current bid/ask $ 8.60/ 8.75

- or -

Nov 19th, 2010 - entry price on WYNN @ 101.33, option @ $16.05
symbol: WYNN1221A112 2012 JAN $112 call - current bid/ask $14.80/15.05

12/25/10 Adjusted stop loss to $94.00
11/19/10 Play opened on gap down at $101.33

Current Target(s): $119.00
Current Stop loss: 94.00
Play Entered on: 11/19/10
Originally listed on the Watch List 05/15/10