Closed Plays


None. No closed plays this week.


Play Updates


Arch Coal Inc. - ACI - close: 31.61

01/22 update: Shares of ACI are correcting lower as we expected. However, I'm still concerned. The major market indices have just not started to pull back. When the market does finally see a correction it could exaggerate the weakness in ACI. I still think our stop loss is just a little bit too high. ACI should have support near the $28.00 area and right now our stop is at $28.90. I'm suggesting we move our stop down to $27.75. The trick is trying to balance short-term volatility with our longer-term bullish outlook on ACI. I won't lower it again. If ACI breaks down under $28.00 it could have bigger problems. Wait for ACI to dip into the $30-28 zone before considering new bullish positions.

Our long-term target is $39.75. More aggressive traders could aim a lot higher, especially if you're holding the 2013 calls.

FYI: ACI is due to report earnings on Monday, January 28th before the opening bell. If you feel like buying some protective puts ahead of the announcement you have to do so before Friday's close.

- Current Positions -
Nov 22, 2010 - entry price on ACI @ 30.15, option @ 3.90
symbol: ACI1221A35 2012 JAN $35 call - current bid/ask $ 3.85/ 4.00

- or -

Nov 22, 2010 - entry price on ACI @ 30.15, option @ 5.15
symbol: ACI1319A35 2013 JAN $35 call - current bid/ask $ 6.05/ 6.25

01/22/11 New stop loss @ 27.75
01/15/11 New stop loss @ 28.90
01/01/11 new stop loss @ 29.75
12/25/10 New stop loss @ 28.75
11/22/10 Play opened. ACI @ $30.15

Chart of ACI:

Current Target: $39.75
Current Stop loss: 28.90
Play Entered on: 11/22/10
Originally listed in the New Plays 11/20/10


Akamai Technology - AKAM - close: 48.93

01/22 update: It was a rough week for technology stocks. AKAM was not exempt from the profit taking. On a short-term basis the action in AKAM looks bearish. It has a short-term double top at $52.50 and a new lower highs. The close back under the $50 level and the small cloud of moving averages is not healthy.

Bigger picture I am worried that AKAM may have topped out and that shares could see a much bigger correction. Conservative traders may want to exit positions early. I am suggesting we buy some puts to protect us. Let's buy the May $40.00 puts. We'll hold the puts over AKAM's earnings report on February 9th and then re-evaluate our strategy. If for some reason AKAM were to hit our stop loss at $43.75 in the next two weeks, I'd hold on to the puts. On a short-term basis I am expecting a dip back toward the $45 level and its rising 200-dma.

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 $ 7.70/ 7.90

- Third Position -

Dec. 20, 2010 - entry price on AKAM @ 50.49, option @ 5.40
symbol: AKAM1221A60 2012 JAN $60 call - current bid/ask $ 4.15/ 4.30

- Short-Term Put -

Jan. 22, 2011 - entry price on AKAM @ 48.93, option @ 1.66
symbol: AKAM1121Q40 2011 MAY $40 PUT - current bid/ask $ 1.61/ 1.66
(We'll update our entry price on Monday)

01/22/11 Buy May $40 puts to protect ourselves
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

Chart of AKAM

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: 105.10

01/22 update: Be careful here! The January bounce in BIDU is losing steam quickly. Shares are rolling over under the new trend of lower highs. Right now I would expect another pull back to the $95 area. I am not suggesting new positions at this time. Investors should know that BIDU is due to report earnings on January 31st.

BONUS TRADE: Let's try and make some money on the pull back. I'm suggesting we buy the March $95 puts on Monday morning (more aggressive traders could buy February puts). Our target on this trade is $96.00.

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 -
Aug 02, 2010 - entry price on BIDU @ 83.50, option @ 13.00
symbol: BIDU1221A100 2012 JAN $100 call - current bid/ask $20.25/20.50

- BONUS TRADE (short-term puts) -

Jan 22, 2011 - entry price on BIDU @ 105.10 option @ 2.82
symbol: BIDU1119O95 2011 MAR $95 PUT - current bid/ask $ 2.74/ 2.82
(we'll update the entry price for Monday's open)

01/22/11 Buy March $95 put
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

Chart of BIDU

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: 80.45

01/22 update: The bullish breakout in BRK.B two weeks ago has failed. BRK.B retreated back into its prior trading range. I remain very cautious on this stock. We are not suggesting new bullish positions. Our 2011 January $85 calls have expired. I still can't find an earnings report date for Berkshire but they normally report in February.

- Current Positions -
Oct 29, 2010 - entry price on BRK.B @ 79.00, option @ 1.25
symbol: BRKB1122A85 2011 JAN $85 call - expired @ 0.00 (-100%)

- or -

Oct 29, 2010 - entry price on BRK.B @ 79.00, option @ 5.00
symbol: BRKB1221A90 2012 JAN $90 call - current bid/ask $ 3.25/ 3.40

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


Compania de Minas Buenaventura - BVN - close: 40.83

01/22 update: Mining stocks continue to sink. We were too early on buying the decline in BVN. The bad news this past week is that BVN's rally attempt failed at $45.00 and shares have now broken down under their simple 200-dma. The stock is quickly approaching what should be decent support at the $40.00 mark but given the trend in the mining sector and gold prices odds are rising that we will get stopped out soon. If you look at the weekly chart (below) you'll see that BVN should have some support near $40 but our stop loss at $39.90 is too tight. I hate to do it but we need to adjust our stop loss lower to give BVN a chance to bounce. Obviously you don't have to lower your stop. You could just exit now. Or as an alternative you could buy puts on BVN as a hedge. The stock has already seen a -28% correction.

I am lowering the newsletter's stop loss to $38.95. If we see BVN find support near $40.00 we might want to consider new bullish positions but bear in mind the short-term trend for gold prices is down, which will continue to put pressure on the mining stocks.

Earlier Comments:
I cautioned readers that our entry point at $45 was an aggressive, higher-risk trade. Our plan was to open small (half) positions to limit our risk.

- Current Positions -
Jan 5, 2011 - entry price on BVN @ 45.00, option @ 3.90
symbol: BVN1119F50 2011 JUN $50 call - current bid/ask $ 0.95/ 1.60

01/22: Adjust the stop loss to $38.95
01/05: Play is opened at $45.00 (small positions only)

Chart of BVN

Current Target: $ 54.75
Current Stop loss: 39.90
Play Entered on: 01/05/11
Originally listed on the Watch List --/--/--


Deere & Co - DE - close: 89.24

01/22 update: DE is still hovering near its highs around the $90.00 level. When it corrects I would look for a dip toward the 50-dma or the $80.00 area. Wait for the pull back before considering new positions. FYI: DE is due to report earnings on Feb. 16th.

- 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 $ 9.75/ 9.90

01/15/11 New stop loss @ 78.90, Adjusted second target to $99.00
01/13/11 1st Target Hit $88.00. Option @ $10.00 (+110%)
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, 99.00
Current Stop loss: 78.90
Play Entered on: 11/26/10
Originally listed on the Watch List --/--/--


Walt Disney Co. - DIS - close: 39.74

01/22 update: DIS briefly broke support near $39.00 last week but quickly rebounded. Shares are now retesting resistance at the $40.00 mark. I would be surprised if DIS made it much further. The $38.00 level should be decent support. I'm suggesting we hold off on any new positions at this time.

- Current Positions -
Oct 27, 2010 - entry price on DIS @ 35.60, option @ 2.23
symbol: DIS1221A40 2012 JAN $40 call - current bid/ask $ 3.75/ 3.80

- or -

Oct 27, 2010 - entry price on DIS @ 35.60, option @ 3.63
symbol: DIS1319A40 2013 JAN $40 call - current bid/ask $ 5.35/ 5.60

01/08/11 New stop loss @ 34.95
01/08/11 Target changed to $43.00 and $46.00
10/27/10 Play opened, DIS opened @ $35.60

Current Target(s): $43.00, 46.00
Current Stop loss: 34.95
Play Entered on: 10/27/10
Originally listed on the Watch List 10/24/10


EMC Corp. - EMC - close: 23.98

01/22 update: Last week EMC rallied to $25.00 and failed. I hope I don't end up regretting moving our exit target from $24.75 to $25.35. The peak for the last nine years was $25.47 set back in 2007.

Last week I suggested we exit our positions ahead of EMC's earnings report. The company reports on Tuesday morning, January 25th. That means we need to exit our positions on Monday at the closing bell! More aggressive traders may want to hold on since you have another 11 months to go. The trend is up but the $25.00-25.50 zone could end up being resistance and EMC is looking a little overbought here.

- 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 $5.00/5.25

01/22/11: Plan to exit on Monday, Jan. 24th at the closing bell.
01/15/11: New stop loss @ 21.90, Adjusted target to $25.35
01/08/11 New stop loss @ 20.95
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 & 25.35
Current Stop loss: 21.90
Play Entered on: 05/06/10
Originally listed on the Watch List 03/20/10


Express Scipts - ESRX - close: 57.59

01/22 update: ESRX rallied to new highs with a surge to $58.77 on Monday. The stock has been consolidating sideways since that move higher. ESRX does look a little bit overbought here. Readers may want to go ahead and take profits early. Right now our exit target is $59.50. More aggressive traders may want to consider a higher target. The Point & Figure chart is very optimistic with a forecast $89 target. You certainly have time but eventually ESRX will correct. The stock should find support near $55 and near the $52.50 area. I am not suggesting new bullish positions at this time.

- Current Positions -
Oct 25, 2010 - entry price on ESRX @ 49.30, option @ 4.85
symbol: ESRX1221A55 2012 Jan $55 call - current bid/ask $8.30/8.50

- or -

Oct 25, 2010 - entry price on ESRX @ 49.30, option @ 7.10
symbol: ESRX1319A55 2013 Jan $55 call - current bid/ask $11.55/11.80

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: 131.03

01/22 update: Just as we expected, gold prices continued to decline even as the dollar slipped lower. Normally these two move in opposite directions. I am expecting the GLD to correct back down to the $125 area. In the meantime, last week I suggested we buy some short-term puts to profit from the move lower. The GLD gapped open at $133.63 on Tuesday, Jan. 18th. The April $125 puts opened at $1.70 the same day.

Currently our final long-term bullish target is $149.00. I'm not suggesting new bullish positions at this time.

FYI: As you know several weeks ago Goldman Sachs raised their 2011 price target on gold to $1,700 an ounce. Two weeks ago another firm just raised their 2011 price target to $1,600 an ounce.

- Current Positions -
Aug 6, 2010 - entry price on GLD @ 118.00, option @ 10.75
symbol: GLD1221A130 2012 Jan $130 call - current bid/ask $12.30/12.55

- Short Term Put -

Jan 18, 2011 - entry price on GLD @ 133.63, option @ 1.70
symbol: GLD1116P125 2011 APR $125 PUT - current bid/ask $ 2.39/ 2.45

01/18/11 GLD opened at $133.63. April $125 put opened at $1.70
01/15/11 Added April Puts to protect ourselves from further declines.
01/08/11 Expecting a correction toward $125
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: 166.20

01/22 update: GS reported better than expected earnings but revenues were a miss and investors sold the news. Shares of GS have broken several layers of support. Honestly I am concerned that we could get stopped out soon as GS pulls back toward the $160 area. I am not suggesting new bullish positions at this time.

- Current Positions -
Nov 22, 2010 - entry price on GS @ 160.75, option @ 9.40
symbol: GS1221D190 2012 Jan $190 call - current bid/ask $ 8.15/ 8.40

01/15/11 Exit the 2011 April calls. Bid @ $5.90 (+38.8%)
01/15/11 New stop loss $ 159.75
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: 159.75
Play Entered on: 11/22/10
Originally listed on the Watch List 10/24/10


Humana Inc. - HUM - close: 58.01

01/22 update: HUM displayed a little volatility last week, especially on Tuesday. The short-term trend of higher lows is still in place for now. I remain somewhat cautious here and would not be surprised to see HUM retest the $55 area. I am not suggesting new positions at this time. FYI: HUM is due to report earnings on Feb. 7th.

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 $ 8.50/ 9.00

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: 155.50

01/22 update: IBM delivered better than expected earnings numbers and healthy guidance. Traders reward the stock by pushing it up another $5. While the trend is up it looks like IBM is a bit short-term overbought. I would expect a pull back toward the $150-147.50 zone. Please note that I am raising the stop loss to $139.75. I am also raising our exit target from $159.00 to $164.50. I am not suggesting new bullish positions at this time.

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 $13.80/14.00

01/22/11 New stop loss @ 139.75. New target at $164.50
01/15/11 Consider buying protective puts ahead of earnings
01/08/11 New stop loss @ 133.49
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): $164.50
Current Stop loss: 139.75
Play Entered on: 09/30/10
Originally listed on the Watch List 09/25/10


US Airways Group, Inc. - LCC - close: 9.83

01/22 update: A week ago I was worried we'd see LCC decline toward $10. Sure enough that's where the stock went. The action in LCC and the XAL airline index is not very encouraging. I debated whether or not to exit our LCC tonight, especially after Friday's lack of follow through on Thursday's bounce. Cautious traders definitely want to consider an early exit now. I am expecting LCC to dip toward support near $9.50 and its 200-dma. Currently our stop loss is at $9.49 but that's a little too tight. I'm moving it to $9.44. I'm not suggesting new bullish positions at this time.

- 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 $ 1.22/ 1.29

01/22/11 Adjust stop to $9.44
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: 77.57

01/22 update: It was a decent week for LLL with shares climbing back above their 200-dma. The stock is now testing resistance near $78.50 again. I wouldn't expect a lot of movement out of LLL this week until Thursday. The company reports earnings on Thursday morning (Jan. 27th). The results could spark some volatility. If the news is bad then look for a drop back toward the $72 level. I am not suggesting new bullish positions at this time.

- Current Positions -
Nov 11, 2010 - entry price on LLL @ 71.87, option @ 5.80
symbol: LLL1221A75 2012 Jan $75 call - current bid/ask $ 7.90/ 8.20

01/08/11 Take Profits Early. LLL @ 78.23. Option @ $8.50 (+46.5%)
01/08/11 New stop loss @ 69.90
11/11/10 Play triggered with LLL's gap open @ 71.87

Current Target(s): $79.50, 89.00
Current Stop loss: 69.90
Play Entered on: 11/11/10
Originally listed on the Watch List 11/06/10


McDonald's Corp. - MCD - close: 75.01

01/22 update: MCD posted a gain for the week but the rally all happened last Tuesday. Shares of MCD consolidated sideways the rest of the week as investors sit tight and wait for earnings. MCD is due to report earnings on Monday morning, January 24th before the opening bell. Wall Street is expecting a profit of $1.16 a share. If MCD says something disappointing then we have a good chance of getting stopped out. I am not suggesting new positions at this time. Our stop loss remains at $71.90.

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 $2.56/ 2.63

01/14/11 MCD produces a potential bullish reversal
01/08/11 This dip near $74 looks like a new entry point.
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: 28.02

01/22 update: MSFT has been consolidating sideways near $28 for a few weeks now. The action this past week has a bearish tone and I would expect MSFT to breakdown from here. However, there is a good chance that MSFT just churns sideways for a few more days. The company is due to report earnings on Thursday (Jan. 27th) after the closing bell. Analysts are looking for a profit of 68 cents a share. Thus Friday morning could be exciting as the stock reacts to the earnings news. Look for support near $26 and its 200-dma if MSFT sees any profit taking. I would not begin new long-term 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 $4.25/ 4.35

- or -

Oct 18, 2010 - entry price on MSFT @ 25.59, option @ 2.30
symbol: MSFT1319A30 2013 Jan $30 call - current bid/ask $2.98/ 3.10

01/08/11 New stop loss @ 25.90
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: 25.90
Play Entered on: 10/18/10
Originally listed in New Plays on 10/16/10


Old Dominion Freight Line Inc. - ODFL - close: 31.82

01/22 update: After three weeks of failing to rally past the $33 level it looks like ODFL could be poised for a correction. I am expecting a pull back toward the $30 area. I'm not suggesting new positions at this time.

We only have about three months left before April expiration. More conservative traders may want to exit now and lock in a profit.

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 $ 2.90/ 3.60

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


Target Corp. - TGT - close: 55.73

01/22 update: TGT gave us a scare last week with a dip to $53.86 but shares managed to recover. The stock is trying to bounce but it is struggling to get past resistance at the bottom of its gap near the $56 area. On a short-term basis I would expect another dip toward $54 and its 200-dma again. I am still reluctant to open new bullish positions.

- Current Positions -
Jan 6, 2011 - entry price on TGT @ 55.81, option @ 3.50
symbol: TGT1221A60 2012 Jan $60 call - current bid/ask $ 3.05/ 3.20

- or -

Jan 6, 2011 - entry price on TGT @ 55.81, option @ 4.25
symbol: TGT1319A65 2013 Jan $65 call - current bid/ask $ 3.55/ 4.15

01/06/11 Play triggered at $55.81

Current Target(s): $69.75
Current Stop loss: 53.75
Play Entered on: 01/06/11
Originally listed on the Watch List: 12/11/10


U S G Corp. - USG - close: 15.47

01/22 update: USG spent almost five weeks churning sideways above the $16 level. Now the stock is starting to roll over and broke support at $15. I've been warning readers to look for a decline toward $15. I remain cautious here so we don't want to open new positions at this time. If the $15 level fails we can watch the $14.00 mark with potential support at its 100-dma. More conservative traders will want to consider raising their stops closer to $14.00.

- Current Positions -
Dec 20, 2010 - entry price on USG @ 15.25, option @ 1.50*
symbol: USG1221A20 2012 Jan $20 call - current bid/ask $ 1.40/ 1.60

- or -

Dec 20, 2010 - entry price on USG @ 15.25, option @ 3.00
symbol: USG1319A20 2013 Jan $20 call - current bid/ask $ 2.70/ 3.20

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: 61.45

01/22 update: After two weeks of big gains in January shares of WLP are finally seeing some profit taking. The stock could find some short-term support near $60 or $58 but I would not buy the dip, not yet. WLP is due to report earnings on January 26th and Wall Street is expecting a profit of $1.22 a share. Let's wait and see how investors react to WLP's earnings news and then re-evaluate our trade.

- Current Positions -
Oct 14th, 2010 - entry price on WLP @ 57.75, option @ $5.25
symbol: WLP1221A65 2012 Jan $65 call - current bid/ask $ 6.75/ 6.95

01/08/11 New stop loss @ 54.90
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: 54.90
Play Entered on: 10/14/10
Originally listed on the Watch List 10/11/10