Editor's Note:
Our bullish ADP play almost hit our exit target today. We have more than one trade that is nearing an exit this week ahead of earnings.

-James

Current Portfolio:


BULLISH Play Updates

Automatic Data Processing - ADP - close: 49.52 change: +0.48

Stop Loss: 47.90
Target(s): 49.75
Current Gain/Loss: + 5.9%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/24 update: Almost there! ADP rallied to $49.73 on Monday. Our exit target is $49.75. Readers may want to go ahead and exit now. Officially our plan is to exit this trade tomorrow (Tuesday) at the closing bell to avoid holding over the earnings report on Wednesday. Please note our new stop loss at $48.49.

Current Position: Long ADP stock @ $46.75

01/24: One more day. New stop @ 48.49
01/22: Two days left. new stop @ 47.90.
01/19: Take profits on Feb. call options @ $3.80 (+90%).
01/15: New stop loss @ 46.75
01/03: Entry @ $46.75
01/01: New stop loss @ 45.45
01/01: New entry point @ current levels, new option strike (Feb. $45)

Entry on January 3 at $46.75
Earnings Date 01/26/11 (confirmed)
Average Daily Volume: 2.8 million
Listed on December 16th, 2010


BE Aerospace Inc. - BEAV - close: 38.78 change: +0.73

Stop Loss: 37.75
Target(s): 43.40
Current Gain/Loss: - 0.2%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
01/24 update: BEAV managed to bounce from short-term support near $38.00. I am still very cautious on this stock given last week's bearish reversal. No new positions at this time. Our stop loss is at $37.75. The plan was to keep our position size small to limit our risk.

Current Position: BEAV stock @ $38.89

- or -

Long the 2011 February $40.00 calls (BEAV1119B40) Entry @ $1.35

01/15: new stop loss @ 37.75

Entry on January 11 at $38.89
Earnings Date 02/01/11 (unconfirmed)
Average Daily Volume: 542 thousand
Listed on January 10th, 2010


CA Technologies - CA - close: 25.57 change: +0.26

Stop Loss: 24.99
Target(s): 26.65, 27.90
Current Gain/Loss: + 1.4%
Time Frame: 6 to 7 DAYS
New Positions: see below

Comments:
01/24 update: CA dipped to $25.07 this morning but rallied back toward its recent highs. Shares look poised to breakout past the $25.60 level. Tomorrow is our last day. We will plan on exiting this position on Tuesday at the closing bell to avoid holding over the earnings announcement. Please note our new stop at $24.99.

Current Position: Long CA stock @ $25.21

- or -

Long the 2011 February $25 calls (CA1119B25) Entry @ $1.00

01/24 New stop loss @ 24.99
01/22 New stop loss @ 24.85

Entry on January 18 at $25.21
Earnings Date 01/25/11 (confirmed)
Average Daily Volume: 2.4 million
Listed on January 15th, 2010


Walt Disney Co. - DIS - close: 39.94 change: +0.20

Stop Loss: 37.85
Target(s): 39.90, 42.50
Current Gain/Loss: + 4.4%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/24 update: DIS bounced from a dip near $39 this morning is spent the rest of the session churning under resistance at $40.00. While a breakout over $40 would be bullish I am not suggesting new positions at this time.

Our first target has already been hit. We're currently aiming for $42.50.

- Current Positions -

Long DIS stock @ 38.25

- or -

Long the 2011 February $40.00 calls (DIS1119B40) Entry @ $0.45

- or -

Long the 2011 April $40.00 calls (DIS1116D40) Entry @ $1.10

01/19: Consider an early exit from the option positions.
01/15: New stop loss @ 37.85
01/05: 1st Target Hit. Stock @ 39.90 (+4.3%)
01/05: 1st Target Hit. Feb. call @ $1.20 (+166%). April call @ 1.80 (+63.6%)
01/05: new stop loss @ 37.49
01/04: Play triggered @ 38.25

Entry on January 4 at $38.25
Earnings Date 02/08/11 (confirmed)
Average Daily Volume: 8.6 million
Listed on December 25th, 2010


FLIR Systems Inc. - FLIR - close: 29.69 change: +0.32

Stop Loss: 28.49
Target(s): 30.90, 33.00
Current Option Gain/Loss: + 2.0%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/24 update: FLIR showed some strength today with a +1% gain. Shares are nearing resistance at the $30.00 mark. There is no change from my prior comments. I'm tempted to raise our stop closer to the $29.00 level but we'll leave it at $28.49 today. I am not suggesting new positions at this time.

Current Position: Long FLIR stock @ $29.10

- or -

Long the 2011 April $30.00 calls (FLIR1116D30) Entry @ $1.60

01/19: Consider an early exit from the option position (bid $1.30)
01/15: New stop loss @ 28.49
01/10: FLIR provided another entry point near $28.50
01/08: New stop loss @ 27.90

Entry on December 22 at $29.10
Earnings Date 02/09/11 (confirmed)
Average Daily Volume: 1.6 million
Listed on December 18th, 2010


Microsoft Corp. - MSFT - close: 28.38 change: +0.36

Stop Loss: 27.85
Target(s): 27.45, 29.75
Current Gain/Loss: +11.0%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/24 update: Big cap stocks were in favor on Monday and MSFT erased Friday's declines. We only have three days left. Our plan is to exit on Thursday at the closing bell to avoid holding over the earnings report that night.

Current Position: Long MSFT stock @ 25.55

01/19/11 New stop loss @ 27.85
01/15/11 New stop loss @ 27.49
01/14/11 Follow up. Exit Jan $25 calls @ 3.25 (+133.9%)
01/13/11 Plan to exit our January calls tomorrow at the close.
01/06/11 raised final exit target to $29.75
01/06/11 new stop loss @ 26.95
12/25/10 new stop @ 25.95
12/18/10 new stop @ 25.70
12/14/10 Target hit @ 27.45 (+7.4%), option @ $2.55 (+83.4%)
12/11/10 New stop @ 25.45
11/29/10 New stop @ 24.70

Entry on November 17 at $25.55
Earnings Date 01/27/11 (confirmed)
Average Daily Volume: 68.4 million
Listed on November 15th, 2010


NASDAQ OMX Group - NDAQ - close: 24.56 change: +0.26

Stop Loss: 23.49
Target(s): 26.50
Current Gain/Loss: + 2.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
01/24 update: NDAQ rallied to new 52-week highs. I don't see any changes from my prior comments. We're cautiously bullish and reluctant to open new positions. It was our plan to keep positions very small to limit our risk.

Current Position: Long NDAQ stock @ $24.00

01/22: New stop loss @ 23.49

Entry on January 19 at $24.00
Earnings Date 02/02/11 (unconfirmed)
Average Daily Volume: 1.5 million
Listed on January 18th, 2010


SXC Health Solutions - SXCI - close: 45.83 change: +0.86

Stop Loss: 43.40
Target(s): 49.00
Current Gain/Loss: + 3.4%
Time Frame: 8 to 9 weeks
New Positions: see below

Comments:
01/24 update: SXCI is showing strength. The stock hit new all-time highs at $46.20 this afternoon. SXCI closed with a +1.9% gain and set a new closing high as well. This is a positive development. Readers might want to consider a tighter stop closer to $44. I'm not suggesting new bullish positions at this time.

NOTE: Buying the options is a higher-risk trade. The calls on SXCI have wider than normal spreads put option traders at a disadvantage here.

Suggested Positions: Long SXCI stock @ $44.31

- or -

Long the 2011 February $45.00 calls (SXCI1119B45) Entry @ $1.44

01/22: New stop loss @ 43.40, Consider an early exit.
01/19: New stop loss @ 42.65

Entry on January 10 at $44.31
Earnings Date 03/03/11 (unconfirmed)
Average Daily Volume: 292 thousand
Listed on January 8th, 2010


UnitedHealth Group - UNH - close: 39.81 change: -0.60

Stop Loss: 36.90
Target(s): 42.00
Current Gain/Loss: unopened
Time Frame: 8 to 10 weeks
New Positions: Yes, see trigger

Comments:
01/24 update: UNH underperformed on Monday as did the HMO healthcare index. We're waiting for a correction toward support near $38.00. I am suggesting we launch bullish positions on a dip at $38.10 with a stop loss at $36.90. Our multi-week target is the $42.00 level.

Buy-the-Dip Trigger @ $38.10

Suggested Position: Buy UNH stock @ $38.10

- or -

Buy the 2011 March $40 calls (UNH1119C40) current ask $1.74

Entry on January xx at $xx.xx
Earnings Date 01/20/11 (unconfirmed)
Average Daily Volume: 5.9 million
Listed on January 20th, 2010


WellCare Health Plans, Inc. - WCG - close: 30.45 change: -0.00

Stop Loss: 29.85
Target(s): 33.75, 37.75
Current Gain/Loss: - 0.9%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/24 update: WCG closed unchanged on the session after churning in a narrow range. The $30.00 level should be support but I'm worried about the relative weakness in the healthcare sector today. I'm somewhat reluctant to launch new positions near $30.00.

Keep in mind that investors will have to decide whether or not they are willing to take the risk of holding over WCG's earnings report in late February.

Current Position: WCG stock @ $30.75

- or -

Long the 2011 March $35.00 calls (WCG1119C35) Entry @ $0.60

01/15: new stop loss @ 29.85
01/06: Play triggered @ 30.75.

Entry on January 6 at $30.75
Earnings Date 02/17/11 (unconfirmed)
Average Daily Volume: 410 thousand
Listed on January 4th, 2010


BEARISH Play Updates

Informatica Corp. - INFA - close: 42.69 change: +0.72

Stop Loss: 44.25
Target(s): 39.00, 36.00
Current Gain/Loss: + 1.1%
Time Frame: 4 trading days
New Positions: see below

Comments:
01/24 update: INFA garnered some positive analyst comments this morning. That helped boost shares above $43 but INFA couldn't hold that level. The stock managed to close with a +1.7% gain but it failed to breakout over its 50-dma. This is a very short-term trade. I would still consider new positions here but keep in mind we plan to exit positions at the closing bell on Jan. 27th to avoid holding over earnings.

Our plan was to use small positions to limit our risk. Our first target is $39.00.

small positions

Current Position: Short INFA stock @ 42.20

- or -

Long the February $40 PUT (INFA1119N40) Entry @ $0.85

01/24 CBOE listed the PUT's opening price at $0.85

Entry on January 24 at $42.20
Earnings Date 01/27/11 (confirmed)
Average Daily Volume: 907 thousand
Listed on January 22nd, 2010


Reliance Steel - RS - close: 51.81 change: +0.58

Stop Loss: 55.05
Target(s): 45.05
Current Gain/Loss: + 0.7%
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
01/24 update: There is no change from my prior comments on RS. The stock produced a bearish reversal last week. I would still consider new bearish positions in the $53-51 area. More conservative traders might be tempted to use a tighter stop loss (maybe near $53.50ish). Our stop is at $55.05. There is potential support near $48 but I'm targeting a drop toward the $45 level and its 200-dma. We do not want to hold over the earnings in mid February.

Current Position: Short RS stock @ $51.41

- or -

Long the February $50 PUT (RS1119N50) Entry @ $1.35

01/24 CBOE listed the $50 PUT opening price at $1.35

Entry on January 24 at $51.41
Earnings Date 02/17/11 (unconfirmed)
Average Daily Volume: 654 thousand
Listed on January 22nd, 2010