Editor's Note:
Neither the bulls or bears really made in progress on Tuesday. Investors could be waiting for the FOMC announcement tomorrow. Per our plan, we exited ADP and CA at the close tonight.

-James

Current Portfolio:


BULLISH Play Updates

BE Aerospace Inc. - BEAV - close: 38.90 change: +0.12

Stop Loss: 37.75
Target(s): 43.40
Current Gain/Loss: + 0.3%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
01/25 update: BEAV posted another gain but is struggling with short-term resistance at the $39.00 level. I'm still cautious and tempted to exit positions early. 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


Walt Disney Co. - DIS - close: 39.86 change: -0.08

Stop Loss: 37.85
Target(s): 39.90, 42.50
Current Gain/Loss: + 4.2%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/25 update: Tuesday proved to be a quiet day for DIS. Shares are still hovering under resistance near $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: 29.94 change: +0.25

Stop Loss: 28.90
Target(s): 30.90, 33.00
Current Option Gain/Loss: + 2.8%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/25 update: FLIR continues to inch higher. Shares outperformed the market today with a +0.8% gain. I am raising our stop loss to $28.90. The $30.00 level is resistance so I'm 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

01/25: New stop @ 28.90
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


Microchip Technology - MCHP - close: 37.32 change: +0.14

Stop Loss: 35.95
Target(s): 39.95
Current Gain/Loss: +0.8%
Time Frame: 2 weeks
New Positions: Yes, see below

Comments:
01/25 update: The rebound in the SOX semiconductor index stalled but MCHP managed another gain. Shares opened at $37.00 and closed at their highs for the day. Our plan was to use small positions to limit our risk. I would still consider new positions now or on a dip near the 10-dma (near 36.60). Our first target is $39.90. We will plan to exit ahead of the February 2nd earnings report.

small bullish positions

Current Position: MCHP stock @ $37.00

- or -

Long the 2011 February $38 call (MCHP1119B38) Entry @ $0.55

01/25 The CBOE listed the call option's open at $0.55

Entry on January 25 at $37.00
Earnings Date 02/02/11 (unconfirmed)
Average Daily Volume: 1.6 million
Listed on January 24th, 2010


Microsoft Corp. - MSFT - close: 28.45 change: +0.07

Stop Loss: 27.85
Target(s): 27.45, 29.75
Current Gain/Loss: +11.3%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/25 update: MSFT is still consolidating sideways. Shares might be stuck in this $28.00-28.60 range until after the company reports earnings this week. We have two 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: 24.30 change: -0.26

Stop Loss: 23.49
Target(s): 26.50
Current Gain/Loss: + 1.2%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
01/25 update: NDAQ erased yesterday's gains but traders did buy the dip twice near $24.05 midday. There is no change from my prior comments. We're cautiously bullish but 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: 45.64 change: -0.19

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

Comments:
01/25 update: SXCI turned in a quiet session. Shares just hovered under the $46 level. There is no change from my prior comments. 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: 40.62 change: +0.81

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

Comments:
01/25 update: To see UNH bounce so soon is a little disappointing. We're still waiting for a pull back 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: 30.63 change: +0.18

Stop Loss: 29.85
Target(s): 33.75, 37.75
Current Gain/Loss: - 0.3%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/25 update: Traders bought the dip near $30 midday. This bounce looks like a new entry point to launch bullish positions on WCG. Readers could inch up their stops closer to the $30.00 mark.

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

Endo Pharmaceuticals - ENDP - close: 33.92 change: +0.01

Stop Loss: 35.75
Target(s): 31.00
Current Gain/Loss: unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see trigger

Comments:
01/25 update: ENDP spent Tuesday consolidating sideways in a tight range. There is no change from my Monday night comments. The plan is to open bearish positions on a bounce at $34.50. We'll try and limit our risk with a stop loss at $35.75. If triggered our first target is $31.00.

Trigger @ $34.50

Suggested Position: Short ENDP stock @ 34.50

- or -

Buy the 2011 February $35 PUT (ENDP1119N35)

Entry on January xx at $xx.xx
Earnings Date 02/22/11 (unconfirmed)
Average Daily Volume: 1.3 million
Listed on January 24th, 2010


Informatica Corp. - INFA - close: 42.40 change: -0.29

Stop Loss: 44.25
Target(s): 39.00, 36.00
Current Gain/Loss: + 0.4%
Time Frame: 4 trading days
New Positions: see below

Comments:
01/25 update: INFA is still trading sideways. This is unfortunate since we're almost out of time. The plan is to exit positions on Jan. 27th at the closing bell 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: 52.02 change: +0.21

Stop Loss: 55.05
Target(s): 45.05
Current Gain/Loss: + 1.1%
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
01/25 update: Hmm... the action in RS today actually looks bullish. Traders bought the dip near its rising 40-dma and RS closed on its highs for the session. I would expect a bounce toward the $52.75-53.00 zone soon. Wait for this rebound to roll over before considering new bearish positions. 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


CLOSED BULLISH PLAYS

Automatic Data Processing - ADP - close: 49.69 change: +0.17

Stop Loss: 47.90
Target(s): 49.75
Current Gain/Loss: + 6.2%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
01/25 update: ADP continues to march higher. Shares hit $49.70 intraday. Our target to exit was $49.75. However, the plan was to close positions tonight to avoid holding over earnings tomorrow morning.

Closed Position: Long ADP stock @ $46.75, exit 49.69 (+6.2%)

01/25: Exit ahead of earnings @ 49.69 (+6.2%)
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)

chart:

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


CA Technologies - CA - close: 25.36 change: -0.21

Stop Loss: 24.99
Target(s): 26.65, 27.90
Current Gain/Loss: + 0.6%
Time Frame: 6 to 7 DAYS
New Positions: see below

Comments:
01/25 update: We have run out of time on CA. Our plan was to exit positions tonight to avoid holding over the earnings announcement. Shares failed to breakout past resistance near $25.60. The stock is trading lower, near $24, after hours following its report tonight.

Closed Position: Long CA stock @ $25.21

- or -

2011 February $25 calls (CA1119B25) Entry @ $1.00, exit 0.90 (-10%)

01/25 Exit ahead of earnings. CA @ 25.36 (+0.6%) option @ 0.90 (-10%)
01/24 New stop loss @ 24.99
01/22 New stop loss @ 24.85

chart:

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