Editor's Note:
We have a number of candidates that report earnings next week so we only have a few days left before we need to exit to avoid holding over the announcement.

-James

Current Portfolio:


BULLISH Play Updates

Alcoa Inc - AA - close: 17.21 change: +0.00

Stop Loss: 15.75
Target(s): 18.50, 19.75
Current Gain/Loss: unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see trigger

Comments:
02/03 update: AA closed unchanged on the session after traders bought the morning dip. The low was $16.84, which was not low enough. I'm suggesting readers use a trigger to buy the dip at $16.65. You could wait for a dip anywhere in the $16.65-16.00 zone. If triggered we'll start with a stop at $15.75. Our upside targets are $18.50 and $19.90. The early 2010 high near $17.60 will probably be short-term resistance but the trend for AA looks pretty healthy.

Trigger @ 16.65

Suggested Position: Buy AA stock @ 16.65

- or -

Buy the March $17.00 calls (AA1119C17) current ask $0.84

Entry on February xx at $xx.xx
Earnings Date 04/11/11 (unconfirmed)
Average Daily Volume: 41 million
Listed on February 2nd, 2010


Walt Disney Co. - DIS - close: 40.50 change: +0.01

Stop Loss: 38.60
Target(s): 39.90, 41.90
Current Gain/Loss: + 5.8%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
02/03 update: DIS hovered near its highs and failed to make any progress today. We have three days left on this trade. DIS reports earnings on Feb. 8th after the closing bell. We'll plan on exiting on Tuesday at the close to avoid holding over the announcement. Our final exit target is $41.90. Please note our new stop loss at $38.60.

- Current Positions -

Long DIS stock @ 38.25

02/03: New stop loss @ 38.60
02/02: Adjusted exit target to $41.90
01/31: Update option exit: Feb call @ 0.41 (-8.8%) Apr. call @ 1.06 (-3.6%)
01/29: Exit call positions. Feb call @ 0.38 (-15.5%) April call @ 1.02 (-7.2%)
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: 32.36 change: +0.20

Stop Loss: 30.90
Target(s): 30.90, 33.00
Current Option Gain/Loss: +11.2%
Time Frame: exit before earnings
New Positions: see below

Comments:
02/03 update: Traders bought the dip in FLIR with shares hitting $31.49 at their worst levels today. We're almost out of time. More conservative traders will want to consider an early exit now! I'm inching up our stop loss to $30.90. At the moment our exit target is $33.00 but we plan to exit ahead of the Feb. 9th earnings announcement.

Current Position: Long FLIR stock @ $29.10

02/03: New stop loss @ 30.90
02/01: New stop loss @ 30.40
01/29 Exit remaining call positions. option @ 1.80 (+12.5%)
01/29: New stop loss @ 29.75
01/28: 1st Target Hit @ 30.90 (+6.1%), option @ $2.00 (+25%)
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


Hansen Natural Corp. - HANS - close: 57.03 change: -0.47

Stop Loss: 53.40
Target(s): 59.50
Current Gain/Loss: + 2.6%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
02/03 update: I suggested waiting for a dip near $56 as our next entry point. HANS hit $56.19 this morning and bounce from its rising 10-dma. There is still a good chance we might get another entry point near $55.75 so you may want to wait before launching positions here. Small positions only to limit our risk.

- Small Positions to limit our risk -

Current Position: HANS stock @ $55.54

01/29 Exit call positions early. @ $1.15 (-23.3%)
01/26 the CBOE listed the MAR $60 call's open @ $1.50

Entry on January 26 at $55.54
Earnings Date 02/24/11 (unconfirmed)
Average Daily Volume: 654 thousand
Listed on January 25th, 2010


Oracle Corp. - ORCL - close: 32.99 change: -0.15

Stop Loss: 31.40
Target(s): 34.90
Current Gain/Loss: + 1.1%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
02/03 update: I don't see any changes from my prior comments. ORCL is hovering sideways. I wouldn't be surprised to see another dip toward $32.

Our target on ORCL is the $34.90 mark since $35.00 looks like the next level of resistance.

small positions

Current Position: ORCL stock @ $32.62

- or -

Long the 2011 March $33 calls (ORCL1119C33) Entry @ $0.80

01/29 Consider an early exit, especially the calls.
01/27 The CBOE listed the open for our calls at $0.80

Entry on January 27 at $32.62
Earnings Date 03/24/11 (unconfirmed)
Average Daily Volume: 27 million
Listed on January 26th, 2010


UnitedHealth Group - UNH - close: 43.04 change: +1.09

Stop Loss: 40.45
Target(s): 44.75
Current Gain/Loss: + 4.5%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
02/03 update: Healthcare stocks were showing some relative strength today and UNH added +2.5%. Shares hit an intraday high of $44.09. I've been suggesting buying a dip near $41.25 and UNH hit $40.90 this morning. No new positions at this time.

Current Position: UNH stock @ $41.15

- or -

Long the 2011 March $42 calls (UNH1119C42) Entry @ $1.20

Entry on January 28 at $41.15
Earnings Date 01/20/11 (unconfirmed)
Average Daily Volume: 5.9 million
Listed on January 20th, 2010


Whole Foods Market, Inc. - WFMI - close: 51.66 change: -0.11

Stop Loss: 49.95
Target(s): 57.50, 59.90
Current Gain/Loss: - 1.9%
Time Frame: Just a few days
New Positions: Yes, see below

Comments:
02/03 update: There is no change from my prior comments on WFMI. Traders bought the dip this morning but WFMI still closed with a loss. We don't have a lot of time left before we need to close this trade.

Our plan was to keep our positions small to limit our risk. We'll exit in front of WFMI's earnings report. There is potential resistance near the 2007 highs around $53.50 but a move past that level could spark some short covering. I am listing our exit targets at $57.50 and $59.90.

- Small Positions to Limit our Risk -

Current Position: buy WFMI stock @ 52.70

- or -

Long the February $55 calls (WFMI1119B55) Entry @ $1.31

Entry on February 2 at $52.70
Earnings Date 02/09/11 (confirmed)
Average Daily Volume: 1.8 million
Listed on February 1st, 2010


BEARISH Play Updates

Endo Pharmaceuticals - ENDP - close: 34.77 change: +0.22

Stop Loss: 35.40
Target(s): 31.00, 30.10
Current Gain/Loss: - 0.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
02/03 update: Caution! ENDP is still inching higher and just closed above its 30 and 100-dma. More conservative traders may want to exit early right here. I am not suggesting new bearish positions. Our targets are $31.00 and $30.10.

Current Position: Short ENDP stock @ 34.50

- or -

Long the 2011 February $35 PUT (ENDP1119N35) Entry @ $1.30

02/03 Consider an early exit now
02/01 New stop loss @ 35.40

Entry on January 27 at $34.50
Earnings Date 02/22/11 (unconfirmed)
Average Daily Volume: 1.3 million
Listed on January 24th, 2010


Riverbed Technology - RVBD - close: 35.71 change: +0.06

Stop Loss: 38.15
Target(s): 31.75, 28.00
Current Gain/Loss: - 0.4%
Time Frame: 2 to 3 weeks
New Positions: see below

Comments:
02/03 update: RVBD is still churning sideways in a narrow range. A breakout one way or the other should happen soon. I would be tempted to lower our stop loss toward the $37.00 level. I'd also wait for a new drop under $34.85 before considering new bullish positions.

Our targets for RVBD are $31.75 and $28.50. This is an aggressive, higher-risk trade. Keep your position size small.

Readers need to know that the latest data listed short interest at 7.6% of the 135 million share float. That's relatively high short interest and raises the risk on this trade. You may want to buy put options instead. FYI: The Point & Figure chart for HITT has turned bearish.

- Small Positions to Limit our Risk -

Current Position: Short RVBD stock @ 35.55

- or -

Long the 2011 Feb. $35 puts (RVBD1119N35) Entry @ $1.05

- or -

Long the 2011 Mar. $35 puts (RVBD1119O35) Entry @ $1.75

Entry on January 31 at $35.55
Earnings Date 01/27/11
Average Daily Volume: 5.1 million
Listed on January 29th, 2010


Timken Co. - TKR - close: 48.25 change: +0.33

Stop Loss: 50.25
Target(s): 45.05, 42.00
Current Gain/Loss: - 0.5%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
02/03 update: TKR is not seeing a lot of follow through either way. Readers could wait for another failed rally near $49.00 or wait for a new drop under $47.40 to launch positions. Our exit targets are $45.05 and $42.00.

Current Position: short TKR stock @ $48.00

- or -

Long the March $45 puts (TKR1119O45) Entry @ $0.85

Entry on February 1 at $48.00
Earnings Date 01/27/11 (confirmed)
Average Daily Volume: 857 thousand
Listed on January 31st, 2011