Editor's Note:
It's been a bullish month for Disney with the stock breaking out to new ten-year highs. Shares are even higher afterhours following a strong earnings report. Our plan was to exit at the closing bell to avoid the potential risk inherent in an earnings report.

-James

Current Portfolio:


BULLISH Play Updates

Agilent Technologies - A - close: 44.17 change: -0.27

Stop Loss: 39.95
Target(s): 47.50
Current Gain/Loss: unopened
Time Frame: 1 week
New Positions: Yes, see trigger

Comments:
02/08 update: A is starting to see a little profit taking, which is what we've been waiting for. Unfortunately, we probably don't have enough time for this trade to really work out for us. Agilent is due to report earnings on Monday, Feb. 14th after the closing bell and we do not want to hold over the report. If we don't see a deeper pull back by tomorrow, I'll drop A as a candidate. With that in mind I'm moving our buy the dip entry point to $42.65.

Trigger @ 42.65

Suggested Position: Buy A stock @ $42.65

- or -

Buy the February $43.00 calls (A1119B43)

Entry on February xx at $xx.xx
Earnings Date 02/14/11 (confirmed)
Average Daily Volume: 3.3 million
Listed on February 5th, 2010


Alcoa Inc - AA - close: 17.40 change: +0.08

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:
02/08 update: There is no change from my prior comments on AA. The stock is consolidating sideways under the $17.50 level. Right now the plan is to open bullish positions at $16.65. You could use a dip into the $16.65-16.00 zone as your entry point. 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


Autodesk, Inc. - ADSK - close: 42.93 change: -0.59

Stop Loss: 39.90
Target(s): 46.00
Current Gain/Loss: unopened
Time Frame: 2 weeks
New Positions: Yes, see trigger

Comments:
02/08 update: We are looking for a dip in ADSK and shares slipped to $42.32 this morning. Right now the plan is to launch bullish positions on a dip at $42.10 so we're still on the sidelines. This is a short-term, two-week trade. ADSK is due to report earnings in late February and we do not want to hold over the announcement.

Trigger @ 42.10

Suggested Position: Buy ADSK stock @ 42.10

- or -

Buy the March $45 call (ADSK1119C45) current ask $1.39

Entry on February xx at $xx.xx
Earnings Date 02/23/11 (unconfirmed)
Average Daily Volume: 2.5 million
Listed on February 7th, 2010


FLIR Systems Inc. - FLIR - close: 32.39 change: +0.41

Stop Loss: 31.40
Target(s): 30.90, 33.00
Current Option Gain/Loss: +11.3%
Time Frame: exit before earnings
New Positions: see below

Comments:
02/08 update: Tomorrow is our last day for the FLIR play. More conservative traders may want to exit immediately (+11.3%). The newsletter will close this trade tomorrow before the closing bell. Due to our diminished time frame I am moving our stop loss to $31.40. Our final exit target has been $33.00, which shares might be able to hit tomorrow.

Current Position: Long FLIR stock @ $29.10

02/08: New stop loss @ 31.40
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: 55.67 change: -0.09

Stop Loss: 53.40
Target(s): 59.50
Current Gain/Loss: - 0.2%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
02/08 update: HANS is testing the $55 level again. This looks like a new entry point to open bullish positions. Or if you're feeling patient you could wait for a dip toward the 40 or 50-dma (currently near 54.00-53.60). 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: 33.03 change: +0.05

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

Comments:
02/08 update: ORCL is still consolidating sideways. There is no change from my prior comments. I'd prefer to launch new positions on a dip closer to the $32.00 level.

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

small positions to limit our risk.

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


The TJX Companies - TJX - close: 49.84 change: +0.20

Stop Loss: 46.49
Target(s): 52.00, 54.50
Current Gain/Loss: unopened
Time Frame: 2 to 3 weeks
New Positions: Yes, see trigger

Comments:
02/08 update: TJX is still consolidating sideways under resistance at the $50.00 mark. There is no change from my prior comments. This should be round-number resistance for the stock and I am expecting a pull back soon. We want to be ready to buy the dip at $48.00 with a stop loss at $46.49. TJX has earnings in about two and a half weeks and we'll exit ahead of the report. We'll be aiming for $52.00 and $54.50.


FYI: The Point & Figure chart for TJX is bullish with a $62 target.

Trigger @ 48.00

Suggested Position: buy TJX stock @ $48.00

- or -

Buy the March $50.00 calls (TJX1119C50) current ask $1.30

Entry on February xx at $xx.xx
Earnings Date 02/23/11 (unconfirmed)
Average Daily Volume: 3.4 million
Listed on February 5th, 2010


UnitedHealth Group - UNH - close: 41.97 change: +0.16

Stop Loss: 40.75
Target(s): 44.75
Current Gain/Loss: + 1.6%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
02/08 update: UNH is still inching higher but I'm growing more and more concerned with its lack of momentum. Please note our new stop loss at $40.75. I am not suggesting new positions at this time.

Current Position: UNH stock @ $41.15

- or -

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

02/08: New stop loss @ 40.75

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: 52.91 change: +0.08

Stop Loss: 50.95
Target(s): 57.50, 59.90
Current Gain/Loss: + 0.4%
Time Frame: Just a few days
New Positions: see below

Comments:
02/08 update: WFMI spiked to a new high this morning but failed to hold its gains. Tomorrow is our last day and we will plan to exit at the closing bell to avoid holding over WFMI's earnings report. Down to our last day we will raise the stop loss to $50.95. I am not suggesting new positions at this time.

Our plan was to keep our positions small to limit our risk.

- Small Positions to Limit our Risk -

Current Position: buy WFMI stock @ 52.70

- or -

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

02/08: New stop loss @ 50.95

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: 34.57 change: -0.40

Stop Loss: 35.40
Target(s): 31.00, 30.10
Current Gain/Loss: - 0.2%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
02/08 update: ENDP appears to be fading lower (-1.1%) after the recent test of overhead resistance at the 50-dma. I am reluctant to open new bearish positions.

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


CLOSED BULLISH PLAYS

Walt Disney Co. - DIS - close: 41.18 change: +0.24

Stop Loss: 38.60
Target(s): 39.90, 41.90
Current Gain/Loss: + 7.6%
Time Frame: 10 to 12 weeks
New Positions: see below

Comments:
02/08 update: Time has run out. We planned to exit our DIS trade today at the close to avoid holding over earnings. Wall Street was looking for 56 cents on revenues of $10.5 billion. DIS delivered 68 cents (+12 cents) on revenues of $10.7 billion. The stock is trading higher afterhours near $42.60.

We can keep DIS on our watch list as another dip near $40 or the $38 level could be another entry point for bullish positions.

- Current Positions -

Long DIS stock @ 38.25

02/08: Planned Exit at the close. Final price $41.18 (+7.6%)
02/07: New stop loss @ 39.95
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

chart:

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