CALL Play Updates

Apple Inc. - AAPL - close: 209.43 change: -1.22 stop: 203.99

AAPL traded sideways near the $210 level as investors waited for Intel's earnings report after the closing bell. Intel's numbers were good so tech stocks could get a boost tomorrow. I would probably play this a little cautious and look for a move over $211 to open positions. Our plan is to exit ahead of AAPL's earnings report on January 25th.

I consider this an aggressive trade. I would use very small positions (1/4 to 1/2 your normal trade). Our first target to exit is $219.50. Our second target is $224.50.

Entry  on   January 13 at $210.65 
Change since picked:       - 1.22
Earnings Date            01/25/10 (confirmed)
Average Daily Volume =       17.1 million  
Listed on   January 13, 2010         


AvalonBay Commty. - AVB - close: 79.94 change: -0.48 stop: 77.90

We are still waiting for AVB to move. The stock's sideways consolidation has narrowed as it hovers around the $80.00 level. Shares should see a break one way or the other soon. I'm suggesting we wait for the move over $82. Our plan is to buy calls at $82.05. If triggered our first target is $87.50. We will plan to exit ahead of the early February earnings report.

Entry  on   January xx at $ xx.xx <-- TRIGGER @ 82.05  
Change since picked:       + 0.00   
Earnings Date            02/03/10 (confirmed)
Average Daily Volume =        1.4 million    
Listed on   January 09, 2010         


Caterpillar - CAT - close: 61.98 change: -0.35 stop: 59.45

Shares of CAT continue to churn sideways in a narrow range. This is the third day in a row that shares failed to move. The consolidation is narrowing. We should see CAT move soon. The $60 level should now be new support. Our second and final target is $67.00. Earnings are coming up quick and we plan to exit ahead of the report on January 26th.

Entry  on   January 09 at $ 60.95 /gap higher entry (small positions)
Change since picked:       + 1.03     
                         /take profits early $ 64.13 (+5.2%)
Earnings Date            01/26/10 (confirmed)
Average Daily Volume =        4.8 million    
Listed on   January 09, 2010         


Express Scripts - ESRX - close: 90.95 change: +0.85 stop: 87.45

ERSX displayed some relative strength with a 0.9% gain and another close over $90.00. Volume remains light but this looks like a bullish entry point to buy calls. Our first target is $95.75. Our second target is $99.75. We do not want to hold over the February earnings report.

Entry  on   January 09 at $ 91.65 (small positions)    
Change since picked:       - 0.70     
Earnings Date            02/24/10 (unconfirmed)
Average Daily Volume =        2.6 million      
Listed on   January 09, 2010         


FUQI Intl. - FUQI - close: 21.26 change: -0.05 stop: 18.99

We're not seeing any movement in FUQI. The stock has been trading sideways for three days now. There is no change from my prior comments. If you are looking for a new entry point I would still wait for a dip closer to $20.00. This was a very aggressive trade and I suggested very small positions. Our target to exit is $24.75 but more conservative traders may want to start taking profits early anywhere above $22.50.

Entry  on   January 06 at $ 20.51   (small positions 1/4) 
Change since picked:       + 0.75       
Earnings Date            03/31/10 (unconfirmed)
Average Daily Volume =        1.0 million      
Listed on   January 04, 2010         


Goldman Sachs - GS - close: 168.53 change: -0.54 stop: 164.95

Shares of GS gapped open lower this morning presumably on Obama's new tax idea for the big financial firms. The stock opened at $168.00, which provided us a better entry point to buy calls. The midday rally failed at $170.72. More conservative traders may want to wait for a move over $171 to open bullish positions. Our first target to take profits is at $174.90. Our second target is $179.00.

Suggested Options:
I am suggesting the February calls but we'll exit ahead of earnings. I would use the $170 or $175 strike but my preference is for the $175s.

Entry  on   January 13 at $168.00 /gap down entry
Change since picked:       + 0.53
Earnings Date            01/21/10 (unconfirmed) 
Average Daily Volume =        7.1 million  
Listed on   January 13, 2010         


L-3 Communications - LLL - close: 90.07 change: +1.13 stop: 86.90

Target achieved. LLL displayed relative strength with a 1.2% gain. Not only did shares hit our first target to take profits at $89.95 but the stock closed above round-number resistance at $90.00. This was a bullish session for LLL.

If you have the January options you'll need to exit tomorrow. The newsletter will "exit" the January $90 calls at tomorrow's closing bell. The safer bet is to probably exit tomorrow morning. We still have the February $90 calls.

I did label this an aggressive, higher-risk trade. Our first target to take profits is at $89.95. Our second and final target is $94.00. We want to exit ahead of the late January earnings report. FYI: The Point & Figure chart is bullish with a $104 target.

Chart:

Entry  on  December 28 at $ 86.80
Change since picked:       + 3.27
                            /1st target hit @ 89.95 (+3.6%)
Earnings Date            01/28/10 (unconfirmed)
Average Daily Volume =        1.0 million      
Listed on  December 26, 2009         


Precision Castparts - PCP - close: 115.34 change: +0.53 stop: 112.99 *new*

Tomorrow is our last day. Our original play listed January calls. We'll plan to exit tomorrow before the closing bell. I'm raising our stop loss to $112.99. Our final target is $118.75.

Picked on  December 01 at $107.35    
Change since picked:       + 7.99    
                            /1st target hit $112.45 (+4.7%)
Earnings Date            01/20/10 (unconfirmed)  
Average Daily Volume =        817 thousand      
Listed on  November 28, 2009         


TORO Co. - TTC - close: 43.08 change: -0.77 stop: 41.40

TTC ran into some profit taking near resistance at $44.00. The stock gave up 1.7% although volume was light. Look for short-term support near $42.00. Our exit target is $45.90. We don't want to hold over the February earnings report. The plan calls for small positions to limit our risk.

Entry  on   January 07 at $ 42.60 (small positions)
Change since picked:       + 0.48      
Earnings Date            02/18/10 (unconfirmed)
Average Daily Volume =        289 thousand     
Listed on   January 05, 2010         


UnitedHealth Group - UNH - close: 33.32 change: +0.78 stop: 29.90

Healthcare stocks were some of the better performers on Thursday. UNH displayed relative strength with a 2.3% gain and a new 52-week closing high. If you're holding January calls you'll need to exit tomorrow. The newsletters will plan to exit tomorrow at the closing bell. However, we still have March calls.

This was a "lottery ticket" style of play. We knew it was risky given all the political ups and downs for the healthcare bill. Our time frame was several weeks and we listed January and March calls. At this time if you choose to open new positions I'd use March calls but that would require holding over the late January earnings report (to get the most out of your March calls). Our first target is $34.00. Our longer-term target is $36.00.

Entry  on  December 10 at $ 30.31    
Change since picked:       + 3.01    
Earnings Date            01/21/10 (unconfirmed) 
Average Daily Volume =        819 thousand      
Listed on  December 10, 2009         


Union Pacific - UNP - close: 66.38 change: -1.09 stop: 64.90

The correction in railroad stocks continues. UNP has dipped toward previous resistance and what should be support near $66.00. The overall trend, which is bullish, is unchanged. I am suggesting readers use this pull back as a new bullish entry point to buy calls.

Our first target is $69.95. Our second target is $72.00 but that is very optimistic. Earnings are coming up this month and we plan to exit ahead of earnings. Our risk/reward is not super attractive here so consider smaller positions.

Entry  on   January 12 at $ 67.39 
Change since picked:       - 1.01 
Earnings Date            01/21/10 (confirmed)
Average Daily Volume =        2.5 million    
Listed on   January 12, 2010         


Whirlpool - WHR - close: 83.17 change: +0.10 stop: 79.90

Time has run out. January options expire after Friday. We will plan to close this play at Friday's closing bell.

WHR has already hit our first target at $84.75. Our second target is $89.00.

Entry  on  December 19 at $ 80.76 /gap higher entry  
Change since picked:       + 2.51      
                             /1st target hit $84.75 (+4.9%)
Earnings Date            02/08/10 (unconfirmed)     
Average Daily Volume =        1.6 million       
Listed on  December 19, 2009         


PUT Play Updates

*Currently we do not have any put play updates*


CLOSED BULLISH PLAYS

J.P.Morgan Chase - JPM - close: 44.69 change: +0.44 stop: 42.85

JPM rallied into earnings with a 0.99% gain. The company reports earnings tomorrow morning. Our plan was to exit today at the closing bell.

Chart:

Entry  on   January 04 at $ 42.85 (small positions 1/2)
Change since picked:       + 1.84  <-- final exit @ 44.69 (+4.29%)
                   take profits on 01/09/10 @ 44.68 (+4.2%)
Earnings Date            01/15/10 (confirmed) 
Average Daily Volume =       31.6 million    
Listed on   January 04, 2010