CALL Play Updates

Apple Inc. - AAPL - close: 205.93 change: -3.50 stop: 203.99

Positive analyst comments and a strong launch for the iPhone in Britain could not lift shares of AAPL today. The company had its earnings estimates raised that may have accounted for the brief morning spike higher. Meanwhile Vodaphone began selling the iPhone and sold a whopping 50,000 in one day. While the news is good the stock isn't reacting.

On a short-term basis the bounce from this past week is failing. More conservative traders might do well to exit early right here. I am not suggesting new bullish positions. We have five trading days left before AAPL reports earnings on January 25th and we do not want to hold over the announcement.

This was an aggressive bullish trade and the plan was to use small positions (1/4 to 1/2 your normal trade size). Our first target to exit is $219.50. Our second target is $224.50.

Suggested Options:
No new positions at this time.

Annotated Chart:

Entry  on   January 13 at $210.65 
Change since picked:       - 4.72
Earnings Date            01/25/10 (confirmed)
Average Daily Volume =       17.1 million  
Listed on   January 13, 2010         


AvalonBay Commty. - AVB - close: 79.43 change: -0.10 stop: 77.90

Shares of AVB continue to ignore the wider market's moves. The stock's sideways consolidation has narrowed and shares continue to hover near the $79.50-80.00 zone. There is no change from my previous comments. 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.

Suggested Options:
If AVB hits our trigger at $82.05 I'm suggesting the February calls. My preference is for the $85 strike price (AVB-BQ).

Annotated Chart:

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: 60.12 change: -1.44 stop: 59.45

It was not a good day for CAT. After consolidating sideways for three sessions the stock collapsed as traders took profits ahead of the long weekend. CAT dipped toward round-number support near $60.00. While the short-term breakdown is bearish this should be a new bullish entry point near support, although I'd probably wait for a bounce first before launching new positions. 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.

Suggested Options:
This dip to $60 should be a new entry point. I'm suggesting the February calls. My preference is the $60 or $62.50 strikes.

Annotated Chart:

Entry  on   January 09 at $ 60.95 /gap higher entry (small positions)
Change since picked:       - 0.83     
                         /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: 90.04 change: -0.91 stop: 87.45

It was a bleak morning for ESRX with the stock erasing two days of gains but traders bought the dip Friday afternoon. There is no change from my prior comments. The larger trend for ESRX is still positive. I would still consider new bullish positions over $90.00. More conservative traders might consider inching up their stops toward this past week's low (near $88.50). Our first target is $95.75. Our second target is $99.75. We do not want to hold over the February earnings report.

Suggested Options:
I am suggesting the February calls. My preference is for the $95 strike (XTQ-BS).

Annotated Chart:

Entry  on   January 09 at $ 91.65 (small positions)    
Change since picked:       - 1.61     
Earnings Date            02/24/10 (unconfirmed)
Average Daily Volume =        2.6 million      
Listed on   January 09, 2010         


FUQI Intl. - FUQI - close: 20.73 change: -0.53 stop: 18.99

Selling pressure in FUQI leveled off by lunch time and shares began to drift sideways. I've been warning readers to look for a dip toward $20.00. I would still wait for a dip closer to $20.00 before considering new bullish entries. 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.

Suggested Options:
If FUQI provides a new entry point I would use the February calls. My preference is for the $22.50 strike.

Annotated Chart:

Entry  on   January 06 at $ 20.51   (small positions 1/4) 
Change since picked:       + 0.22       
Earnings Date            03/31/10 (unconfirmed)
Average Daily Volume =        1.0 million      
Listed on   January 04, 2010         


L-3 Communications - LLL - close: 89.45 change: -0.62 stop: 87.85 *new*

LLL is holding up reasonably well after spiking to new highs on Thursday. Shares spent a good portion of Friday's session bouncing around the $89.00-89.50 zone. I am raising our stop loss to $87.85. If LLL breaks down under its trend of higher lows we want to exit quickly. I am not suggesting new bullish positions at this time.

Our play with the January calls is over and our plan was to exit at the closing bell if you didn't exit at our target on Thursday. 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.

Suggested Options:
No new positions at this time.

Annotated Chart:

Entry  on  December 28 at $ 86.80
Change since picked:       + 2.65
                            /1st target hit @ 89.95 (+3.6%)
Earnings Date            01/28/10 (unconfirmed)
Average Daily Volume =        1.0 million      
Listed on  December 26, 2009         


TORO Co. - TTC - close: 42.86 change: -0.22 stop: 41.40

TTC spent most of Friday consolidating sideways but started to weaken toward the closing bell. I would expect a dip toward $42.00 and/or its 50-dma approaching $41.50. Wait for the dip or signs of a bounce before launching new bullish positions. 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.

Suggested Options:
If TTC provides a new entry point we want to use the March calls. My preference was the $45 strike.

Annotated Chart:

Entry  on   January 07 at $ 42.60 (small positions)
Change since picked:       + 0.26      
Earnings Date            02/18/10 (unconfirmed)
Average Daily Volume =        289 thousand     
Listed on   January 05, 2010         


UnitedHealth Group - UNH - close: 33.75 change: +0.43 stop: 31.40 *new*

UNH displayed relative strength with a breakout to new 52-week highs. Shares hit $33.99 early Friday morning and our first target to take profits is at $34.00. I am suggesting we go ahead and take profits now.

If you are holding the January calls our plan was to exit on Friday at the closing bell. If you're holding March calls we still have some time. Readers need to decide if they're willing to hold over the earnings report on January 21st. I billed this play as a "lottery ticket" play so we're going to take a risk and hold over the earnings report next week. However, I'm going to suggest we take some money off the table ahead of the earnings announcement on January 21st. Please note our new stop loss at $31.40. Our second and final target is $36.00.

Suggested Options:
No new positions at this time.

Annotated Chart:

Entry  on  December 10 at $ 30.31    
Change since picked:       + 3.44    
Earnings Date            01/21/10 (unconfirmed) 
Average Daily Volume =        819 thousand      
Listed on  December 10, 2009         


Union Pacific - UNP - close: 65.57 change: -0.81 stop: 64.90

Unfortunately the railroads continue to correct lower. Shares of UNP have pulled back toward round-number support near $65.00. If the stock slips any lower the early January breakout is going to look like a bull-trap pattern. I am suggesting we use this dip to support as a new bullish entry point but I strongly encourage more conservative traders to wait for a bounce first before initiating positions.

I am consolidating our two targets to just one. We'll plan to exit at $69.95 or ahead of the earnings report on January 21st, whichever comes first.

Suggested Options:
At this point UNP has become a very short-term trade. If you choose to enter here I'm suggesting the February calls but consider the Feb. $65s instead of 70s.

Annotated Chart:

Entry  on   January 12 at $ 67.39 
Change since picked:       - 1.82 
Earnings Date            01/21/10 (confirmed)
Average Daily Volume =        2.5 million    
Listed on   January 12, 2010         


PUT Play Updates

*Currently we do not have any put play updates*


CLOSED BULLISH PLAYS

Goldman Sachs - GS - close: 165.21 change: -3.32 stop: 164.95

Financial stocks were under performers on Friday. Investors were disappointed with JPM's earnings report due to rising loan loss reserves and the whole sector spiked lower. GS is not really a bank but the stock fell anyway. Shares of GS gapped open lower at $167.60 and quickly hit our stop loss at $164.95 closing this trade.

Chart:

Entry  on   January 13 at $168.00 /gap down entry
Change since picked:       + 3.05 <-- stopped @ 164.95 (-1.8%)
Earnings Date            01/21/10 (unconfirmed) 
Average Daily Volume =        7.1 million  
Listed on   January 13, 2010         


Precision Castparts - PCP - close: 113.75 change: -1.59 stop: 112.99

Time has expired for our PCP play. The plan was to exit at the closing bell on Friday. PCP had hit our first target several days ago and came very close to our final target at $118.75 on Monday.

Chart:

Picked on  December 01 at $107.35    
Change since picked:       + 6.40 closed @ 113.75 (+5.9%)
                            /1st target hit $112.45 (+4.7%)
Earnings Date            01/20/10 (unconfirmed)  
Average Daily Volume =        817 thousand      
Listed on  November 28, 2009         


Whirlpool - WHR - close: 82.30 change: -0.87 stop: 79.90

We have run out of time on our WHR play. The original play description listed January calls and January options just expired. WHR did hit our first target at $84.75 bur struggled to make any further progress.

Chart:

Entry  on  December 19 at $ 80.76 /gap higher entry  
Change since picked:       + 1.54  closed @ 82.30 (+1.9%)
                             /1st target hit $84.75 (+4.9%)
Earnings Date            02/08/10 (unconfirmed)     
Average Daily Volume =        1.6 million       
Listed on  December 19, 2009