CALL Play Updates

Apple Inc. - AAPL - close: 208.07 change: -3.65 stop: 203.99

We have two days left for this AAPL trade but given the market's breakdown today I think it might be a good bet for more conservative traders to exit early right here. The February $220 calls are still trading near $5.00. If you exit now you limit your losses. In the last two sessions AAPL has erased that big gain from Tuesday. Technical indicators have started to roll over. Given our time frame and the market's new tone I'm not suggesting new positions. We will exit on Monday at the closing bell to avoid earnings if we don't get stopped out between now and then.

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.

Entry  on   January 13 at $210.65 
Change since picked:       - 2.58
Earnings Date            01/25/10 (confirmed)
Average Daily Volume =       17.1 million  
Listed on   January 13, 2010         


Joyg Global - JOYG - close: 54.05 change: -4.03 stop: 48.90 *new*

Anything related to mining and commodities was hit hard again on Thursday. JOYG's losses weren't that bad on Wednesday but it certainly made up for it with a 6.9% drop today. Shares have broken potential support near $55 and its 50-dma. Odds look good that JOYG could tag its long-term trendline of higher lows near the $50 level.

I am adjusting our entry point strategy on JOYG. Use a dip to $50.50 to buy calls. Keep positions small. We'll use a stop loss at $48.90. If triggered our first target is $54.75. Our second target is $59.00. We do not want to hold over the early March earnings report.

Chart:

Entry  on   January xx at $ xx.xx <-- TRIGGER @ 50.50
Change since picked:       + 0.00
Earnings Date            03/03/10 (unconfirmed)
Average Daily Volume =        2.8 million  
Listed on   January 19, 2010         


3M Co. - MMM - close: 82.70 change: -2.02 stop: 83.40

If we don't see a rebound in MMM tomorrow I'll drop it as a bullish candidate. The plan is to buy calls for a short-term trade at $85.25. We will plan to exit ahead of the January 28th earnings report. If triggered our target is $$89.50.

Entry  on   January xx at $ xx.xx <-- TRIGGER @ 85.25
Change since picked:       + 0.00
Earnings Date            01/28/10 (confirmed)
Average Daily Volume =        3.1 million  
Listed on   January 20, 2010         


TORO Co. - TTC - close: 42.17 change: -0.13 stop: 41.40

TTC found support where we expected it too. Traders bought the dip near its trendline of higher lows, which happened to be near its 40-dma. The stock dipped to $41.63 and spent most of the day consolidating near $42.00. Technically this is a new bullish entry point but given the market's breakdown today I would hesitate to launch 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.

Entry  on   January 07 at $ 42.60 (small positions)
Change since picked:       - 0.43      
Earnings Date            02/18/10 (unconfirmed)
Average Daily Volume =        289 thousand     
Listed on   January 05, 2010         


PUT Play Updates

*Currently we do not have any put play updates*


CLOSED BULLISH PLAYS

AvalonBay Commty. - AVB - close: 77.30 change: -1.78 stop: 77.90

Shares of AVB have broken down from their sideways consolidation near $80.00. The stock has stalled near its 50-dma but I would expect it to drop toward $75. I am dropping AVB as a bullish candidate. We can look at it again if shares hold support near $75. Our play never opened with a trigger at $82.05.

Chart:

Entry  on   January xx at $ xx.xx <-- TRIGGER @ 82.05  
Change since picked:       + 0.00    *never opened*
Earnings Date            02/03/10 (confirmed)
Average Daily Volume =        1.4 million    
Listed on   January 09, 2010         


Baxter Intl. - BAX - close: 59.60 change: -1.20 stop: 59.80

Our brand new play on BAX did not pan out. Shares succumbed to the market-wide sell-off and broke down under the $60.00 level. BAX hit our stop loss at $59.80 closing this trade.

Chart:

Entry  on   January 20 at $ 60.80  (small positions)
Change since picked:       - 1.00 <-- stopped out @ 59.80 (-1.6%)
Earnings Date            01/28/10 (confirmed)
Average Daily Volume =        3.4 million  
Listed on   January 20, 2010         


FUQI Intl. - FUQI - close: 18.18 change: -1.00 stop: 18.99

Investors continue to worry about China putting the brakes on their economy. This lead many traders to sell Chinese companies and FUQI lost another 5% today. Shares hit our stop loss at $18.99 closing the play. This was a very aggressive trade and I suggested very small positions.

Chart:

Entry  on   January 06 at $ 20.51   (small positions 1/4) 
Change since picked:       - 1.52 <-- stopped out @ 18.99 (-7.4%)
Earnings Date            03/31/10 (unconfirmed)
Average Daily Volume =        1.0 million      
Listed on   January 04, 2010         


Yanzhou Coal Mining. - YZC - close: 20.75 change: -2.14 stop: 22.50

It was a very ugly day for coal names. Not only where commodity names weak due to worries that China would slow down their economic growth but Australia is considering a new tax that would hit the mining companies. Plus, Citigroup issued some bearish comments and downgrades for the coal sector. Add to the mix a widespread market decline and shares of YZC were hammered for a 9.3% drop. Shares gapped open at $21.61. Our stop loss to exit was $22.50 so the play was closed at the open.

Chart:

Entry  on   January 19 at $23.77 /gap down entry
                            /originally listed at $23.93
Change since picked:       - 2.16 <-exit @ 21.61 (-9.0%)
Earnings Date            (Unknown)
Average Daily Volume =    444,000  
Listed on   January 17, 2010