Editor's Note:

After big gains last week the market took a break on Monday. Overall the trend today saw stocks drifting sideways in quiet trading.

-James

Current Portfolio:


CALL Play Updates

CH Robinson Worldwide Inc. - CHRW - close: 75.94 change: -0.41

Stop Loss: 71.90
Target(s): 74.90, 79.00
Current Option Gain/Loss: +100.0%
Time Frame: 4 to 6 weeks
New Positions: Yes, see below

Comments:
12/06 update: Transports saw their rally stall on Monday. CHRW followed suit. The stock spent most of the day in a very narrow range near $76.00. I don't see any changes from my weekend comments. I would expect a pull back toward the $75-74 zone. If you're looking for a new entry point I would prefer to buy calls on a dip near $74-73. Our final target is $79.00.

Current Position:
Long the January $75.00 calls (CHRW1122A75) Entry @ $1.15

12/01: New Stop loss @ 71.90
12/01: First target hit @ $74.90 Exit all December calls: $0.95 (+111.1%)
12/01: First target hit, take profits on January calls: $ $2.00 (+73.9%)
11/27: New stop @ 70.75, new first target at $74.90

Entry on November 22nd at $72.44
Earnings Date 02/03/11
Average Daily Volume = 1.1 million
Listed on November 18th, 2010


Cliffs Natural Resources - CLF - close: 73.63 change: +0.05

Stop Loss: 67.75
Target(s): 71.50, 74.75
Current Option Gain/Loss: +77.6%
Time Frame: 4 to 6 weeks
New Positions: Yes, see below

Comments:
12/06 update: After three strong gains in a row CLF managed to eke out a fourth gain but momentum is stalling. CLF struggled at $74.00 all day. Once again I'm suggesting that more conservative traders exit now! We have less than two weeks left for December options. Officially our final target is $74.75. Look for a dip back toward $70.00 as our next entry point to buy January calls (or later). I am moving our stop loss to $67.75.

Current Position:
Long the 2010 December $70.00 CALL, Entry @ $2.42

12/04 New stop loss $67.75
12/02 Target hit @ 71.50, option @ $3.25 (+34.2%)
12/02 New Stop loss @ 65.75

Entry on November 12th @ 67.00
Earnings Date 02/17/11
Average Daily Volume = 4.3 million
Listed on November 1, 2010


CSX Corp. - CSX - close: 64.00 change: -0.41

Stop Loss: 59.75
Target(s): 64.25, 67.25
Current Option Gain/Loss: Unopened
Time Frame: 4 to 6 weeks
New Positions: Yes, see trigger

Comments:
12/06 update: The rally in CSX is stalling near its November highs. Odds are growing quickly that this railroad stock will see a little pull back soon. I am suggesting we buy calls on a dip at $62.50.

Trigger to buy-the-dip @ $62.50

Suggested Position: Buy the 2011 January $60 calls (CSX1122A60)

- or -

Suggested Position: Buy the 2011 February $65 calls (CSX1119B65)

12/02: New trigger @ 62.50.
12/01: New trigger @ 62.25, New stop @ 59.90, New targets.

Entry on December xxth at $ xx.xx
Earnings Date 01/18/11 (unconfirmed)
Average Daily Volume = 5.9 million
Listed on November 23rd, 2010


CenturyLink, Inc. - CTL - close: 43.81 change: +0.38

Stop Loss: 41.45
Target(s): 44.90, 47.25
Current Option Gain/Loss: +100.0%
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Comments:
12/06 update: CTL continues to show strength but the rally did fail at last week's highs near $44.00. It is worth noting that our option has doubled from 20 cents to a bid of 40 cents. Currently I would consider new positions on dips near $43.00.

FYI: Investors should know that CTL is currently involved with a $10.6 billion stock-swap merger with Qwest Communications (Q). The merger isn't supposed to be completed until the first half of 2011. The trend for both stocks is up and naturally looks very similar following the M&A announcement.

Current Position:
Long the 2011 January $45.00 calls (CTL1122A45) Entry @ 0.20

12/01: Adjusted secondary target to $49.00

Entry on November 29th at $42x55
Earnings Date 02/22/11
Average Daily Volume = 3.0 million
Listed on November 27th, 2010


Express Scripts - ESRX - close: 53.99 change: -0.21

Stop Loss: 49.65
Target(s): 53.95, 57.25
Current Option Gain/Loss: +54.9%, and +35.7%
Time Frame: 5 to 6 weeks
New Positions: Yes, see below

Comments:
12/06 update: Monday was a quiet session for ESRX with the stock drifting sideways near $54.00. I don't see any changes from my weekend comments. I would still focus on decline in the $53-52 zone as possible entry points to buy calls (Januarys or later). Readers may want to consider an early exit on the December options, especially on any more toward $55.

We currently only have half a position open.

Don't forget - December options expire in less than two weeks.

Current Position:
Long the 2010 December $52.50 calls (ESRX1018L52.5) Entry @ $1.22
- or -
Current Position:
Long the 2011 January $52.50 calls (ESRX1122A52.5) Entry @ $2.10

12/01: First Target Hit @ $53.95. Dec's @ $2.20 (+80.3%). Jan's @ $3.10 (+47.6%)

Entry on November 18th at $51.81
Earnings Date 02/24/11
Average Daily Volume = 4.3 million
Listed on November 17th, 2010


FedEx Corp. - FDX - close: 93.29 change: -1.71

Stop Loss: 88.45
Target(s): 94.75, 99.00
Current Option Gain/Loss: Unopened
Time Frame: 4 to 6 weeks
New Positions: Yes, see below

Comments:
12/06 update: We have been expecting a pull back in FDX and it looks like that correction has started today with a -1.8% decline. Our plan is to buy calls on a dip at $91.00.

FYI: FDX is due to report earnings on Dec. 16th. Holding over earnings is risky. More conservative traders will want to exit ahead of the announcement.

Suggested Position: TRIGGER @ $91.00

Buy the 2011 January $90.00 call (FDX1122A90) current ask $4.85

- or

Buy the 2011 April $95 call (FDX1116D95) current ask $5.00

Entry on December xxth at $ xx.xx
Earnings Date 12/16/10 (confirmed)
Average Daily Volume = 2.1 million
Listed on November 29th, 2010


Goldman Sachs - GS - close: 162.65 change: +0.34

Stop Loss: 152.75
Target(s): 169.75
Current Option Gain/Loss: Unopened
Time Frame: 4 to 6 weeks
New Positions: Yes, see trigger

Comments:
12/06 update: There is no change from my weekend comments on GS. We're still waiting for a dip back to $160.25. More conservative traders could wait for a dip closer to $158.00.

Trigger @ 160.25

Suggested Position: Buy the 2011 January $165 calls (GS1122A165) current ask $5.25

Entry on December xxth at $ xx.xx
Earnings Date 01/18/11 (unconfirmed)
Average Daily Volume = 7.2 million
Listed on December 2nd, 2010


W.W. Grainger Inc. - GWW - close: 131.95 change: +0.36

Stop Loss: 124.75
Target(s): 129.90, 138.50
Current Option Gain/Loss: +84.0%
Time Frame: 4 to 6 weeks
New Positions: Yes, see below

Comments:
12/06 update: GWW managed to rally again and traded over $132.00 for another new record high. There is no change from my weekend comments. Shares look a little bit overbought here. I would expect a dip soon. If you're looking for a new entry point I would consider buying calls on a dip near $128.00.

FYI: The stock could see a little short squeeze since the most recent data listed short interest at more than 5% of the 58.5 million share float (which isn't very big as far as floats go). FYI: The Point & Figure chart is bullish with a $140 target.

Current Position:
Long the 2011 January $130 calls (GWW1122A130) Entry @ $2.50

12/02: First target hit @ 129.90, option @ $4.10 (+64%)
12/02: New stop loss @ 124.75, New final target at $138.50

Entry on November 24th at $126.75
Earnings Date 01/25/11 (unconfirmed)
Average Daily Volume = 567 thousand
Listed on November 22nd, 2010


Humana Inc. - HUM - close: 56.41 change: -0.63

Stop Loss: 53.75
Target(s): 59.75, 64.00
Current Option Gain/Loss: -21.0%
Time Frame: 4 to 6 weeks
New Positions: Yes, see below

Comments:
12/06 update: Hmm... HUM has been unable to break the bearish trend of lower highs. Odds are really good this stock is going to retest the 50-dma and possibly the $55 level. I would wait for the dip or a bounce from these levels before considering new bullish positions. I am suggesting we sell half of our position at $59.75 and then plan on selling the rest with a target at $64.00.

Current Position:
Long the 2011 January $55 calls (HUM1122A55) Entry @ $3.80

11/22/10 New stop @ 53.75
11/22/10 New (2nd) target at $64.00

Entry on November 18th at $55.05
Earnings Date 11/01/10 (confirmed)
Average Daily Volume = 2.1 million
Listed on October 16th, 2010


Nike Inc. - NKE - close: 87.73 change: +0.20

Stop Loss: 82.45
Target(s): 86.75, 89.50
Current Option Gain/Loss: +165.2%, and +60.0%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
12/06 update: NKE is still holding up and edged toward the top of its short-term trading range near $88.00. I'm still expecting a little pull back toward $85-84. If NKE does dip toward $85 the December calls are going to get hammered lower. Cautious traders will want to seriously consider an early exit for the December position right here. If you don't sell now I am lowering our exit target on the December calls to $88.75. We still want to take profits (sell half) of our January calls at $89.50. Just remember that December options expire in about two weeks.

Current Position:
Long the December $85.00 CALLS (symbol:NKE1018L85) Entry @ $1.15

- or -

(Second position)
Current Position:
Long the January $85.00 CALLS (symbol:NKE1122A85) Entry @ $2.78

12/01/10 New stop loss @ 82.45
11/30/10 Readers may want to exit December options early for a gain
11/30/10 Entry on January calls @ $2.78
11/29/10 Buy the bounce from $84.00
11/24/10 Target hit @ 86.75, Dec. option @ $2.60 (+126%)

Entry on November 11th at $83.00
Earnings Date 12/21/10
Average Daily Volume = 2.3 million
Listed on November 6th, 2010


Oceaneering International - OII - close: 72.86 change: -0.01

Stop Loss: 66.90
Target(s): 74.80, 79.75
Current Option Gain/Loss: Unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see trigger

Comments:
12/06 update: OII spent the day in a very tight range and closed virtually unchanged on the session. There is no change from my weekend comments. I am suggesting we use a trigger at $70.55. We'll start the play with a stop loss at $66.90. Our first target is $74.80. Our final target is $79.75. More aggressive traders could aim for the all-time highs near $85.

Trigger to buy @ $70.25

Suggested Position: Buy the 2011 January $75 calls (OII1122A75) current ask $2.90

- or -

Suggested Position: Buy the 2011 April $75 calls (OII1116D75) current ask $6.00

Entry on December xxth at $ xx.xx
Earnings Date 02/17/11 (unconfirmed)
Average Daily Volume = 584 thousand
Listed on December 4th, 2010


Transocean Ltd. - RIG - close: 70.93 change: +0.42

Stop Loss: 64.75
Target(s): 72.50, 74.90
Current Option Gain/Loss: +30.5%
Time Frame: 4 to 6 weeks
New Positions: Yes, see below

Comments:
12/06 update: RIG erased Friday's loss and the relative strength is encouraging. Yet I'm still expecting a pull back toward the $69-68 zone. We can use a decline into this area as a new entry point to buy calls.

- Current Position -
Long the 2011 January $70.00 calls (RIG1122A70) Entry @ $2.95

12/03/10 Target hit @ $72.50, option @ $4.95 (+67.7%)

Entry on November 30th at $68.18
Earnings Date 02/24/11 (unconfirmed)
Average Daily Volume = 6.3 million
Listed on November 29th, 2010


Union Pacific - UNP - close: 94.42 change: -0.13

Stop Loss: 87.90
Target(s): 96.25, 99.75
Current Option Gain/Loss: + 92.1%
Time Frame: 4 to 6 weeks
New Positions: Yes, see below

Comments:
12/06 update: Railroad stocks, like most of the transport sector, saw their rally stall on Monday. UNP hovered just above the $94 level all day. There is no change from my weekend comments. I would expect a pull back toward $92.00. We can use a dip in the $92.50-92.00 zone as another bullish entry point.

- Current position -
Suggested Position:
Buy the 2011 January $95 calls (UNP1122A95) Entry @ $1.52

Entry on November 30th at $89.83
Earnings Date 01/20/11
Average Daily Volume = 2.9 million
Listed on November 20th, 2010


United Technology Corp. - UTX - close: 78.41 change: -0.33

Stop Loss: 73.90
Target(s): 81.50, 84.75
Current Option Gain/Loss: Unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see trigger

Comments:
12/06 update: We're seeing a theme today. Stocks were quiet and traded sideways. UTX was in a 60-cent range all day long. There is no change from my weekend comment. I am suggesting a trigger to buy calls at $77.10. Cautious traders could wait for a pullback closer to $76 or even $75. We will begin the play with a stop loss at $73.90, just under the rising 50-dma. Our first target is $81.50. UTX's all-time high is $82.50.
FYI: The Point & Figure chart is bullish with a $91 target for UTX.

Trigger to buy calls @ $77.10

Suggested Position: Buy the 2011 January $80 calls (UTX1122A80) current ask $1.63

- or -

Suggested Position: Buy the 2011 February $80 calls (UTX1119B80) current ask $2.45

Entry on December xxth at $ xx.xx
Earnings Date 01/26/11 (unconfirmed)
Average Daily Volume = 3.2 million
Listed on December 4th, 2010


Cimarex Energy Co. - XEC - close: 87.28 change: +0.45

Stop Loss: 79.85
Target(s): 87.40, 89.90
Current Option Gain/Loss: Unopened
Time Frame: 4 to 6 weeks
New Positions: Yes, see below

Comments:
12/06 update: XEC continues to show relative strength. The stock rallied to another new high. There is no change from my weekend comment. I would not chase it. I'm suggesting readers wait for a dip to $84.00. Cautious traders could wait for a dip closer to $82 instead.

Trigger @ 84.00

Suggested Position:
Buy the 2011 January $85 calls (XEC1122A85)

Entry on December xxth at $ xx.xx
Earnings Date 02/17/11 (unconfirmed)
Average Daily Volume = 907 thousand
Listed on December 1st, 2010


CLOSED BULLISH PLAYS

VimpelCom Ltd - VIP - close 14.55 change -0.51

Stop Loss: 14.90
Target(s): 16.75
Current Option Gain/Loss: -57.1%
Time Frame: 6 to 8 weeks
New Positions: No

Comments:
12/06 update: Ouch! It was an ugly session for VIP. Shares opened at $14.85 (under support at $15.00) and quickly plunged to new four-week lows. With our stop at $14.90 the play was closed immediately. The option opened at $0.45.

Closed Position:
December $15.00 CALLS, Entry @ $1.05, exit @ 0.45 (-57.1%)

12/06/10 Stopped out @ $14.85 (gap down)
11/27/10 new stop @ 14.90

Chart:

Entry on November 8, 2010 @ 15.60
Earnings Date 12/02/2010 (unconfirmed)
Average Daily Volume: 3.5 million
Listed on November 3, 2010