Editor's Note:

The oil service stocks outperformed today but gains in the sector were uneven. The rally in bank stocks faded on Wednesday. Overall the market is still drifting sideways, which isn't too surprising given the holidays. IBM hit our breakout trigger at $146.75. Meanwhile VMC is offering a new entry point.

-James

Current Portfolio:


CALL Play Updates

Amazon.com Inc. - AMZN - close: 183.37 change: +2.28

Stop Loss: 176.45
Target(s): 189.50, 199.00
Current Option Gain/Loss: - 2.1%, and - 1.2%
Time Frame: 4 to 6 weeks
New Positions: See below

Comments:
12/29 update: Traders bought the dip near $180.50 this morning and the stock showed relative strength to end the day with a +1.25% gain. I would be tempted to inch up our stop loss toward the $180 area. I've been suggesting dips near $180 as an entry point but if you were waiting for a bounce you got it today.

We want to keep our position size small. AMZN can be a volatile stock. Our upside targets are $189.50 and $199.00.

- Suggested (SMALL) positions -

Long the 2011 January $190 calls (AMZN1122A190) Entry @ $2.35

- or -

Long the 2011 February $200 calls (AMZN1119B200) Entry @ $3.85

Entry on December 28th at $182.10
Earnings Date 01/27/11 (unconfirmed)
Average Daily Volume = 5.0 million
Listed on December 27th, 2010


Boeing Co. - BA - close: 65.05 change: +0.19

Stop Loss: 62.75
Target(s): 69.00, 72.25
Current Option Gain/Loss: Unopened
Time Frame: 4 to 6 weeks
New Positions: Yes, see trigger

Comments:
12/29 update: BA is still flirting with a breakout over resistance near $65.00 but it hasn't happened yet at least not convincingly. The high today was $65.20. I'm suggesting a trigger to buy calls at $65.50. We'll use a stop loss under this past week's low at $62.75. There is additional resistance at the 200-dma near the $67 level. We should consider this a higher-risk aggressive trade. Keep your position size small. Our first target is $69.00. Our second target is $72.25.

Trigger @ 65.50

- Suggested Positions -

Buy the 2011 January 67.50 calls (BA1122a67.5) current ask $0.64

Buy the 2011 February $70.00 calls (BA1119B70) current ask $0.77

Entry on December xxth at $ xx.xx
Earnings Date 01/26/11 (unconfirmed)
Average Daily Volume = 5.3 million
Listed on December 25th, 2010


Baxter Intl. Inc. - BAX - close: 50.91 change: -0.18

Stop Loss: 49.90
Target(s): 55.50, 57.50
Current Option Gain/Loss: Unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see trigger

Comments:
12/29 update: Unfortunately it was another forgettable session for BAX. Shares drifted sideways in a narrow range. I am suggesting a trigger to buy calls at $52.55. If triggered our first target is $55.75. Our second target is $57.50. I would consider this a higher-risk trade. If you look at the weekly chart of BAX you can draw a trendline across the long-term highs and the trend is lower. BAX could see additional resistance near $55.00. Keep your position size small.

Trigger @ 52.55

- Suggested Positions -

Buy the 2011 February $55 calls (BAX1119B55)

Entry on December xxth at $ xx.xx
Earnings Date 01/27/11 (unconfirmed)
Average Daily Volume = 3.3 million
Listed on December 25th, 2010


Cummins Inc. - CMI - close: 110.13 change: +0.07

Stop Loss: 108.75
Target(s): 112.75 114.75
Current Option Gain/Loss: -19.6% and - 9.0%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
12/29 update: CMI also delivered another quiet session on Wall Street. The stock is hovering around the $110 level and its rising 10-dma. Big picture the trend is up but I'm growing cautious since CMI is now bouncing from the $110 level as previously expected. Readers may want to wait for a move over $110.50 or the $111.00 levels before initiating new positions or you could try and buy a dip near $109.00, especially since we have a tight stop at $108.75. This remains an aggressive entry point and I'm only suggesting small positions.

(small positions only to limit our risk)

- Suggested Positions -
Buy the 2011 January $115 calls (CMI1122A115) Entry @ $1.12

- or -

Buy the 2011 March $115 calls (CMI1119C115) Entry @ $4.73

12/27: CMI opens at $110.18
12/25: Buy calls now at current levels (small positions)
12/21: New entry point @ $110.25, New stop @ 108.75, New option strikes.

Entry on December 27th at $110.18
Earnings Date 02/02/11 (unconfirmed)
Average Daily Volume = 1.8 million
Listed on December 11th, 2010


CSX Corp. - CSX - close: 64.36 change: +0.04

Stop Loss: 61.75
Target(s): 67.00, 69.50
Current Option Gain/Loss: -22.8% and -11.6%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
12/29 update: CSX is still consolidating sideways although the bias appears to be bullish. More aggressive traders could buy calls now. Or you could wait for CSX to hit a new relative high (over 64.80) before initiating positions. If you do open new positions I would buy the February (or longer) calls.

- Current Positions - (We only have a small position open)

Buy the 2011 January $65 calls (CSX1122A65) Entry @ $1.75

- or -

Buy the 2011 February $65 calls (CSX1119B65) Entry @ $2.49

12/25: new stop loss @ 61.75
12/13: CSX opened at $64.39
12/11: New Entry Point Strategy. Buy half now.
12/11: New targets: 67.00, 69.50
12/02: New trigger @ 62.50.
12/01: New trigger @ 62.25, New stop @ 59.90, New targets.

Entry on December 13th at $64.39
Earnings Date 01/18/11 (unconfirmed)
Average Daily Volume = 5.9 million
Listed on November 23rd, 2010


CenturyLink, Inc. - CTL - close: 46.25 change: +0.16

Stop Loss: 43.75
Target(s): 44.90, 48.00
Current Option Gain/Loss: +650.0%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
12/29 update: CTL and Qwest Communications appear to have reached an agreement that will allow the two companies to complete their proposed merger. The $10 billion deal still waits for government approval. Meanwhile shares of CTL bounced sideways near the $46.00 level. Conservative traders could always exit now to lock in gains. I am not suggesting new positions at this time.

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

12/21: Adjusted final target to $48.00
12/14: New stop loss @ 43.75
12/13: First Target Hit @ $44.90, option @ $0.85 (+325%)
12/01: Adjusted secondary target to $49.00

Entry on November 29th at $42.55
Earnings Date 02/22/11
Average Daily Volume = 3.0 million
Listed on November 27th, 2010


Cognizant Technology Solutions - CTSH - close: 74.16 change: +1.01

Stop Loss: 68.49
Target(s): 74.50, 79.00
Current Option Gain/Loss: Unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see trigger

Comments:
12/29 update: CTSH was showing relative strength on Wednesday with a new high and a close over $74 a share. We still don't want to chase this stock but we might want to move our buy-the-dip entry point toward the $72.00 area. I'm willing to wait another couple of days and leave our trigger at $71.00 for now. Our first target is $74.50. Our longer-term target is $79.00.
FYI: The Point & Figure chart for CTSH is forecasting a $93 price target.

Trigger to buy calls on the dip @ $71.00

- Suggested Positions -

Buy the 2011 January $75.00 calls (CTSH1122A75)

- or -

Buy the 2011 April $75.00 calls (CTSH1116D75)

Entry on December xxth at $ xx.xx
Earnings Date 02/09/11 (unconfirmed)
Average Daily Volume = 2.3 million
Listed on December 18th, 2010


Express Scripts - ESRX - close: 54.11 change: -0.03

Stop Loss: 51.49
Target(s): 53.95, 58.50
Current Option Gain/Loss: + 8.0% and -30.6%
Time Frame: 5 to 6 weeks
New Positions: see below

Comments:
12/29 update: The meager bounce in ESRX failed near its 10-dma overhead. I remain cautious on ESRX here and would hesitate to open new positions. More conservative traders might want to raise their stop loss. Our final exit target is $58.50.

FYI: The point & figure chart for ESRX is forecasting a very bullish, long-term target of $80.

We currently only have half a position open.

Current Position:
Long the 2011 January $52.50 calls (ESRX1122A52.5) Entry @ $2.10

- or -

Second Position (small position):

Long the 2011 February $55.00 calls (ESRX1119B55) current ask $2.22

12/25: new stop loss @ 51.49
12/20: Suggested new positions with Feb. 55 calls.
12/18: Adjusted final exit target to $58.50
12/16: New stop loss @ 51.25
12/07: Exit the December calls. option @ $2.01 (+64.7%)
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


Fastenal Co. - FAST - close: 59.98 change: +0.32

Stop Loss: 53.75
Target(s): 59.95, 62.50
Current Option Gain/Loss: Unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see trigger

Comments:
12/29 update: Hmmm.... it's been two weeks now with FAST consolidating sideways under resistance at $60.00. It's possible that the stock, while overbought, may not correct. Shares tried to breakout higher today. The high was $60.25. Aggressive traders may want to consider buying calls on a new high with a much tighter stop loss than ours listed here. I'm leaving our buy-the-dip trigger at $56.75 for now.

FYI: FAST announced a special, one-time cash dividend of 42-cents on November 18th and all of the option strikes have been adjusted for this 42-cent dividend.

Trigger @ 56.75

Suggested Positions:
Buy the 2011 January $54.58 calls (FAST1122A54.58)

- or -

Buy the 2011 February $59.58 calls (FAST1119B59.58)

12/21: Adjusted entry point trigger from 56.00 to 56.75

Entry on December xxth at $ xx.xx
Earnings Date 01/19/11 (unconfirmed)
Average Daily Volume = 880 thousand
Listed on December 8th, 2010


FedEx Corp. - FDX - close: 92.80 change: -0.22

Stop Loss: 90.90
Target(s): 96.75, 99.75
Current Option Gain/Loss: -72.5% and -23.3%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
12/29 update: Sadly there is nothing new to report on for FDX. At this point I'm really not expecting this stock to move until next week. Readers may want to wait for shares to break the short-term trend of lower highs before initiating new positions. A move over $93.50 or $94.00 should suffice. Or wait for a dip (or bounce) near $90 and its rising 50-dma.

- Suggested Positions (only small positions so far) -

Buy the 2011 January $100 call (FDX1122A100) Entry @ $0.80

- or

Buy the 2011 April $100 call (FDX1116D100) Entry @ $2.96

12/17: FDX opens at $94.23 - our entry point.
12/16: Adjusted Entry - initiate small positions now (@ Friday's open)

Entry on December 17th at $94.23
Earnings Date 12/16/10 (confirmed)
Average Daily Volume = 2.1 million
Listed on November 29th, 2010


Goldman Sachs - GS - close: 167.63 change: -1.56

Stop Loss: 162.95
Target(s): 171.00, 179.50
Current Option Gain/Loss: +10.9% and +17.6%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
12/29 update: There are no surprises here. I warned readers to look for a pull back after yesterday's move. GS should have some short-term support in the $165-164 zone. Wait for that dip before you consider new positions. GS has already hit our first target at $171.00. Right now our final target is $179.50.
FYI: The Point & Figure chart for GS is forecasting a very bullish $224 long-term target.

- Suggested Positions (only small positions so far) -

Buy the 2011 January $170 calls (GS1122A170) Entry @ $2.75

- or -

Buy the 2011 April $175 calls (GS1116D175) Entry @ $5.27

12/28: 1st Target Hit @ 171.00, Jan. call @ $4.75 (+72.7%), April call @ $7.35 (+39.4%)
12/22: New stop loss @ 162.95
12/17: GS opened at $163.92
12/16: Adjusted Entry - initiate small positions now (@ Friday's open)

Entry on December 17th at $163.92
Earnings Date 01/18/11 (unconfirmed)
Average Daily Volume = 7.2 million
Listed on December 2nd, 2010


International Business Machines - IBM - close: 146.52 change: +0.81

Stop Loss: 142.99
Target(s): 149.90, 157.50
Current Option Gain/Loss: - 5.9%, and - 4.0%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
12/29 update: I couldn't find any specific news but IBM finally managed a breakout over resistance near $146. Shares actually rallied to $147.50 before failing at its early November high (147.53). We have been waiting for a move higher and IBM hit our trigger to buy calls at $146.75. I would still consider positions here or you could wait for a dip closer to $146.00, which could happen on Thursday. If you look at an intraday chart for IBM the stock actually produced a little head-and-shoulders pattern (bearish) during Wednesday's session. This would suggest IBM will pull back toward the $145.80 area. Our first target to take profits is at $149.90. FYI: The Point & Figure chart on IBM is forecasting a long-term target of $196.

- Suggested Positions -

Long the 2011 January $150 calls (IBM1122A150) Entry @ $1.35

- or -

Long the 2011 April $155 calls (IBM1116D155) Entry @ $2.25

Chart:

Entry on December 29th at $146.75
Earnings Date 01/18/11 (unconfirmed)
Average Daily Volume = 4.7 million
Listed on December 14th, 2010


Juniper Networks - JNPR - close: 36.92 change: -0.08

Stop Loss: 34.90
Target(s): 39.75
Current Option Gain/Loss: -30.7% and -10.0%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
12/29 update: JNPR is still trading sideways. I'm expecting a correction toward $36. Wait for the dip before considering new positions. Our first target is $39.75.

- Suggested Positions (only small positions so far) -

Buy the 2011 January $38.00 calls (JNPR1122A38) Entry @ $0.78

- or -

Buy the 2011 April $40.00 calls (JNPR1116D40) Entry @ $1.50
12/17: JNPR opens at $36.91
12/16: Adjusted Entry - initiate small positions now (@ Friday's open)

Entry on December 17th at $36.91
Earnings Date 01/25/11 (unconfirmed)
Average Daily Volume = 5.5 million
Listed on December 11th, 2010


Lockheed Martin Corp. - LMT - close: 69.13 change: -0.45

Stop Loss: 67.95
Target(s): 73.25
Current Option Gain/Loss: -60.0% and -55.0%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
12/29 update: Warning! The action in LMT today was bearish. The stock produced a bearish engulfing candlestick pattern and volume was average, which is pretty good for this time of year. I am not suggesting new positions and more conservative traders may want to consider an early exit.

- Suggested Positions -

Buy the 2011 January $70.00 calls (LMT1122A70) Entry @ $1.75

- or -

Buy the 2011 March $75.00 calls (LMT1119C75) Entry @ $1.00

Entry on December 17th at $70.28
Earnings Date 01/27/11 (unconfirmed)
Average Daily Volume = 1.7 million
Listed on December 16th, 2010


Millicom Intl. Cellular - MICC - close: 93.31 change: -0.55

Stop Loss: 89.75
Target(s): 99.50
Current Option Gain/Loss: -30.4% and - 3.0%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
12/29 update: MICC turned out another quiet session. I still expect support in the $92-90 zone. Readers could look for a dip or wait for the next bounce to launch positions. Or you could wait for the stock to breakout past $95.00. Our exit target is $99.50. Aggressive traders could aim for the 2010 highs near $102.50.

FYI: It looks like MICC must have had a special dividend because several of the options have odd strike prices ending in .40.

- Suggested Positions -

Long the 2011 January 95.40 calls (MICC1122A95.4) Entry @ $2.30

- or -

Long the 2011 April $100.00 calls (MICC1116D100) Entry @ $3.30

Entry on December 23rd at $94.23
Earnings Date 02/09/11 (unconfirmed)
Average Daily Volume = 518 thousand
Listed on December 22nd, 2010


Netflix Inc. - NFLX - close: 180.27 change: -3.40

Stop Loss: 174.90
Target(s): 199.50, 219.50
Current Option Gain/Loss: -54.0% and -40.8%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
12/29 update: Hmm.... there was no follow through on NFLX's big bounce yesterday. That's a little worrisome. Shares instead rolled over and the four-week trend of lower highs remains intact. Who will win? The short-term bears or the longer-term bulls? The high today was $184.50. Readers might want to wait for a move over this mark before considering new bullish positions.

Cautious traders may want to raise their stop loss. Just remember, this was a very aggressive, higher-risk play to start and we were expecting some volatility. Readers may want to wait for a new move over $185 before considering new bullish positions.

Make no mistake, this is a very aggressive, higher-risk trade. I suggest readers keep their positions pretty small to limit your risk. Our first target is $199.50. Our second target is $219.50.

- Suggested Positions (small positions only) -

Long the 2011 January $200 calls (NFLX1122A200) Entry @ $4.35

- or -

Long the 2011 February $220 calls (NFLX1119b220) Entry @ $5.75

Entry on December 22nd at $187.12
Earnings Date 01/26/11 (unconfirmed)
Average Daily Volume = 7.5 million
Listed on December 21st, 2010


Oceaneering International - OII - close: 73.93 change: +0.75

Stop Loss: 69.95
Target(s): 78.00, 79.95
Current Option Gain/Loss: -29.6%, -47.0%, and -22.2%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
12/29 update: Oil service stocks shook off their recent relative weakness and turned in the market's best performance today. The OSX index was up +1.8%. Shares of OII underperformed its peers with a +1.0% gain. I'm still a little bit cautious. I am not suggesting new positions at this time. Our first target is $78.00.

- Suggested Positions -

Buy the 2011 January $75 calls (OII1122A75) Entry @ $2.77

- or -

Buy the 2011 January $80 calls (OII1122A80) Entry @ 0.85

- or -

Buy the 2011 April $80 calls (OII1116D80) Entry @ 3.86

Entry on December 23rd at $75.28
Earnings Date 02/17/11 (unconfirmed)
Average Daily Volume = 584 thousand
Listed on December 4th, 2010


Panera Break Co. - PNRA - close: 103.64 change: +1.53

Stop Loss: 103.90
Target(s): 109.95, 114.00
Current Option Gain/Loss: Unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see trigger

Comments:
12/29 update: Wednesday was a volatile session for PNRA. The stock saw an early spike toward $104 followed by a drop to $102.50 and then an afternoon spike past $105.50 only to fade again. I blame a thin market and lack of volume on these intraday spikes. We are still waiting for a breakout past $107.00. I'm suggesting a trigger at $107.15.

If triggered our first, short-term target is $109.90. Our second, longer-term target is $114.00. This is an aggressive trade so we want to keep our position size small. FYI: The Point & Figure chart is very bullish with a $131 target.

Breakout Trigger @ $107.15

- Suggested Positions - (small positions) -

Buy the 2011 January $110 (PNRA1122A110)

- or -

Buy the 2011 February $115 (PNRA1119B115)

Entry on December xxth at $ xx.xx
Earnings Date 02/10/11 (unconfirmed)
Average Daily Volume = 389 thousand
Listed on December 20th, 2010


Transocean Ltd. - RIG - close: 69.28 change: +1.02

Stop Loss: 66.25
Target(s): 72.50, 78.25
Current Option Gain/Loss: -45.0% and -33.3%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
12/29 update: Oil service stocks were the best performing industry today. RIG delivered a +1.49% gain. I remain somewhat cautious here. I am not suggesting new bullish positions at this time. Our final target is $78.25.

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

- Second Position -
Long the 2011 February $75.00 calls (RIG1119B75) Entry @ $1.80

12/17/10 Entry on Feb. calls @ $1.80
12/16/10 New Entry Point (buy February calls) - buy the dip.
12/11/10 New target 78.25, new stop loss $66.25
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: 92.15 change: +0.24

Stop Loss: 89.75
Target(s): 96.25, 99.75
Current Option Gain/Loss: -42.7% and -15.0%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
12/29 update: Railroad stocks are still consolidating sideways. UNP acts like it is ready to breakout higher. Readers might want to wait for a move over $92.50 before considering new bullish positions.

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

Second Position
Buy the 2011 February $95 calls (UNP1119B95) Entry @ $2.33

12/21/10: UNP provides another entry point.
12/17/10: Entry on Feb. calls @ $2.33
12/16/10: New Entry point: buy February calls
12/16/10: New stop loss @ 89.75

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


United Parcel Service - UPS - close: 72.68 change: -0.13

Stop Loss: 66.85
Target(s): 74.75, 78.50
Current Option Gain/Loss: Unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Comments:
12/29 update: There is no change from my previous comments on UPS. We are waiting for a pull back toward support near $70.00. Our trigger to buy calls is at $70.25 but I'm looking at raising our buy-the-dip trigger toward $72.25.

Trigger @ 70.25

Suggested Position:
Buy the 2011 January $70.00 call (UPS1122A70)

- or -

Buy the 2011 April $75.00 call (UPS1116D75)

Entry on December xxth at $ xx.xx
Earnings Date 02/01/10 (unconfirmed)
Average Daily Volume = 3.9 million
Listed on December 6th, 2010


United Technology Corp. - UTX - close: 79.10 change: -0.19

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:
12/29 update: UTX seems to be struggling with resistance near $79.50. If we see it close under $79.00 odds jump that the stock will see a retest of the $77 area. At the moment our suggested entry point is at $77.10.
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)

- or -

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

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


Vulcan Materials Co. - VMC - close: 45.17 change: +0.84

Stop Loss: 39.95
Target(s): 47.50, 49.75
Current Option Gain/Loss: + 0.0%
Time Frame: 6 to 8 weeks
New Positions: Yes, see trigger

Comments:
12/29 update: Entry point alert! VMC is rebounding from technical support at its 200-dma. I am suggesting we adjust our entry strategy and buy calls now on this bounce! We will move our stop loss higher to $43.75 since $44.00 is support. Our first target to take profits is at $47.50. Our second target is $49.75.

Buy Calls Now (small positions only!)

- Suggested Positions -

Buy the 2011 January $45 calls (VMC1122A45) current ask $1.50

- or -

Buy the 2011 February $45 calls (VMC1119B45) current ask $2.45

Chart:

Entry on December 30th at $ xx.xx
Earnings Date 02/07/11 (unconfirmed)
Average Daily Volume = 1.5 million
Listed on December 13th, 2010


Cimarex Energy Co. - XEC - close: 89.05 change: +0.17

Stop Loss: 84.75
Target(s): 89.90, 94.25
Current Option Gain/Loss: Unopened
Time Frame: 4 to 6 weeks
New Positions: Yes, see below

Comments:
12/29 update: I would say the action in XEC today was pretty disappointing. The oil service stocks outperformed the rest of the market today and yet XEC barely budged. Currently our plan is to buy calls on a dip at $86.50. We want to keep our position size pretty small to limit our risk.

Trigger @ 86.50

- Suggested Positions -
Buy the 2011 January $90 calls (XEC1122A90)

- or - Buy the 2011 February $90 calls (XEC1119B90)

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


PUT Play Updates

Expedia Inc. - EXPE - close: 25.58 change: +0.10

Stop Loss: 27.75
Target(s): 25.10, 24.25
Current Option Gain/Loss: - 0.0%
Time Frame: 2 to 3 weeks
New Positions: No

Comments:
12/29 update: EXPE traded in the same narrow range we saw yesterday. I am not suggesting new bearish positions at this time. Our first target to take profits is at $25.10.

Current Position: Buy the 2011 January $25 Put (EXPE1122M25) Entry @ $0.60

Entry on December 8th at $26.88
Earnings Date 02/10/11 (unconfirmed)
Average Daily Volume = 2.5 million
Listed on December 7th, 2010