Editor's Note:

Our put play on EXPE hit our target this morning. The rest of the market wasn't moving much.

-James

Current Portfolio:


CALL Play Updates

Amazon.com Inc. - AMZN - close: 182.75 change: -0.62

Stop Loss: 176.45
Target(s): 189.50, 199.00
Current Option Gain/Loss: -10.2%, and - 5.1%
Time Frame: 4 to 6 weeks
New Positions: See below

Comments:
12/30 update: There was no follow through on AMZN's bounce from Wednesday. Shares just drifted sideways. We might get another entry point on a dip in the $181-180 zone again.

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: 65.01 change: -0.04

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:
12/30 update: Traders bought the dip in BA again but the stock just isn't moving high enough. The high today was $65.23. There is no change from my prior comments. 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: 50.72 change: -0.19

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:
12/30 update: BAX slipped lower on Thursday morning but shares managed to pare their losses by the close. There is no change from my prior comments. 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: 110.16 change: +0.03

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:
12/30 update: CMI is still churning sideways near $110. There is no change from my prior comments (and there was no real change in the option prices). Big picture the trend is up but I'm growing cautious on CMI. 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: 64.46 change: +0.10

Stop Loss: 61.75
Target(s): 67.00, 69.50
Current Option Gain/Loss: -23.4% and -10.4%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
12/30 update: CSX is still easing higher. The stock hit $64.74 at its best levels today. 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: 46.36 change: +0.11

Stop Loss: 43.75
Target(s): 44.90, 48.00
Current Option Gain/Loss: +675.0%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
12/30 update: CTL is still moving sideways above short-term support near $46.00. On the daily chart you can start to see a short-term trend of lower highs. There is no change from my prior comments. 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: 73.84 change: -0.32

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:
12/30 update: CTSH spiked toward $75 this morning and reversed. I am still looking for a little pull back. 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: 54.08 change: -0.03

Stop Loss: 51.49
Target(s): 53.95, 58.50
Current Option Gain/Loss: + 5.7% and -31.9%
Time Frame: 5 to 6 weeks
New Positions: see below

Comments:
12/30 update: ESRX is still consolidating sideways between technical support at its 30-dma and technical resistance at its 10 and 20-dma overhead. There is no change from my prior comments. 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: 60.11 change: +0.13

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:
12/30 update: FAST is showing a little relative strength here. The stock closed over resistance at $60.00. More aggressive traders will want to seriously consider buying calls right here. I'm not quite ready to chase it but the stock has spent a couple of weeks digesting its gains with a sideways move under the $60 level. 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: 92.96 change: +0.16

Stop Loss: 90.90
Target(s): 96.75, 99.75
Current Option Gain/Loss: -75.0% and -22.2%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
12/30 update: As expected shares of FDX continue to move sideways in a narrow range as investors wait for the year to end before placing any new bets. 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: 167.64 change: +0.01

Stop Loss: 162.95
Target(s): 171.00, 179.50
Current Option Gain/Loss: +10.9% and +18.5%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
12/30 update: For the second time this week GS had its earnings estimates cut. The stock really didn't move on the news today. While the lack of follow through on the recent failed rally near $171 is somewhat positive I'm still expecting a dip toward 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: 146.67 change: +0.15

Stop Loss: 142.99
Target(s): 149.90, 157.50
Current Option Gain/Loss: - 4.4%, and - 2.2%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
12/30 update: IBM was slowly drifting higher on Thursday. There is no change from my prior comments. Readers could open positions now or you could wait and try and jump in on a dip near $146.00-145.75. Alternatively you could wait for a move past short-term resistance at $147.50. 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

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: 37.17 change: +0.25

Stop Loss: 34.90
Target(s): 39.75
Current Option Gain/Loss: -20.5% and - 2.6%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
12/30 update: JNPR showed a little bit of strength with a +0.6% gain but shares remain inside the short-term trading range (36.75-37.35). 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: 68.69 change: -0.44

Stop Loss: 67.95
Target(s): 73.25
Current Option Gain/Loss: -71.4% and -65.0%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
12/30 update: LMT continues to underperform. Shares hit new two-week lows with a 0.63% loss. The close under $69.00 is short-term bearish. Of course LMT was already looking short-term bearish. Now we can expect a pull back toward support near $68.00. Aggressive traders might want to consider lowering their stop loss toward $67.50 since the November lows were near the $67.70 level. Conservative traders might want to exit early. I am not suggesting new positions.

- 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: 95.26 change: +1.95

Stop Loss: 89.75
Target(s): 99.50
Current Option Gain/Loss: - 4.3% and +15.1%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
12/30 update: Entry point alert! If you were waiting for MICC to breakout over resistance near its 100-dma and the $95.00 mark you got it today. MICC was showing relative strength with a +2.0% gain. 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: 179.80 change: -0.47

Stop Loss: 174.90
Target(s): 199.50, 219.50
Current Option Gain/Loss: -58.6% and -43.4%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
12/30 update: There was an analyst opinion out this morning that Apple Inc. (AAPL) should buy NFLX. Yet the article had no affect on shares of NFLX. Aside from a little movement this morning shares of NFLX were extremely flat. They traded in a 65-cenr range most of the day.

I would wait for a move over the trendline lower highs before initiating new positions. A rise past $183.00 or $184.50 should suffice.

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: 73.77 change: -0.16

Stop Loss: 69.95
Target(s): 78.00, 79.95
Current Option Gain/Loss: -35.0%, -41.1%, and -19.6%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
12/30 update: There was no follow through higher on yesterday's relative strength in the oil service industry. A drop in oil prices didn't help matters. I remain cautious on OII. 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:
12/30 update: PNRA displayed a little volatility on Thursday. The stock managed to pare its losses but it still closed with a -1.3% loss. We've been waiting for a breakout over $107.00. We might want to change our strategy and buy a dip near $100.00 instead. I'm thinking about moving our trigger from $107.15 to $100.50 and moving our stop loss to $98.45 near the 50-dma. However, we'll leave things unchanged until we see how PNRA finishes the last day of 2010 tomorrow.

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: 69.13 change: -0.15

Stop Loss: 66.25
Target(s): 72.50, 78.25
Current Option Gain/Loss: -47.4% and -37.2%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
12/30 update: There is nothing new to report on for RIG today. Shares are churning sideways in the $68-70 zone. 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


Stericycle Inc. - SRCL - close: 81.42 chane: -0.36

Stop Loss: 79.40
Target(s): 84.75, 89.00
Current Option Gain/Loss: Unopened
Time Frame: 4 to 6 weeks
New Positions: Yes, see below

Comments:
12/30 update: We were expecting SRCL to pull back today but shares didn't pull back enough. I am suggesting we wait for a dip and buy calls at $80.75. If triggered we'll use a stop loss at $79.40. Our targets are $84.75 and $89.00.

Trigger @ 80.75

- Suggested Position -

Buy the 2011 February $85 calls (SRCL1119B85) current ask $1.25

Entry on December xxth at $ xx.xx
Earnings Date 02/03/11 (unconfirmed)
Average Daily Volume = 543 thousand
Listed on December 29th, 2010


Union Pacific - UNP - close: 92.06 change: -0.09

Stop Loss: 89.75
Target(s): 96.25, 99.75
Current Option Gain/Loss: -47.3% and -16.3%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
12/30 update: Thursday delivered another quiet session for UNP. There is no change from my prior comments. 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: -0.00

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:
12/30 update: UPS closed unchanged on the session. 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: 78.85 change: -0.25

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:
12/30 update: It looks like UTX is starting to correct lower. Our plan is to launch bullish positions on a dip 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: 44.83 change: -0.34

Stop Loss: 43.75
Target(s): 47.50, 49.75
Current Option Gain/Loss: -11.5%, and - 2.2%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
12/30 update: The lack of follow through on Wednesday's rebound has provided us a slightly better entry point than expected. I would still consider new positions today at current levels on a dip closer to $44.00. Our first target to take profits is at $47.50. Our second target is $49.75.

(small positions only!)- Suggested Positions -

Buy the 2011 January $45 calls (VMC1122A45) Entry @ $1.30

- or -

Buy the 2011 February $45 calls (VMC1119B45) Entry @ $2.20

Entry on December 30th at $45.02
Earnings Date 02/07/11 (unconfirmed)
Average Daily Volume = 1.5 million
Listed on December 13th, 2010


Cimarex Energy Co. - XEC - close: 89.55 change: +0.50

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:
12/30 update: XEC briefly spiked over resistance at $90.00 but the gains didn't last. 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: 25.28 change: -0.30

Stop Loss: 26.51
Target(s): 25.10, 23.25
Current Option Gain/Loss: + 8.3%
Time Frame: 2 to 3 weeks
New Positions: No

Comments:
12/30 update: Target achieved. EXPE displayed some relative weakness today with a spike down to $24.84. The stock found some support near its exponential 200-dma. However, our first target to take profits was hit at $25.10. The option was trading near $0.80 and hit a high of $0.90.

Please note that we are moving our stop loss down to $26.51 and more conservative traders will want to exit completely since the $25.00 level looks like it could be support! I am not suggesting new positions. I am moving our final target down to $23.25.

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

12/30/10 Target hit @ 25.10, option @ 0.80 (+25%)
12/30/10 new stop loss at $26.51

Chart:

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