Editor's Note:

We had two bullish candidates hit exit targets today. Stocks were mixed with widespread profit taking. BA and LMT were our two winners tonight. I am removing KSS with the play unopened. There are new stop losses for BA, IBM, JNPR, LMT and SWK.

-James

Current Portfolio:


CALL Play Updates

Amazon.com Inc. - AMZN - close: 185.86 change: -1.56

Stop Loss: 176.45
Target(s): 189.90, 199.00
Current Option Gain/Loss: + 7.2%, and + 7.7%
Time Frame: 4 to 6 weeks
New Positions: See below

Comments:
01/06 update: Retail names suffered thanks to disappointing December same-store sales growth. AMZN only lost 0.8% as the company was probably unaffected by the big snow storms that brought a chilly end to the holiday shopping season. There is no change from my prior comments. Our first target to take profits is at $189.90. I'd look for a dip in the $183-182 zone as a new entry point. More conservative traders might want to raise their stops closer to $180.

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: 68.80 change: +1.32

Stop Loss: 64.90
Target(s): 69.00, 72.25
Current Option Gain/Loss: +248.2%, and +136.9%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
01/06 update: Target achieved. It was a strong session for BA with the stock outperforming the broader market. BA said 2010 was a solid year with the company selling three times as many planes as it did in 2009. Improving air-traffic demand pushed sales to a final tally of 530 planes. The stock continued to rally after yesterday's breakout above the 200-dma.

Our first target to take profits was hit at $69.00 as BA hit $69.35 intraday. The January $67.50 call was near $2.15 (+270%) and the February $70 call was trading near $1.80 (+146%). I am raising our stop loss to $64.90. I am not suggesting new positions at this time. We should consider this a higher-risk aggressive trade. Our first target is $69.00. Our second target is $72.25.

- Suggested Positions - (small positions only!)

Long the 2011 January 67.50 calls (BA1122a67.5) Entry @ $0.58

Long the 2011 February $70.00 calls (BA1119B70) Entry @ $0.73

01/06: 1st Target Hit @ 69.00. Jan call @ $2.15 (+270%). Feb. call @ $1.80 (+146%)
01/06: New stop loss @ 64.90

Chart:

Entry on January 3rd at $66.15
Earnings Date 01/26/11 (unconfirmed)
Average Daily Volume = 5.3 million
Listed on December 25th, 2010


Caterpillar - CAT - close: 93.54 change: -0.98

Stop Loss: 92.25
Target(s): 99.80
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see trigger

Comments:
01/06 update: CAT spent the session consolidating sideways in it trading range. I am suggesting a trigger to buy calls at $95.15. If triggered our exit target is $99.80. More aggressive traders could try the January calls instead.
The Point & Figure chart for CAT is bullish with a $118 target.

Trigger @ 95.15

- Suggested Positions -

Buy the 2011 February $100 calls (CAT1119B100) current ask $1.31

Entry on January xxth at $ xx.xx
Earnings Date 01/27/11 (unconfirmed)
Average Daily Volume = 4.2 million
Listed on January 5th, 2010


Cummins Inc. - CMI - close: 110.16 change: -2.83

Stop Loss: 108.75
Target(s): 114.85 117.50
Current Option Gain/Loss: -37.5% and -11.2%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
01/06 update: Warning! It was an ugly day for CMI on Thursday. I couldn't find any news to account for this relative weakness. Shares have produced a bearish engulfing (reversal) candlestick pattern with today's decline but these patterns normally need to see follow through lower. Even so more conservative traders may want to exit now or raise their stop loss. CMI has been pretty consistent with support near $109.00 so I'm keeping our stop loss at $108.75. I'm not suggesting new positions here but aggressive traders could buy calls.

(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

01/04: New entry point on afternoon bounce.
01/01: Adjusted targets to $114.50, 117.50
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: 66.23 change: +0.34

Stop Loss: 62.75
Target(s): 69.25
Current Option Gain/Loss: + 9.7% and +24.4%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
01/06 update: The railroad index closed the day virtually unchanged and CSX managed to deliver a small gain (+0.5%). I don't see any changes from my prior comments. Broken resistance near $65.00 should be new support. If you are looking for an entry point wait for a dip near $65.

- 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

01/05: Adjusted targets to just one at $69.25.
01/04: New stop loss @ 62.75
01/04: New entry point on afternoon bounce near $65
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: 45.44 change: -0.95

Stop Loss: 43.75
Target(s): 44.90, 48.00
Current Option Gain/Loss: +325.0%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
01/06 update: Ouch! Telecom stocks as a group got hit hard with some profit taking on Thursday. I didn't see any specific news behind the sell-off. CTL broke down under support near $46.00 and dipped to $44.70 at its intraday lows. I've been suggesting readers take profits for several days. Now we have to see if CTL will rebound from its trend of higher lows. I am not suggesting new bullish 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


Deere & Co - DE - close: 84.25 change: +0.01

Stop Loss: 78.95
Target(s): 84.50, 89.00
Current Option Gain/Loss: Unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see trigger

Comments:
01/06 update: Shares of DE were virtually unchanged on the session. There is no change from my prior comments. I'm starting to think if we should consider buying calls on a breakout past resistance near $85.00. Right now the $80.50 entry point is obviously much more attractive so we'll leave our trigger there for the moment. If triggered we'll use a stop loss at $78.95, just under the 50-dma.
FYI: The Point & Figure chart for DE is pretty bullish with a $100 target.

Buy-the-Dip Trigger @ 80.50

- Suggested Positions -

Buy the 2011 February $80 calls (DE1119B80)

- or -

Buy the 2011 February $85 calls (DE1119B85)

Entry on December xxth at $ xx.xx
Earnings Date 02/16/11 (unconfirmed)
Average Daily Volume = 3.4 million
Listed on December 30th, 2010


Express Scripts - ESRX - close: 57.01 change: +1.13

Stop Loss: 53.75
Target(s): 53.95, 58.50
Current Option Gain/Loss: +119.0% and +39.6%
Time Frame: 5 to 6 weeks
New Positions: see below

Comments:
01/06 update: ESRX was showing some relative strength with a +2% rally to a new high. I am raising our stop loss to $53.75. calls you might want to consider aiming for $60.

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

01/06: New stop loss @ 53.75
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


FedEx Corp. - FDX - close: 93.10 change: -0.77

Stop Loss: 90.90
Target(s): 96.75, 99.75
Current Option Gain/Loss: -83.7% and -25.0%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
01/06 update: Transportation stocks did not see any follow through on yesterday's intraday bounce. Shares of FDX actually rolled over a little bit. There is no change from my prior comments. I'd rather wait for a move over $94.50 or even the $95.00 mark before considering new positions. If you do launch positions I would buy February or April calls.

- 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: 172.21 change: -1.79

Stop Loss: 165.75
Target(s): 171.00, 179.50
Current Option Gain/Loss: + 83.6% and +54.6%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
01/06 update: GS succumbed to some profit taking with a drop to new short-term support near $172. I wouldn't be surprised to see a dip toward the new trend of higher lows closer to the $170-168 zone. I am not suggesting new bullish positions at this time.

- 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

01/03: New stop loss @ 165.75
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: 148.66 change: +1.61

Stop Loss: 142.99
Target(s): 152.50, 159.50
Current Option Gain/Loss: +26.6%, and +10.2%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
01/06 update: We are finally starting to see some movement in shares of IBM. It's about time! The stock rally past resistance near $147.50 and closed at new multi-year highs. I am raising our stop loss to $144.75. Keep in mind that IBM is due to report earnings on January 18th and we do not normally want to hold over an earnings announcement. 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

01/03: New targets @ $152.50, and $159.50

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


Juniper Networks - JNPR - close: 38.21 change: +0.33

Stop Loss: 35.75
Target(s): 39.75
Current Option Gain/Loss: + 1.2% and +15.3%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
01/06 update: Some positive analyst comments helped push JNPR to a new relative high past resistance near $38.00. I am raising our stop loss to $35.75. Please note that I am adjusting our first target to $39.90. I'm setting a second target for our April calls at $41.75.

- 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
01/06: New stop loss @ 35.75, new 1st target @ 39.90.
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: 73.18 change: +1.26

Stop Loss: 69.80
Target(s): 73.25, 74.90(or 200-dma)
Current Option Gain/Loss: +88.0% and +65.0%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
01/06 update: Target achieved. News that LMT had been removed from Goldman Sach's conviction sell list helped buoy the stock. Shares rallied to $73.96 intraday. Our first target to take profits was hit at $73.25. The January $70 calls were trading near $3.35 (+91.4%) and hit an intraday high of $4.10. The March $75 calls were trading near $1.65 (+65%) and hit $1.90 intraday.

I am suggesting we go ahead and exit the rest of our January $70 calls now (currently at $3.30). We'll keep the remainder of our March calls as we aim for the secondary target at $74.90 or the 200-dma. I am not suggesting new positions at this time. I am raising our stop loss to $69.80.

- Suggested Positions -

Buy the 2011 January $70.00 calls (LMT1122A70) Entry @ $1.75 , exit now.

- or -

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

01/06: New stop loss @ 69.80
01/06: Sell the rest of our January $70 calls now @ $3.30 (+88%)
01/06: Target Hit @ 73.25. Jan. $70 call @ 3.35 (+91%). March $75 call @ 1.65 (+65%)

Chart:

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: 97.06 change: +0.41

Stop Loss: 92.49
Target(s): 99.90
Current Option Gain/Loss: +30.4% and +33.3%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
01/06 update: Traders continue to buy the dips at MICC's short-term trend of higher lows. I am raising our stop loss to $92.49. More conservative traders might want to raise their stops closer to $94 or even $95. I am not suggesting new positions at this time. 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

01/06: New stop loss @ 92.49
01/03: New stop loss @ 91.75, New target at $99.90

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


Transocean Ltd. - RIG - close: 73.04 change: -0.21

Stop Loss: 67.85
Target(s): 72.50, 78.25
Current Option Gain/Loss: +30.5% and +42.2%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
01/06 update: RIG spiked to a new relative high over resistance near $74.00 but couldn't hold it. Shares eventually closed with some mild profit taking. There is no change from my prior comments. If you're looking for a bullish entry point I would wait for a dip near $71.00. Our final target is $78.25 but I'm considering an adjustment toward $79.75 instead.

- 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

01/05/11 New stop loss @ 67.85
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


Research In Motion - RIMM - close: 61.37 change: -0.55

Stop Loss: 57.49
Target(s): 64.75, 67.50
Current Option Gain/Loss: - 3.6%, and + 0.8%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
01/06 update: Our new play in RIMM has been opened. As expected shares saw some profit taking today. The stock gapped open lower at $61.02, dipped to $59.80 and rebounded. We had a trigger to buy calls at $61.00. If you missed the entry point this morning I would still consider new positions now. RIMM was a strong outperformer today with a bullish breakout over resistance at the $60.00 mark. The stock has been consolidating the last few days near its rising 50-dma. Speaking of the 50-dma, its cross up and over above the 200-dma is normally a bullish signal. I don't want to chase today's move in RIMM. Wait for a dip. I am suggesting a trigger at $61.00. We'll use a stop loss at $57.49. More conservative traders could use a stop closer to $59.00 instead. There is some short-term resistance at $64.00 but I'm setting our first target at $64.75.

- Suggested Positions -

Long the 2011 February $62.50 calls (RIMM1119B62.5) Entry @ $2.47

- or -

Long the 2011 March $65.00 calls (RIMM1119C65) Entry @ $2.35

Entry on January 6th at $61.00
Earnings Date 03/31/11 (unconfirmed)
Average Daily Volume = 9.9 million
Listed on January 5th, 2010


Stanley Black & Decker, Inc. - SWK - close: 66.53 change: -0.73

Stop Loss: 64.75
Target(s): 69.90, 72.45
Current Option Gain/Loss: -78.5%, and -37.9%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
01/06 update: Attention! I am raising our risk on this trade. Our stop loss has been at $65.75. I am lowering our stop loss to $64.75 to give SWK a little bit more room to maneuver. Shares should find additional support near $65.00. I would wait for a dip or bounce near the $65 level before initiating new bullish positions (when you do, buy the February calls). Keep your position size small to limit your risk.

- Suggested Positions -

Long the 2011 January $70 calls (SWK1122A70) Entry @ $0.70

- or -


01/06: New stop loss @ 64.75

Entry on January 4th at $68.15
Earnings Date 01/27/11 (confirmed)
Average Daily Volume = 1.6 million
Listed on January xxth, 2010


Union Pacific - UNP - close: 92.55 change: -0.41

Stop Loss: 89.75
Target(s): 96.25, 99.75
Current Option Gain/Loss: -51.9% and -18.8%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
01/06 update: UNP dipped toward short-term support near $92.00 again. This move could be used as a new bullish entry point to buy February calls. Cautious traders could raise their stop loss closer to the 50-dma (near $91.30).

- 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

01/04/11: New entry point on afternoon bounce.
01/01/11: UNP is giving us another entry point.
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: 72.49 change: -0.41

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:
01/06 update: UPS is still consolidating sideways. There is no change from my prior comments. An alternative entry point would be to wait for a breakout over resistance near $74.00. Currently, I'm suggesting a trigger to buy calls at $70.25. More aggressive traders could consider a move over $74.00 as a potential entry point. I'm considering raising our buy-the-dip trigger toward $72.25.

Trigger @ 70.25

Suggested Position:
Buy the 2011 February$70.00 call (UPS1119B70)

- 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


Cimarex Energy Co. - XEC - close: 89.21 change: -0.96

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:
01/06 update: XEC spiked to a new high this morning over $92 thanks to an analyst upgrade. XEC could not hold on to its gains and faded to a loss. Currently we're waiting for a dip to buy calls at $86.50. More conservative traders could wait for a dip closer to $85.00. 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: 25.10 change: -0.33

Stop Loss: 26.05
Target(s): 25.10, 23.25
Current Option Gain/Loss: + 0.0%
Time Frame: 2 to 3 weeks
New Positions: No

Comments:
01/06 update: There was no follow through higher on yesterday's oversold bounce. I remain very cautious and we're not suggesting new bearish positions at this time. Our first target has already been hit. We're currently aiming for $23.25.

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

01/03/11 New stop loss @ $26.05
12/30/10 Target hit @ 25.10, option @ 0.80 (+25%)
12/30/10 new stop loss at $26.51

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


CLOSED BULLISH PLAYS

Kohl's Corp. - KSS - close: 52.23 change: -1.67

Stop Loss: 53.75
Target(s): 57.90, 59.95
Current Option Gain/Loss: Unopened
Time Frame: 4 to 8 weeks
New Positions:

Comments:
01/06 update: Investor expectations for December same-store sales were pretty high considering all the hype about how well the holiday season was. The results were disappointing. KSS only reported +3.9% sales growth versus estimates for +4.3% and the company issued mixed earnings guidance. The stock collapsed toward technical support at its 200-dma. I am removing KSS as a bullish candidate. The stock did not hit our trigger to buy calls at $55.05.

(No chart, play never opened)

Entry on January xxth at $ xx.xx
Earnings Date 02/24/11 (unconfirmed)
Average Daily Volume = 4.1 million
Listed on January 4th, 2010