Editor's Note:

Deere (DE) hit our breakout trigger to buy calls this morning. Meanwhile I have removed UPS. The stock wasn't moving for us and our trade never opened.

Current Portfolio:


CALL Play Updates

Amazon.com Inc. - AMZN - close: 184.34 change: -0.34

Stop Loss: 176.45
Target(s): 189.90, 199.00
Current Option Gain/Loss: -52.7%, and -28.3%
Time Frame: 4 to 6 weeks
New Positions: See below

Comments:
01/11 update: Stock were mostly higher on the session but AMZN lagged. The stock actually churned sideways in a relatively narrow range. I don't see any changes from my prior comments. I would prefer to buy dips in the $182.50-180.00 zone.

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: 68.96 change: -0.13

Stop Loss: 64.90
Target(s): 69.00, 72.25
Current Option Gain/Loss: +115.0%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
01/11 update: BA churned sideways under resistance at $70.00 for the third day in a row. I am expecting a pull back toward $66 or the 200-dma. I am not suggesting new bullish positions at this time. Our second target is $72.25.

- Suggested Positions - (small positions only!)

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

01/08: Exit the rest of our January calls @ $2.35 (+305%)
01/06: 1st Target Hit @ 69.00. Jan call @ $2.15 (+270%). Feb. call @ $1.80 (+146%)
01/06: New stop loss @ 64.90

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: 93.95 change: +0.56

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:
01/11 update: CAT saw a +0.59% bounce but shares remain smack dab in the middle of its $92.50-95.00 trading range. There is no change from my prior comments. Currently our plan it to buy calls on a breakout higher with a trigger at $95.15. We might want to reconsider and buy calls on a dip near $90.00 instead. 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: 111.52 change: +0.48

Stop Loss: 108.75
Target(s): 114.85 117.50
Current Option Gain/Loss: -41.9% and - 2.7%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
01/11 update: Some of the industrial names were showing relative strength today and CMI hit $113.11 intraday. The stock pared its gains to settle with a +0.4% advance. More conservative traders, holding the January calls, might want to consider an early exit now to recoup some capital and cut our losses early. We have less than two weeks on January calls. I would hesitate to open new bullish 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

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: 68.00 change: +0.02

Stop Loss: 64.45
Target(s): 69.25
Current Option Gain/Loss: +80.0% and +70.6%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
01/11 update: Some positive analyst comments this morning helped CSX spike to $68.77 this morning but the stock failed to hold those gains. Our target to exit is $69.25 so I'm not suggesting new bullish positions at this time. Broken resistance near $65.00 should be new support. I am not suggesting new positions at this time.

- 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

01/08: New stop loss @ 64.49
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: 44.41 change: -0.55

Stop Loss: 43.75
Target(s): 44.90, 48.00
Current Option Gain/Loss: + 0.0%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
01/11 update: The situation is deteriorating with our CTL play. Telecom stocks are underperforming the market and CTL is getting dragged lower with them. Shares broke very short-term support near $44.75. The stock looks headed for what should be stronger support near $44.00 and its simple 50-dma. I am not suggesting new bullish positions. Our option is back down to breakeven.

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: 85.66 change: +1.08

Stop Loss: 78.95
Target(s): 84.50, 89.75
Current Option Gain/Loss: - 5.1%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
01/11 update: DE was showing strength on Tuesday with a bullish breakout past resistance near $85.00. Shares opened at $85.19 and rallied to $86.65 intraday. We had a breakout trigger to buy calls at $85.55. Our stop loss is now at $81.49. We wanted to keep our position size small to limit our risk. Our upside target is $89.75. I would still consider new positions now or on a dip near $85.00.


FYI: The Point & Figure chart for DE is pretty bullish with a $100 target.

Long the 2011 February $90 calls (DE1119B90) Entry @ $1.35

chart:

Entry on January 11th at $ 85.55
Earnings Date 02/16/11 (unconfirmed)
Average Daily Volume = 3.4 million
Listed on December 30th, 2010


Express Scripts - ESRX - close: 56.86 change: +0.53

Stop Loss: 53.75
Target(s): 53.95, 58.50
Current Option Gain/Loss: +107.1% and +28.3%
Time Frame: 5 to 6 weeks
New Positions: see below

Comments:
01/11 update: ESRX was showing a little strength today and closed with a +0.9% gain. Volume was a little light. There is no change from my prior comments. I would hesitate to launch new bullish positions at this time. If you're holding January calls you will want to seriously consider exiting now to lock in a gain. Currently our final target is $58.50. More aggressive traders may want to aim for $60.00.

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: 93.31 change: -0.75

Stop Loss: 90.90
Target(s): 96.75, 99.75
Current Option Gain/Loss: -90.0% and -24.3%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
01/11 update: It looks like FDX was just teasing us yesterday. Positive analyst comments this morning were not enough to keep the bounce alive. FDX reversed under the $95.00 level and underperformed the broader market. I am not suggesting new positions at this time. Readers may want to raise their stops toward lat week's low of $91.80.

- 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

01/08: New exit strategy for January calls. Try to exit at 40 cents or more.
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: 169.36 change: -0.40

Stop Loss: 165.75
Target(s): 171.00, 179.50
Current Option Gain/Loss: + 8.0% and +20.4%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
01/11 update: GS was making headlines today with news it would offer more transparency with clients. The market will be extremely focused on the company's upcoming earnings report on January 19th. We do not want to hold over the earnings report so plan on exiting all of our bullish positions prior to the 19th. More conservative traders may want to exit our January positions before Friday's close this week. I am not suggesting new 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 01/19/11 (confirmed)
Average Daily Volume = 7.2 million
Listed on December 2nd, 2010


Illumina Inc. - ILMN - close: 67.34 change: +1.39

Stop Loss: 63.40
Target(s): 69.50
Current Option Gain/Loss: + 2.3%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
01/11 update: Biotech were generally positive today but ILMN outpaced its peers and the wider market with a +2.1% gain. The stock closed near its highs. I am not suggesting new positions at this time. Keep in mind that ILMN is due to report earnings in early February and we normally do not want to hold over the earnings report.

- Suggested Positions -

Long the 2011 February $70.00 call (ILMN1119B70) Entry @ $2.15

Entry on January 10th at $65.75
Earnings Date 02/03/11 (unconfirmed)
Average Daily Volume = 1.0 million
Listed on January 8th, 2010


International Business Machines - IBM - close: 147.28 change: -0.36

Stop Loss: 144.75
Target(s): 152.50, 159.50
Current Option Gain/Loss: -20.7%, and - 9.7%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
01/11 update: There is no change from my prior comments on IBM. The stock is churning sideways even though trading had a bearish tone today. Readers may want to wait for a dip closer to $146.00 before initiating new positions. I would buy February or April calls. 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

01/06: New stop loss @ 144.75
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: 37.85 change: +0.24

Stop Loss: 35.75
Target(s): 39.90, 41.75
Current Option Gain/Loss: -25.6% and +10.0%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
01/11 update: JNPR is still bouncing after yesterday's rebound from the $37 level. Most of the gains today were at the open and JNPR spent the rest of the session sliding sideways. If you buy calls now don't buy Januarys and consider a tight stop (tighter than ours).

We want to sell all of our January calls and half of our April calls at $39.90.

- 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: 73.65 change: +0.06

Stop Loss: 69.80
Target(s): 73.25, 74.90(or 200-dma)
Current Option Gain/Loss: +60.0%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
01/11 update: Once again LMT failed to breakout past the $74.00 level. We may want to consider closing our March positions now. Currently our exit target is the 200-dma (near $74.75). I am not suggesting new positions at this time.

- Remaining Positions -

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%)

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: 97.45 change: +0.48

Stop Loss: 92.49
Target(s): 99.90
Current Option Gain/Loss: +26.0% and +36.3%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
01/11 update: MICC is still inching higher. I am tempted to raise our stop loss toward the $94.00 area, which has proven to be short-term support. I am not suggesting new bullish positions at this time. Our target to exit is $99.90.

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


QUALCOMM Inc. - QCOM - close: 52.07 change: +0.38

Stop Loss: 48.75
Target(s): 54.75
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see trigger

Comments:
01/11 update: There is no change from my prior comments on QCOM. Shares are consolidating sideways near $52. Officially our trigger to buy the dip is $50.75 but traders could wait for a dip closer to $50.00. there is some support near $49.00 so we'll put our stop loss at $48.75. Our target is $54.75. However, earnings are less than three weeks away and we normally want to avoid holding over an earnings report.
FYI: The Point & Figure chart for QCOM is bullish with an $84 target.

Trigger @ 50.75

- Suggested Positions -

Buy the 2011 February $52.50 calls (QCOM1119B52.5) current ask $1.65

Entry on January xxth at $ xx.xx
Earnings Date 01/26/11 (unconfirmed)
Average Daily Volume = 12.1 million
Listed on January 8th, 2010


Transocean Ltd. - RIG - close: 76.18 change: +2.40

Stop Loss: 69.90
Target(s): 72.50, 78.25
Current Option Gain/Loss: +118.6% and +116.6%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
01/11 update: The U.S. National Commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling released their final report (about 300-pages) on last April's disaster. The news came out late this morning and by the action in RIG today is looks like the market was happy with the news. You can read the entire report here: www.oilspillcommission.gov

Shares of RIG erased yesterday's losses with a strong +3.2% gain and the stock managed a close over the $76.00 level. I am raising our stop loss to $69.90. More conservative traders may want to raise their stops closer to $72.00 instead. I am not suggesting new positions at this time and readers will want to strongly consider an early exit now, especially if you're holding January calls. Our final exit is at $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

01/11/11 New stop loss @ 69.90. Oil spill commission releases final report.
01/08/11 New stop loss @ 68.49
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: 62.89 change: +0.80

Stop Loss: 57.49
Target(s): 64.75, 67.50
Current Option Gain/Loss: +17.0%, and +20.4%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
01/11 update: RIMM rallied to new three-week highs and hit $63.75 before trimming its gains. I am not suggesting new positions at this time. More conservative traders might want to consider a stop loss closer to $59.00 or $60.00. 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


SPX Corp. - SPW - close: 74.00 change: +0.69

Stop Loss: 69.90
Target(s): 77.40, 79.90
Current Option Gain/Loss: +0.0%
Time Frame: 4 to 6 weeks
New Positions: Yes

Comments:
01/11 update: SPW extended its gains from yesterday with a +0.9% gain today. Shares came close to tagging the $75.00 level, which could be short-term resistance. I wouldn't be surprised to see a dip back toward the $72.50 area, which we can use as another bullish entry point to buy calls. More conservative traders may want to use a stop closer to $71.00 instead. Our upside targets are $77.40 and $79.90.
The Point & Figure chart for SPW is bullish with a $92 target.

- Suggested Positions -

Long the 2011 February 75.00 calls (SPW1119B75) Entry @ $2.16

Entry on January 11th at $73.49
Earnings Date 02/24/11 (unconfirmed)
Average Daily Volume = 396 thousand
Listed on January 10th, 2010


Stanley Black & Decker, Inc. - SWK - close: 67.77 change: +2.02

Stop Loss: 64.75
Target(s): 69.90, 72.45
Current Option Gain/Loss: -71.4%, and -17.2%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
01/11 update: Industrial and machinery stocks were strong performers today but I couldn't find any specific news to account for SWK's +3% gain. I'm not complaining. Shares rallied back toward resistance near $68.00. I'm not suggesting new positions at this time. 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: 97.47 change: +0.11

Stop Loss: 92.45
Target(s): 96.25, 99.75
Current Option Gain/Loss: +110.5% and + 90.9%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
01/11 update: Has the railroad rally run out of steam? Positive analyst comments helped UNP spike to $98.34 this morning but the gains faded and shares spent most of the day in a tight range near $97.50. I am not suggesting new bullish positions at this time. Our final target is $99.75. More conservative traders will want to seriously consider an early exit on their January calls. We have less than two weeks left on January options.

- 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

01/10/11: Target hit. Jan. call @ 2.30 (+51%), Feb. call @ 3.60 (+54%)
01/10/11: New stop loss @ 92.45
01/08/11: New stop loss @ 91.40
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


Cimarex Energy Co. - XEC - close: 92.93 change: +1.28

Stop Loss: 87.25
Target(s): 94.25, 99.50
Current Option Gain/Loss: +60.0%, and +19.3%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
01/11 update: Oil and oil service stocks were showing relative strength on Tuesday. XEC rallied +1.3% to close at new highs over $92.00. I am not suggesting new positions at current levels. Look for a dip or bounce near $90 as an entry point. Our targets to take profits are at $94.25 and $99.50. I want to reiterate that we want to keep our position size pretty small to limit our risk.

- Suggested Positions -

Long the 2011 February $95 calls (XEC1119B95) Entry @ $1.75

- or -

Long the 2011 March $95 calls (XEC1119C95) Entry @ $3.10

Entry on January 10th at $90.49
Earnings Date 02/17/11 (unconfirmed)
Average Daily Volume = 907 thousand
Listed on December 1st, 2010


CLOSED BULLISH PLAYS

United Parcel Service - UPS - close: 71.75 change: -0.01

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:
01/11 update: I am temporarily removing UPS from our play list. We've been waiting for shares to hit our trigger for a long time. I'd rather drop it as a candidate and make room for something else. I would still keep UPS on your watch list to see if shares hold support near $70.00. We can then re-evaluate positions at that time.

(No chart) Our trade never opened.

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