Editor's Note:

Financials were strong performers today but oil service stocks were strong. XEC hit a profit target and RIG is getting close to its target. I updated stop losses on BA, DE, FDX, ILMN, RIG, RIMM and UNP.

-James

Current Portfolio:


CALL Play Updates

Amazon.com Inc. - AMZN - close: 184.08 change: -0.26

Stop Loss: 176.45
Target(s): 189.90, 199.00
Current Option Gain/Loss: -60.0%, and -28.0%
Time Frame: 4 to 6 weeks
New Positions: See below

Comments:
01/12 update: I am surprised that AMZN failed to participate in the broad-based rally on Wednesday. The NASDAQ is surging to new two-year highs and AMZN just sat there consolidating sideways. That's a cautious signal for the bulls. While I would still be tempted to buy a dip near $180 I'd keep positions very small.

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: 70.15 change: +1.19

Stop Loss: 65.90
Target(s): 69.00, 72.25
Current Option Gain/Loss: +190.4%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
01/12 update: BA showed some relative strength today with a +1.7% rally and a close over round-number resistance at $70.00. I am moving our stop loss up to $65.90. More conservative traders may want to raise their stops even higher. Our final target to exit is $72.25. I am not suggesting new bullish positions at this time.

- Suggested Positions - (small positions only!)

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

01/12 New stop loss @ 65.90
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: 93.49 change: -0.46

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:
01/12 update: Wow! Once again I'm surprised. AMZN failed to move today and now CAT has failed to move higher with the market. Shares of CAT opened higher but faded lower throughout the rest of the session. Shares remain in the middle of its trading range. 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: 111.83 change: +0.31

Stop Loss: 108.75
Target(s): 117.50
Current Option Gain/Loss: -50.8% and - 2.7%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
01/12 update: CMI gapped open higher but failed to see any follow through. I'm growing worried about our January calls. We're running out of time. If we want to make a profit on our January calls we're going to have to see CMI above $115.00. I am removing the $114.85 target and we'll make adjustments day to day. Our final target is still $117.50. I am not suggesting new bullish positions at this time.

(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: 68.70 change: +0.70

Stop Loss: 64.45
Target(s): 69.25
Current Option Gain/Loss: +114.2% and +88.7%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
01/12 update: Railroad stocks continued to rally and CSX hit $69.00 intraday. Our target to exit is $69.25. More aggressive traders may want to aim higher. I'm not suggesting new bullish 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 01/24/11 (confirmed)
Average Daily Volume = 5.9 million
Listed on November 23rd, 2010


CenturyLink, Inc. - CTL - close: 44.63 change: +0.22

Stop Loss: 43.75
Target(s): 44.90, 48.00
Current Option Gain/Loss: + 25.0%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
01/12 update: CTL produced a meager bounce on Wednesday. I remain very concerned here. More conservative traders may want to exit early since we're running out of time on our January calls. I am not suggesting new bullish positions.

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: 87.45 change: +1.79

Stop Loss: 82.75
Target(s): 89.75
Current Option Gain/Loss: - 5.1%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
01/12 update: DE continues to rally after yesterday's breakout. Commodities were getting a lot of attention today in the media and that could have helped farm-equipment maker DE catch a bid. Shares look poised to make a run at $90.00. Our target to exit is $89.75. More aggressive traders could aim higher. I am adjusting our stop loss to $82.75.

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

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

01/12/11 New stop loss @ 82.75

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: 56.75 change: -0.11

Stop Loss: 53.75
Target(s): 53.95, 58.50
Current Option Gain/Loss: +100.0% and +22.5%
Time Frame: 5 to 6 weeks
New Positions: see below

Comments:
01/12 update: It was a disappointing day for ESRX. Shares did not participate in the market's widespread rally. The trend is still up but I would hesitate to open new positions here. I am tempted to raise our stop loss toward the $55 area. 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: 95.00 change: +1.69

Stop Loss: 91.75
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:
01/12 update: FDX displayed some relative strength with a +1.8% gain. Shares closed right at the $95.00 mark. It certainly looks like FDX has built a base in the $92-95 zone over the last five weeks. Readers might want to consider buying a breakout past today's high (95.14) or the December high near $96.25. Although if you do I'd probably aim past the $100 mark, which will likely be round-number, psychological resistance. Don't forget that we're expecting a market correction in the next few weeks. I am raising our stop loss to $91.75.

- 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

01/12: New stop loss @ 91.75
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: 171.67 change: +2.31

Stop Loss: 165.75
Target(s): 171.00, 179.50
Current Option Gain/Loss: + 40.0% and +34.7%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
01/12 update: Financials were strong performers on Wednesday and GS rebounded back above the $171 level with a +1.3% gain. If earnings for GS were not so close (Jan. 19th) I would be tempted to buy calls on today's bounce. More conservative traders might want to move their stop closer to $168.00.

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: 66.95 change: -0.39

Stop Loss: 63.90
Target(s): 69.50
Current Option Gain/Loss: -16.2%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
01/12 update: ILMN issued some earnings guidance this afternoon. The company expects Q4 earnings to be slightly less than Wall Street's 31-cent estimate. Yet revenues are expected to beat estimates. The company also warned that 2011 earnings would likely come in under expectations. Yet again revenues would exceed estimates. From the action in the stock today it looks like investors were okay with a slightly smaller bottom line in favor of sales growth. ILMN rebounded from the $65.25 level to close near its recent highs. I am raising our stop loss to $63.90.

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

01/12: New stop loss @ 63.90

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: 149.10 change: +1.82

Stop Loss: 144.75
Target(s): 152.50, 159.50
Current Option Gain/Loss: +22.9%, and + 6.2%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
01/12 update: It's about time we start to see some strength out of IBM. The stock has been meandering sideways too long. Shares rallied to new multi-year highs near $149.00. Conservative traders may want to exit early right now since our January calls are actually seeing a gain. I'm not suggesting new bullish positions at these levels. 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: 38.32 change: +0.47

Stop Loss: 35.75
Target(s): 39.90, 41.75
Current Option Gain/Loss: - 0.0% and +20.6%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
01/12 update: JNPR has rallied to last week's high near $38.50. A breakout here would pave the way for a run at the $40.00 mark. I am not suggesting new bullish positions at this time. FYI: Our January calls are back to breakeven (+0.0%).

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: 74.24 change: +0.59

Stop Loss: 69.80
Target(s): 73.25, 74.90(or 200-dma)
Current Option Gain/Loss: +85.0%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
01/12 update: LMT is inching higher. Our target to exit is the 200-dma (currently at $74.70). More aggressive traders may want to aim higher but I want to warn you that LMT has additional resistance in the $76.00-76.25 area. 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: 97.12 change: -0.33

Stop Loss: 92.49
Target(s): 99.90
Current Option Gain/Loss: - 2.1% and +30.3%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
01/12 update: MICC spiked to a new relative high (98.58) this morning but failed to hold its gains. 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


NetApp, Inc. - NTAP - close: 58.93 change: +0.65

Stop Loss: 54.90
Target(s): 62.25, 64.50
Current Option Gain/Loss: - 6.4%
Time Frame: 4 to 5 weeks
New Positions: Yes, see below

Comments:
01/12 update: Our new play in NTAP is off to a decent start. Shares opened at $59.04 and rallied to $59.71 before trimming its gains. I would consider new bullish positions now or on a dip near the rising 10-dma (currently near $57.25). We wanted to keep our position size small. Cautious traders might want to consider a stop loss closer to $56 instead. Our exit targets are $62.25 and $64.50.
The Point & Figure chart for NTAP is bullish with a $66 target.

- Suggested Positions (small positions only) -

Long the 2011 February $60 calls (NTAP1119B60) Entry @ $2.50

Entry on January 12th at $59.04
Earnings Date 02/16/11 (unconfirmed)
Average Daily Volume = 3.8 million
Listed on January 11th, 2010


QUALCOMM Inc. - QCOM - close: 52.34 change: +0.27

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:
01/12 update: We're not seeing a lot of movement out of QCOM lately. I don't see any changes from my prior comments. 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: 77.04 change: +0.86

Stop Loss: 71.75
Target(s): 72.50, 78.25
Current Option Gain/Loss: +137.2% and +141.6%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
01/12 update: Oil service stocks were big winners on Wednesday with the OSX index up +1.8%. Shares of RIG gapped open higher and quickly hit $77.75 intraday. The stock closed at new multi-month highs. I am raising our stop loss to $71.75. 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

01/12/11 New stop loss @ 71.75
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: 63.53 change: +0.64

Stop Loss: 58.45
Target(s): 64.75, 67.50
Current Option Gain/Loss: +25.5%, and +27.6%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
01/12 update: RIMM posted another gain but the stock is nearing potential resistance near $64.00. I would not be surprised to see some profit taking soon. I am not suggesting new bullish positions at this time. We will raise the stop loss to $58.45. Our first target is $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

01/12: New stop loss @ 58.45

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: 74.49 change: +0.49

Stop Loss: 69.90
Target(s): 77.40, 79.90
Current Option Gain/Loss: + 1.8%
Time Frame: 4 to 6 weeks
New Positions: See below

Comments:
01/12 update: SPW posted another gain but the stock is struggling with some very short-term resistance near $74.65. I would wait for a dip near $72.50 before considering new positions. 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: 68.03 change: +0.26

Stop Loss: 64.75
Target(s): 69.90, 72.45
Current Option Gain/Loss: -78.5%, and -17.2%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
01/12 update: SWK did not see a lot of follow through on yesterday's big gain but shares did manage to advance. I remain cautious on this stock. 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: 98.08 change: +0.61

Stop Loss: 92.45
Target(s): 96.25, 99.75
Current Option Gain/Loss: +133.5% and +106.0%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
01/12 update: UNP tagged another new relative high, this time at $98.56. Broken resistance near $95.00 should offer some support. I am raising our stop loss to $94.40. 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.

- 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

01/12/11: New stop loss @ 94.40
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: 94.56 change: +1.63

Stop Loss: 87.25
Target(s): 94.25, 99.50
Current Option Gain/Loss: +100.0%, and +41.9%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
01/12 update: Target achieved. Relative strength in the oil service stocks helped lift XEC to a new high and a +1.7% gain. We had a target to take some money off the table at $94.25. I am not suggesting new positions at current levels. Our final target is $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

01/12: 1st Target Hit @ 94.25. Feb call @ $3.18 (+81.7%) Mar. call @ $4.20 (+35.4%)

chart:

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