Editor's Note:

The market recovered from its intraday lows. BA and ESRX hit our exit targets. We had plans to exit calls on GS and IBM, both with gains. Plus I'm suggesting an early exit in XEC to lock in a gain.

CAT and WYNN hit our breakout triggers to buy calls. There are new stops on AMZN and SPW.

-James

Current Portfolio:


CALL Play Updates

Amazon.com Inc. - AMZN - close: 191.25 change: +2.50

Stop Loss: 183.40
Target(s): 192.50, 199.75
Current Option Gain/Loss: +13.6%, and +11.6%
Time Frame: 4 to 6 weeks
New Positions: See below

Comments:
01/18 update: AMZN opened a little bit lower this morning but managed a quick rebound. Shares outperformed the NASDAQ with a +1.3% gain today and a new all-time closing high. Speaking of highs AMZN hit $191.60 intraday. Our first target to take profits is at $192.50. Please note that I am raising the stop loss to $183.40. No new positions at this time.

FYI: Our January $190 calls have turned positive again with a bid at $2.67.

- Suggested (SMALL) positions -

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

- or -

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

01/18: New stop loss at $183.40
01/15: New stop loss @ 181.80, New targets 192.50, 199.75

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


Caterpillar - CAT - close: 96.23 change: +2.66

Stop Loss: 92.25
Target(s): 99.80
Current Option Gain/Loss: + 21.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
01/18 update: It's about time! CAT finally showed some relative strength and broke out past resistance at $95.00. Our trigger to buy calls was hit at $95.15. The play is open with a stop loss at $92.25. If you missed our entry point you could buy calls now or wait for a dip near the $95.50-95.00 zone since $95.00 should now be new short-term support. Our target to exit is $99.80. More aggressive traders could aim higher. Keep in mind that earnings are on the 27th of January and we don't want to hold over the event.

Triggered @ 95.15

- Suggested Positions -

Long the 2011 February $100 calls (CAT1119B100) Entry @ $1.45

Chart:

Entry on January 18th at $ 95.15
Earnings Date 01/27/11 (unconfirmed)
Average Daily Volume = 4.2 million
Listed on January 5th, 2010


Cummins Inc. - CMI - close: 113.85 change: +1.29

Stop Loss: 108.75
Target(s): 117.50
Current Option Gain/Loss: -50.8% and + 9.9%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
01/18 update: CMI was showing some strength this morning with a rally past $114.00. The stock eventually pared its gains but still outperformed the major averages. If you're holding January calls you have to decide - do you sell now and recoup 50% of our investment? Or do you hold on with hopes that CMI will trade over $115.00. We'll probably need to see CMI trade closer to $116.00 to actually recoup all of our initial investment. We only have three trading days left.

(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


FedEx Corp. - FDX - close: 95.80 change: -0.03

Stop Loss: 91.75
Target(s): 99.90, 104.75
Current Option Gain/Loss: -87.5% and - 3.7%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
01/18 update: As a group the transports were underperforming on Tuesday. FDX dipped back toward round-number support near $95.00. We only have three days left before our January calls expire. I have been suggesting that we sell our January calls at 40 cents.

I remain cautious on FDX and would hesitate to open new bullish positions.

- 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

01/13: New targets for the April calls (99.90 and 104.75)
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


International Business Machines - IBM - close: 150.65 change: +0.65

Stop Loss: 146.40
Target(s): 154.50, 159.90
Current Option Gain/Loss: +87.4%, and +27.1%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
01/18 update: Our plan was to exit our January calls today at the closing bell to avoid holding over IBM's earnings report this evening. The January $150 calls closed with a bid of $2.53 (+87.4%). We would keep our April calls with targets to take profits at $152.50 (see below) and $159.50.

After the closing bell IBM reported earnings that were 10 cents better than expected with a profit of $4.18 a share. Revenues were $29.0 billion, also ahead of expectations. The stock was seen trading $155.00 after hours. Given this after hours surge I am moving our first target for the April calls to take profits from $152.50 to $154.50 and we'll adjust the final target to $159.90. No new positions at this time. I'm adjusting our stop loss to $146.40.

- Suggested Positions -

2011 January $150 calls (IBM1122A150) Entry @ $1.35, exit @ $2.53 (+87.4%)

- or -

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

01/18: New stop loss @ 146.40. New targets at $154.50 and $159.90
01/18: As planned, exit the January calls (+87.4%)
01/13: Exit the January calls on Tuesday before the close (& earnings)
01/06: New stop loss @ 144.75
01/03: New targets @ $152.50, and $159.50

Chart:

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


Intrepid Potash, Inc. - IPI - close: 39.34 change: +0.76

Stop Loss: 34.75
Target(s): 39.90, 42.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see trigger

Comments:
01/18 update: Hmm.... IPI is marching higher without us and we don't want to chase it. It might be time to give up on IPI as a candidate. At the moment our plan is to buy calls on a dip at $37.25. Our first target is $39.90. Our second, more aggressive target is $42.00.

FYI: The Point & Figure chart for IPI is bullish with a $62 target.

Trigger @ 37.25

- Suggested Positions -

Buy the 2011 February $40 calls (IPI1119B40) current ask $1.25

Entry on January xxth at $ xx.xx
Earnings Date 03/01/11 (unconfirmed)
Average Daily Volume = 717 thousand
Listed on January 12th, 2010


Juniper Networks - JNPR - close: 37.95 change: -0.78

Stop Loss: 36.70
Target(s): 39.90, 41.75
Current Option Gain/Loss: -43.5% and + 4.6%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
01/18 update: It was not a good day for JNPR. Lackluster analyst comments helped fuel an early morning decline. JNPR failed to bounce back like most of the market this afternoon. The stock is hovering near short-term support at $38.00. More conservative traders will want to seriously consider an early exit right now if you're holding January calls. We only have three trading days left before January options expire. I am not suggesting new positions at this time.

Officially, 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
01/15: New stop loss @ 36.70
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


Millicom Intl. Cellular - MICC - close: 97.12 change: +0.02

Stop Loss: 93.75
Target(s): 99.90
Current Option Gain/Loss: -21.7% and +21.2%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
01/18 update: MICC's performance today was pretty underwhelming. I am suggesting that we exit our January calls tomorrow at the closing bell. I am not suggesting new positions at this time. Our target for the April calls 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

01/13: New stop loss @ 93.75
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: 58.99 change: -0.49

Stop Loss: 54.90
Target(s): 62.25, 64.50
Current Option Gain/Loss: -11.6%
Time Frame: 4 to 5 weeks
New Positions: Yes, see below

Comments:
01/18 update: NTAP underperformed the market on Tuesday with another failed rally near $60. I would expect another pull back toward the $57-56 level. Let's wait and see how NTAP performs tomorrow before considering new positions. 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: 53.03 change: +0.99

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:
01/18 update: Positive analyst comments on QCOM helped this stock outperform today. Shares broke out higher from its recent sideways consolidation and closed with a +1.9% gain. We may want to reconsider our entry point strategy but I'm not quite ready to chase it yet. Currently our plan is to buy calls on a dip at $50.25. We might want to move that trigger higher toward $51.25 instead. At the same time we may want to drop QCOM and look elsewhere since earnings are less than three weeks away and we normally want to avoid holding over an earnings report.

Trigger @ 50.25

- 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


Research In Motion - RIMM - close: 65.22 change: +0.45

Stop Loss: 59.90
Target(s): 64.75, 67.50
Current Option Gain/Loss: +65.9%, and +55.3%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
01/18 update: RIMM spiked higher this morning and hit $66.48 before trimming its gains. Shares still look overbought and due for some profit taking. I am not suggesting new positions at this time. Our final target remains $67.50.

- 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

01/13: New stop @ 59.90
01/13: 1st Target Hit @ 64.75. Feb. call @ $4.00 (+61.9%) Mar. call @ $3.75 (+59.5%)
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: 75.82 change: +1.65

Stop Loss: 71.75
Target(s): 77.40, 79.90
Current Option Gain/Loss: +25.0%
Time Frame: 4 to 6 weeks
New Positions: See below

Comments:
01/18 update: SPW was looking lively today with a +2.2% gain and a rally past the $75.00 level. I am raising our stop loss to $71.75 since the $72.00-72.50 zone should be new support. SPW is holding an analyst day tomorrow. Headlines from this meeting could fuel movement in the stock price. I am not suggesting new positions at this time. Our upside targets are $77.40 and $79.90.

- Suggested Positions -

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

01/18: New stop loss @ 71.75

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: 68.10 change: -0.05

Stop Loss: 64.75
Target(s): 69.90, 72.45
Current Option Gain/Loss: -92.8%, and -24.1%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
01/18 update: We could be in trouble with our January calls. SWK can't seem to break free of the gravitational pull from the $68.00 level. Shares might just hover here until after January option expiration and we only have three trading days left. I am not suggesting new positions at this time. We may want to consider an early exit in the January calls if they ever reach 35 cents again. Our plan was to keep our position size small to limit risk.

- Suggested Positions -

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

- or -


01/15: Consider selling the January calls early @ 35 cents or more
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


Wynn Resorts Ltd. - WYNN - close: 118.82 change: +2.10

Stop Loss: 116.95
Target(s): 124.75, 128.00
Current Option Gain/Loss: - 25.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
01/18 update: Uh-oh! WYNN broke out over $120 this morning and then reversed lower. Shares opened at $120.50 and hit $121.74 only to suddenly reverse and close lower. Shares still eked out a gain for the session but the action was bearish. We had a trigger to buy calls at $120.25 so the trade was opened first thing this morning. I am not suggesting new positions at this time. Wait for a move back above $120.50.

Our plan was to keep our positions very small because this is an aggressive, higher-risk trade. Our first target is $124.75.

(Very Small Positions) - Suggested Positions -

Long the 2011 February $125.00 calls (WYNN1119B125) Entry @ $3.24

01/18: Play triggered on gap open higher at $120.50

Chart:

Entry on January 18th at $120.50
Earnings Date 02/24/11 (unconfirmed)
Average Daily Volume = 2.0 million
Listed on January 15th, 2010


CLOSED BULLISH PLAYS

Boeing Co. - BA - close: 72.48 change: +2.40

Stop Loss: 65.90
Target(s): 69.00, 71.85
Current Option Gain/Loss: +167.1%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
01/18 update: Target achieved. BA delivered a strong session with a +3.4% gain. The stock is moving on news that BA expects to deliver its first 787 plane in the third quarter of 2011. The stock hit an intraday high of $72.57. Our final target to exit was $71.85. Our option was trading at $2.75 (+276%) and closed with a bid at $3.50.

- Suggested Positions - (small positions only!)

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

01/18: Target hit. Option @ $2.75 (+276%).
01/15: final target adjusted to $71.85
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

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


CenturyLink, Inc. - CTL - close: 43.94 change: -0.33

Stop Loss: 43.75
Target(s): 44.90, 48.00
Current Option Gain/Loss: - 75.0%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
01/18 update: CTL produced an ugly end to what had been a very exciting trade. At one point our January $45.00 calls were up +800%. Now with today's dip to $43.55, we've been stopped out at $43.75 and the option ended up worthless.

Current Position:
Long the 2011 January $45.00 calls (CTL1122A45) Entry @ 0.20, exit @ 0.00 (-100%)

01/18: Stopped out at $43.75. option @ $0.00 (-100%)
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

Chart:

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


Express Scripts - ESRX - close: 58.74 change: +1.15

Stop Loss: 54.75
Target(s): 53.95, 58.50
Current Option Gain/Loss: +140.4% and +53.1%
Time Frame: 5 to 6 weeks
New Positions: see below

Comments:
01/18 update: Target achieved. The rally in ESRX continued and shares surged to an intraday high of $58.77. Our target was hit at $58.50. Our February call was at $3.95 (+77.9%).

Second Position (small position):

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

01/18: Target hit @ 58.50. Feb. call @ $3.95 (+77.9%)
01/15: New stop loss @ 54.75
01/14: Exit the January calls at the close. Exit @ $5.05 (+140%)
01/13: Plan on exiting the January calls tomorrow before the close.
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%)

Chart:

Entry on November 18th at $51.81
Earnings Date 02/24/11
Average Daily Volume = 4.3 million
Listed on November 17th, 2010


Goldman Sachs - GS - close: 174.68 change: -0.32

Stop Loss: 167.75
Target(s): 171.00, 179.50
Current Option Gain/Loss: +105.0% and +50.8%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
01/18 update: It was a disappointing end to our GS play. Our plan was to exit on Tuesday to avoid holding over the company's earnings due out tomorrow morning. Shares started this day off weak but recovered to close almost unchanged.

- Suggested Positions (only small positions so far) -

2011 January $170 calls (GS1122A170) Entry @ $2.75, exit @ $5.65 (+105%)

- or -

2011 April $175 calls (GS1116D175) Entry @ $5.27, exit @ $7.95 (+50.8%)

01/18: Closed ahead of earnings.
01/13: New stop loss @ 167.75, plan on exiting Jan. 18th
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)

Chart:

Entry on December 17th at $163.92
Earnings Date 01/19/11 (confirmed)
Average Daily Volume = 7.2 million
Listed on December 2nd, 2010


Cimarex Energy Co. - XEC - close: 99.38 change: +2.10

Stop Loss: 91.80
Target(s): 94.25, 99.50
Current Option Gain/Loss: +174.2%, and +87.0%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
01/18 update: That's close enough for me! XEC continues to rally and shares added another +2.1%. The stock closed at its high for the day at $99.38. Now normally that's bullish for the next trading session (closing at the high) but with our target to exit at $99.50 I'm suggesting we go ahead and exit now. I would not be surprised to see XEC gap open higher tomorrow near the $100.00 mark. Keep in mind the $100.00 level potential resistance. Our plan was to keep our position size small to limit our risk.

- Current Positions -

2011 February $95 calls (XEC1119B95) Entry @ $1.75, exit @ $6.20 (+254.2%)

- or -

2011 March $95 calls (XEC1119C95) Entry @ $3.10, exit @ $7.00 (+125.8%)

01/18; Exit early. Feb. call @ 6.20 (+254%), March call @ 7.00 (+125%)
01/15: New stop loss @ 91.80
01/13: New stop loss @ 89.90
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