Editor's Note:

The market's three-day oversold bounce is hitting some stops on our bearish trades.

On a more positive note SAM hit our exit target. We also had JPM, TJX and WAT all get triggered.

-James

Current Portfolio:


CALL Play Updates

The Andersons, Inc. - ANDE - close: 44.89 change: +0.18

Stop Loss: 42.45
Target(s): 49.75
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
12/22 update: ANDE spent the session consolidating sideways in a very narrow range near resistance at $45.00. The high today was $45.13. There is no change from my prior comments.

I am suggesting we open small bullish positions with a trigger at $45.25 and a stop at $42.45. If triggered our target is $49.75. FYI: The Point & Figure chart for ANDE is bullish with a $74 target.

Trigger @ 45.25 (small positions)

- Suggested Positions -

buy the Jan $45 call (ANDE1221A45)
(readers might want to consider buying February calls instead)

Entry on December xx at $ xx.xx
Earnings Date 02/01/12 (unconfirmed)
Average Daily Volume = 211 thousand
Listed on December 21, 2011


Boeing Co. - BA - close: 74.29 change: +0.70

Stop Loss: 69.85
Target(s): 77.00
Current Option Gain/Loss: +37.9%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
12/22 update: BA continues to rally after yesterday's bullish breakout through the top of its trading range. Shares are nearing potential round-number resistance at $75.00. We can look for prior resistance in the $72.50 area to act as new support. We will raise our stop loss to $69.85. More conservative traders may want to raise theirs toward the $71.50 area instead.

Earlier Comments:
There is potential resistance at $75.00 and more conservative traders may want to exit there. I am aiming for $77.00. FYI: The Point & Figure chart for BA is bullish with a $79 target.

- Suggested Positions -

Long 2012Jan $75 call (BA1221A75) entry $1.08

12/22/11 new stop loss @ 69.85
12/13/11 trade opened
12/12/11 adjusted stop loss to $69.25
12/12/11 trade did not open, try again.

Entry on December 13 at $71.67
Earnings Date 02/01/12 (unconfirmed)
Average Daily Volume = 6.2 million
Listed on December 10, 2011


Hi Tech Pharmacal Co. - HITK - close: 38.41 change: -1.15

Stop Loss: 36.70
Target(s): 44.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
12/22 update: Our HITK is still not open. HITK opened higher and reversed but the S&P 500 did not open higher (it was flat). Shares of HITK have been underperforming the market the last two days. That is troubling. However, bigger picture traders have been consistently buying dips near the stock's rising 40 and 50-dma. I am adjusting our entry point to buy a dip near this technical support.

We'll use a new entry point to open small bullish positions at $37.25 and a stop loss at $36.70.

Earlier Comments:
The most recent data listed short interest at more than 13% of the very small 10 million share float. Our target is $44.50. Readers might want to aim higher. The Point & Figure chart for HITK is bullish with a $58 target.

New Trigger, buy the dip: 37.25, stop loss @ 36.70 (small positions)

- Suggested Positions -

buy the 2012Jan $40 call (HITK1221A40)

12/22/11 not open yet. New Trigger @ 37.25, stop 36.70
12/21/11 trade not open yet. (SP500 opened lower) Try again. New stop loss @ 37.90

Entry on December xx at $ xx.xx
Earnings Date 03/12/12 (unconfirmed)
Average Daily Volume = 298 thousand
Listed on December 20, 2011


JPMorgan Chase & Co - JPM - close: 33.45 change: +1.13

Stop Loss: 30.35
Target(s): 37.50
Current Option Gain/Loss: Jan$33c: +46.6% & Feb$35c: +31.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
12/22 update: Banks were showing some relative strength today and JPM was leading the pack with a +3.4% gain. The stock gapped higher at $32.69 and managed to breakout past technical resistance at its 100-dma before the close. Our trigger was hit at $32.75.

Our multi-week target is $37.50.

- Suggested Positions -

Long 2012Jan $33 call (JPM1221A33) entry $1.05

- or -

Long February $35 call (JPM1218B35) entry $0.90

Entry on December 22 at $32.75
Earnings Date 01/13/12 (unconfirmed)
Average Daily Volume = 45.3 million
Listed on December 20, 2011


OpenTable, Inc. - OPEN - close: 41.58 change: -1.16

Stop Loss: 39.45
Target(s): 48.50
Current Option Gain/Loss: - 3.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
12/22 update: OPEN pulled back again. Shares actually underperformed the market with a -2.7% loss. Prior resistance should be support at OPEN's 50-dma. Thus this dip should be a new entry point for bullish positions.

Earlier Comments:
The most recent data listed short interest at 53% of the very small 16.2 million-share float. This can be a volatile stock. Our target is the simple 100-dma but we'll tentatively put our exit target at $48.50. We want to keep our position size small to limit our risk.

(small positions) - Suggested Positions -

Long 2012Jan $45 call (OPEN1221A45) entry $1.50

12/20/11 new stop loss @ 39.40

Entry on December 20 at $41.55
Earnings Date 02/07/12 (unconfirmed)
Average Daily Volume = 1.0 million
Listed on December 17, 2011


Phillip Morris Intl. - PM - close: 77.85 change: -0.33

Stop Loss: 74.90
Target(s): 79.75
Current Option Gain/Loss: +199.1%
Time Frame: 6 to 9 weeks
New Positions: see below

Comments:
12/22 update: PM hit a new high at $78.55 this morning before shares succumbed to some minor profit taking. There is no change from my prior comments. Readers may want to take profits now. The newsletter's exit target is $79.75.

Earlier Comments:
FYI: The Point & Figure chart for PM is bullish with a $95 target.

- Suggested Positions -

Long 2012 Jan $75 call (PM1221A75) Entry $1.12

12/21 new stop loss @ 74.90, readers may want to take profits now (+225%)
12/17 new stop loss @ 74.25
12/05 Call is up +100%, readers may want to exit now!
12/03 new stop loss @ 73.75
11/30 new stop loss @ 71.40
11/23 adjusted stop loss to $69.49
11/22 trade opened. PM opened at $72.11

Entry on November 22 at $72.11
Earnings Date 02/09/12 (unconfirmed)
Average Daily Volume = 7.3 million
Listed on November 19, 2011


TJX Companies - TJX - close: 64.24 change: +0.74

Stop Loss: 61.90
Target(s): 68.00
Current Option Gain/Loss: Jan$65c: - 5.0% & Feb$65c: - 2.8%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
12/22 update: We didn't have to wait very long for TJX to hit our trigger at $64.10. The stock rallied +1.1% and broke out to new highs past the $64.00 level. I would still consider new positions now.

Earlier Comments:
TJX doesn't move super fast so we'll need some patience. Our target is $68.00. FYI: The Point & Figure chart for TJX is bullish with a $78 target.

- Suggested Positions -

Long 2012Jan $65 call (TJX1221A65) Entry $1.00

- or -

Long Feb $65 call (TJX1218B65) Entry $1.75

Entry on December 22 at $64.10
Earnings Date 02/23/12 (unconfirmed)
Average Daily Volume = 2.7 million
Listed on December 21, 2011


Varian Medical Sys. - VAR - close: 65.59 change: +0.38

Stop Loss: 62.49
Target(s): 69.75
Current Option Gain/Loss: -16.9%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
12/22 update: VAR pushed to a new relative high but shares struggled with the $66 level this morning. I remain cautiously optimistic here and the close over $65.50 could be used as a new entry point.

- Suggested Positions -

Long JAN $65 call (VAR1221A65) entry $2.65

12/14/11 adjust stop loss to $62.49

Entry on December 13 at $65.25
Earnings Date 01/25/12 (unconfirmed)
Average Daily Volume = 1.1 million
Listed on December 12, 2011


Waters Corp. - WAT - close: 74.52 change: +0.79

Stop Loss: 70.75
Target(s): 79.50
Current Option Gain/Loss: - 8.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
12/22 update: The rally has resumed in shares of WAT and the stock hit an intraday high of $75.02. Our trigger to buy calls was hit at $74.55. I would still consider new positions now.

- Suggested Positions -

Long Jan $75 call (WAT1221A75) entry $2.25

Entry on December 22 at $74.55
Earnings Date 01/24/12 (unconfirmed)
Average Daily Volume = 787 thousand
Listed on December 20, 2011


PUT Play Updates

BMC Software Inc. - BMC - close: 32.99 change: -0.01

Stop Loss: 35.05
Target(s): 30.05
Current Option Gain/Loss: -19.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
12/22 update: BMC spent the session hovering near the $33.00 level and closed virtually unchanged on the day. Yet the bid on our January puts lost 5 cents. Readers may want to wait for a new relative low, under $32.70, before initiating new positions.

- Suggested Positions -

Long 2012Jan $32.50 PUT (BMC1221M32.5) entry $1.05

12/21/11 trigger hit at $32.75

Entry on December 21 at $32.75
Earnings Date 02/01/12 (unconfirmed)
Average Daily Volume = 1.7 million
Listed on December 14, 2011


Thermo Fisher Scientific - TMO - close: 45.61 change: +0.95

Stop Loss: 46.15
Target(s): 42.75
Current Option Gain/Loss: Dec$45p: +111.1% & Jan$45P: -35.7%
Time Frame: 2 to 4 weeks
New Positions: see below

Comments:
12/22 update: TMO outperformed the market today with a +2.1% gain. The stock's close over $45.00 is arguably short-term bullish yet TMO has not yet broken the bearish trend of lower highs. Readers may want to exit early anyway. I am not suggesting new positions at this time.

- Suggested Positions -

(December position closed 12/15/11)
DEC $45 put (TMO1117X45) Entry $0.45 exit $0.95 (+111.1%)

- or -

Long JAN $45 put (TMO1221M45) Entry $1.40

12/22/11 readers may want to exit early
12/15/11 planned exit for Dec. $45 put. bid @ 0.95 (+111.1%)
12/14/11 Prepare to exit Dec. $45 puts at the open tomorrow, current bid on these puts is $1.20 (+166.6%)
12/14/11 new stop loss @ 46.15
12/05/11 TMO gapped open higher at $47.10

Entry on December 05 at $47.10
Earnings Date 02/01/12 (unconfirmed)
Average Daily Volume = 3.5 million
Listed on December 03, 2011


Watson Pharmaceuticals - WPI - close: 62.06 change: +0.38

Stop Loss: 63.05
Target(s): 56.00
Current Option Gain/Loss: Dec$60p: -12.5% & Jan$60p: -55.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
12/22 update: WPI has extended its gains to three days in a row. Shares are testing short-term resistance near $62.00. We can look for additional resistance near the exponential 200-dma near $62.75. I'm not suggesting new positions at this time.

- Suggested Positions -

(December position closed 12/15/11)
DEC $60 PUT (WPI1117X60) Entry $0.80 exit $0.70 (-12.5%)

- or -

Long JAN $60 PUT (WPI1221M60) Entry $2.00

12/19/11 new stop loss @ 63.05
12/15/11 planned exit for Dec. $60 puts, bid $0.70 (-12.5%)
12/14/11 Prepare to exit Dec. $60 puts at the open tomorrow, current bid on these puts is $0.65

Entry on December 07 at $61.75
Earnings Date 02/14/12 (unconfirmed)
Average Daily Volume = 1.5 million
Listed on December 03, 2011


CLOSED BULLISH PLAYS

Boston Beer Co. Inc. - SAM - close: 109.21 change: +2.72

Stop Loss: 98.75
Target(s): 109.50
Current Option Gain/Loss: +119.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
12/22 update: Target achieved. SAM continues to rally. Shares surged to $110.42 before paring its gains. Our exit target was hit at $109.50.

(small positions) - Suggested Positions -

JAN $105 call (SAM1221A105) Entry $2.05 exit $4.50 (+119.5%)

12/22/11 target hit at $109.50
12/20/11 new stop loss @ 99.75
12/03/11 new stop loss @ 98.75
12/02/11 trade triggered at $102.00

chart:

Entry on December 02 at $102.00
Earnings Date 03/08/12 (unconfirmed)
Average Daily Volume = 72.3 thousand
Listed on December 01, 2011


CLOSED BEARISH PLAYS

AGCO Corp. - AGCO - close: 42.16 change: +0.64

Stop Loss: 42.55
Target(s): 35.25
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
12/22 update: The market seems to be developing a bullish tone for the holidays. We are dropping AGCO with the play unopened. Shares are starting to bounce. The stock could see a rebound toward resistance near $45 and its 200-dma.

Trigger @ 39.75 (small positions)

Trade did not open.

12/22/11 Removing AGCO as an active trade candidate
12/21/11 adjust trigger to $39.75, stop to $42.55

chart:

Entry on December xx at $ xx.xx
Earnings Date 02/07/12 (unconfirmed)
Average Daily Volume = 1.5 million
Listed on December 15, 2011


Check Point Software - CHKP - close: 53.65 change: +1.51

Stop Loss: 55.05
Target(s): 48.00
Current Option Gain/Loss: -52.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
12/22 update: I could not find any news to account for the unusual trading in CHKP. The stock has been very volatile the last couple of days. This morning shares opened higher and then spiked from $52.41 to $56.70 in just a few minutes only to reverse just as fast. CHKP spent the rest of the day churning sideways on either side of $53.50. Is CHKP a victim of low-volume holiday markets? I can't say but the move today did hit our stop loss at $55.05.

(Small Positions) - Suggested Positions -

Jan $50 PUT (CHKP1221M50) Entry $1.20 exit $0.57 (-52.5%)

12/22/11 Stopped out @ 55.05. there was no news to explain the volatility
12/13/11 new stop loss @ 55.05

chart:

Entry on December 09 at $53.29
Earnings Date 01/30/12 (unconfirmed)
Average Daily Volume = 1.7 million
Listed on December 08, 2011


Coach, Inc. - COH - close: 59.87 change: +1.23

Stop Loss: 60.10
Target(s): 51.00
Current Option Gain/Loss: -65.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
12/22 update: Stocks extended their gains today and COH managed to rally to $60.30 before fading back under the $60.00 level. That was enough to stop us out at $60.10. COH still has a bearish trend of lower highs and lower lows over the last couple of months but the bounce may not be over yet.

- Suggested Positions -

2012Jan $55 PUT (COH1221M55) Entry $1.45 exit 0.50 (-65.5%)

12/22/11 stopped out at $60.10

chart:

Entry on December 19 at $58.08
Earnings Date 01/25/12 (unconfirmed)
Average Daily Volume = 2.9 million
Listed on December 17, 2011


ITT Educational Services - ESI - close: 52.52 change: +0.92

Stop Loss: 52.60
Target(s): 45.25
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
12/22 update: The oversold bounce in ESI is picking up steam. We are dropping ESI as a bearish candidate. Our trigger to buy puts has not been hit at $49.75.

Trigger @ 49.75 (small positions)

Trade Did Not Open

12/22/11 removed from the newsletter as an active trade candidate

chart:

Entry on December xx at $ xx.xx
Earnings Date 01/19/12 (unconfirmed)
Average Daily Volume = 363 thousand
Listed on December 19, 2011


Fluor Corp. - FLR - close: 50.46 change: +1.26

Stop Loss: 50.65
Target(s): 45.15
Current Option Gain/Loss: -79.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
12/22 update: FLR rallied just enough today to hit our stop loss at $50.65. Shares broke through round-number resistance at $50.00 and hit $50.69 before settling with a +2.5% gain. The larger trend is still bearish but readers may want to wait for a move toward the 100-dma or its trendline of lower highs before considering new bearish positions.

- Suggested Positions - (Small Positions)

2012Jan $45 PUT (FLR1221M45) entry $1.20 exit $0.25 (-79.1%)

12/22/11 stopped out at $50.65
12/19/11 new stop loss @ 50.65

chart:

Entry on December 14 at $49.35
Earnings Date 02/23/12 (unconfirmed)
Average Daily Volume = 2.0 million
Listed on December 13, 2011


Juniper Networks - JNPR - close: 20.75 change: +1.30

Stop Loss: 20.55
Target(s): 16.75
Current Option Gain/Loss: - 68.4%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
12/22 update: The WSJ had an interesting headline today. Akamai (AKAM) purchased its rival Cotendo for $268 million. Yet shares of AKAM soared more than +18%, bumping the company's market cap by +$1 billion. Talk about a great deal for AKAM. Normally shares of the acquiring company go down. JNPR was linked to these headlines because many thought JNPR was a potential buyer for Cotendo, especially since JNPR is already an investor in the company.

Shares of JNPR were also upgraded this morning, which helped account for the stock's gap higher at $20.10. JNPR ended the day up +6.6% and hit our stop loss at $20.55.

(small positions) - Suggested Positions -

2012Jan $17.50 PUT (JNPR1221M17.5) entry $0.57 exit 0.18 (-68.4%)

12/22/11 stopped out at $20.55
12/17/11 readers may want to take profits now. JNPR looks short-term oversold
12/14/11 new stop loss @ 20.55
12/12/11 JNPR gapped open lower at $19.58, opening our trade. Stop loss at $20.75

chart:

Entry on December 12 at $19.58
Earnings Date 01/24/12 (unconfirmed)
Average Daily Volume = 8.8 million
Listed on December 10, 2011


Monsanto Co - MON - close: 70.63 change: -0.09

Stop Loss: 71.05
Target(s): 60.50
Current Option Gain/Loss: -71.2%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
12/22 update: It was an unlucky day for our bearish position in MON. The stock saw a very brief spike above $71.00 this morning. Shares hit $71.06 and immediately reversed to spent the rest of the day hovering under $71.00. Our stop loss was hit at $71.05.

(small positions) - Suggested Positions -

2012Jan $65 PUT (MON1221M65) entry $2.05 exit $0.59 (-71.2%)

12/22/11 stopped out at $71.05
12/21/11 readers may want to exit early now

chart:

Entry on December 14 at $67.35
Earnings Date 01/05/12 (unconfirmed)
Average Daily Volume = 3.7 million
Listed on December 13, 2011


WellPoint Inc. - WLP - close: 66.78 change: +1.10

Stop Loss: 65.75
Target(s): 58.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: , see below

Comments:
12/22 update: The market continues to drift higher and WLP rallied to resistance at its 50-dma before settling with a +1.6% gain. Our trade has not opened yet and we're dropping WLP as a bearish candidate.

Trigger @ 63.25

Trade Has Not Opened

12/22/11 trade did not open. We are removing WLP as an active candidate

chart:

Entry on December xx at $ xx.xx
Earnings Date 01/25/12 (unconfirmed)
Average Daily Volume = 2.9 million
Listed on December 19, 2011