Editor's Note:

Looks like Santa Claus did come this year with the S&P 500 up four days in a row. Friday saw a technical breakout past its simple 200-dma.

-James

Current Portfolio:


CALL Play Updates

The Andersons, Inc. - ANDE - close: 45.30 change: +0.41

Stop Loss: 42.45
Target(s): 49.75
Current Option Gain/Loss: - 9.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
12/24 update: ANDE finally broke out past resistance at the $45.00 level albeit on very low holiday volume. Shares did hit our trigger to buy calls at $45.25. I would still consider new positions today. FYI: The Point & Figure chart for ANDE is bullish with a $74 target.

(small positions) - Suggested Positions -

Long Jan $45 call (ANDE1221A45) entry $1.60
(readers might want to consider buying February calls instead)

12/23/11 triggered at $45.25

chart:

Entry on December 23 at $45.25
Earnings Date 02/01/12 (unconfirmed)
Average Daily Volume = 211 thousand
Listed on December 21, 2011


Boeing Co. - BA - close: 73.97 change: -0.32

Stop Loss: 69.85
Target(s): 77.00
Current Option Gain/Loss: +18.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
12/24 update: After a strong three-day bounce shares of BA stalled. The stock could be struggling with resistance near $75.00. I wouldn't be surprised to see a dip back toward old resistance and what should be new support in the $72.50 area. More conservative traders might want to raise their stop loss somewhere into the $71-72 zone.

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.

chart:

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: 38.15 change: -0.26

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

Comments:
12/24 update: HITK continues to underperform the market and posted its third loss in a row. Again the relative weakness is a concern but the larger trend is still intact. HITK did seem to find some support near $38.00 today. Our new entry point is at $37.25 with a stop at $36.70. We want to keep our position size small to limit our risk.

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

chart:

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


iShares Transportation - IYT - close: 90.13 change: +0.44

Stop Loss: 87.45
Target(s): 94.75 or 98.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Comments:
12/24 update: It was a quiet day for the transport sector and the IYT. Shares spent almost the entire day drifting sideways under resistance at $90. Then in the last few minutes of trading the IYT saw a rally past this resistance. More aggressive traders may want to launch positions now. The newsletter is suggesting a trigger to open positions at $90.75. I have listed individual targets depending on which month you choose to play.

Trigger @ 90.75

- Suggested Positions -

buy the Jan $95 call (IYT1221A95)
target 94.75

- or -

buy the Feb $95 call (IYT1218B95)
target 98.50

chart:

Entry on December xx at $ xx.xx
Earnings Date --/--/--
Average Daily Volume = 582 thousand
Listed on December 22, 2011


JPMorgan Chase & Co - JPM - close: 33.57 change: +0.12

Stop Loss: 30.35
Target(s): 37.50
Current Option Gain/Loss: Jan$33c: +43.8% & Feb$35c: +27.7%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
12/24 update: The rally in financials seemed to stall a bit. The banking indices still ended the day with gains but the gains are slowing down. JPM spent most of the day moving sideways in a 40-cent range. Readers can choose to buy calls now or try and buy a dip in the $33.00-32.50 zone.

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

chart:

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: 40.78 change: -0.80

Stop Loss: 39.45
Target(s): 48.50
Current Option Gain/Loss: - 23.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
12/24 update: OPEN is still struggling. The stock has the bullish breakout on Tuesday. Shares have spent the last three days digesting news out Tuesday night regarding a high-level executive leaving. The stock is hovering near support at the 50-dma and the $40.00 level.

Readers might want to wait for a bounce off the $40.00 mark or its simple 10-dma before considering new 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

chart:

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: 78.75 change: +0.90

Stop Loss: 75.75
Target(s): 79.50
Current Option Gain/Loss: +261.6%
Time Frame: 6 to 9 weeks
New Positions: see below

Comments:
12/24 update: PM rallied to another new high on Friday. Readers may want to take profits now. I am adjusting the newsletter's exit target down to $79.50. We will raise our stop loss to $75.75.

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

12/24 new stop loss @ 75.75, adjusted target to $79.50
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

chart:

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: 65.31 change: +1.07

Stop Loss: 61.90
Target(s): 68.00
Current Option Gain/Loss: Jan$65c: +45.0% & Feb$65c: +25.7%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
12/24 update: TJX is accelerating higher. The stock rallied +1.6% on Friday to new record highs. More conservative traders may want to start adjusting their stop loss higher. I am not suggesting new positions at this time but a dip or a bounce near $64.00 would work as an entry point.

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

chart:

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


Trimble Navigation Ltd. - TRMB - close: 44.63 change: -0.09

Stop Loss: 42.70
Target(s): 49.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
12/24 update: Friday morning was a little volatile with a $1.00 move from $45 to $44 but TRMB pared its losses. Essentially the stock is stuck consolidating sideways under resistance at $45.00.

I am suggesting a trigger to buy calls at $45.25 with a stop loss at $42.70. Our target is $49.50. FYI: The Point & Figure chart for TRMB is bullish with a $63 target.

Trigger @ 45.25

- Suggested Positions -

buy the Jan $45 call (TRMB1221A45)

chart:

Entry on December xx at $ xx.xx
Earnings Date 02/02/12 (unconfirmed)
Average Daily Volume = 544 thousand
Listed on December 22, 2011


Varian Medical Sys. - VAR - close: 66.21 change: +0.62

Stop Loss: 62.49
Target(s): 69.75
Current Option Gain/Loss: - 7.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
12/24 update: VAR is slowly making progress. Broken resistance near $65.00 should be new support. Readers can look for dips near $65 as a new entry point. Traders should be aware that the bottom of the late July gap down near $67.00 could be technical resistance.

- Suggested Positions -

Long JAN $65 call (VAR1221A65) entry $2.65

12/14/11 adjust stop loss to $62.49

chart:

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: 74.59 change: +0.07

Stop Loss: 70.75
Target(s): 79.50
Current Option Gain/Loss: -13.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
12/24 update: Hmm... Friday looked a lot like Thursday with a failed rally attempt near $75.00 in the morning and a sideways consolidation the rest of the session. Readers may want to wait for WAT to breakout past $75.00 before considering new positions. More conservative traders may want to adjust their stop loss higher.

- Suggested Positions -

Long Jan $75 call (WAT1221A75) entry $2.25

chart:

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: 33.11 change: +0.12

Stop Loss: 35.05
Target(s): 30.05
Current Option Gain/Loss: -28.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
12/24 update: Friday proved to be another quiet session for BMC. I don't see any changes from my Thursday night comments. 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

chart:

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


Watson Pharmaceuticals - WPI - close: 62.08 change: -0.02

Stop Loss: 63.05
Target(s): 56.00
Current Option Gain/Loss: Dec$60p: -12.5% & Jan$60p: -57.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
12/24 update: The oversold bounce in WPI appears to have stalled near short-term resistance at $62.00. We are not suggesting new positions at this time. The market's recent strength makes bearish trades a challenging task.

- 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

chart:

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 BEARISH PLAYS

Thermo Fisher Scientific - TMO - close: 45.69 change: +0.08

Stop Loss: 46.15
Target(s): 42.75
Current Option Gain/Loss: Dec$45p: +111.1% & Jan$45P: -39.2%
Time Frame: 2 to 4 weeks
New Positions: see below

Comments:
12/24 update: TMO's gains on Friday were not that big and shares appear to have resistance near $46.00 but we're choosing to exit early anyway. Readers could watch for a new bearish reversal near $48 and the 50-dma as a possible entry point for new bearish positions.

- Suggested Positions -

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

- or -

JAN $45 put (TMO1221M45) Entry $1.40 exit $0.85 (-39.2%)

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

chart:

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