Editor's Note:

We want to take profits on our DE call trade. The stock is up several days in a row. I am suggesting we exit our call positions at the open tomorrow morning.

Unfortunately we saw COH and WLT get stopped out. CSH was triggered. LNKD has been removed with the trade unopened.

-James

Current Portfolio:


CALL Play Updates

Boeing Co. - BA - close: 74.74 change: -0.26

Stop Loss: 72.65
Target(s): 77.00
Current Option Gain/Loss: -28.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
01/11 update: BA hit a little profit taking this morning but shares had pared their losses a good amount by lunchtime. The stock spent the rest of the day moving sideways. BA remains under resistance at $75.00. I am not suggesting new positions at this time. We have less than two weeks left on our January calls.

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

01/07/12 new stop loss @ 72.65
01/05/12 new stop loss @ 72.25
12/31/11 new stop loss @ 71.75
12/28/11 new stop loss @ 71.40
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


Deere & Co. - DE - close: 84.50 change: +0.75

Stop Loss: 79.45
Target(s): 84.75
Current Option Gain/Loss: +126.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
01/11 update: It's time for us to take profits in DE. Shares outperformed again today with a +0.8% gain. The stock hit an intraday high of $84.66. Our target has been $84.75 but I am suggesting we exit now. The newsletter will close this position at the open tomorrow morning. More aggressive traders could aim higher but DE is now short-term overbought and due for some profit taking.

FYI: The bid on our Jan $80 call is at $4.65 (+126.8%) .

- Suggested Positions -

Long 2012Jan $80 call (DE1221A80) entry $2.05

01/11/12 prepare to exit tomorrow morning at the open
01/10/12 new stop loss @ 79.45, readers may want to take profits now! The 2012Jan $80 call is up to a $4.00 bid (+95.1%)

Entry on January 04 at $80.50
Earnings Date 02/15/12 (unconfirmed)
Average Daily Volume = 3.3 million
Listed on January 03, 2012


Starwood Hotel & Resorts - HOT - close: 52.44 change: +0.50

Stop Loss: 48.75
Target(s): 55.75
Current Option Gain/Loss: Unopened
Time Frame: exit prior to earnings
New Positions: Yes, see below

Comments:
01/11 update: Hmm... HOT continues to rally without us. I don't want to chase it with the stock up four out of the last five days. The plan is to wait and buy the dip at $51.00 instead. FYI: The Point & Figure chart for HOT is bullish with a $64 target.

*See Entry Details Above*

- Suggested Positions - Trigger @ 51.00

buy the Feb $52.50 call (HOT1218B52.5)

01/10/12 initial entry point did not work. New strategy: buy a dip at $51.00.

Entry on January xx at $ xx.xx
Earnings Date 02/02/12 (confirmed)
Average Daily Volume = 2.4 million
Listed on January 09, 2012


iShares Transportation - IYT - close: 92.60 change: +0.39

Stop Loss: 88.75
Target(s): 94.75 or 98.50
Current Option Gain/Loss: Jan$95c: -25.0% & Feb$95c: -20.6%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
01/11 update: The IYT spent most of the day consolidating sideways along the $92 level before finally advancing toward the closing bell. I am not suggesting new positions at this time. Wait for a dip or a bounce in the $91-90 area.

- Suggested Positions -

Long Jan $95 call (IYT1221A95) entry $0.20
target 94.75

- or -

Long Feb $95 call (IYT1218B95) entry $1.45
target 98.50

01/07/12 new stop loss @ 88.75
01/03/12 IYT gapped open higher at $91.20, above our trigger at $90.75

Entry on January 03 at $91.20
Earnings Date --/--/--
Average Daily Volume = 582 thousand
Listed on December 22, 2011


Laboratory Corp. - LH - close: 87.39 change: -0.31

Stop Loss: 85.95
Target(s): 94.75
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
01/11 update: There was no follow through on yesterday's rally attempt. LH spent Wednesday's session drifting sideways. We are waiting for a breakout past resistance.

I am suggesting a trigger to buy calls at $89.00. We'll aim for the $94.75 mark. More aggressive traders could aim for the $97-100 zone instead. FYI: The Point & Figure chart for LH is bullish with a $105 target.

Trigger @ 89.00

- Suggested Positions -

buy the Feb $90 call (LH1218B90)

Entry on January xx at $ xx.xx
Earnings Date 02/09/12 (unconfirmed)
Average Daily Volume = 564 thousand
Listed on January 10, 2012


TJX Companies - TJX - close: 65.54 change: -0.02

Stop Loss: 63.25
Target(s): 68.00
Current Option Gain/Loss: Jan$65c: +10.0% & Feb$65c: +14.2%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
01/11 update: After a sideways session today TJX closed virtually unchanged on the day. I am not suggesting new positions at this time. Keep in mind we have less than two weeks left on January calls. Readers may want to exit these early.

Earlier Comments:
On January 5th, management announced a 2-for-1 stock split payable on February 2nd, 2012.

- Suggested Positions -

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

- or -

Long Feb $65 call (TJX1218B65) Entry $1.75

01/07/12 readers may want to take profits now (Jan$65call +90%, Feb$65call +57%)
01/05/12 new stop loss @ 63.25, TJX announced strong same-store sales and a 2:1 split.
12/31/11 new stop loss @ 62.75

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


Whole Foods Market, Inc. - WFM - close: 72.27 change: -0.27

Stop Loss: 69.25
Target(s): 74.00
Current Option Gain/Loss: +35.2%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
01/11 update: WFM delivered another day of mild profit taking. Shares spent the session consolidating sideways just above the $72.00 level. I am not suggesting new positions at this time. Readers may want to go ahead and lock in gains now. Our exit target remains $74.00. More aggressive traders could aim higher.

Earlier Comments:
We should expect a minor gap down on Wednesday morning. WFM begins trading ex-dividend on January 11th for its dividend payable on Jan. 23rd (WFM's annual yield is 0.8%).

- Suggested Positions -

Long 2012Jan $70 call (WFM1221A70) entry $1.90

01/10/12 WFM begins trading ex-dividend tomorrow morning
01/07/12 new stop loss @ 69.25
01/05/12 new stop loss @ 68.75
01/03/12 WFM gapped open higher at $70.55, above our trigger (70.25)

Entry on January 03 at $70.55
Earnings Date 02/08/12 (unconfirmed)
Average Daily Volume = 1.3 million
Listed on December 28, 2011


PUT Play Updates

Accenture Plc, - ACN - close: 53.67 change: +1.04

Stop Loss: 54.15
Target(s): 48.50
Current Option Gain/Loss: -74.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
01/11 update: Shares of ACN were volatile today thanks to two competing analyst calls on the stock. Goldman Sachs downgraded ACN this morning yet Bernstein upgraded the stock at the same time. The stock spiked lower at the open but quickly reversed higher and outperformed today with a +1.9% gain. This is troubling. Readers may want to exit immediately. We still have a stop loss at $54.15 and we're going to hang on. I am not suggesting new positions at this time.

Our target is $48.50. We'll use a stop loss at $54.15, just above Wednesday's high. FYI: The Point & Figure chart for ACN is bearish with a $43 target.

(small positions) - Suggested Positions -

Long 2012Jan $52.50 PUT (ACN1221M52.5) Entry $1.35

Entry on January 06 at $51.91
Earnings Date 03/26/12 (unconfirmed)
Average Daily Volume = 4.6 million
Listed on January 05, 2012


Cash America Intl. - CSH - close: 45.08 change: -0.48

Stop Loss: 46.75
Target(s): 40.50
Current Option Gain/Loss: Jan $45 put: -19.0% & Feb$45put: -18.7%
Time Frame: up to the earnings report.
New Positions: see below

Comments:
01/11 update: CSH finally broke down under support at $45.00. The stock did hit our trigger to buy puts at $44.75. Yet shares bounced to close back above the $45.00 level, which should have been new resistance. I would rather see a new relative low, under $44.70, before considering new positions.

We have less than two weeks on the January puts.

Our target is $40.50. FYI: The Point & Figure chart for CSH is bearish with a $33 target.

NOTE: We do not want to hold over CSH's earnings report on January 26th.

- Suggested Positions -

Long Jan $45 PUT (CSH1221M45) Entry $1.05

- or -

Long Feb $45PUT (CSH1218N45) Entry $2.40

Entry on January 11 at $44.75
Earnings Date 01/26/12 (confirmed)
Average Daily Volume = 292 thousand
Listed on January 05, 2012


Fossil, Inc. - FOSL - close: 79.37 change: -1.30

Stop Loss: 82.55
Target(s): 73.50
Current Option Gain/Loss: -42.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
01/11 update: Lack of follow through on yesterday's bounce is a good sign for FOSL bears. Yet downward momentum has slowed. I'd wait for a new drop under $78.00 before considering new positions. I am inching our stop loss down to $82.55.

Don't forget that January options expire a week from Friday.

Earlier Comments:
Our target is $73.50. More conservative traders may want to exit in the $75 area instead. FYI: The Point & Figure chart for FOSL is bearish with a $71 target.

- Suggested Positions -

Long 2012Jan $75 PUT (FOSL1221M75) entry $0.95

01/11/12 new stop loss @ 82.55
01/10/12 new stop loss @ 82.80
01/06/12 there was no follow through on Thursday's bounce.
01/05/12 Today's move might be a bullish reversal. Readers may want to consider an early exit immediately

Entry on January 03 at $81.12
Earnings Date 02/15/12 (unconfirmed)
Average Daily Volume = 1.0 million
Listed on December 31, 2011


CLOSED BULLISH PLAYS

Coach, Inc. - COH - close: 61.00 change: -1.32

Stop Loss: 60.75
Target(s): 65.75
Current Option Gain/Loss: -46.0%
Time Frame: up to the earnings report
New Positions: see below

Comments:
01/11 update: COH's underperformance continues. The bullish breakout higher on January 6th now looks like a bull trap. Shares of COH fell -2.1% by the closing bell and nicked our stop loss at $60.75 this afternoon.

- Suggested Positions -

Feb $65 call (COH1218B65) Entry $2.04, exit $1.10 (-46.0%)

01/11/12 Stopped out at $60.75

chart:

Entry on January 09 at $62.99
Earnings Date 01/25/12 (unconfirmed)
Average Daily Volume = 2.3 million
Listed on January 07, 2012


CLOSED BEARISH PLAYS

LinkedIn Corp. - LNKD - close: 68.73 change: +2.72

Stop Loss: 62.55
Target(s): 51.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
01/11 update: LNKD continues to bounce and the breakout from its trading range is bullish. I still expect LNKD to trade lower next month following its share lock period expiration.

We are removing LNKD from the newsletter as an active candidate. Our trade never opened.

Trigger @ 59.75 (small positions)

Our trade never opened.

chart:

Entry on January xx at $ xx.xx
Earnings Date 02/09/12 (unconfirmed)
Average Daily Volume = 1.2 million
Listed on January 04, 2012


Walter Energy, Inc. - WLT - close: 61.68 change: +4.24

Stop Loss: 62.05
Target(s): 50.50
Current Option Gain/Loss: -20.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
01/11 update: I warned readers that WLT was a volatile stock, which was why we wanted to keep our position size small. Shares under performed the last few days but suddenly shot higher today. Unfortunately there was no news to explain the +7.3% surge today. Volume had been accelerating as WLT declined but volume soared to multi-month highs on today's bounce.

Earlier Comments:
Before I continue I have to warn you that WLT can be a volatile stock. What makes this trade even more challenging is that WLT has been considered a potential takeover candidate for months. Rumors consistently spark short-term spikes in this stock. Yet the overall trend is definitely bearish. We want to keep our position size pretty small to limit our risk.

- Suggested Positions -

Feb $55 PUT (WLT1218N55) Entry $3.50, exit $2.78 (-20.5%)

01/11/12 stopped out at $62.05
01/09/12 new stop 62.05

chart:

Entry on January 09 at $57.75
Earnings Date 02/15/12 (unconfirmed)
Average Daily Volume = 2.0 million
Listed on January 07, 2012