Editor's Note:

Deere (DE) gapped open lower this morning before bouncing back to hit a new relative high. Meanwhile FOSL exploded out of its recent consolidation pattern.

Our DE trade has been closed. Our FOSL trade has been stopped out. The OMC trade has been triggered.

-James

Current Portfolio:


CALL Play Updates

Boeing Co. - BA - close: 75.51 change: +0.77

Stop Loss: 73.65
Target(s): 77.00
Current Option Gain/Loss: + 3.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
01/12 update: BA was showing a little bit of relative strength today with a +1.0% gain. The stock closed at new multi-month highs. Our call position is positive again. With only five trading days left more conservative traders may want to exit early before the long weekend. I am not suggesting new positions at this time.

We are raising the stop loss to $73.65.

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

01/12/12 new stop loss @ 73.65
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


Starwood Hotel & Resorts - HOT - close: 52.61 change: +0.17

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:
01/12 update: HOT dipped to $51.52 before bouncing back into positive territory. We are still sitting on the sidelines. The plan is to wait and buy the dip at $51.00. FYI: The Point & Figure chart for HOT is bullish with a $64 target.

Don't forget that we plan to exit prior to the Feb. 2nd earnings.

*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: 92.90 change: +0.30

Stop Loss: 89.45
Target(s): 94.75 or 98.50
Current Option Gain/Loss: Jan$95c: -75.0% & Feb$95c: - 6.8%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
01/12 update: Transportation stocks continue to rally. The IYT hit new relative highs and closed up +0.3%. I am not suggesting new positions at this time. Wait for a dip or a bounce in the $91-90 area.

Please note our new stop loss at $89.45.

- 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

01/12/12 new stop loss @ 89.45
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: 87.57 change: +0.18

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:
01/12 update: LH spent the day consolidating sideways under the $88.00 level. 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


Omnicom Group - OMC - close: 45.87 change: +0.82

Stop Loss: 44.25
Target(s): 49.00
Current Option Gain/Loss: - 2.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
01/12 update: Our new play on OMC is already open. Shares outperformed the market today with a +1.8% gain and a breakout to new relative highs. Our trigger to buy calls was hit at $45.75. I would still consider new positions now.

Our target is $49.00. We do not want to hold over the mid February earnings report. FYI: The Point & Figure chart for OMC is bullish with a $64 target.

- Suggested Positions -

Long Feb $45 call (OMC1218B45) entry $1.80

Entry on January 12 at $45.75
Earnings Date 02/14/12 (unconfirmed)
Average Daily Volume = 1.6 million
Listed on January 11, 2012


TJX Companies - TJX - close: 65.31 change: -0.23

Stop Loss: 63.75
Target(s): 68.00
Current Option Gain/Loss: Jan$65c: -10.0% & Feb$65c: + 8.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
01/12 update: Hmm... the sideways consolidation in TJX this week is narrowing. We should expect a mini-breakout one way or the other in the next couple of days. I am raising our stop loss to $63.75. More conservative traders may want to raise theirs even higher.

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 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

01/12/12 new stop loss @ 63.75
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: 71.93 change: -0.34

Stop Loss: 69.75
Target(s): 74.00
Current Option Gain/Loss: +15.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
01/12 update: WFM is down three days in a row but traders did buy the dip near WFM's rising 10-dma. I am not suggesting new positions at this time and we are raising our stop loss up to $69.75. Readers may want to exit early. Our exit target remains $74.00. More aggressive traders could aim higher.

- Suggested Positions -

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

01/12/12 new stop loss @ 69.75
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: 53.94 change: +0.27

Stop Loss: 54.15
Target(s): 48.50
Current Option Gain/Loss: -85.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
01/12 update: ACN continues to bounce but the stock has stalled right at short-term resistance near $54.00. The high today was $54.06. If the market rallies again tomorrow there is a good chance ACN will hit our stop loss at $54.15. 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: 45.01 change: -0.07

Stop Loss: 46.75
Target(s): 40.50
Current Option Gain/Loss: Jan $45 put: -28.5% & Feb$45put: -14.5%
Time Frame: up to the earnings report.
New Positions: see below

Comments:
01/12 update: CSH did not see a lot of movement today. Shares closed right at round-number support at $45.00. At this point I would wait for a new relative low under $44.70 before initiating new bearish 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


CLOSED BULLISH PLAYS

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

Stop Loss: 79.45
Target(s): 84.75
Current Option Gain/Loss: + 65.8%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
01/12 update: Ouch! Our plan to exit DE calls early this morning at the open backfired on us. Agriculture stocks were down this morning as investors reacted to the latest USDA corn and wheat supply/demand report. DE gapped open lower at $83.47, dipped to $82.66, only to bounce back and hit a new relative high at $84.85 before settling flat. So DE would have hit our exit target at $84.75 anyway had we not tried to lock in gains early with the exit this morning.

Our exit was at (bid) $3.40 (+65.8%) instead of at our planned target of $84.75 when the bid was at $4.80 (+134.1%).

- Suggested Positions -

2012Jan $80 call (DE1221A80) entry $2.05 , exit $3.40 (+65.8%)

01/12/12 exit at the open.
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%)

chart:

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


CLOSED BEARISH PLAYS

Fossil, Inc. - FOSL - close: 86.78 change: +7.41

Stop Loss: 82.55
Target(s): 73.50
Current Option Gain/Loss: -84.2%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
01/12 update: Whoa! What happened to FOSL? Shares opened normally and chopped around the $80.00-78.60 zone for the first half hour this morning. Then suddenly FOSL soared, rising +10.4% at its best levels of the day, before paring gains to +9.3%. The move appears to have been fueled by positive analyst comments after FOSL presented at an investor conference today. The stock hit our stop loss at $82.55 around 10:30 a.m. this morning.

- Suggested Positions -

2012Jan $75 PUT (FOSL1221M75) entry $0.95 exit $0.15 (-84.2%)

01/12/12 stopped out at $82.55
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

chart:

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