Editor's Note:

Stocks were mixed on Monday but we did see all of our unopened trades get triggered today (LNKD, ROK, TIF).

Current Portfolio:


CALL Play Updates

Abercombie & Fitch - ANF - close: 47.31 change: +0.92

Stop Loss: 44.49
Target(s): 49.85
Current Option Gain/Loss: -11.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
12/10/12: A new round of bullish analyst comments for ANF this morning helped push the stock higher. Shares gapped open at $47.48 and spent the rest of the day drifting sideways. Readers can choose to buy calls now or look for a dip near $46.50.

Our short-term target is $49.85 since the $50.00 mark could be resistance. More aggressive traders may want to aim for the $53-55 zone instead.

- Suggested Positions -

Long 2013 Jan $50 call (ANF1319a50) entry $1.58

Entry on December 10 at $47.48
Average Daily Volume = 5.4 million
Listed on December 08, 2012


Dover Corp - DOV - close: 63.79 change: +0.06

Stop Loss: 61.75
Target(s): 67.50
Current Option Gain/Loss: +11.9%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
12/10/12: DOV was on the verge of breaking out to new relative highs. Then suddenly the stock reversed course and plunged toward the $63.00 level as the company downgraded their 2012 profit guidance. Shares bounced but we'll have to wait and see if there is any follow through tomorrow. I am not suggesting new positions at this time.

- Suggested Positions -

Long 2013 Mar $65 call (DOV1316c65) entry $2.10

11/28/12 new stop loss @ 61.75
11/19/12 triggered @ 62.30

Entry on November 19 at $62.30
Average Daily Volume = 1.7 million
Listed on November 17, 2012


Energizer Holdings - ENR - close: 81.45 change: +0.04

Stop Loss: 78.40
Target(s): 84.50
Current Option Gain/Loss: - 5.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
12/10/12: It was a quiet day for ENR with shares closing virtually unchanged on the session. There is no change from my weekend comments. Nimble traders may want to try and buy a dip in the $80.50-80.00 zone but there is not guarantee we'll see a dip. Our multi-week target is $84.50.

- Suggested Positions -

Long 2013 Jan $85 call (ENR1319a85) entry $0.90

Entry on December 07 at $80.76
Average Daily Volume = 784 thousand
Listed on December 06, 2012


Flowserve Corp. - FLS - close: 142.90 change: +1.00

Stop Loss: 138.90
Target(s): 148.50
Current Option Gain/Loss: + 5.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
12/10/12: FLS displayed strength with an early morning rally to new relative highs. Shares pared their gains by the closing bell. I am not suggesting new positions at current levels. FYI: The Point & Figure chart for FLS is bullish with a $153 target.

- Suggested Positions -

Long 2013 Jan $145 call (FLS1319a145) Entry $2.70

Entry on December 05 at $141.50
Average Daily Volume = 518 thousand
Listed on December 04, 2012


Home Depot - HD - close: 63.04 change: -1.41

Stop Loss: 62.90
Target(s): 69.50
Current Option Gain/Loss: -57.9%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
12/10/12: It was not a good day for HD. The stock started off weak and continued to fall throughout the session. Shares are now sitting on the $63.00 level. If there is any follow through lower tomorrow the stock will hit our stop loss at $62.90. More aggressive traders may want to adjust their stop loss so it's beneath the 40-dma or 50-dma, which is where HD has bounced in the past. I am not suggesting new positions.

- Suggested Positions -

Long 2013 Jan $65 call (HD1319a65) entry $1.95

Entry on December 03 at $65.35
Average Daily Volume = 8.5 million
Listed on December 01, 2012


Ingredion Inc. - INGR - close: 65.19 change: +0.31

Stop Loss: 64.40
Target(s): 69.00
Current Option Gain/Loss: -17.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
12/10/12: There was no follow through on Friday's weakness in INGR. Shares managed to outperform the major indices with a +0.4% bounce. I am inching up our stop loss to $64.40.

- Suggested Positions -

Long 2013 Jan $65 call (INGR1319a65) entry $2.00

12/10/12 new stop loss @ 64.40
12/08/12 new stop loss @ 63.90

Entry on December 04 at $65.25
Average Daily Volume = 504 thousand
Listed on December 03, 2012


Linkedin Corp. - LNKD - close: 111.74 change: +2.04

Stop Loss: 107.45
Target(s): 117.50
Current Option Gain/Loss: +12.9%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
12/10/12: Our new call trade on LNKD has been triggered. The stock started the day out strong with a rally past resistance at $110. Our trigger to buy calls was hit at $110.25. If you missed the entry point then consider waiting for a dip near $110.50. Broken resistance near $110 should offer new support.

If triggered our target is $117.50. More conservative traders may want to exit in the $114-115 zone instead since $115 might be resistance. LNKD can be volatile so I would use small positions to limit our risk.

*Small Positions* - Suggested Positions -

Long Jan $115 call (LNKD1319a115) Entry $3.10

Entry on December 10 at $110.25
Average Daily Volume = 1.8 million
Listed on December 08, 2012


O'Reilly Automotive - ORLY - close: 90.24 change: -0.49

Stop Loss: 89.95
Target(s): 95.75
Current Option Gain/Loss: -84.2%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
12/10/12: Trading action in ORLY continues to look bearish. Readers will want to consider an early exit now. The bounce this morning failed at short-term technical resistance at the 10-dma. The stock closed under its 200-dma but managed to hold just above round-number support at $90.00. If there is any follow through lower tomorrow ORLY will hit our stop at $89.95. I am not suggesting new positions at this time.

- Suggested Positions -

Long DEC $95 call (ORLY1222L95) entry $1.90

Entry on November 20 at $92.05
Average Daily Volume = 1.8 million
Listed on November 19, 2012


Precision Castparts - PCP - close: 184.66 change: +1.11

Stop Loss: 179.75
Target(s): 188.00
Current Option Gain/Loss: +13.5%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
12/10/12: PCP bounced off short-term support near its 10-dma. The stock is once again challenging resistance at the $185.00 level. If the market cooperates we could see PCP breakout higher tomorrow. I am not suggesting new positions at this time.

- Suggested *Small* Positions -

Long DEC $185 call (PCP1222L185) Entry $1.85

12/05/12 new stop loss @ 179.75

Entry on November 29 at $182.04
Average Daily Volume = 762 thousand
Listed on November 28, 2012


Rockwell Automation - ROK - close: 80.43 change: +0.04

Stop Loss: 78.90
Target(s): 84.75
Current Option Gain/Loss: -30.0%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
12/10/12: Gains were mild but ROK did hit a new relative high. That was enough to tag our trigger to buy calls at $80.60. Today's high was $80.67. More conservative traders may want to wait for a rally past $80.75 as confirmation before initiating positions.

- Suggested Positions -

Long 2013 Jan $85 call (ROK1319a85) entry $1.00*

*option entry price is an estimate since the option did not trade at the time our play was closed.

Entry on December 10 at $80.60
Average Daily Volume = 1.0 million
Listed on December 05, 2012


Trimble Navigation - TRMB - close: 59.10 change: +1.82

Stop Loss: 55.90
Target(s): 59.75
Current Option Gain/Loss: +111.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
12/10/12: TRMB is accelerating higher. The stock added +3.1% today and hit $58.18 this afternoon. Odds are pretty good we could see TRMB hit our exit target at $59.75 tomorrow. I am raising our stop loss to $55.90. More conservative traders may want to just take profits now with our option at +111%.

- Suggested Positions -

Long 2013 Jan $57.50 call (TRMB1319a57.5) entry $1.30

12/10/12 new stop loss @ 55.90

Entry on November 06 at $56.15
Average Daily Volume = 708 thousand
Listed on November 28, 2012


PUT Play Updates

InterOil Corp. - IOC - close: 52.21 change: +0.03

Stop Loss: 55.15
Target(s): 50.50
Current Option Gain/Loss: +46.2%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
12/10/12: IOC continues to churn inside the $51-53 area. There is no change from my prior comments. Readers may want to go ahead and exit early now. I am not suggesting new positions.

I want to remind readers that this is a more aggressive, higher risk trade. IOC is volatile and has a high amount of short interest.

*Small positions* - Suggested Positions -

Long DEC $55 PUT (IOC1222x55) entry $2.70

12/08/12 new stop loss @ 55.15
12/06/12 new stop loss @ 56.05
12/04/12 new stop loss @ 57.55
11/28/12 new stop loss @ 60.15

Entry on November 21 at $58.50
Average Daily Volume = 790 thousand
Listed on November 20, 2012


Range Resources - RRC - close: 63.74 change: +0.94

Stop Loss: 66.05
Target(s): 56.50
Current Option Gain/Loss: - 8.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
12/10/12: Positive analyst comments on RRC today failed to have much of an impact. The stock reversed at the $65 level this morning and fell to a -1.4% decline. This looks like a new bearish entry point to buy puts. More cautious traders could lower their stops toward the $65.25 area.

Earlier Comments:
I do consider this an aggressive, higher-risk trade. RRC can be volatile and there has been takeover chatter in the past. We want to keep our position size small to limit our risk.

- Suggested *Small* Positions -

buy the 2013 Jan $60 PUT (RRC1319m60) entry $1.20*

*option entry price is an estimate since the option did not trade at the time our play was closed. The first trade on Dec. 5th was at $1.00.

Entry on December 05 at $63.72
Average Daily Volume = 1.5 million
Listed on December 04, 2012


Teradata Corp. - TDC - close: 58.63 change: +0.44

Stop Loss: 62.10
Target(s): 55.15
Current Option Gain/Loss: +16.2%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
12/10/12: In the news today TDC announced it was raising its stock buyback program by $300 million, which puts the current amount available for buybacks at $381 million. This may have boosted the stock this morning. Shares recouped most of Friday's decline but TDC remains under short-term resistance at the 10-dma. I am not suggesting new positions at this time.

Our target is $55.15. More aggressive traders could aim a lot lower. The Point & Figure chart for TDC is bearish with a $44 target.

- Suggested Positions -

Long 2013 Jan $55 PUT (TDC1319m55) entry $0.86

Entry on December 03 at $60.00
Average Daily Volume = 2.2 million
Listed on December 01, 2012


Tiffany & Co - TIF - close: 57.48 change: -0.94

Stop Loss: 60.05
Target(s): 52.50
Current Option Gain/Loss: + 8.6%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
12/10/12: Our new trade on TIF is off to a good start. Shares underperformed the markets on Monday and the stock lost -1.6%. TIF hit our trigger to buy puts at $57.75. I would still consider new positions now.

Our target is $52.50. Although I want to caution you that the $55.00 level is potential support. The Point & Figure chart for TIF is bearish with a $51 target.

- Suggested Positions -

long Jan $55 PUT (TIF1319m55) entry $1.15

Entry on December 10 at $57.75
Average Daily Volume = 2.3 million
Listed on December 08, 2012