Editor's Note:

Without any significant economic news or headlines to move the market we saw stocks continue to drift lower as investors waited for Q4 earnings season to start.

CP hit our target. FISV was triggered. SNA stopped out. TRV was removed.


Current Portfolio:


CALL Play Updates

Concur Technologies - CNQR - close: 70.06 change: -0.16

Stop Loss: 68.40
Target(s): 74.50
Current Option Gain/Loss: -12.1%
Time Frame: exit prior to the late January earnings report
New Positions: see below

Comments:
01/08/13: CNQR churned sideways to hover along the $70.00 level. Readers may want to look for a new rally past $70.50 before considering new bulish positions. Our short-term target is $74.50. We do not want to hold over the late January earnings report. FYI: The Point & Figure chart for CNQR is bullish with an $81 target.

- Suggested Positions -

Long Feb $70 call (CNQR1316B70) entry $3.30

Entry on January 07 at $70.25
Average Daily Volume = 462 thousand
Listed on January 05, 2012


Fiserv, Inc. - FISV - close: 81.60 change: +0.39

Stop Loss: 79.75
Target(s): 88.00
Current Option Gain/Loss: - 10.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
01/08/13: FISV continued to show relative strength with a +0.48% gain today. Our trigger to launch bullish positions was hit at $81.60. I would still consider new positions now. However, more conservative traders may want to only start positions if both FISV and the S&P 500 index open positive tomorrow.

Our target is $88.00 but we will plan on exiting positions prior to FISV's next earnings report (due in late January or early February). FYI: The Point & Figure chart for FISV is bullish with a $93 target.

- Suggested Positions -

Long Feb $80 call (FISV1316B80) entry $3.00

Entry on January 08 at $81.60
Average Daily Volume = 864 thousand
Listed on January 07, 2012


OpenTable, Inc. - OPEN - close: 51.87 change: -1.04

Stop Loss: 49.40
Target(s): 58.00
Current Option Gain/Loss: -17.9%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
01/08/13: Hmm... yesterday's intraday reversal at resistance near $55 and today's pullback definitely looks short-term bearish. OPEN spent most of today hovering near the $52.00 level but I suspect we could see shares dip back into the $51-50 zone. Look for potential support at the rising 10-dma. No new positions at the moment.

Earlier Comments:
OPEN could see a short squeeze. The most recent data listed short interest at 42% of the very small 19.4 million share float. FYI: The Point & Figure chart for OPEN is bullish with a $73 target.

- Suggested Positions -

Long Feb $55 call (OPEN1316B55) entry $2.54

Entry on January 04 at $52.23
Average Daily Volume = 361 thousand
Listed on January 03, 2012


iShares Silver ETF - SLV - close: 29.38 change: +0.20

Stop Loss: 27.45
Target(s): 33.50
Current Option Gain/Loss: - 2.1%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
01/08/13: Both silver and gold prices managed a rebound today. The SLV added +0.6%. I don't see any changes from my prior comments. Readers might want to wait for a new close above $29.50 or even $30.00 before considering new bullish positions. More cautious traders might want to raise their stop loss.

- Suggested Positions -

Long March $30 call (SLV1316c30) entry $0.95

Entry on December 31 at $29.07
Average Daily Volume = 11.6 million
Listed on December 29, 2012


Sohu.com - SOHU - close: 46.45 change: -1.37

Stop Loss: 45.75
Target(s): 49.25
Current Option Gain/Loss: - 2.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
01/08/13: SOHU displayed relative weakness today with a -2.8% decline. This is an important test of short-term technical support with shares pulling back toward its converging 300-dma and 10-dma. Right now we have our stop at $45.75. More conservative traders may want to inch that higher, or you could just exit now and avoid or minimize any losses. I am not suggesting new positions.

Earlier Comments:
SOHU can be a volatile stock so we want to limit our position size to reduce our risk. If triggered our target is $49.75. More aggressive traders may want to aim higher since SOHU seems to have built a decent bottom over the last several months. With enough time you could aim for the $55-60 zone. FYI: The Point & Figure chart for SOHU is bullish with a $66 target.

- Suggested Positions -

Long Feb $47.50 call (SOHU1316b47.5) entry $2.05

01/05/13 new stop loss @ 45.75
01/02/13 adjust exit down to $49.25
SOHU almost hit our target at $49.75 but the high today was only $49.70. We don't want that to happen again.
12/29/12 new stop loss @ 43.45

Entry on December 27 at $45.20
Average Daily Volume = 606 thousand
Listed on December 26, 2012


Trimble Navigation - TRMB - close: 62.23 change: +0.50

Stop Loss: 59.75
Target(s): 64.75
Current Option Gain/Loss: - 2.2%
Time Frame: 2 to 3 weeks
New Positions: see below

Comments:
01/08/13: TRMB rebounded off its morning lows to close at its high for the day. Shares look poised to rally tomorrow.

We are aiming for $64.75 but more aggressive traders could aim higher. We do want to keep our position size small to limit our risk.

- Suggested Positions - (Keep positions small)

Long Jan $60 call (TRMB1319a60) entry $2.25

Entry on January 03 at $61.32
Average Daily Volume = 750 thousand
Listed on January 02, 2012


PUT Play Updates


Currently we do not have any active put trades.



CLOSED BULLISH PLAYS

Canadian Pacific Railway - CP - close: 109.14 change: +1.86

Stop Loss: 103.75
Target(s): 109.00
Current Option Gain/Loss: +204.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
01/08/13: Target achieved.

CP continues to surge and outperformed the major indices and its peers in the railroad industry. The stock hit our exit target at $109.00.

Our plan was to use small positions to limit our risk.

- Suggested *SMALL* Positions -

Jan $105 call (CP1319a105) entry $1.25 exit $3.80 (+204%)

01/08/13 target hit
01/05/13 new stop loss @ 103.75
01/02/13 new stop loss @ 101.75
12/21/12 trade opened on gap down at $101.46

chart:

Entry on December 21 at $101.46
Average Daily Volume = 961 thousand
Listed on December 20, 2012


Snap-on Inc - SNA - close: 79.20 change: -0.45

Stop Loss: 78.90
Target(s): 84.50
Current Option Gain/Loss: - 75.0%
Time Frame: 2 to 3 weeks
New Positions: see below

Comments:
01/08/13: I cautioned readers that we might see SNA dip toward $79.00 as the stock fills the gap from January 2nd. Unfortunately SNA dipped below the $79.00 level and hit our stop loss at $78.90.

Readers may want to keep SNA on their watch list. A close below its 50-dma could be a bearish entry point with a breakdown of its bullish trend. A close above $81.00 again might look like a new bullish entry point as a resumption of the bullish trend.

Earlier Comments:
I consider this a short-term trade. It will probably only last a few days. Our target is $84.50. I would use small positions!

- Suggested Positions - (Keep positions small)

Long Feb $85 call (SNA1316B85) entry $0.80 exit $0.20 (-75.0%)

01/08/13 stopped out

chart:

Entry on January 03 at $80.90
Average Daily Volume = 239 thousand
Listed on January 02, 2012


The Travelers Companies - TRV - close: 73.19 change: +0.13

Stop Loss: 72.85
Target(s): 79.00
Current Option Gain/Loss: Unopened
Time Frame: exit prior to earnings on Jan. 22nd
New Positions: see below

Comments:
01/08/13: We have been waiting for TRV to breakout to new highs. Shares have not been very cooperative. I am removing TRV from the play list. Our trade has not opened yet. The trigger was at $74.60. Readers may want to keep TRV on their radar screen for a close above $75.00. Keep in mind that the company is due to report earnings on Jan. 22nd.

trade did not open.

01/08/13 removed TRV. trade did not open.

chart:

Entry on January xx at $ xx.xx
Average Daily Volume = 2.3 million
Listed on January 05, 2012