Editor's Note:

After a two-day decline, stocks produced a mediocre bounce following Alcoa's earnings report last night.


Current Portfolio:


CALL Play Updates

Concur Technologies - CNQR - close: 71.72 change: +1.66

Stop Loss: 68.40
Target(s): 74.50
Current Option Gain/Loss: +15.1%
Time Frame: exit prior to the late January earnings report
New Positions: see below

Comments:
01/09/13: CNQR displayed relative strength with a +2.3% gain and a surge to new two-month highs. Readers might want to start inching up their stop loss. 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: 82.84 change: +1.24

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:
01/09/13: Shares of FISV also outperformed the market's major indices. Today's +1.5% gain pushed it to another new high.

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: 51.67 change: -0.20

Stop Loss: 49.40
Target(s): 58.00
Current Option Gain/Loss: -19.2%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
01/09/13: Yesterday I warned readers that OPEN could be headed lower for the $51-50 zone. Yet today's show of relative weakness is a bit concerning. 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


Sherwin-Williams Company - SHW - close: 162.17 change: +1.21

Stop Loss: 154.65
Target(s): 169.00
Current Option Gain/Loss: + 3.2%
Time Frame: Exit prior to earnings on Jan. 31st!
New Positions: see below

Comments:
01/09/13: SHW opened at $161.28 and rallied to a new all-time high. I don't see any changes from my prior comments. We keep our position size small to limit our risk. Plus, this is a shorter-term trade. We do not want to hold over the January 31st earnings report. FYI: The Point & Figure chart for SHW is bullish with a $196 target.

- Suggested Positions - *Small Positions*

Long Feb $165 call (SHW1316B165) entry $3.10

Entry on January 09 at $161.28
Average Daily Volume = 928 thousand
Listed on January 08, 2012


iShares Silver ETF - SLV - close: 29.35 change: -0.03

Stop Loss: 27.45
Target(s): 33.50
Current Option Gain/Loss: - 4.2%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
01/09/13: A rebound in the U.S. dollar kept a lid on the precious metals today. SLV churned sideways. 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: 46.70 change: +0.25

Stop Loss: 45.75
Target(s): 49.25
Current Option Gain/Loss: - 0.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
01/09/13: I would stay cautious on SOHU. The stock only managed a 25-cent gain. Essentially shares churned sideways along its 300-dma. We are at risk for SOHU to dip toward what is likely round-number support at $45.00. Right now our stop loss is at $45.75. More aggressive traders may want to adjust their stop so it is underneath the $45.00 level and give SOHU more room to maneuver. 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: 62.87 change: +0.64

Stop Loss: 59.75
Target(s): 64.75
Current Option Gain/Loss: +22.2%
Time Frame: 2 to 3 weeks
New Positions: see below

Comments:
01/09/13: TRMB extended its gains to close at new all-time highs. I would not chase it here.

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

Humana Inc. - HUM - close: 66.91 change: +0.90

Stop Loss: 69.01
Target(s): 62.00
Current Option Gain/Loss: - 7.1%
Time Frame: Exit prior to earnings on Feb. 4th!
New Positions: see below

Comments:
01/09/13: Stocks were mostly higher today. The healthcare sector index produced a +1.0% gain. Shares of HUM spiked higher at the open but the rally stalled at the $67.00 level. The stock hovered there, just under $67.00 the rest of the session. I would still consider new bearish positions now. More conservative traders could wait for decline under $65.75 as their entry point instead. Our target is $62.00. FYI: The Point & Figure chart for HUM is bearish with a $51 target.

- Suggested Positions -

Long Feb $65 PUT (HUM1316N65) entry $1.40

Entry on January 09 at $66.21
Average Daily Volume = 1.5 million
Listed on January 08, 2012