Editor's Note:

Stocks reversed off their morning lows. The S&P 500 is now challenging its 2012 highs.

Our HUM trade was stopped out.


Current Portfolio:


CALL Play Updates

Concur Technologies - CNQR - close: 71.95 change: +0.23

Stop Loss: 68.40
Target(s): 74.50
Current Option Gain/Loss: +21.1%
Time Frame: exit prior to the late January earnings report
New Positions: see below

Comments:
01/10/13: CNQR spent Thursday consolidating sideways but closed near its highs for the day. The stock looks poised to breakout past the $72.00 level soon. 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


Deere & Co - DE - close: 89.91 change: +0.85

Stop Loss: 88.25
Target(s): 99.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
01/10/13: DE continued to rally and added +0.9%. Shares are now challenging round-number resistance at the $90.00 level.

I am suggesting a trigger to buy calls at $90.25. If triggered our target is $99.00. However, we do not want to hold over its mid February earnings report (still unconfirmed). FYI: The Point & Figure chart for DE is bullish with a $104 target.

Trigger @ 90.25

- Suggested Positions -

buy the Feb $90 call (DE1316B90) current ask $2.23

Entry on January xx at $ xx.xx
Average Daily Volume = 2.3 million
Listed on January 09, 2012


Fiserv, Inc. - FISV - close: 83.20 change: +0.36

Stop Loss: 79.75
Target(s): 88.00
Current Option Gain/Loss: + 20.0%
Time Frame: exit prior to earnings on Feb. 5th
New Positions: see below

Comments:
01/10/13: FISV gapped open higher, reversed, and then recovered to close up +0.4%. I don't see any changes from my earlier comments.

Our target is $88.00 but we will plan on exiting positions prior to FISV's next earnings report on February 5th. FYI: The Point & Figure chart for FISV is bullish with a $93 target.

- Suggested Positions -

Long Feb $80 call (FISV1316B80) entry $3.00

01/10/13 do not hold over the earnings report on Feb. 5th

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


Mohawk Industries - MHK - close: 94.43 change: -0.10

Stop Loss: 91.25
Target(s): 99.00
Current Option Gain/Loss: - 18.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
01/10/13: MHK also gapped open higher (at $95.00), reversed, but then managed a rebound off its morning lows. MHK did underperform the rest of the market and failed to make it back into positive territory. More conservative traders may want to wait for a new rise past $95.00 before initiating new positions.

- Suggested Positions - *Small Positions*

buy the Feb $95 call (MHK1316B95) entry $3.30

Entry on January 10 at $95.00
Average Daily Volume = 787 thousand
Listed on January 09, 2012


OpenTable, Inc. - OPEN - close: 51.67 change: -0.20

Stop Loss: 49.40
Target(s): 58.00
Current Option Gain/Loss: -13.3%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
01/10/13: OPEN managed to outperform the NASDAQ with a +1.3% gain today. Traders bought the dip this morning and this afternoon. A new rally past today's high (53.05) could be used as a new entry point.

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: 162.36 change: +0.19

Stop Loss: 154.65
Target(s): 169.00
Current Option Gain/Loss: + 6.4%
Time Frame: Exit prior to earnings on Jan. 31st!
New Positions: see below

Comments:
01/10/13: Traders bought the dip in SHW near $160 this morning. Unfortunately shares didn't make much progress with a +0.1% gain today. I don't see any changes from my prior comments.

Earlier 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: 29.78 change: +0.43

Stop Loss: 27.45
Target(s): 33.50
Current Option Gain/Loss: +14.7%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
01/10/13: A dip in the U.S. dollar today helped give silver prices a little boost. The SLV gained +1.4%. This ETF is testing potential resistance at the 200-dma and the $30.00 level.

Earlier 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: 47.94 change: +1.24

Stop Loss: 45.75
Target(s): 49.25
Current Option Gain/Loss: +31.7%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
01/10/13: After a multi-day consolidation shares of SOHU rebounded sharply with a +2.6% gain. Yet shares remain below round-number resistance at the $50.00 level. Our exit target is $49.25. More aggressive traders could aim higher.

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: 62.04 change: -0.83

Stop Loss: 59.75
Target(s): 64.75
Current Option Gain/Loss: - 6.6%
Time Frame: 2 to 3 weeks
New Positions: see below

Comments:
01/10/13: Hmm... I didn't see any specific headlines that might account for today's relative weakness in TRMB. The stock spiked to a new high this morning and then immediately reversed. That's not surprising since the market itself was initially higher but saw a morning reversal lower. Unfortunately for us TRMB did not follow the market when equities rebounded this afternoon.

Today's decline has painted a bearish engulfing candlestick reversal pattern. That's a warning signal. I still think the $60.00 level should be support but we have a problem. That problem is our January options expire in six trading days. More conservative traders may want to abandon ship now. I am not suggesting new positions at this time.

Earlier Comments:
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

01/10/13 we only have six trading days left for our January options. More conservative traders may want to exit early now

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 BEARISH PLAYS

Humana Inc. - HUM - close: 69.24 change: +2.33

Stop Loss: 69.01
Target(s): 62.00
Current Option Gain/Loss: -46.4%
Time Frame: Exit prior to earnings on Feb. 4th!
New Positions: see below

Comments:
01/10/13: Very bullish analyst comments on HUM, out before the opening bell, is what sparked today's big rally in the stock. The analyst has significant higher earnings forecasts than the company and they have a $95 price target (near the 2012 highs). Shorts were a little spooked and HUM surged all day to close up +3.4%. Our stop loss was hit at $69.01.

- Suggested Positions -

Feb $65 PUT (HUM1316N65) entry $1.40 exit $0.75 (-46.4%)

01/10/13 HUM reversed higher on bullish analyst comments.
Our stop loss was hit.

chart:

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