Editor's Note:

It was a relatively quiet day for the stock market. Weakness in Apple (AAPL) weighed on the market this morning but the major indices recovered from their morning lows.


Current Portfolio:


CALL Play Updates

Concur Technologies - CNQR - close: 72.08 change: +0.11

Stop Loss: 69.40
Target(s): 74.85
Current Option Gain/Loss: +18.1%
Time Frame: exit prior to the late January earnings report
New Positions: see below

Comments:
01/14/13: CNQR spent Monday churning sideways in a narrow range just above the $72 level. I am not suggesting new positions at current levels but nimble traders could buy calls on a bounce off the $70 area.

Earlier Comments:
More aggressive traders could aim for the 2012 highs near $76.00. 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

01/11/13 new stop loss @ 69.40, adjust exit target to $74.85

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


Deere & Co - DE - close: 89.86 change: +0.24

Stop Loss: 88.25
Target(s): 99.00
Current Option Gain/Loss: -12.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
01/14/13: DE spiked higher this morning and hit the $91.00 level before trimming mot of its gains. Once again the stock was unable to close above resistance at the $90.00 level. Readers may want to wait for a close above $90 before considering new bullish positions.

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.

- Suggested Positions -

Long Feb $90 call (DE1316B90) entry $2.35

Entry on January 11 at $90.25
Average Daily Volume = 2.3 million
Listed on January 09, 2012


EOG Resources - EOG - close: 124.66 change: -0.97

Stop Loss: 123.40
Target(s): 134.00
Current Option Gain/Loss: - 29.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
01/14/13: EOG faded lower most of the session. The stock is testing short-term technical support at its simple 10-dma. Nimble traders could buy a dip or a bounce off the simple 10-dma near $124.00 but I would prefer to wait for a new high above Friday's intraday high at $126.45 as our next entry point.

FYI: EOG is due to begin trading ex-dividend on January 15th. The quarterly cash dividend is 17 cents.

Earlier Comments:
We do not want to hold positions over the earnings report in February.

- Suggested Positions -

Long Feb $130 call (EOG1316B130) entry $2.45

Entry on January 11 at $126.30
Average Daily Volume = 1.4 million
Listed on January 10, 2012


Fiserv, Inc. - FISV - close: 82.90 change: -0.08

Stop Loss: 79.75
Target(s): 88.00
Current Option Gain/Loss: + 13.3%
Time Frame: exit prior to earnings on Feb. 5th
New Positions: see below

Comments:
01/14/13: Attention! Tomorrow morning could be a volatile one for shares of FISV. Right at the closing bell tonight they announced they were buying Open Solutions, Inc. for $55 million in addition to assuming $960 million in Open Solution's debt. The stock is trading lower after hours near the $81.00 level. I am worried we could see FISV gap open lower and spike below support at $80.00, hit our stop loss, and then rebound.

I am not suggesting new positions at current levels.

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


Ingersoll-Rand - IR - close: 49.75 change: +0.15

Stop Loss: 48.25
Target(s): 54.00
Current Option Gain/Loss: Unopened
Time Frame: Exit prior to earnings on Feb. 1st!
New Positions: Yes, see below

Comments:
01/14/13: IR was showing some relative strength today. The stock recovered from its morning lows to close up +0.3%. Yet IR remains under resistance at the $50.00 level for now.

We are suggesting a trigger to buy calls at $50.25 with a stop loss at $48.25. Our target is $54.00 but we will plan on exiting prior to the earnings in early February.

Trigger @ 50.25

- Suggested Positions -

buy the Feb $50 call (IR1316B50) current ask $1.30

Entry on January xx at $ xx.xx
Average Daily Volume = 1.8 million
Listed on January 12, 2012


iShares Russell 2000 (ETF) - IWM - close: 87.39 change: +0.05

Stop Loss: 85.90
Target(s): 94.50
Current Option Gain/Loss: Unopened
Time Frame: 6 to 9 weeks
New Positions: Yes, see below

Comments:
01/14/13: The IWM spent Monday's session churning sideways in a very narrow range above the $87.00 level. There is no change from my earlier comments.

Earlier Comments:
Thursday's high was $87.69. I am suggesting a trigger to buy calls at $87.85. If triggered our multi-week target is $94.50.

Trigger @ 87.85

- Suggested Positions -

buy the Mar $90 call (IWM1316c90)

Entry on January xx at $ xx.xx
Average Daily Volume = 41.2 million
Listed on January 10, 2012


Mohawk Industries - MHK - close: 94.08 change: -0.15

Stop Loss: 91.25
Target(s): 99.00
Current Option Gain/Loss: - 28.7%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
01/14/13: Monday proved to be a pretty boring day for MHK. The stock spent most of the session in a very narrow range hugging the $94.00 level.

Nimble traders could buy a bounce off the rising 10-dma. Otherwise I would probably wait for a rally past $95.00 before considering 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


Noble Energy - NBL - close: 105.43 change: -0.14

Stop Loss: 101.75
Target(s): 114.00
Current Option Gain/Loss: -13.0%
Time Frame: Exit prior to earnings on Feb. 7th!
New Positions: see below

Comments:
01/14/13: NBL is little changed on the session. The stock opened at $105.31 and closed almost unchanged. I would still consider new bullish positions now. However, readers might want to wait and only launch positions if both NBL and the S&P 500 index open positive tomorrow. FYI: The Point & Figure chart for NBL is bullish with a $112 target.

- Suggested Positions -

Long Feb $110 call (NBL1316B110) entry $1.15

Entry on January 14 at $105.31
Average Daily Volume = 820 thousand
Listed on January 12, 2012


OpenTable, Inc. - OPEN - close: 53.53 change: +1.17

Stop Loss: 49.90
Target(s): 58.00
Current Option Gain/Loss: - 9.4%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
01/14/13: OPEN rallied to $54.00 this morning and spent the rest of the session fading lower. Overall it was a forgettable session.

More conservative traders may want to raise their stop loss closer to the $51.50 level instead (near last week's low).

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

01/12/13 new stop loss @ 49.90

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


Sherwin-Williams Company - SHW - close: 161.18 change: -0.10

Stop Loss: 154.65
Target(s): 169.00
Current Option Gain/Loss: -14.5%
Time Frame: Exit prior to earnings on Jan. 31st!
New Positions: see below

Comments:
01/14/13: It's the same story here. SHW spent Monday drifting sideways in a narrow range. I would still consider new positions now or you could wait for a new rise above $162.00 as an entry point.

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: 30.04 change: +0.56

Stop Loss: 27.45
Target(s): 33.50
Current Option Gain/Loss: +27.3%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
01/14/13: A drop in the U.S. dollar helped fuel gains in the precious metals today. The SLV rallied +1.8%. More importantly the SLV has finally closed above resistance at its 200-dma and the $30.00 level. Readers could use today's move as a new bullish entry point.

Earlier Comments:
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: 48.85 change: +0.64

Stop Loss: 45.75
Target(s): 49.25
Current Option Gain/Loss: +56.0%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
01/14/13: SOHU almost hit our bullish target today. Our exit target is $49.25 and SOHU hit $49.20. Readers may want to go ahead and take profits now although odds are good we could see SOHU hit our target tomorrow. I am not suggesting new positions.

Earlier Comments:
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: 62.51 change: +0.43

Stop Loss: 60.90
Target(s): 64.75
Current Option Gain/Loss: + 2.2%
Time Frame: 2 to 3 weeks
New Positions: see below

Comments:
01/14/13: TRMB displayed relative strength today with a +0.6% gain. Traders are buying the dip at its 10-dma. The trend is up and TRMB looks good. However, we are almost out of time on our January calls. We only have four days left. I am raising our stop loss to $60.90. More conservative traders may want to abandon ship now.

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

01/14/13 new stop loss @ 60.90
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

Green Mtn Coffee Roasters - GMCR - close: 39.34 change: -1.89

Stop Loss: 41.20
Target(s): 35.25
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
01/14/13: There was no follow through on Friday's bullish move higher. Quite the opposite occurred. GMCR reversed with a -4.5% plunge. I don't see any changes from my prior comments. We are waiting for a breakdown under support.

Earlier Comments:
Last Thursday's low was $38.83. I am suggesting a trigger to buy puts at $38.45. If triggered our target is $35.25. More aggressive traders might want to aim for a drop near $31.00 instead.

NOTE: GMCR can be a volatile stock. We want to keep our position size small.

Trigger @ 38.45 *Small Positions*

- Suggested Positions -

buy the Feb $35 PUT (GMCR1316n35)

Entry on January xx at $ xx.xx
Average Daily Volume = 4.2 million
Listed on January 10, 2012