Editor's Note:

The S&P 500 index and Russell 2000 index continue to hit new relative (and all-time) highs.

We saw BUD, GILD, and HOT all hit our entry triggers.

I am removing WTW, CLF, and GMCR as active candidates.


Current Portfolio:


CALL Play Updates

Anheuser-Busch InBev - BUD - close: 90.84 change: +1.12

Stop Loss: 87.45
Target(s): 99.00
Current Option Gain/Loss: - 8.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
01/22/13: Our new play on BUD has been triggered. Shares opened just above $90.00 and hit our entry point at $90.25 before lunchtime. Shares have now set a new all-time closing high with today's gain.

- Suggested Positions -

Long MAR $90 call (BUD1316c90) entry $3.05

Entry on January 22 at $90.25
Average Daily Volume = 894 thousand
Listed on January 19, 2012


CH Robinson Worldwide - CHRW - close: 66.07 change: +0.56

Stop Loss: 63.75
Target(s): 69.25
Current Option Gain/Loss: +11.9%
Time Frame: 2 to 3 weeks
New Positions: see below

Comments:
01/22/13: Relative strength in the transports helped push CHRW to a +0.8% gain. This is a new multi-month high. While the trend is up I want to warn readers that the Dow Jones Transportation Average is looking very short-term overbought and due for some profit taking.

Readers may want to limit their position size in CHRW.

Earlier Comments:
We do not want to hold over CHRW's earnings report, which is expected in very late January or early February so this is a short-term two or three week trade.

- Suggested Positions -

Long Feb $65 call (CHRW1316B65) entry $2.10

Entry on January 15 at $65.20
Average Daily Volume = 1.3 million
Listed on January 14, 2012


Concur Technologies - CNQR - close: 71.14 change: -0.04

Stop Loss: 69.40
Target(s): 74.85
Current Option Gain/Loss: - 6.0%
Time Frame: exit prior to the Jan. 30th earnings report
New Positions: see below

Comments:
01/22/13: CNQR underperformed a bit today. The stock dipped toward round-number support at $70.00 before finally rebounding. The stock closed virtually unchanged on the session.

We only have until the end of the month. I am not suggesting new positions at this time. Plan to exit prior to the January 30th earnings report.

Earlier Comments:
More aggressive traders could aim for the 2012 highs near $76.00. 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: 92.66 change: +1.70

Stop Loss: 89.25
Target(s): 99.00
Current Option Gain/Loss: +46.8%
Time Frame: Exit prior to the Feb. 13th earnings report
New Positions: see below

Comments:
01/22/13: DE shot higher on Tuesday. The stock displayed relative strength with a +1.8% gain and a new 52-week high. I am raising our stop loss to $89.25.

We do not want to hold over DE's February 13th earnings report. FYI: The Point & Figure chart for DE is bullish with a $104 target.

- Suggested Positions -

Long Feb $90 call (DE1316B90) entry $2.35

01/22/13 new stop loss @ 89.25

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


EOG Resources - EOG - close: 126.50 change: -0.29

Stop Loss: 123.40
Target(s): 134.00
Current Option Gain/Loss: - 27.7%
Time Frame: Exit prior to the Feb. 13th earnings report
New Positions: see below

Comments:
01/22/13: Hmm... I could not find any headlines to explain the relative weakness in EOG today. Shares underperformed both the major indices and the energy sector. Traders did buy the dip midday but it's a bit worrisome. Readers may want to wait for a new close above $127.00 before initiating positions.

Please note that we want to exit prior to the earnings report on February 13th.

- 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


Gilead Sciences - GILD - close: 77.91 change: -0.37

Stop Loss: 76.45
Target(s): 84.50
Current Option Gain/Loss: -27.8%
Time Frame: EXIT on Friday Jan. 25th at the close
New Positions: see below

Comments:
01/22/13: GILD is a new trade from this weekend. Our plan was to buy calls if shares hit $78.65. It looks like Wall Street was listening. GILD gapped higher this morning at $78.58, traded just high enough to hit $78.68, and then immediately reversed lower. Our trade is open but I am not suggesting any new positions. Here's why. GILD is going to have a 2-for-1 split this coming weekend. On Monday, January 28th, it will begin trading post-split. Technically that doesn't do anything to the stock. It just cuts the share price in half and doubles the number of shares outstanding. If you had one February $80 call, then post-split you will have two Feb. $40 calls. It seems simple enough but sometimes it just never works out that easily. Therefore to keep everyone's bookkeeping easy, we will plan to exit this trade on Friday, at the closing bell to avoid holding over the stock split. We can re-evaluate again next week.

FYI: In the news today Morgan Stanley listed GILD as one of its top 40 targets for a potential takeover this year.

- Suggested Positions -

Long Feb $80 call (GILD1316b80) entry $1.51

01/22/13 Strategy adjustment, prepare to exit on Friday, Jan. 25th to avoid holding over the 2-for-1 stock split.
01/22/13 trade opened at trigger (78.65)

Entry on January 22 at $78.65
Average Daily Volume = 4.0 million
Listed on January 19, 2012


Starwood Hotels - HOT - close: 60.63 change: +0.61

Stop Loss: 58.85
Target(s): 64.50
Current Option Gain/Loss: - 2.2%
Time Frame: exit prior to earnings on Feb. 7th
New Positions: see below

Comments:
01/22/13: Traders bought the dip in HOT this morning and the stock reversed higher to a +1.0% gain. HOT hit our entry trigger at $60.60 this afternoon. I would still consider new positions now.

Our target is $64.50. However, we will plan to exit prior to the earnings report on Feb. 7th.

- Suggested Positions -

Long Feb $60 call (HOT1316B60) entry $1.81

Entry on January 22 at $60.60
Average Daily Volume = 1.9 million
Listed on January 15, 2012


Ingersoll-Rand - IR - close: 50.69 change: +0.06

Stop Loss: 48.25
Target(s): 54.00
Current Option Gain/Loss: -14.2%
Time Frame: Exit prior to earnings on Feb. 1st!
New Positions: Yes, see below

Comments:
01/22/13: It was a quiet day for IR. The stock spent most of the session hovering sideways in the $50.60-50.80 range. Lack of participation in the market's rally today is a little bit troubling.

Our target is $54.00 but we will plan on exiting prior to the earnings in early February.

- Suggested Positions -

Long Feb $50 call (IR1316B50) entry $1.75

Entry on January 17 at $50.25
Average Daily Volume = 1.8 million
Listed on January 12, 2012


iShares Russell 2000 (ETF) - IWM - close: 89.21 change: +0.64

Stop Loss: 85.90
Target(s): 94.50
Current Option Gain/Loss: +16.9%
Time Frame: 6 to 9 weeks
New Positions: see below

Comments:
01/22/13: The IWM and the Russell 2000 ($RUT) index are quickly approaching a significant test for the rally. The $RUT is nearing what could be major round-number resistance at the 900 mark. After an almost non-stop rally from the last day of trading in December, the $RUT is arguably overbought here and due for a pullback? Will traders use a test of the 900 level as an excuse to lock in gains? Or does momentum continue?

We are not suggesting new positions at this time. More conservative traders might want to take profits early or raise their stop so it's closer to the $87.00 level.

Our multi-week target is $94.50.

- Suggested Positions -

Long Mar $90 call (IWM1316c90) entry $1.36

Entry on January 15 at $87.85
Average Daily Volume = 41.2 million
Listed on January 10, 2012


Mohawk Industries - MHK - close: 97.15 change: +0.85

Stop Loss: 92.45
Target(s): 99.00
Current Option Gain/Loss: + 3.0%
Time Frame: Exit prior to earnings on Feb. 21st
New Positions: see below

Comments:
01/22/13: An upgrade for MHK today helped push shares to a new high this morning. After the initial spike higher the stock faded lower. I am not suggesting new positions at current levels.

- Suggested Positions - *Small Positions*

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

01/17/13 new stop loss @ 92.45

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


Noble Energy - NBL - close: 109.04 change: +2.42

Stop Loss: 103.75
Target(s): 114.00
Current Option Gain/Loss: +43.4%
Time Frame: Exit prior to earnings on Feb. 7th!
New Positions: see below

Comments:
01/22/13: NBL was showing relative strength today with a +2.2% gain and another new high. I am raising our stop loss to $103.75.

- Suggested Positions -

Long Feb $110 call (NBL1316B110) entry $1.15

01/22/13 new stop loss @ 103.75
01/17/13 new stop loss @ 102.75

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


OpenTable, Inc. - OPEN - close: 54.82 change: +0.67

Stop Loss: 51.40
Target(s): 58.00
Current Option Gain/Loss: + 4.3%
Time Frame: Exit prior to earnings on Feb. 7th!
New Positions: see below

Comments:
01/22/13: After consolidating sideways for two weeks it looks like OPEN is finally ready to rally again. The stock added +1.2% and is now testing resistance near $55.00.

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

01/19/13 new stop loss @ 51.40
01/16/13 new stop loss @ 50.90
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: 163.70 change: -0.32

Stop Loss: 159.65
Target(s): 169.00
Current Option Gain/Loss: - 4.8%
Time Frame: Exit prior to earnings on Jan. 31st!
New Positions: see below

Comments:
01/22/13: Hmm... SHW struggled with resistance near $164.00 today. The fact that SHW did not participate with the market's widespread rally today is a potential warning sign. I am not suggesting new positions.

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

01/19/13 new stop loss @ 159.65

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


iShares Silver ETF - SLV - close: 31.12 change: +0.31

Stop Loss: 28.49
Target(s): 33.50
Current Option Gain/Loss: +78.9%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
01/22/13: The U.S. dollar was relatively flat today but silver prices and the SLV continued to inch higher. Today saw the SLV gain +1.0% and close above its simple 50-dma.

I am raising our stop loss to $28.49.

Earlier Comments:
More cautious traders might want to raise their stop loss.

- Suggested Positions -

Long March $30 call (SLV1316c30) entry $0.95

01/22/13 new stop loss @ 28.49

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


Wynn Resorts Ltd. - WYNN - close: 124.32 change: +0.26

Stop Loss: 121.90
Target(s): 129.75
Current Option Gain/Loss: -23.4%
Time Frame: Exit prior to earnings (likely late Jan or early Feb)
New Positions: see below

Comments:
01/22/13: WYNN bounced off of short-term technical support at its rising 10-dma today. I would consider new positions on this move or you can wait for a rally past $125.00.

We do not want to hold over the very late January earnings (an unconfirmed date).

- Suggested Positions -

Long Feb $125 call (WYNN1316B125) entry $3.45

01/18/13 trade opened on gap higher at $125.15, trigger was 124.25

Entry on January 18 at $125.15
Average Daily Volume = 1.24 million
Listed on January 17, 2012


PUT Play Updates


Currently we do not have any active put trades.



CLOSED BULLISH PLAYS

Weight Watchers Intl. - WTW - close: 57.50 change: -2.42

Stop Loss: 58.75
Target(s): 64.50
Current Option Gain/Loss: Unopened
Time Frame: exit prior to earnings in mid February
New Positions: Yes, see below

Comments:
01/22/13: I could not find any headlines to explain the relative weakness in WTW today. The stock failed at resistance near $60.00 and its 300-dma and then immediately reversed lower this morning. The stock underperformed the market with a -4.0% decline.

Our trade has not opened yet so I am removing WTW as a bullish candidate.

Trade did not open.

01/22/13 removed from the newsletter.

chart:

Entry on January -- at $---.--
Average Daily Volume = 732 thousand
Listed on January 17, 2012



CLOSED BEARISH PLAYS

Cliffs Natural Res. - CLF - close: 38.41 change: +1.16

Stop Loss: 36.55
Target(s): 30.50
Current Option Gain/Loss: Unopened
Time Frame: exit prior to earnings on Feb. 13th
New Positions: see below

Comments:
01/22/13: The stock market is in a bullish mood. There has been no follow through on CLF's recent weakness. Instead the stock was actually showing relative strength today. The larger trend is still bearish for this stock.

Our trade to buy puts on CLF has not been opened yet. I am removing CLF as an active candidate.

Trade did not open.

01/22/13 removed from the newsletter.

chart:

Entry on January -- at $---.--
Average Daily Volume = 7.7 million
Listed on January 15, 2012


Green Mtn Coffee Roasters - GMCR - close: 41.13 change: +0.53

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

Comments:
01/22/13: GMCR is another bearish candidate that just isn't working for us. The plan was to buy puts at $38.45 but GMCR is trying to work its way higher instead. Aggressive traders could use a breakout past $42.00 as a new short-term, bullish entry point.

Our bearish trade has not opened. I am removing GMCR as a candidate.

Trade did not open.

01/22/13 removed from the newsletter

chart:

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