Editor's Note:

Warning! Tomorrow could be challenging. Apple Inc. (AAPL) is only one stock but it is a very high-profile stock. Investors were not happy with the company's earnings report tonight and shares are down about minus -$50 in afterhours right now. That will definitely weigh on investor sentiment. Now add to this AAPL disaster that the Russell 2000 index is stalling at resistance near the 900 level and the S&P 500 index is just five points away from likely resistance at the 1500 mark, and we have plenty of excuses for traders to decide to do some profit taking.

If that wasn't enough we are seeing leadership in this market narrow significantly. The S&P 500, NASDAQ, and Dow Industrials have all posted gains today but fewer and fewer stocks are participating in the rally.

You will notice that I am suggesting an early exit for several stocks tonight!


Current Portfolio:


CALL Play Updates

Anheuser-Busch InBev - BUD - close: 90.12 change: -0.72

Stop Loss: 87.45
Target(s): 99.00
Current Option Gain/Loss: -13.1%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
01/23/13: BUD did not participate in the market's rally today. Shares spent the day hovering near $90.00. Readers may want to raise their stop loss. I'd look for a move past $90.50 before launching new positions.

- 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: 65.75 change: -0.32

Stop Loss: 63.75
Target(s): 69.25
Current Option Gain/Loss: -2.3%
Time Frame: 2 to 3 weeks
New Positions: see below

Comments:
01/23/13: I am worried about CHRW. The transportation sector has been very strong and yet CHRW, while it is trending higher, is not keeping up.

I am suggesting we exit this trade immediately at the open tomorrow.

- Suggested Positions -

Long Feb $65 call (CHRW1316B65) entry $2.10

01/23/13 prepare to exit positions at the open tomorrow,
CHRW is not keeping pace with its peers in the transports.

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


Concur Technologies - CNQR - close: 70.98 change: -0.16

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:
01/23/13: CNQR's rally has stalled and considering where the major indices are at (the S&P 500 and Russell 200 are at resistance) we want to exit early.

I am suggesting we abandon ship and close positions at the open tomorrow.

- Suggested Positions -

Long Feb $70 call (CNQR1316B70) entry $3.30

01/23/13 prepare to exit at the open tomorrow
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: 92.77 change: +0.11

Stop Loss: 89.25
Target(s): 99.00
Current Option Gain/Loss: +48.9%
Time Frame: Exit prior to the Feb. 13th earnings report
New Positions: see below

Comments:
01/23/13: Traders bought the dip in DE this morning and shares ticked to another new relative high by the closing bell. I am concerned that if the market corrects lower tomorrow we could see DE retest $90.00 level as new support.

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: 124.75 change: -1.75

Stop Loss: 123.40
Target(s): 134.00
Current Option Gain/Loss: - 51.0%
Time Frame: Exit prior to the Feb. 13th earnings report
New Positions: see below

Comments:
01/23/13: EOG has been struggling the last couple of days at keeping its upward momentum alive. The stock has been consolidating below resistance near $126.00 for the majority of January. We wanted to buy calls on a breakout. Unfortunately there has been no follow through higher.

I am suggesting we exit immediately at the open tomorrow. EOG is worth keeping on your radar screen should it bounce off support near $120 or breakout past $127 down the road.

- Suggested Positions -

Long Feb $130 call (EOG1316B130) entry $2.45

01/23/13 prepare to exit positions at the open tomorrow

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


Gilead Sciences - GILD - close: 76.84 change: -1.07

Stop Loss: 76.45
Target(s): 84.50
Current Option Gain/Loss: -51.6%
Time Frame: EXIT on Friday Jan. 25th at the close
New Positions: see below

Comments:
01/23/13: Our new play on GILD is not working very well. We were triggered on the spike higher yesterday morning but there has been no follow through. Today the stock displayed relative weakness with a -1.3% decline. GILD almost hit our stop loss at $76.45. I suspect that odds are good we will see GILD get stopped out tomorrow.

- Suggested Positions -

Long Feb $80 call (GILD1316b80) entry $1.51

01/23/13 GILD not working, do not be surprised to get stopped tomorrow
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: 60.41 change: -0.22

Stop Loss: 58.85
Target(s): 64.50
Current Option Gain/Loss: - 9.3%
Time Frame: exit prior to earnings on Feb. 7th
New Positions: see below

Comments:
01/23/13: HOT still looks like it's coiling for a bullish breakout from its current sideways consolidation. Readers may want to wait for a rally past $61.00 before initiating new positions.

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: 50.84 change: +0.15

Stop Loss: 48.25
Target(s): 54.00
Current Option Gain/Loss: -11.4%
Time Frame: Exit prior to earnings on Feb. 1st!
New Positions: Yes, see below

Comments:
01/23/13: IR is still inching higher. The stock is hovering just under new short-term resistance at $51.00.

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: 89.00 change: -0.21

Stop Loss: 85.90
Target(s): 94.50
Current Option Gain/Loss: + 7.3%
Time Frame: 6 to 9 weeks
New Positions: see below

Comments:
01/23/13: Yesterday I expressed my concerns with our IWM trade and how the Russell 2000 index might see a correction once it tags potential resistance at the 900 mark (90 for the IWM). My concerns have risen and I am suggesting we exit early at the open tomorrow.

NOTE: I would keep an eye on the IWM as a bounce off the $85.00 level might be a new entry point to consider calls.

- Suggested Positions -

Long Mar $90 call (IWM1316c90) entry $1.36

01/23/13 prepare to exit at the open tomorrow

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


Mohawk Industries - MHK - close: 98.83 change: +1.68

Stop Loss: 94.90
Target(s): 99.00
Current Option Gain/Loss: +33.3%
Time Frame: Exit prior to earnings on Feb. 21st
New Positions: see below

Comments:
01/23/13: MHK continues to show relative strength with a +1.7% gain today. The stock came very close to hitting our exit target. The intraday high was $98.85 and our target is $99.00. Readers will want to seriously consider just taking profits now anyway.

Please note our new stop loss at $94.90.

- Suggested Positions - *Small Positions*

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

01/23/13 new stop loss @ 94.90, readers may want to just take profits now!
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: 107.31 change: -1.73

Stop Loss: 103.75
Target(s): 114.00
Current Option Gain/Loss: -17.3%
Time Frame: Exit prior to earnings on Feb. 7th!
New Positions: see below

Comments:
01/23/13: After big gains yesterday NBL gave a good chunk of it back today with a -1.5% decline. There "should" be short-term support at its 10-dma. Odds are good if the market sees any serious decline we'll see NBL testing $105, 104 or lower.

- 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: 54.76 change: +0.06

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:
01/23/13: OPEN didn't make any progress today. Shares hovered near round-number resistance at the $55.00 level. I am concerned that if the market corrects tomorrow, more specifically if the NASDAQ corrects tomorrow, we could see OPEN dip back toward the $52 area. I am not suggesting new positions.

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: 164.81 change: +1.11

Stop Loss: 159.65
Target(s): 169.00
Current Option Gain/Loss: + 9.6%
Time Frame: Exit prior to earnings on Jan. 31st!
New Positions: see below

Comments:
01/23/13: SHW is back to slowly drifting higher. Shares outperformed the major indices with a +0.6% gain. 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: 31.19 change: +0.07

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:
01/23/13: There was a little bit of volatility in the U.S. dollar this morning but by the closing bell the dollar barely moved for the day. Meanwhile silver and the SLV extended their gains to seven days in a row. I would not be surprised to see profit taking in the SLV if the market declines. Look for support near $30.00.

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


SPX Corp. - SPW - close: 72.51 change: -0.17

Stop Loss: 69.75
Target(s): 79.00
Current Option Gain/Loss: -15.3%
Time Frame: Exit prior to earnings on Feb. 14th
New Positions: see below

Comments:
01/23/13: It looks like the rally in SPW paused today. The stock hovered sideways in a narrow range. Our trade opened this morning with SPW's opening dip to $72.42. Readers may want to wait on new plays. We might see a better entry point on a dip near $70.50-70.00 soon if the market's major indices pullback tomorrow.

- Suggested Positions -

Long Feb $75 call (SPW1316B75) entry $1.30

Entry on January 23 at $72.42
Average Daily Volume = 832 thousand
Listed on January 22, 2012


Wynn Resorts Ltd. - WYNN - close: 123.13 change: -1.19

Stop Loss: 121.90
Target(s): 129.75
Current Option Gain/Loss: -57.1%
Time Frame: Exit prior to earnings (likely late Jan or early Feb)
New Positions: see below

Comments:
01/23/13: The plan was to buy WYNN on a breakout higher. Shares did tag new relative highs for us but there has been no follow through. Odds are really good we will see WYNN retest support near $120 soon.

I am suggesting we cut our losses now and exit immediately at the open tomorrow.

- Suggested Positions -

Long Feb $125 call (WYNN1316B125) entry $3.45

01/23/13 prepare to exit positions at the open tomorrow
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

Lululemon Athletica - LULU - close: 66.21 change: +0.08

Stop Loss: 66.65
Target(s): 60.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Comments:
01/23/13: LULU gapped down at the open but managed to recover. Shares seem to be clinging to its 300-dma, at least for now. I am expecting shares to break down below support near $65.00 soon.

I am suggesting we buy puts when LULU hits $64.75. If triggered our target is $60.50. More aggressive traders could aim lower.

Earlier Comments:
The most recent data listed short interest at 20% of the 101 million-share float. Because of the high short interest readers may want to keep their position size small.
FYI: The Point & Figure chart for LULU is bearish with a $56 target.

Trigger @ 64.75

- Suggested Positions -

buy the Feb $65 PUT (LULU1316n65)

Entry on January -- at $---.--
Average Daily Volume = 3.1 million
Listed on January 22, 2012