Editor's Note:

Shares of Mohawk Industries (MHK) hit our bullish target today. Meanwhile we closed several trades at the open this morning. WFM hit our entry point.


Current Portfolio:


CALL Play Updates

Anheuser-Busch InBev - BUD - close: 90.26 change: +0.14

Stop Loss: 87.45
Target(s): 99.00
Current Option Gain/Loss: - 9.8%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
01/24/13: BUD eked out a gain today but the stock is still churning sideways. We may want to wait for a close above $90.50 before launching new bullish 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


Deere & Co - DE - close: 93.24 change: +0.47

Stop Loss: 89.25
Target(s): 99.00
Current Option Gain/Loss: +63.8%
Time Frame: Exit prior to the Feb. 13th earnings report
New Positions: see below

Comments:
01/24/13: DE is still showing relative strength and produced another day of new relative highs. I would not chase it at current levels. If you're looking for a new entry point, wait for a pullback.

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


Gilead Sciences - GILD - close: 78.40 change: +1.56

Stop Loss: 76.45
Target(s): 84.50
Current Option Gain/Loss: -19.8%
Time Frame: EXIT on Friday Jan. 25th at the close
New Positions: see below

Comments:
01/24/13: Good news! GILD reversed higher today and erased yesterday's losses. Unfortunately we are almost out of time. You are certainly free to hold on to positions but we are planning to exit tomorrow (Friday) at the closing bell to avoid holding over the stock split scheduled for Monday.

- Suggested Positions -

Long Feb $80 call (GILD1316b80) entry $1.51

01/24/13 prepare to exit at the close tomorrow, unless GILD hits our target
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: 59.98 change: -0.43

Stop Loss: 58.85
Target(s): 64.50
Current Option Gain/Loss: -23.7%
Time Frame: exit prior to earnings on Feb. 7th
New Positions: see below

Comments:
01/24/13: HOT is not inspiring any confidence here. The stock rallied this morning but reversed under the $61.00 level, which is shaping up to be new short-term resistance. I would wait for a breakout past $61.00 before launching 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: 51.09 change: +0.25

Stop Loss: 49.25
Target(s): 54.00
Current Option Gain/Loss: + 0.0%
Time Frame: Exit prior to earnings on Feb. 1st!
New Positions: see below

Comments:
01/24/13: IR managed to push its way past short-term resistance at $51.00. Today is a new 52-week high for the stock. I am raising our stop loss to $49.25.

Don't forget that we plan to exit prior to the earnings report on Feb. 1st.

- Suggested Positions -

Long Feb $50 call (IR1316B50) entry $1.75

01/24/13 new stop loss @ 49.25

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


Noble Energy - NBL - close: 107.31 change: -1.73

Stop Loss: 103.75
Target(s): 114.00
Current Option Gain/Loss: - 8.6%
Time Frame: Exit prior to earnings on Feb. 7th!
New Positions: see below

Comments:
01/24/13: NBL spiked at the open but gave back most of its intraday gains. Look for short-term support at its 10-dma.

- 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: 54.00 change: -0.76

Stop Loss: 51.40
Target(s): 58.00
Current Option Gain/Loss: - 1.5%
Time Frame: Exit prior to earnings on Feb. 7th!
New Positions: see below

Comments:
01/24/13: The early morning rally in OPEN reversed at the $56.00 level and shares fell back toward $54.00. As prior resistance the $54.00 level is now acting as short-term support. 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: 165.79 change: +0.98

Stop Loss: 159.65
Target(s): 169.00
Current Option Gain/Loss: +29.0%
Time Frame: Exit prior to earnings on Jan. 31st!
New Positions: see below

Comments:
01/24/13: SHW spiked to a new high this morning and spent the rest of the day fading lower. 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: 30.65 change: -0.54

Stop Loss: 28.49
Target(s): 33.50
Current Option Gain/Loss: +38.9%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
01/24/13: I cautioned traders yesterday to expect some profit taking in silver. The SLV gapped down and fell -1.7% by the closing bell. I'd still look for a dip closer to $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: 73.19 change: +0.68

Stop Loss: 69.75
Target(s): 79.00
Current Option Gain/Loss: - 3.8%
Time Frame: Exit prior to earnings on Feb. 14th
New Positions: see below

Comments:
01/24/13: SPW also shot higher at the open and posted a +0.9% gain by the closing bell. Readers may want to wait for a dip if you're looking for a new entry point.

- 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


Whole Foods Market - WFM - close: 93.55 change: +0.38

Stop Loss: 91.40
Target(s): 99.50
Current Option Gain/Loss: - 7.8%
Time Frame: Exit PRIOR to earnings on Feb. 13th
New Positions: see below

Comments:
01/24/13: WFM posted another gain but the action today was actually disappointing. The stock shot past resistance near $94.00 and its converging 150-dma and 100-dma but the rally didn't last. The intraday high was $94.88 and WFM fell back below what I see as resistance at $94.00. At this point I would either wait for a new bounce off the 200-dma near $92.00 or a new rally above $94.00 before launching new positions.

We do not want to hold over the Feb. 13th earnings report.
NOTE: because of a previous dividend the option strike for February is an odd one (95.50)

- Suggested Positions -

Long Feb $95.50 call (WFM1316B95.5) entry $1.90

Entry on January 24 at $94.25
Average Daily Volume = 1.5 million
Listed on January 23, 2012


PUT Play Updates

Lululemon Athletica - LULU - close: 67.60 change: +1.39

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:
01/24/13: LULU managed another bounce today. That is not too surprising with yesterday's dip near round-number support at $65.00. We are waiting on a bearish breakdown below this support.

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


CLOSED BULLISH PLAYS

CH Robinson Worldwide - CHRW - close: 67.21 change: +1.46

Stop Loss: 63.75
Target(s): 69.25
Current Option Gain/Loss: +23.8%
Time Frame: 2 to 3 weeks
New Positions: see below

Comments:
01/24/13: The Dow Jones Transportation Average had rallied toward what looked like potential resistance at 5800 yesterday. The upward momentum in CHRW had slowed as well. We decided last night to close positions early at the open this morning. To our surprise the transports, including CHRW, rallied higher. The gap open this morning in CHRW helped our exit price.

- Suggested Positions -

Feb $65 call (CHRW1316B65) entry $2.10 exit $2.60 (+23.8%)

01/24/13 scheduled exit at the open
01/23/13 prepare to exit positions at the open tomorrow,
CHRW is not keeping pace with its peers in the transports.

chart:

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


Concur Technologies - CNQR - close: 71.38 change: +0.40

Stop Loss: 69.40
Target(s): 74.85
Current Option Gain/Loss: -10.6%
Time Frame: exit prior to the Jan. 30th earnings report
New Positions: see below

Comments:
01/24/13: Our plan was to exit positions at the open this morning. CNQR opened at $70.57 before spiking higher midday.

- Suggested Positions -

Feb $70 call (CNQR1316B70) entry $3.30 exit $2.95 (-10.6%)

01/24/13 scheduled exit this morning
01/23/13 prepare to exit at the open tomorrow
01/11/13 new stop loss @ 69.40, adjust exit target to $74.85

chart:

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


EOG Resources - EOG - close: 124.99 change: +0.24

Stop Loss: 123.40
Target(s): 134.00
Current Option Gain/Loss: - 44.4%
Time Frame: Exit prior to the Feb. 13th earnings report
New Positions: see below

Comments:
01/24/13: After yesterday's underperformance, EOG reversed with a spike higher at the open. We had already decided to exit positions at the open this morning.

- Suggested Positions -

Feb $130 call (EOG1316B130) entry $2.45 exit $1.36 (-44.4%)

01/24/13 scheduled exit this morning
01/23/13 prepare to exit positions at the open tomorrow

chart:

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


iShares Russell 2000 (ETF) - IWM - close: 89.29 change: +0.29

Stop Loss: 85.90
Target(s): 94.50
Current Option Gain/Loss: + 5.8%
Time Frame: 6 to 9 weeks
New Positions: see below

Comments:
01/24/13: Believe it or not but the Russell 2000 index continues to inch higher and closed at 900.19. That's not high enough to declare a bullish breakout past the 900 level. The index could still see a pullback. Our plan was to exit our IWM trade at the open this morning. The ETF opened at $89.15.

- Suggested Positions -

Mar $90 call (IWM1316c90) entry $1.36 exit $1.44 (+5.8%)

01/24/13 scheduled close at the open
01/23/13 prepare to exit at the open tomorrow

chart:

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


Mohawk Industries - MHK - close: 100.70 change: +1.87

Stop Loss: 94.90
Target(s): 99.00
Current Option Gain/Loss: +46.9%
Time Frame: Exit prior to earnings on Feb. 21st
New Positions: see below

Comments:
01/24/13: Target achieved.

The MHK rally continues with shares outperforming the market again. The stock surged past the $100 level. Our exit target was hit at $99.00.

Our Feb. 95 call only traded five contracts today. It looks like that trade (@ $5.70) was around $100, which was a few minutes after shares hit our exit at $99.00. Our exit price is an estimate.

- Suggested Positions - *Small Positions*

Feb $95 call (MHK1316B95) entry $3.30 exit $4.85* (+46.9%)

01/24/13 target hit
*exit price is an estimate
01/23/13 new stop loss @ 94.90, readers may want to just take profits now!
01/17/13 new stop loss @ 92.45

chart:

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


Wynn Resorts Ltd. - WYNN - close: 122.68 change: -0.45

Stop Loss: 121.90
Target(s): 129.75
Current Option Gain/Loss: -41.1%
Time Frame: Exit prior to earnings (likely late Jan or early Feb)
New Positions: see below

Comments:
01/24/13: The rally in WYNN seems to have stalled so last night we decided to exit positions early at the open this morning.

NOTE: it looks like the gain/loss number yesterday was an error.

- Suggested Positions -

Long Feb $125 call (WYNN1316B125) entry $3.45 exit $2.03 (-41.1%)

01/24/13 scheduled close
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

chart:

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