Editor's Note:

The bull market in stocks rested on Monday. Many stocks and indices are looking short-term overbought. Some are starting to lose momentum.

Our SLV trade was stopped out.


Current Portfolio:


CALL Play Updates

Anheuser-Busch InBev - BUD - close: 91.81 change: +0.10

Stop Loss: 88.45
Target(s): 99.00
Current Option Gain/Loss: +21.3%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
01/28/13: BUD popped higher this morning but gains faded throughout the day. If the market does see a pullback look for BUD to find support near $90.00.

- Suggested Positions -

Long MAR $90 call (BUD1316c90) entry $3.05

01/25/13 new stop loss @ 88.45

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


Catamaran Corp. - CTRX - close: 52.13 change: -1.10

Stop Loss: 50.90
Target(s): 58.50
Current Option Gain/Loss: -58.3%
Time Frame: exit PRIOR to earnings in late February
New Positions: see below

Comments:
01/28/13: CTRX underperformed on Monday with a -2.0% decline. I didn't see any company-specific news to account for the relative weakness. More conservative traders might want to inch up their stop loss. I am not suggesting new positions at this time.

- Suggested Positions -

Long Feb $55 call (CTRX1316B55) entry $0.60

Entry on January 25 at $53.25
Average Daily Volume = 1.3 million
Listed on January 24, 2012


Deere & Co - DE - close: 93.99 change: +0.52

Stop Loss: 89.25
Target(s): 99.00
Current Option Gain/Loss: +89.3%
Time Frame: Exit prior to the Feb. 13th earnings report
New Positions: see below

Comments:
01/28/13: DE continues to march higher and added +0.5% on Monday. Readers might want to go ahead and take profits now. I am concerned that the market's major indices are slowing down and DE is looking short-term overbought and due for a dip.

Please note that I am adjusting our exit target down to $94.75. More aggressive traders can aim higher.

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

01/28/13 adjust exit target down to $94.75
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


Starwood Hotels - HOT - close: 62.02 change: +1.13

Stop Loss: 59.75
Target(s): 64.50
Current Option Gain/Loss: +51.9%
Time Frame: exit prior to earnings on Feb. 7th
New Positions: see below

Comments:
01/28/13: HOT finally broke out past resistance near the $61.00 level. Shares were upgraded this morning and that produced the pop higher at the open. HOT closed with a +1.8% gain and a new 52-week high. I am raising our stop loss to $59.75. Keep in mind our plan to exit prior to earnings on Feb. 7th.

- Suggested Positions -

Long Feb $60 call (HOT1316B60) entry $1.81

01/28/13 new stop loss @ 59.75

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


Ingersoll-Rand - IR - close: 51.15 change: -0.32

Stop Loss: 49.75
Target(s): 54.00
Current Option Gain/Loss: + 2.8%
Time Frame: Exit prior to earnings on Feb. 1st!
New Positions: see below

Comments:
01/28/13: The early morning pop in IR failed and shares closed with a -0.6% decline. If the market sees a pullback we can look for IR to retest the $50.00 level as potential support.

I'm not suggesting new positions. We only have a few days left. The plan is to exit prior to earnings on Feb. 1st.

- Suggested Positions -

Long Feb $50 call (IR1316B50) entry $1.75

01/26/13 new stop loss @ 49.75
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: 107.56 change: -0.74

Stop Loss: 104.65
Target(s): 114.00
Current Option Gain/Loss: -21.7%
Time Frame: Exit prior to earnings on Feb. 7th!
New Positions: see below

Comments:
01/28/13: NBL is still churning sideways in the $107-109 range. Traders did buy the dip near its simple 10-dma again this morning. I am not suggesting new positions at this time.

- Suggested Positions -

Long Feb $110 call (NBL1316B110) entry $1.15

01/26/13 new stop loss @ 104.65
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: 53.75 change: -0.25

Stop Loss: 51.85
Target(s): 58.00
Current Option Gain/Loss: - 3.5%
Time Frame: Exit prior to earnings on Feb. 7th!
New Positions: see below

Comments:
01/28/13: If we're lucky the little pullback in shares of OPEN is over. Traders bought the dip twice near $53.25 midday and the stock rebounded to a +1.1% gain. I am raising our stop loss to $51.85.

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

01/28/13 new stop loss @ 51.85
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: 164.09 change: -1.42

Stop Loss: 161.75
Target(s): 169.00
Current Option Gain/Loss: + 0.0%
Time Frame: Exit prior to earnings on Jan. 31st!
New Positions: see below

Comments:
01/28/13: SHW dipped toward short-term support near its 10-dma on some profit taking. We only have a couple of days left. Readers may just want to go ahead and exit early now to avoid or minimize any loss.

SHW is scheduled to report earnings on January 31st. If SHW does not hit our exit target at $169.00 then we will plan on closing positions on January 30th at the closing bell. Please note our new stop loss at $161.75.

Earlier Comments:
We keep our position size small to limit our risk.

- Suggested Positions - *Small Positions*

Long Feb $165 call (SHW1316B165) entry $3.10

01/26/13 new stop loss @ 161.75
Prepare to exit on Jan. 30th at the closing bell if SHW does not hit our target by then.
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


SodaStream Intl. Ltd. - SODA - close: 50.96 change: -2.27

Stop Loss: 49.45
Target(s): 58.50
Current Option Gain/Loss: -24.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
01/28/13: Uh-oh! I couldn't find any news to explain the relative weakness in SODA today. The stock gave back -4.2%. Furthermore today's pullback has created a bearish engulfing candlestick reversal pattern. There is still a chance that SODA will find support at the $50.00 mark, which is now bolstered by its rising 10-dma. More conservative traders may want to adjust their stop loss so it's a little bit closer to the $50 level. We are leaving our stop at $49.45 tonight.

- Suggested Positions -

Long Feb $52.50 call (SODA1316b52.5) entry $1.85

01/28/13 caution: SODA produced a bearish reversal candlestick pattern
01/26/13 new stop loss @ 49.45

Entry on January 25 at $52.15
Average Daily Volume = 1.2 million
Listed on January 24, 2012


SPX Corp. - SPW - close: 74.50 change: +0.71

Stop Loss: 71.40
Target(s): 79.00
Current Option Gain/Loss: +34.6%
Time Frame: Exit prior to earnings on Feb. 14th
New Positions: see below

Comments:
01/28/13: SPW continues to march higher, extending its gains to six out of the last seven trading days. Traders should be aware that the $75.00 level might be round-number resistance. Do not be surprised to see a pullback on the initial test of this level. I am raising our stop loss to $71.40. I am not suggesting new positions at this time.

- Suggested Positions -

Long Feb $75 call (SPW1316B75) entry $1.30

01/28/13 new stop loss @ 71.40

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


Whole Foods Market - WFM - close: 96.33 change: +0.68

Stop Loss: 91.40
Target(s): 99.50
Current Option Gain/Loss: +68.4%
Time Frame: Exit PRIOR to earnings on Feb. 13th
New Positions: see below

Comments:
01/28/13: WFM displayed some relative strength today with a +0.7% gain. The stock is now up several days in a row and arguably short-term overbought and due for a pullback.

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


Cimarex Energy Co. - XEC - close: 64.01 change: +0.01

Stop Loss: 61.90
Target(s): 69.50
Current Option Gain/Loss: Unopened
Time Frame: Exit PRIOR to earnings on Feb. 19th
New Positions: Yes, see below

Comments:
01/28/13: XEC closed virtually unchanged on the session. We are waiting on a bullish breakout higher. There is no change from my prior comments.

Earlier Comments:
I am suggesting a trigger to buy March calls at $64.55. More conservative traders may want to wait for a rally past $65.00 instead. If triggered our target is $69.50. However, we will plan to exit prior to the Feb. 19th earnings report.

Trigger @ 64.55

- Suggested Positions -

buy the Mar $65 call (XEC1316c65)

Entry on January -- at $---.--
Average Daily Volume = 708 thousand
Listed on January 26, 2012


PUT Play Updates

Monster Beverage Corp. - MNST - close: 47.45 change: +0.74

Stop Loss: 50.15
Target(s): 41.00
Current Option Gain/Loss: -12.0%
Time Frame: Exit PRIOR to the late February earnings report
New Positions: see below

Comments:
01/28/13: MNST managed a bounce on Monday with a +1.5% gain. I would still consider new positions now. Nimble traders could look for a failed rally near the descending 10-dma as an alternative entry point.

Earlier Comments:
Please note that MNST has been a very volatile stock in the past. This should be considered an aggressive, higher-risk trade.

- Suggested Positions - *Small Positions*

Long Mar $45 PUT (MNST1316o45) entry $2.90

Entry on January 28 at $46.91
Average Daily Volume = 2.0 million
Listed on January 26, 2012



CLOSED BULLISH PLAYS

iShares Silver ETF - SLV - close: 29.85 change: -0.36

Stop Loss: 29.85
Target(s): 33.50
Current Option Gain/Loss: - 6.3%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
01/28/13: The profit taking in the SLV continued on Monday. Shares of this ETF hit our new stop loss at $29.85.

- Suggested Positions -

March $30 call (SLV1316c30) entry $0.95 exit $0.89 (-6.3%)

01/28/13 stopped out
01/26/13 new stop loss @ 29.85
01/22/13 new stop loss @ 28.49

chart:

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