Editor's Note:

The stock market's rally might be getting tired. We are adjusting some stop losses tonight in case the market does see a pullback.

We closed CTRX at the open. OPEN and SHW were stopped out.

Several stops have been adjusted tonight.


Current Portfolio:


CALL Play Updates

Anheuser-Busch InBev - BUD - close: 93.24 change: +1.43

Stop Loss: 91.75
Target(s): 94.85
Current Option Gain/Loss: +70.4%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
01/30/13: BUD continues to climb. The relative strength is encouraging but if the broader market starts to roll over BUD will likely follow suit. I am adjusting our exit target. We will lower the target down to $94.85. We will raise the stop loss to $91.75. More conservative traders may just want to exit now with a profit.

- Suggested Positions -

Long MAR $90 call (BUD1316c90) entry $3.05

01/30/13 new stop loss @ 91.75, adjust target to $94.85, readers may want to just exit early now with a profit
01/29/13 new stop loss @ 89.75
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


Starwood Hotels - HOT - close: 61.16 change: -0.92

Stop Loss: 59.75
Target(s): 64.50
Current Option Gain/Loss: +17.1%
Time Frame: exit prior to earnings on Feb. 7th
New Positions: see below

Comments:
01/30/13: HOT is seeing some profit taking and shares look like they are trying to fill the gap. The $61.00 level or the 10-dma should offer some short-term support. I am not suggesting new positions. 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: 51.62 change: +0.15

Stop Loss: 50.75
Target(s): 54.00
Current Option Gain/Loss: +20.0%
Time Frame: Exit prior to earnings on Feb. 1st!
New Positions: see below

Comments:
01/30/13: IR continues to inch higher. Don't forget that we plan on closing this trade tomorrow (Thursday, Jan. 31st) at the closing bell if IR doesn't hit our target at $54.00 first. Tonight we are raising the stop loss to $50.75.

- Suggested Positions -

Long Feb $50 call (IR1316B50) entry $1.75

01/30/13 new stop loss @ 50.75
01/29/13 prepare to exit on Jan. 31st at the close
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: 109.26 change: +1.70

Stop Loss: 106.95
Target(s): 114.00
Current Option Gain/Loss: - 4.3%
Time Frame: Exit prior to earnings on Feb. 7th!
New Positions: see below

Comments:
01/30/13: Hmm... I cautioned traders last night that the $110 level might be resistance for NBL. The stock spiked to this level this morning and then reversed. There should be short-term support at the 10-dma (near 107.65) but if the wider market declines we could see NBL break below its 10-dma. I am raising our stop loss to $106.95.

I am not suggesting new positions at this time.

- Suggested Positions -

Long Feb $110 call (NBL1316B110) entry $1.15

01/30/13 new stop loss @ 106.95
01/29/13 new stop loss @ 105.75
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


Shire Plc - SHPG - close: 100.11 change: -0.24

Stop Loss: 99.75
Target(s): 104.90
Current Option Gain/Loss: Unopened
Time Frame: Exit prior to earnings on Feb. 14th
New Positions: Yes, see below

Comments:
01/30/13: SHPG didn't see much movement either direction today. I don't see any changes from my prior comments.

Earlier Comments:
This is a short-term trade. We do not want to hold positions over the Feb. 14th earnings report. For that reason I am listing the February calls, which expire after the 15th. Otherwise I would probably choose the March calls. Looking at Februarys I would play either the Feb. $100s or the Feb $105s. The spread is wider on the $105s but your capital outlay is less.

I am suggesting a trigger to open bullish positions at $101.15. If triggered our target is $104.90. FYI: The Point & Figure chart for SHPG is bullish with a long-term $137 target.

Trigger @ 101.15

- Suggested Positions -

buy the Feb $105 call (SHPG1316b105)

Entry on January -- at $---.--
Average Daily Volume = 323 thousand
Listed on January 29, 2012


SPX Corp. - SPW - close: 75.00 change: -0.25

Stop Loss: 73.75
Target(s): 78.00
Current Option Gain/Loss: +46.1%
Time Frame: Exit prior to earnings on Feb. 14th
New Positions: see below

Comments:
01/30/13: I am reiterating my prior comments that traders may want to take profits right now. SPW tagged a new relative high this morning at $75.65 and then reversed. The decline today was pretty mild but if the wider market pulls back I do expect SPW to follow it lower.

We are raising our stop loss to $93.75.

- Suggested Positions -

Long Feb $75 call (SPW1316B75) entry $1.30

01/30/13 new stop loss @ 73.75
01/29/13 new stop loss @ 71.95, adjust exit to $78.00
readers may want to just take profits right now
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: 95.25 change: -0.37

Stop Loss: 93.75
Target(s): 99.50
Current Option Gain/Loss: +39.4%
Time Frame: Exit PRIOR to earnings on Feb. 13th
New Positions: see below

Comments:
01/30/13: WFM is seeing some profit taking. That's not surprising and I cautioned readers to expect a pullback. The $94.00 level should offer some short-term support. We are raising our stop loss up to $93.75.

Earlier Comments:
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

01/30/13 new stop loss @ 93.75
01/29/13 new stop loss @ 92.25, expect a pullback soon

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


Cimarex Energy Co. - XEC - close: 63.75 change: -0.31

Stop Loss: 62.90
Target(s): 69.50
Current Option Gain/Loss: - 18.0%
Time Frame: Exit PRIOR to earnings on Feb. 19th
New Positions: see below

Comments:
01/30/13: I am worried that yesterday's intraday rally (and pullback) is starting to look like a bull trap reversal pattern. XEC did find support near its rising 10-dma again today. Yet today's session also created a bearish engulfing candlestick reversal pattern. We can interpret this as a big flashing yellow caution sign.

I am not suggesting new positions at this time. We will raise our stop loss up to $62.90.

- Suggested Positions -

Long Mar $65 call (XEC1316c65) entry $2.50

01/30/13 new stop loss @ 62.90

Entry on January 29 at $64.55
Average Daily Volume = 708 thousand
Listed on January 26, 2012


PUT Play Updates

Herbalife Ltd. - HLF - close: 37.09 change: -1.58

Stop Loss: 40.55
Target(s): 31.00
Current Option Gain/Loss: +14.5%
Time Frame: Exit prior to earnings on Feb. 19th
New Positions: see below

Comments:
01/30/13: HLF continues to weaken. The stock dipped to $34.70 intraday but bounced back toward $37. Shares still posted a -4.0% loss.

Earlier Comments:
I want to warn you that HLF can be a volatile stock. We consider this an aggressive, higher-risk trade.

*Small Positions*- Suggested Positions -

Long Feb $37.50 PUT (HLF1316n37.5) entry $2.40

Entry on January 29 at $38.50
Average Daily Volume = 13.6 million
Listed on January 28, 2012


Monster Beverage Corp. - MNST - close: 48.18 change: +0.94

Stop Loss: 50.15
Target(s): 41.00
Current Option Gain/Loss: -22.4%
Time Frame: Exit PRIOR to the late February earnings report
New Positions: see below

Comments:
01/30/13: I could not find any news to explain the relative strength in MNST today. I have warned readers that MNST can be a volatile stock and that this is a higher-risk trade. We are keeping our stop loss at $50.15 for now. More conservative traders may want to tighten their stop instead. I am not suggesting new positions at this time.

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

Catamaran Corp. - CTRX - close: 52.71 change: +0.25

Stop Loss: 50.90
Target(s): 58.50
Current Option Gain/Loss: -50.0%
Time Frame: exit PRIOR to earnings in late February
New Positions: see below

Comments:
01/30/13: Last night we decided to close our CTRX trade early. The plan was to exit positions at the open this morning.

- Suggested Positions -

Feb $55 call (CTRX1316B55) entry $0.60 exit $0.30 (-50.0%)

01/30/13 planned exit at the open
01/29/13 prepare to exit early tomorrow at the open

chart:

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


OpenTable, Inc. - OPEN - close: 51.93 change: -2.94

Stop Loss: 51.85
Target(s): 58.00
Current Option Gain/Loss: -47.6%
Time Frame: Exit prior to earnings on Feb. 7th!
New Positions: see below

Comments:
01/30/13: Shares of OPEN were downgraded before the open this morning. This news sparked a sell-off and OPEN plunged to a -5.3% decline on the session. Shares hit our stop at $51.85 on further intraday weakness.

- Suggested Positions -

Feb $55 call (OPEN1316B55) entry $2.54 exit $1.33 (-47.6%)

01/30/13 stopped out
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

chart:

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


Sherwin-Williams Company - SHW - close: 162.31 change: -0.85

Stop Loss: 161.75
Target(s): 169.00
Current Option Gain/Loss: -30.6%
Time Frame: Exit prior to earnings on Jan. 31st!
New Positions: see below

Comments:
01/30/13: SHW hit new record highs just five days ago. Since then the stock has been down every day since. Investors must be nervous about holding over the company's earnings report, which comes out tomorrow. We were planning to exit today (Jan.30th) but SHW hit our stop loss at $161.75 first.

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

- Suggested Positions - *Small Positions*

Feb $165 call (SHW1316B165) entry $3.10 exit $2.15 (-30.6%)

01/30/13 stopped out
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

chart:

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