Editor's Note:

Shares of Herbalife Ltd. (HLF) hit our bearish target this morning.

Most of the market was correcting lower today. I am suggesting we exit our MNST trade at the open tomorrow morning.


Current Portfolio:


CALL Play Updates

Check Point Software Tech. - CHKP - close: 50.23 change: -0.75

Stop Loss: 48.25
Target(s): 54.50
Current Option Gain/Loss: -15.7%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
02/04/13: The stock market's pullback on Monday weighed on CHKP with a -1.4% decline. I cautioned readers to expect a dip back toward $50.00, which should be new support. Readers can use this dip or a bounce from the $50.00 mark as a new bullish entry point.

*Small Positions* - Suggested Positions -

Long Mar $50 call (CHKP1316c50) entry $1.90

Entry on February 01 at $50.25
Average Daily Volume = 2.7 million
Listed on January 31, 2012


The Cooper Companies - COO - close: 100.65 change: -1.54

Stop Loss: 99.90
Target(s): 107.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Comments:
02/04/13: COO also retreated lower with a -1.5% decline. Yet traders bought the dip intraday near round-number support near $100. Nimble traders could use this midday bounce as a new entry point. I am suggesting we stick to the plan and wait for a new relative high.

The highs last week were near $102.50. I am suggesting a trigger to open new bullish positions at $102.60. If triggered our target is $107.50. Please note that we do want to keep our position size small because the option spreads are a little bit wide. FYI: The Point & Figure chart for COO is bullish with a $125 target.

Trigger @ 102.60 *Small Positions*

- Suggested Positions -

buy the Mar $105 call (COO1316c105)

Entry on February -- at $---.--
Average Daily Volume = 303 thousand
Listed on February 02, 2012


Starwood Hotels - HOT - close: 60.82 change: -1.05

Stop Loss: 59.75
Target(s): 64.50
Current Option Gain/Loss: - 2.7%
Time Frame: exit prior to earnings on Feb. 7th
New Positions: see below

Comments:
02/04/13: Hmm... the $61.00 level should have been short-term support. HOT broke down below this level with a -1.69% decline today. The next level of support should be $60.00. Unfortunately, we only have two days left. Readers may want to just abandon ship right now. We only have two days left. HOT is scheduled to report earnings on Feb. 7th and we do not want to hold over the announcement. I am not suggesting new positions.

- 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


Noble Energy - NBL - close: 108.77 change: -0.42

Stop Loss: 106.95
Target(s): 114.00
Current Option Gain/Loss: + 0.0%
Time Frame: Exit prior to earnings on Feb. 7th!
New Positions: see below

Comments:
02/04/13: Profit taking in NBL was pretty mild today. Traders did buy the dip this morning near $107.75. Readers may want to exit early now. We only have two days left. NBL is scheduled to report earnings on Feb. 7th and we do not want to hold over the announcement. I am not suggesting new positions.

- 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


Rock-Tenn Company - RKT - close: 79.93 change: -0.71

Stop Loss: 79.45
Target(s): 84.85
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
02/04/13: RKT spiked lower this morning but bounced to spend the rest of the session hovering near the $80.00 mark. I don't see any changes from my weekend comments.

I am suggesting a trigger to buy calls at $81.05. If triggered our target is $84.85. More aggressive traders could aim higher. FYI: The Point & Figure chart for RKT is bullish with a long-term $117 target.

Trigger @ 81.05

- Suggested Positions -

buy the Mar $80 call (RKT1316c80)

Entry on February -- at $---.--
Average Daily Volume = 743 thousand
Listed on February 02, 2012


Starbucks Corp. - SBUX - close: 56.09 change: -0.77

Stop Loss: 54.75
Target(s): 59.85
Current Option Gain/Loss: - 17.5%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
02/04/13: Today's pullback in shares of SBUX erased Friday's bounce. I would not be surprised to see SBUX dip into the $55.50-55.00 zone, especially tomorrow. SBUX has a quarterly cash dividend of 21 cents payable on Feb. 22nd. The stock will begin trading ex-dividend on the morning of Feb. 5th. Don't be surprised to see shares gap down about 20 cents on the 5th.

Our target is $59.85. More aggressive traders could aim for the all-time highs in the $62 area set last year. FYI: The Point & Figure chart for SBUX is bullish with a long-term $67 target.

- Suggested Positions -

Long Mar $55 call (SBUX1316c55) entry $2.51

Entry on February 01 at $56.57
Average Daily Volume = 6.8 million
Listed on January 30, 2012


Shire Plc - SHPG - close: 101.40 change: -0.23

Stop Loss: 99.75
Target(s): 104.90
Current Option Gain/Loss: - 0.0%
Time Frame: Exit prior to earnings on Feb. 14th
New Positions: see below

Comments:
02/04/13: SHPG tagged a new relative high intraday. Yet the rally struggled with the $102.00 level as short-term resistance. Readers may want to wait for a dip or a bounce from the $101.00-100.00 zone as our next entry point.

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. FYI: The Point & Figure chart for SHPG is bullish with a long-term $137 target.

- Suggested Positions -

Long Feb $105 call (SHPG1316b105) entry $0.95*

*02/01/13 entry point on the option is an estimate. there was not a lot of volume during today's session.

Entry on February 01 at $101.15
Average Daily Volume = 323 thousand
Listed on January 29, 2012


SPX Corp. - SPW - close: 74.61 change: -0.40

Stop Loss: 73.75
Target(s): 78.00
Current Option Gain/Loss: +26.9%
Time Frame: Exit prior to earnings on Feb. 14th
New Positions: see below

Comments:
02/04/13: SPW also erased Friday's gains with today's pullback. I am cautious on this trade. SPW looks poised to test and possibly breakdown below the $74.00 level soon. Our stop loss is at $73.75. I am not suggesting new positions at this time.

- 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: 94.28 change: -1.94

Stop Loss: 93.75
Target(s): 99.50
Current Option Gain/Loss: +18.9%
Time Frame: Exit PRIOR to earnings on Feb. 13th
New Positions: see below

Comments:
02/04/13: Ouch! WFM underperformed the market with a -2.0% decline. I couldn't find any specific news to account for today's relative weakness. The stock is nearing what should be short-term support at $94.00. Yet more conservative traders will want to seriously consider an early exit now before this trade turns negative.

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


PUT Play Updates

Monster Beverage Corp. - MNST - close: 47.60 change: -0.05

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:
02/04/13: The stock market produced a widespread decline today and yet shares of MNST barely moved at all. I am suggesting we exit early and close positions at the opening bell tomorrow morning.

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

02/04/13 prepare to exit at the open tomorrow morning

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



CLOSED BEARISH PLAYS

Herbalife Ltd. - HLF - close: 35.54 change: +0.47

Stop Loss: 40.55
Target(s): 31.00
Current Option Gain/Loss: +179.1%
Time Frame: Exit prior to earnings on Feb. 19th
New Positions: see below

Comments:
02/04/13: Target achieved.

HLF posted a gain for the session but that doesn't tell the whole story. Before the opening bell the New York Post released a story that said HLF was under investigation by the Federal Trade Commission (FTC). This news sparked the gap down in the stock price. HLF opened lower at $31.59 and dipped to $30.84 intraday. HLF management defended themselves claiming they were unaware of any investigation by the FTC or any other regulators and demanded a correction by the New York Post. This helped fuel a bounce back into positive territory.

Fortunately for us our exit target was hit at $31.00 this morning.

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 exit $6.70 (+179.1%)

02/04/13 target hit at $31.00

chart:

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