Editor's Note:

Shares of Allergan Inc. (AGN) hit our bullish exit target today.

We also saw CBI and HP hit our entry triggers.


Current Portfolio:


CALL Play Updates

Advance Auto Parts - AAP - close: 108.40 change: -0.87

Stop Loss: 107.95
Target(s): 117.50
Current Option Gain/Loss: Unopened
Time Frame: exit PRIOR to January option expiration
New Positions: Yes, see below

Comments:
12/19/13: There was no follow through on yesterday's intraday bounce in AAP. The stock's recent performance is starting to concern me. Shares look poised to breakdown below their 10-dma. Currently we are still on the sidelines.

Earlier Comments:
We are suggesting a trigger to buy calls at $110.65. If triggered our short-term target is $117.50. Longer-term traders may want to aim higher since the Point & Figure chart for AAP is bullish with a $140 target.

Trigger @ 110.65

- Suggested Positions -

buy the Jan $110 call (AAP1418a110)

Entry on December -- at $---.--
Average Daily Volume = 923 thousand
Listed on December 14, 2013


Aon Plc. - AON - close: 83.09 change: -0.84

Stop Loss: 81.30
Target(s): 84.85
Current Option Gain/Loss: +29.4%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
12/19/13: AON saw some volatility today. The stock shot lower this morning but traders bought the dip near $82.00. AON pared a good portion of its losses with a bounce. More conservative traders may want to raise their stop again.

- Suggested Positions -

Long 2014 Jan $82.50 call (AON1418a82.5) entry $1.70

12/18/13 new stop loss @ 81.30, adjust exit target to $84.85
12/17/13 new stop loss @ 80.90
12/07/13 new stop loss @ 80.75
11/23/13 new stop loss @ 79.85
11/18/13 new stop loss @ 79.45
11/13/13 new stop loss @ 78.75

Entry on November 08 at $80.50
Average Daily Volume = 2.3 million
Listed on November 06, 2013


Chicago Bridge & Iron - CBI - close: 80.98 change: +0.85

Stop Loss: 77.70
Target(s): 89.50
Current Option Gain/Loss: + 3.2%
Time Frame: Exit PRIOR to CBI's earnings report in February
New Positions: see below

Comments:
12/19/13: The rally continues for CBI with a bullish breakout past resistance at $80.00. Shares hit our suggested entry point at $80.35.

Earlier Comments:
Our target is $89.50. We want to exit prior to CBI's earnings report in February. FYI: The point & figure chart is on the verge of a new triple-top breakout buy signal.

- Suggested Positions -

Long April $85 call (CBI1419D85) entry $3.10

Entry on December 19 at $80.35
Average Daily Volume = 1.5 million
Listed on December 18, 2013


3D Systems - DDD - close: 83.19 change: +1.20

Stop Loss: 78.90
Target(s): 89.00
Current Option Gain/Loss: + 7.3%
Time Frame: exit PRIOR to January option expiration
New Positions: see below

Comments:
12/19/13: DDD displayed relative strength with a +1.4% gain and a bullish breakout over resistance near $82.00. Traders may want to start raising their stop loss.

Keep in mind that DDD shares can be volatile. I am suggesting we keep our position size small to limit our risk.

*small positions* - Suggested Positions -

Long Jan $85 call (DDD1418a85) entry $3.54

Entry on December 17 at $82.05
Average Daily Volume = 5.7 million
Listed on December 14, 2013


Helmerich & Payne - HP - close: 81.67 change: +0.15

Stop Loss: 79.40
Target(s): 87.00
Current Option Gain/Loss: - 8.3%
Time Frame: exit PRIOR to January option expiration
New Positions: see below

Comments:
12/19/13: Traders bought the morning dip in HP and shares rallied back to a new closing high. Shares hit our suggested entry point at $81.75 today. I would still consider new positions here at current levels.

Our short-term target is $87.00 but we will plan to exit prior to January option expiration.

- Suggested Positions -

Long Jan $82.50 call (HP1418a82.5) entry $1.80

Entry on December 19 at $81.75
Average Daily Volume = 1.0 million
Listed on December 18, 2013


Illumina Inc. - ILMN - close: 103.51 change: -1.11

Stop Loss: 99.45
Target(s): 109.00
Current Option Gain/Loss: - 2.9%
Time Frame: Exit PRIOR to 2014 January option expiration
New Positions: see below

Comments:
12/19/13: ILMN spiked to a new high this morning but gains faded. Shares settled with a -1.0% pullback by the close. I am not suggesting new positions at this time.

Earlier Comments:
Further gains could spark some short covering since the most recent data listed short interest at 26% of the 125 million-share float.

Our target is $109.00. More aggressive traders may want to aim higher since the point & figure chart is bullish with a $146 target. P&F chart readers will also notice that ILMN is about to produce a new triple-top breakout buy signal.

NOTE: Biotech stocks can be volatile and the wrong headline could send shares gapping lower. Investors may want to limit their position size.

- Suggested Positions -

Long 2014 Jan $105 call (ILMN1418a105) entry $3.40

12/16/13 new stop loss @ 99.45

Entry on December 11 at $102.00
Average Daily Volume = 931 thousand
Listed on December 09, 2013


Russell 2000 ETF - IWM - close: 112.04 change: -0.84

Stop Loss: 109.25
Target(s): TBD
Current Option Gain/Loss: - 4.4%
Time Frame: exit PRIOR to January option expiration
New Positions: see below

Comments:
12/19/13: Hmm... the small cap index underperformed the large caps today. The IWM gave up -0.74% versus a -0.5% dip in the S&P 500. That is a little bit troubling but we remain bullish.

Earlier Comments:
We're not setting a target price yet. It will probably be in the $115-120 zone.

- Suggested Positions -

Long 2014 Jan $112 call (IWM1418a112) entry $1.78

Entry on December 18 at $111.65
Average Daily Volume = 35 million
Listed on December 17, 2013


Michael Kors - KORS - close: 83.92 change: -0.27

Stop Loss: 79.90
Target(s): 89.00
Current Option Gain/Loss: + 5.4%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
12/19/13: Thursday proved to be a quiet day for shares of KORS. The stock churned sideways near the $84 level all day long. More conservative investors may want to raise their stop loss.

- Suggested Positions -

Long 2014 Jan $85 call (KORS1418a85) entry $1.85

12/14/13 new stop loss @ 79.90
12/07/13 new stop loss @ 78.49, readers may want to consider an early exit right here
11/22/13 trigger hit at $81.05
11/21/13 adjust entry strategy. Instead of buying a dip at $76.50, move the entry trigger to $81.05. Adjust the stop loss to $77.75. Adjust the option strike to 2014 Jan. $85 call.

Entry on November 22 at $81.05
Average Daily Volume = 7.2 million
Listed on November 20, 2013



Lockheed Martin - LMT - close: 142.99 change: -0.74

Stop Loss: 137.75
Target(s): 149.00
Current Option Gain/Loss: +22.3%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
12/19/13: After big gains yesterday shares of LMT hit a little profit taking today. Investors may want to raise their stop loss closer to the $140 level.

Earlier Comments:
Our multi-week target is $149.00. Keep in mind that the $144-145 area is currently overhead resistance.

I'm listing the March calls. If you want to take a more short-term approach then the 2014 January calls are much cheaper.

- Suggested Positions -

Long Mar $145 call (LMT1422C145) entry $3.35

Entry on December 16 at $140.25
Average Daily Volume = 2.0 million
Listed on December 14, 2013


Tiffany & Co - TIF - close: 90.43 change: -1.04

Stop Loss: 88.45
Target(s): 98.50
Current Option Gain/Loss: -17.6%
Time Frame: exit PRIOR to February option expiration
New Positions: see below

Comments:
12/19/13: TIF also saw a small pullback today after yesterday's rally. Today's -1.1% decline is a bit of an underperformance versus the major indices. Nimble traders could look for a dip or a bounce near the $90.00 level as an alternative entry point to buy calls.

Earlier Comments:
The Point & Figure chart for TIF is bullish with a $102 target.

- Suggested Positions -

Long FEB $95 call (TIF1422b95) entry $2.15

Entry on December 18 at $91.25
Average Daily Volume = 1.25 million
Listed on December 16, 2013


United Parcel Service - UPS - close: 103.18 change: +0.20

Stop Loss: 100.45
Target(s): 108.00
Current Option Gain/Loss: -25.5%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
12/19/13: UPS gapped down at the open this morning but shares inched higher the rest of the session and closed at a new high.

A breakout past $103.00 could be used as an alternative entry point although you may want to buy April calls.

- Suggested Positions -

Long 2014 Jan $105 call (UPS1418a105) entry $0.98

12/12/13 new stop loss @ 100.45
11/23/13 new stop loss @ 99.75
11/20/13 new stop loss @ 98.95

Entry on November 14 at $101.25
Average Daily Volume = 3.8 million
Listed on November 13, 2013




PUT Play Updates

Sears Holdings - SHLD - close: 45.49 change: +1.54

Stop Loss: 48.60
Target(s): 40.15
Current Option Gain/Loss: -30.1%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
12/19/13: SHLD produced an oversold bounce today with the stock rising up to tag short-term technical resistance at its simple 10-dma before paring its gains. Today's outperformance (+3.5%) is surprising compared to a relatively quiet day for the market. More conservative traders may want to lower their stops. I am not suggesting new positions.

Earlier Comments:
Our short-term target is $40.15. Keep in mind that there are already a lot of bears in this stock. The most recent data listed short interest at 56% of the 50.7 million share float. That's plenty of fuel for a short squeeze if the stock can bounce. It's another reason to keep your position size small.

- Suggested Positions - *small positions*

Long 2014 Jan $39 PUT (SHLD1418m39) entry $1.66

12/16/13 new stop loss @ 48.60

Entry on December 12 at $46.18
Average Daily Volume = 1.5 million
Listed on December 11, 2013


CLOSED BULLISH PLAYS

Allergan, Inc. - AGN - close: 103.76 change: +2.63

Stop Loss: 97.75
Target(s): 104.00
Current Option Gain/Loss: +150.0%
Time Frame: Exit prior to January option expiration
New Positions: see below

Comments:
12/19/13: Target hit.

Late in the day, just before 3:00 p.m., shares of AGN shot higher with a surge to $106.56. Our exit target was hit at $104.00.

- Suggested Positions -

2014 Jan $100 call (AGN1418a100) entry $2.00 exit $5.00 (+150%)

12/19/13 target hit
12/18/13 new stop loss @ 97.75
12/16/13 adjust exit target to $104.00
12/06/13 triggered on gap higher at $98.02, suggested trigger was $97.00

chart:

Entry on December 06 at $98.02
Average Daily Volume = 1.9 million
Listed on December 05, 2013