Editor's Note:

The market didn't see a lot of action on Monday. Stocks mainly just coasted sideways toward the end of 2013.

EGN hit our entry trigger. RGR and SHLD were both stopped out.


Current Portfolio:


CALL Play Updates

Advance Auto Parts - AAP - close: 109.63 change: -0.29

Stop Loss: 107.95
Target(s): 117.50
Current Option Gain/Loss: -23.0%
Time Frame: exit PRIOR to earnings in February
New Positions: see below

Comments:
12/30/13: AAP displayed some relative weakness this morning but shares pared their losses by the closing bell. The stock did breach its simple 10-dma. Upward momentum seems to be stalling and more conservative traders may want to exit early now. I am not suggesting new positions at this time.

Earlier Comments:
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.

- Suggested Positions -

Long Mar $115 call (AAP1422c110) entry $3.90*

12/24/13 triggered @ 110.65
*option entry price is an estimate since the option did not trade at the time our play was opened.
12/21/13 adjust the option strike from the January $110 to the March $115 call

Entry on December 24 at $110.65
Average Daily Volume = 923 thousand
Listed on December 14, 2013


Aon Plc. - AON - close: 83.25 change: -0.16

Stop Loss: 81.90
Target(s): 84.85
Current Option Gain/Loss: + 8.8%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
12/30/13: AON is little changed from Friday. Shares are still consolidating sideways inside the $83-84 zone. I am not suggesting new positions.

- Suggested Positions -

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

12/28/13 new stop loss @ 81.90
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: 81.80 change: -0.20

Stop Loss: 79.65
Target(s): 89.50
Current Option Gain/Loss: + 6.4%
Time Frame: Exit PRIOR to CBI's earnings report in February
New Positions: see below

Comments:
12/30/13: CBI delivered a quiet session with shares churning sideways below the $82.00 level. Momentum traders may want to wait for a breakout higher before initiating positions.

Earlier Comments:
Our target is $89.50. We want to exit prior to CBI's earnings report in February.

- Suggested Positions -

Long April $85 call (CBI1419D85) entry $3.10

12/28/13 new stop loss @ 79.65

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


Energen Corp. - EGN - close: 70.05 change: -0.69

Stop Loss: 67.95
Target(s): 75.75
Current Option Gain/Loss: -14.7%
Time Frame: exit PRIOR to earnings in late January
New Positions: see below

Comments:
12/30/13: Our new trade on EGN has been triggered. Shares shot higher this morning but the rally peaked at $71.44. Our trigger to launch positions was hit at $71.05. Unfortunately gains faded and shares reversed into a -0.97% decline, which underperformed the broader market indices. I would wait for a new rally above $71.00 before considering new bullish positions.

Earlier Comments:
Our plan was to keep our position size small to limit our risk. Our target is $75.75 since the $76.00-76.50 area looks like resistance.

*small positions* - Suggested Positions -

Long Feb $75 call (EGN1422B75) entry $2.17

12/30/13 triggered at $71.05

Entry on December 30 at $71.05
Average Daily Volume = 727 thousand
Listed on December 28, 2013


General Dynamics - GD - close: 95.10 change: +0.10

Stop Loss: 93.85
Target(s): 99.50
Current Option Gain/Loss: Unopened
Time Frame: exit PRIOR to earnings in late January
New Positions: Yes, see below

Comments:
12/30/13: GD spent most of the day drifting sideways near round-number resistance at the $95.00 level. The stock did close on its high for the day, which should be a bullish signal for tomorrow morning. I don't see any changes from last night's new play description.

I am suggesting small bullish positions if GD can trade at $95.25. If triggered our target is $99.50. More aggressive traders may want to aim higher since the Point & Figure chart for GD is bullish with a $105 target. I am suggesting small positions because GD is arguably overbought with an almost non-stop rally from its December lows near $89.

Trigger @ 95.25 *small positions*

- Suggested Positions -

Buy the Feb $95 call (GD1422B95) current ask $2.20

Entry on December -- at $---.--
Average Daily Volume = 1.1 million
Listed on December 28, 2013


Honeywell Intl. - HON - close: 91.00 change: -0.14

Stop Loss: 88.40
Target(s): 94.75
Current Option Gain/Loss: +17.1%
Time Frame: exit PRIOR to earnings in late January
New Positions: see below

Comments:
12/30/13: After a multi-day rally shares of HON finally saw a little profit taking. Traders may want to wait for a new dip near $90.00 if you're looking for a new entry point.

Earlier Comments:
Our short-term target is $94.75. More aggressive traders may want to aim for the $97-100 zone instead.

- Suggested Positions -

Long Mar $92.50 call (HON1422c92.5) entry $1.75*

12/28/13 new stop loss @ 88.40
12/24/13 triggered @ 90.30
*option entry price is an estimate since the option did not trade at the time our play was opened.

Entry on December 24 at $90.30
Average Daily Volume = 2.4 million
Listed on December 23, 2013


Helmerich & Payne - HP - close: 84.03 change: +0.07

Stop Loss: 79.90
Target(s): 87.00
Current Option Gain/Loss: +44.4%
Time Frame: exit PRIOR to January option expiration
New Positions: see below

Comments:
12/30/13: A late day surge higher pushed HP's gains to four up days in a row. The relative strength is encouraging but I am not suggesting new positions at this time.

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
12/24/13 new stop loss @ 79.90

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



LyondellBasell Industries - LYB - close: 79.45 change: +0.02

Stop Loss: 77.75
Target(s): 85.00
Current Option Gain/Loss: Unopened
Time Frame: 4 to 6 weeks
New Positions: Yes, see below

Comments:
12/30/13: LYB is still drifting sideways below resistance at the $80.00 level. We're waiting for a bullish breakout higher.

I am suggesting a trigger to buy calls at $80.25. If triggered our short-term target is $85.00.

Trigger @ 80.25

- Suggested Positions -

Buy the Feb $80 call (LYB1422B80) current ask $2.40

Entry on December -- at $---.--
Average Daily Volume = 3.1 million
Listed on December 24, 2013


Open Text Corp. - OTEX - close: 92.65 change: +1.45

Stop Loss: 89.65
Target(s): 98.50
Current Option Gain/Loss: +10.3%
Time Frame: exit PRIOR to February expiration
New Positions: see below

Comments:
12/30/13: After testing short-term technical support at its 10-dma yesterday, traders bought the dip today. OTEX actually tagged a new high on an intraday basis. The stock outperformed the major indices with a +1.5% gain. I am raising our stop loss up to $89.65.

Our target is $98.50. FYI: The Point & Figure chart for OTEX is bullish with a $107 target.

- Suggested Positions -

Long FEB $95 call (OTEX1422b95) entry $2.90*
12/30/13 new stop loss @ 89.65
12/23/13 new stop loss @ 88.90
*option entry price is an estimate since the option did not trade at the time our play was opened.

Entry on December 20 at $91.05
Average Daily Volume = 325 thousand
Listed on December 19, 2013


Polaris Industries, Inc. - PII - close: 145.78 change: +2.45

Stop Loss: 139.75
Target(s): 149.00
Current Option Gain/Loss: + 16.0%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
12/30/13: PII was also showing some relative strength today. The stock added +1.7% and closed at a new high. I am raising our stop loss to $139.75.

Earlier Comments:
Our multi-week target is $149.00. More aggressive traders could aim higher since the Point & Figure chart for PII is bullish with a $158 target.

- Suggested Positions -

Long Mar $150 call (PII1422c150) entry $4.48
12/30/13 new stop loss @ 139.75
*option entry price is an estimate since the option did not trade at the time our play was opened.

Entry on December 23 at $142.25
Average Daily Volume = 457 thousand
Listed on December 21, 2013


Tiffany & Co - TIF - close: 92.09 change: +1.22

Stop Loss: 88.45
Target(s): 98.50
Current Option Gain/Loss: - 9.3%
Time Frame: exit PRIOR to February option expiration
New Positions: see below

Comments:
12/30/13: TIF continues to climb. Investors could be betting on a strong holiday shopping season for TIF. Christmas and New Years are two of the most popular days of the year for new engagements and that usually means a ring. The stock was showing relative strength today with a +1.3% gain and a new all-time record high. Suddenly I am tempted to launch new positions on this bullish breakout higher.

- Suggested Positions -

Long FEB $95 call (TIF1422b95) entry $2.15

12/26/13 TIF stock seems unaffected by the negative legal news from Monday
12/23/13 TIF reacts to news that a Dutch court orders it to pay Swatch $449 million in damages.

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


Tractor Supply Co. - TSCO - close: 76.23 change: +0.69

Stop Loss: 74.50
Target(s): 79.75
Current Option Gain/Loss: + 0.0%
Time Frame: EXIT PRIOR to January expiration
New Positions: see below

Comments:
12/30/13: TSCO bounced from support near $75.00 for the second day in a row. I would use this bounce as another bullish entry point to buy calls. If you do buy calls, be sure to buy Februarys or Aprils. We only have three weeks left on our Januarys.

Earlier Comments:
Our short-term target is $79.75. More aggressive traders may want to aim higher since the Point & Figure chart just produced a new quadruple top breakout buy signal and is forecasting an $87 target.

I am listing the January calls. I'd rather play February options but (at the time) TSCO doesn't have any Februarys or Marchs available yet and the bid/ask spread on the April options is getting a bit wide. That means we only have four weeks on these January calls.

- Suggested Positions -

Long Jan $75 call (TSCO1418a75) entry $2.15

12/28/13 new stop loss @ 74.50
12/23/13 triggered on gap higher at $77.00. Suggested trigger was $75.60

Entry on December 23 at $77.00
Average Daily Volume = 875 thousand
Listed on December 21, 2013


UnitedHealth Group - UNH - close: 74.78 change: +0.09

Stop Loss: 73.95
Target(s): 82.50
Current Option Gain/Loss: Unopened
Time Frame: Exit PRIOR to earnings on January 16th.
New Positions: Yes, see below

Comments:
12/30/13: UNH bounced from its morning lows but we're still waiting on a bullish breakout to new highs. I don't see any changes from last Thursday night's new play description.

Earlier Comments:
UNH has been volatile the last few months and the stock has created what appears to be a potential inverse head-and-shoulders pattern, which is bullish. The neckline (in this case resistance) of the pattern is in the $75.00-76.00 zone. A breakout would suggest a rally into the $83-84 area.

Tonight we're suggesting a trigger to buy calls at $76.05, which would be a new all-time high for UNH. If triggered at $76.05 our short-term target is $82.50 but we will plan to exit prior to UNH's earnings report on January 16th. Our target is optimistic and we'll make adjustments as needed. We may end up exiting closer to $80.00 instead.

Trigger @ 76.05

- Suggested Positions -

Buy the Feb $75 call (UNH1422B75)

Entry on December -- at $---.--
Average Daily Volume = 4.4 million
Listed on December 26, 2013


United Parcel Service - UPS - close: 104.92 change: +0.20

Stop Loss: 102.75
Target(s): 108.00
Current Option Gain/Loss: +17.3%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
12/30/13: UPS looks like it is coiling for a bullish breakout past resistance at the $105.00 level soon. I am raising our stop loss to $102.75. Keep in mind that we only have three weeks left on our January options. Any significant dip in the stock is going to crush these options.

- Suggested Positions -

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

12/30/13 new stop loss @ 102.75
12/24/13 new stop loss @ 101.90
12/21/13 new stop loss @ 100.90
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


United Technologies - UTX - close: 112.73 change: -0.07

Stop Loss: 110.40
Target(s): 118.50
Current Option Gain/Loss: Unopened
Time Frame: exit PRIOR to earnings in late January
New Positions: Yes, see below

Comments:
12/30/13: UTX dipped this morning but traders bought the dip near $112.00. I don't see any changes from my prior comments. The stock's recent intraday high was $113.04. Our suggested entry point is $113.05.

If triggered our target is $118.50 but we'll plan on exiting prior to UTX's earnings report in late January. More aggressive investors might want to consider aiming higher. The Point & Figure chart for UTX is bullish with a $139 target.

Trigger @ 113.05

- Suggested Positions -

buy the Feb $115 call (UTX1422B115)

Entry on December -- at $---.--
Average Daily Volume = 2.8 million
Listed on December 26, 2013


Wyndham Worldwide - WYN - close: 73.32 change: +0.31

Stop Loss: 71.75
Target(s): 78.50
Current Option Gain/Loss: -17.9%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
12/30/13: WYN displayed some relative strength today with a +0.4% gain. Unfortunately WYN seems a little bit stuck under the $73.50 level.

FYI: The Point & Figure chart for WYN is bullish with a $102 target.

- Suggested Positions -

Long Feb $75 call (WYN1422B75) entry $1.95*

12/23/13 triggered on gap open at $73.27. Suggested entry point was $73.25
*option entry price is an estimate since the option did not trade at the time our play was opened.

Entry on December 23 at $73.27
Average Daily Volume = 1.1 million
Listed on December 21, 2013




PUT Play Updates


Currently we do not have any active put trades.



CLOSED BULLISH PLAYS

Sturm, Ruger & Co. Inc. - RGR - close: 72.78 change: -0.83

Stop Loss: 71.75
Target(s): 79.50
Current Option Gain/Loss: -37.5%
Time Frame: 6 weeks
New Positions: see below

Comments:
12/30/13: RGR saw a little volatility on Monday. Shares sank with a slow and steady decline all day until they neared round-number support at $70.00. Then traders bought the dip and RGR bounced back and pared its losses to -0.78%. Our stop loss was hit this morning at $71.75.

- Suggested Positions -

Apr $75 call (RGR1419D75) entry $4.00 exit $2.50* (-37.5%)

12/30/13 stopped out at $71.75
12/24/13 triggered @ 74.25

chart:

Entry on December 24 at $74.25
Average Daily Volume = 294 thousand
Listed on December 23, 2013


CLOSED BEARISH PLAYS

Sears Holdings - SHLD - close: 47.70 change: +1.54

Stop Loss: 47.60
Target(s): 40.15
Current Option Gain/Loss: -74.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
12/30/13: There doesn't seem to be any reason behind today's +3.3% bounce in shares of SHLD today. Maybe it was someone covering their shorts by yearend. Whatever the cause SHLD hit our stop loss at $47.60. The next levels of overhead resistance look like $48.50 and then the $50.00 mark.

- Suggested Positions - *small positions*

2014 Jan $39 PUT (SHLD1418m39) entry $1.66 exit $0.42 (-74.6%)

12/30/13 stopped out
12/24/13 new stop loss @ 47.60, more conservative traders may want to just exit early.
12/16/13 new stop loss @ 48.60

chart:

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