Editor's Note:

The U.S. stock market failed to see any follow through on Tuesday's bounce.

N and NTES both hit our entry triggers. PVH and SODA hit our stop loss. We want to exit our TIF trade tomorrow morning.


Current Portfolio:


CALL Play Updates

Advance Auto Parts - AAP - close: 112.30 change: -0.88

Stop Loss: 109.75
Target(s): 117.50
Current Option Gain/Loss: + 0.0%
Time Frame: exit PRIOR to earnings in February
New Positions: see below

Comments:
01/08/14: AAP quietly churned sideways on Wednesday. Unfortunately the stock slipped lower near the closing bell and posted a -0.77% decline. If the dip continues look for potential support at the 10-dma (near $111) or the $110 level.

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*

01/07/14 new stop loss @ 109.75
01/04/14 new stop loss @ 108.75
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


Chicago Bridge & Iron - CBI - close: 81.07 change: -0.12

Stop Loss: 79.65
Target(s): 89.50
Current Option Gain/Loss: -12.9%
Time Frame: Exit PRIOR to CBI's earnings report in February
New Positions: see below

Comments:
01/08/14: CBI spent today's session drifting sideways between short-term support near $80 and its 20-dma and short-term resistance directly overhead at its 10-dma. Traders might want to wait for a rally above $81.75 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


Check Point Software - CHKP - close: 64.57 change: +0.63

Stop Loss: 63.35
Target(s): 69.50
Current Option Gain/Loss: Unopened
Time Frame: exit PRIOR to earnings on January 28th
New Positions: Yes, see below

Comments:
01/08/14: CHKP was showing relative strength with a +0.98% gain. The stock looks poised to challenge resistance near $65.00 soon.

I am suggesting a trigger to buy calls at $65.25. If triggered our target is $69.50 but we will plan to exit prior to CHKP's earnings report on January 28th.

Trigger @ 65.25

- Suggested Positions -

Buy the Feb $65 call (CHKP1422B65)

Entry on January -- at $---.--
Average Daily Volume = 821 thousand
Listed on January 04, 2014


Demandware, Inc. - DWRE - close: 68.69 change: +1.63

Stop Loss: 64.75
Target(s): 69.50
Current Option Gain/Loss: +30.6%
Time Frame: exit PRIOR to earnings in mid February
New Positions: see below

Comments:
01/08/14: The rally in DWRE continued in spite of the market's general malaise today. Shares outperformed with a +2.4% gain and closed at a new record high. I am raising our stop loss to $64.75. FYI: The Point & Figure chart for DWRE is bullish with a $77 target.

- Suggested Positions -

Long Feb $70 call (DWRE1422B70) entry $2.45*

01/08/14 new stop loss @ 64.75
01/06/14 new stop loss @ 63.45
01/06/14 triggered @ 65.25
*option entry price is an estimate since the option did not trade at the time our play was opened.

Entry on January 06 at $65.25
Average Daily Volume = 275 thousand
Listed on January 02, 2014


General Dynamics - GD - close: 94.72 change: -0.54

Stop Loss: 93.85
Target(s): 99.50
Current Option Gain/Loss: -23.0%
Time Frame: exit PRIOR to earnings on January 17th
New Positions: see below

Comments:
01/08/14: GD continues to consolidate sideways. The stock has spent more than two weeks now inside the $94-96 zone. If shares can breakout it should spawn a quick surge toward the $100 level.

Earlier Comments:
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. The plan was to keep our position size small.

*small positions* - Suggested Positions -

Long Feb $95 call (GD1422B95) entry $2.21

Entry on December 31 at $95.25
Average Daily Volume = 1.1 million
Listed on December 28, 2013


Honeywell Intl. - HON - close: 90.44 change: -0.37

Stop Loss: 89.65
Target(s): 94.75
Current Option Gain/Loss: -10.2%
Time Frame: exit PRIOR to earnings in late January
New Positions: see below

Comments:
01/08/14: Shares of HON underperformed this morning thanks to a downgrade from Citigroup from "buy" to "neutral". Analyst and TV personality Jim Cramer disagrees and said he doesn't understand the thought process behind today's downgrade and says he is still bullish on the stock. You'll notice that traders bought the dip near round-number support at $90.00. The intraday low was $89.92. Tonight we're adjusting our stop loss to $89.65. I am not suggesting new positions at this time.

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*

01/08/14 new stop loss @ 89.65
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


NetSuite Inc. - N - close: 104.23 change: +0.88

Stop Loss: 99.95
Target(s): 110.00
Current Option Gain/Loss: - 0.3%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
01/08/14: Our new play on N is off to a good start. Shares outperformed the market with a +0.85% gain. Our suggested entry point was hit at $103.75. I would still consider new positions now at current levels.

Earlier Comments:
Our target is $110.00. However, we will plan to exit prior to their earnings report in late January or early February. FYI: The Point & Figure chart for N is bullish with a $129 target.

- Suggested Positions -

Long Feb $110 call (N1422B110) entry $3.00

Entry on January 08 at $103.75
Average Daily Volume = 410 thousand
Listed on January 07, 2014


NetEase, Inc. - NTES - close: 82.40 change: +2.71

Stop Loss: 77.50
Target(s): 87.50
Current Option Gain/Loss: + 5.2%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
01/08/14: NTES is off to an even stronger start. Shares pushed past resistance near $80.00 and outperformed the major indices with a +3.4% gain. Our suggested entry point was hit this morning at $80.75. Broken resistance at $80 should be new support.

- Suggested Positions -

Long Feb $85 call (NTES1422B85) entry $2.85*

Entry on January 08 at $80.75
Average Daily Volume = 661 thousand
Listed on January 07, 2014



Open Text Corp. - OTEX - close: 94.04 change: +1.57

Stop Loss: 90.75
Target(s): 98.50
Current Option Gain/Loss: +24.1%
Time Frame: exit PRIOR to February expiration
New Positions: see below

Comments:
01/08/14: It was a bullish day for OTEX with shares breaking out past resistance near $93.00 and outperforming the major indices with a +1.69% gain. If you were waiting for a breakout as your entry point then you got it today.

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*

01/04/14 new stop loss @ 90.75
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


Palo Alto Networks, Inc. - PANW - close: 60.05 change: +0.06

Stop Loss: 56.75
Target(s): 64.00
Current Option Gain/Loss: +26.5%
Time Frame: exit PRIOR to February option expiration
New Positions: see below

Comments:
01/08/14: PANW started to see some profit taking this morning but traders bought the dip near $58.70. Shares bounced back to about unchanged on the session. I am not suggesting new positions at this time.

Earlier Comments:
Our short-term target is $64.00 but I will point out that the February 2013 high near $62.00 could be potential resistance.

- Suggested Positions -

Long Feb $60 call (PANW1422B60) entry $2.45*

01/07/14 new stop loss @ 56.75
01/06/14 triggered @ 58.25
*option entry price is an estimate since the option did not trade at the time our play was opened.

Entry on January 06 at $58.25
Average Daily Volume = 1.1 million
Listed on January 04, 2014


Polaris Industries, Inc. - PII - close: 145.50 change: +0.72

Stop Loss: 142.40
Target(s): 149.00
Current Option Gain/Loss: - 1.7%
Time Frame: EXIT prior to earnings on January 28th
New Positions: see below

Comments:
01/08/14: PII briefly traded at a new high before paring its gains. If the market will cooperate we should see PII breaking out soon. Tonight we're inching up our stop loss to $142.40. I am not suggesting new positions at this time.

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
01/08/14 new stop loss @ 142.40
01/07/14 new stop loss @ 141.75
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


Salix Pharmaceuticals - SLXP - close: 90.95 change: +1.69

Stop Loss: 87.80
Target(s): 98.50
Current Option Gain/Loss: -20.0%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
01/08/14: Shares of SLXP continue to bounce after its Tuesday morning, downgrade-induced gap down. The stock was displaying relative strength with a +1.89% gain on Wednesday. The next hurdle for the bulls is short-term resistance at $92.00.

Earlier Comments:
SLXP is poised to breakout past resistance at the $90.00 level. If shares can breakout past $90 the next major milestone would be the $100 mark. If triggered our multi-week target is $98.50.

- Suggested Positions -

Long Feb $95 call (SLXP1422B95) entry $2.50*

01/07/14 new stop loss @ 87.80
01/03/14 triggered @ 90.25
*option entry price is an estimate since the option did not trade at the time our play was opened.

Entry on January 03 at $90.25
Average Daily Volume = 790 thousand
Listed on December 31, 2013


Tiffany & Co - TIF - close: 91.70 change: -0.45

Stop Loss: 89.75
Target(s): 98.50
Current Option Gain/Loss: -28.8%
Time Frame: exit PRIOR to February option expiration
New Positions: see below

Comments:
01/08/14: We are growing concerned about the retail-related stocks and the potential reaction to disappointing sales figures from the holiday shopping season. TIF has been holding up reasonably well but we are throwing in the towel. Prepare to exit positions immediately at the opening bell tomorrow morning.

- Suggested Positions -

Long FEB $95 call (TIF1422b95) entry $2.15

01/08/14 prepare to exit tomorrow at the opening bell
12/31/13 new stop loss @ 89.75
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


United Technologies - UTX - close: 113.65 change: +0.14

Stop Loss: 110.40
Target(s): 118.50
Current Option Gain/Loss: - 6.1%
Time Frame: exit PRIOR to earnings in late January
New Positions: see below

Comments:
01/08/14: Both HON and UTX were downgraded by Citigroup this morning. The news didn't have much impact on shares of UTX, which bounced back. This stock looks poised to breakout past resistance near $114.00 soon.

Earlier Comments:
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.

- Suggested Positions -

Long Feb $115 call (UTX1422B115) entry $1.80

12/31/13 trade opened on gap higher at $113.16. Suggested trigger was $113.05

Entry on December 31 at $113.16
Average Daily Volume = 2.8 million
Listed on December 26, 2013




PUT Play Updates

Lululemon Athletica - LULU - close: 58.02 change: -0.26

Stop Loss: 60.05
Target(s): 51.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Comments:
01/08/14: Someone is still buying dips in LULU and shares pared their losses today. I don't see any changes from my prior comments.

Earlier Comments:
LULU is poised to breakdown below its December lows. I am suggesting small bearish positions if LULU can trade at $57.00. Why small positions? That's because short interest is already at 17% of the 134.5 million share float. Any sudden bounce could spark some short covering.

If triggered at $57.00 our target is $51.00. More aggressive traders could aim lower since the Point & Figure chart for LULU is bearish with a $43 target.

Trigger @ 57.00

- Suggested Positions -

Buy the Feb $55 PUT (LULU1422N55)

Entry on January -- at $---.--
Average Daily Volume = 4.6 million
Listed on January 06, 2014



CLOSED BULLISH PLAYS

PVH Corp. - PVH - close: 132.30 change: -2.77

Stop Loss: 133.90
Target(s): 147.50
Current Option Gain/Loss: -41.4%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
01/08/14: Ouch! PVH underperformed the market with a -2.0% plunge toward the $132 area. This is the stock's third decline in a row and seems to be a reflection of investor concerns over the recent holiday shopping season. We were growing worried over PVH's performance last night and raised our stop loss to $133.90.

- Suggested Positions -

Feb $140 call (PVH1422B140) entry $3.50 exit $2.05* (-41.4%)

01/08/14 stopped out
*option exit price is an estimate since the option did not trade at the time our play was closed.
01/07/14 new stop loss @ 133.90

chart:

Entry on January 02 at $136.55
Average Daily Volume = 939 thousand
Listed on December 31, 2013


CLOSED BEARISH PLAYS

SodaStream Intl. - SODA - close: 50.34 change: +1.92

Stop Loss: 50.25
Target(s): 41.50
Current Option Gain/Loss: -33.3%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
01/08/14: Our SODA trade has been stopped out. We can thank an analyst upgrade this morning. The stock was upgraded to a "buy" rating and shares gapped open higher at $49.89 before surging toward $51.70. We had just lowered our stop loss last night to $50.25.

Earlier Comments:
I am suggesting we use small positions to limit our risk. There are a lot of bears already in this trade. The most recent data listed short interest at more than 50% of the very small 17.5 million share float.

*small positions* - Suggested Positions -

Feb $45 PUT (SODA1422N45) entry $2.40 exit $1.60 (-33.3%)

01/08/14 stopped out
01/07/14 new stop loss @ 50.25

chart:

Entry on December 31 at $48.70
Average Daily Volume = 980 thousand
Listed on December 30, 2013