Editor's Note:

The small cap Russell 2000 index ($RUT) closed at new all-time highs. Relative strength in the small caps would normally be bullish. However, the $RUT is also nearing potential resistance.

ACN, ORLY, and QQQ all hit our suggested entry triggers.

LVS hit our stop loss.


Current Portfolio:


CALL Play Updates

Accenture - ACN - close: 85.40 change: +0.47

Stop Loss: 83.25
Target(s): 89.50
Current Option Gain/Loss: + 1.2%
Time Frame: exit PRIOR to February option expiration
New Positions: see below

Comments:
01/22/14: The rally in ACN continues with shares five out of the last six sessions. Today saw shares breakout past the $85.00 level and hit ur suggested entry point at $85.15.

FYI: The Point & Figure chart for ACN is bullish with a $92 target.

- Suggested Positions -

Long Feb $85 call (ACN1422B85) entry $1.58

Entry on January 22 at $85.15
Average Daily Volume = 3.3 million
Listed on January 18, 2014


Chicago Bridge & Iron - CBI - close: 82.95 change: +0.10

Stop Loss: 79.65
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:
01/22/14: CBI's performance on Wednesday looks a lot like Tuesday. Early gains faded but traders bought the dip midday. CBI appears to be coiling for a bullish breakout past resistance near $83.50.

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


Cigna Corp. - CI - close: 89.66 change: -0.47

Stop Loss: 88.40
Target(s): 95.00
Current Option Gain/Loss: -12.5%
Time Frame: exit PRIOR to earnings on February 7th
New Positions: see below

Comments:
01/22/14: CI also failed at resistance this morning. Shares have short-term resistance near $90.50 and CI reversed there this morning. Fortunately traders did buy the dip near its rising 10-dma. More conservative traders may want to wait for a move past $90.75 or $91.00 before initiating positions.

Earlier Comments:
I am suggesting a $95.00 target. However, we'll plan on exiting prior to the earnings report on February 7th. FYI: The Point & Figure chart for CI is bullish with a $119 target.

Trigger @ 90.25

- Suggested Positions -

buy the Feb $90 call (CI1422B90) entry $2.47

01/21/14 triggered @ 90.25

Entry on January 21 at $90.25
Average Daily Volume = 1.0 million
Listed on January 15, 2014



Northrop Grumman - NOC - close: 119.19 change: +0.95

Stop Loss: 117.25
Target(s): 124.00
Current Option Gain/Loss: +85.1%
Time Frame: exit PRIOR to earnings on January 30th
New Positions: see below

Comments:
01/22/14: Defense-related names continued to rally thanks to an earnings-inspired rally in General Dynamics (GD). Shares of NOC rebounded from their morning lows and closed above potential round-number resistance at $120.00 today. I am raising our stop loss to $117.25. I am not suggesting new positions at this time.

We will plan on exiting prior to earnings on January 30th.

Earlier Comments:
Our target is $124.00. I'll confess that might be a little bit optimistic since the $120 level could be round-number resistance.

- Suggested Positions -

Long FEB $120 call (NOC1422B120) entry $1.35

01/22/14 new stop loss @ 117.25
01/14/14 new stop loss @ 114.65
01/10/14 triggered @ 116.50

Entry on January 10 at $116.50
Average Daily Volume = 1.3 million
Listed on January 09, 2014


O'Reilly Automotive - ORLY - close: 136.02 change: +0.03

Stop Loss: 133.90
Target(s): 144.00
Current Option Gain/Loss: - 0.7%
Time Frame: Exit PRIOR to earnings on February 5th
New Positions: see below

Comments:
01/22/14: Our new trade on ORLY has been triggered. The stock hit new all-time highs intraday (at $137.28) before paring its gains. Our suggested entry point was hit at $136.55. I would wait for a new rise past $136.50 before considering new positions.

Earlier Comments:
Our target is $144.00 but we will plan on exiting prior to the earnings report on February 5th.

- Suggested Positions -

Long Feb $140 call (ORLY1422B140) entry $2.62

Entry on January 22 at $136.55
Average Daily Volume = 545 thousand
Listed on January 21, 2014


QUALCOMM Inc. - QCOM - close: 75.78 change: +0.32

Stop Loss: 73.75
Target(s): 79.75
Current Option Gain/Loss: +10.2%
Time Frame: Exit PRIOR to earnings on January 29th
New Positions: see below

Comments:
01/22/14: QCOM issued a press release today announcing a 35-cent quarterly cash dividend payable on March 26, 2014 to shareholders on record as of March 5th. Meanwhile the stock continued to drift higher with a +0.4% gain.

Earlier Comments:
Our short-term target is $79.75. This is a short-term trade. QCOM is due to report earnings on January 29th. Yet Apple (AAPL), who QCOM does a lot of business with, reports earnings on January 27th. We will definitely plan to exit prior to QCOM's earnings report and might consider an exit ahead of AAPL's report.

FYI: The Point & Figure chart for QCOM is bullish with a $93 target.

- Suggested Positions -

Long Feb $75 call (QCOM1422B75) entry $1.96

01/21/14 triggered @ 75.25

Entry on January 21 at $75.25
Average Daily Volume = 8.3 million
Listed on January 16, 2014


NASDAQ-100 ETF - QQQ - close: 88.78 change: +0.23

Stop Loss: 86.75
Target(s): 94.00
Current Option Gain/Loss: + 3.3%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
01/22/14: Our brand new play on the QQQ has been triggered. We wanted to buy calls at $88.75. This ETF made the entry easy for us with shares gapping open higher at $88.75 this morning. I would not be surprised to see the QQQ gap open higher again tomorrow thanks to so many NASDAQ-listed stocks surging higher after hours tonight.

Earlier Comments:
We wanted to use small positions to limit our risk. Our optimistic, multi-week target is $94.00.

*small positions* - Suggested Positions -

Long Mar $90 call (QQQ1422C90) entry $1.20

Entry on January 22 at $88.75
Average Daily Volume = 29 million
Listed on January 21, 2014


Seagate Technology - STX - close: 61.00 change: -0.24

Stop Loss: 59.65
Target(s): 65.00
Current Option Gain/Loss: - 3.2%
Time Frame: exit PRIOR to earnings on January 27th.
New Positions: see below

Comments:
01/22/14: STX continued to see some profit taking today with a minor decline. Tomorrow could be a different story. I can't find the catalyst but something has sparked some after hours selling in STX, which is trading around $59.75 tonight. WDC is also trading lower after hours tonight.

We already have a stop loss at $59.65 for STX. If shares gap down below $60.00 we could see STX hit our stop loss. I am not suggesting new positions. If we do not get stopped out tomorrow we will plan on exiting positions on Friday to avoid holding over STX's earnings report on Monday.

- Suggested Positions -

Long Feb $60 call (STX1422B60) entry $3.10

01/22/14 be careful. STX looks like it could gap down tomorrow morning
01/21/14 new stop loss @ 59.65
01/15/14 triggered @ 60.85

Entry on January 15 at $60.85
Average Daily Volume = 3.5 million
Listed on January 14, 2014


Thermo Fisher Scientific - TMO - close: 114.70 change: -0.25

Stop Loss: 113.90
Target(s): 119.75
Current Option Gain/Loss: -14.9%
Time Frame: Exit PRIOR to earnings in late January or Early February
New Positions: see below

Comments:
01/22/14: TMO also looks vulnerable. The stock underperformed the broader market with a -0.2% decline. More importantly shares have closed below potential support near $115.00 and its simple 10-dma. We are turning more defensive here and raising our stop loss to $113.90.

Earlier Comments:
Our target is $119.75. We will plan on exiting prior to earnings. At the moment there is no confirmed earnings date. It should be near the end of January or early February.

- Suggested Positions -

Long Feb $115 call (TMO1422B115) entry $3.35*

01/22/14 new stop loss @ 113.90
01/21/14 Caution: Today's move has created a bearish candlestick pattern
01/15/14 triggered @ 115.25
*option entry price is an estimate since the option did not trade at the time our play was opened.

Entry on January 15 at $115.25
Average Daily Volume = 1.8 million
Listed on January 14, 2014


Yelp, Inc. - YELP - close: 81.28 change: -0.93

Stop Loss: 79.75
Target(s): 98.00
Current Option Gain/Loss: -24.0%
Time Frame: Exit PRIOR to earnings on Feb. 5th
New Positions: see below

Comments:
01/22/14: Shares of YELP underperformed on Wednesday with a -1.1% decline. The stock is nearing potential short-term support at $80.00 and its simple 10-dma (about $80.50). I am not suggesting new bullish positions at this time.

Earlier Comments:
I do consider this an aggressive, higher-risk trade. YELP can be volatile and because of that volatility the options are not cheap. I am suggesting small positions. Our target is $98.00 but more conservative traders may want to lock in profits earlier. The $90 level and $95 level could be possible round-number resistance levels.

*small positions* - Suggested Positions -

Long Feb $90 call (YELP1422B90) entry $4.87

01/21/14 triggered @ 83.75

Entry on January 21 at $83.75
Average Daily Volume = 2.7 million
Listed on January 18, 2014




PUT Play Updates

Rock-Tenn Co. - RKT - close: 100.04 change: +0.01

Stop Loss: 101.15
Target(s): 97.00
Current Option Gain/Loss: - 2.7%
Time Frame: Exit PRIOR to earnings on January 28th
New Positions: see below

Comments:
01/22/14: I am urging caution on our RKT trade. The stock is not participating in the market's rally and that's a good sign for the bears. However, the stock is not falling either with RKT drifting sideways the last few days. That might suggest the $99-100 level is stronger support than we thought.

I am not suggesting new positions. We will adjust our stop loss to $101.15.

- Suggested Positions -

Long FEB $100 PUT (RKT1422N100) entry $3.70

01/22/14 new stop loss @ 101.15
01/18/14 new stop loss @ 102.25
01/16/14 new stop loss @ 102.55
01/13/14 new stop loss @ 103.55
01/11/14 adjust exit target from $96.00 to $97.00

Entry on January 09 at $101.96
Average Daily Volume = 656 thousand
Listed on January 08, 2014



CLOSED BULLISH PLAYS

Las Vegas Sands - LVS - close: 82.03 change: +0.10

Stop Loss: 79.95
Target(s): 87.50
Current Option Gain/Loss: -44.0%
Time Frame: Exit PRIOR to earnings on January 29th
New Positions: see below

Comments:
01/22/14: It was a rough day for the big casino stocks. According to a IBD report today the drop was due to a JPMorgan analyst who downgraded MGM China over concerns that the market had already factored in the current growth in Macau. Shares of LVS followed MGM lower with LVS gapping down at $80.83 and eventually trading below the $80.00 mark. Our stop was hit at $79.95.

- Suggested Positions -

Feb $82.50 call (LVS1422B82.5) entry $2.50 exit $1.40 (-44.0%)

01/22/14 stopped out
01/21/14 trade opened on gap higher at $82.32. Suggested entry was $82.25

chart:

Entry on January 21 at $82.32
Average Daily Volume = 3.7 million
Listed on January 18, 2014