Editor's Note:

After a disappointing session on Wednesday the U.S. market managed a bullish reversal higher on Thursday. Disappointing earnings reports after the closing bell tonight could weigh on the market tomorrow.

BBH and ENOC hit our entry triggers.


Current Portfolio:


CALL Play Updates

Biotech ETF - BBH - close: 98.23 change: +2.67

Stop Loss: 93.75
Target(s): 109.00
Current Option Gain/Loss: - 3.2%
Time Frame: 6 to 7 weeks
New Positions: see below

Comments:
01/30/14: Our new trade on BBH is off to a strong start. The plan was to buy calls at $97.25 but this ETF gapped open higher at $97.49. Shares ended today's session by outperforming the broader market with a +2.79% gain.

Earlier Comments:
We're listing the March calls. You may want to consider the June calls. The Point & Figure chart for BBH is bullish with a $111.00 target.

Caution: The BBH does not see a lot of option volume. Traders may want to use small positions to limit their exposure.

- Suggested Positions -

Long MAR $100 call (BBH1422C100) entry $3.10*

01/30/14 triggered on gap open higher at $97.49. suggested trigger was $97.25
*option entry price is an estimate since the option did not trade at the time our play was opened.

Entry on January 30 at $97.49
Average Daily Volume = 164 thousand
Listed on January 29, 2014


Chicago Bridge & Iron - CBI - close: 76.13 change: -0.22

Stop Loss: 73.15
Target(s): 82.50
Current Option Gain/Loss: - 8.8%
Time Frame: Exit PRIOR to CBI's earnings report in February
New Positions: see below

Comments:
01/30/14: Hmm... the action in shares of CBI today is a bit concerning. The stock market produced a widespread rally and yet CBI did not participate. This could be viewed as a warning signal. I am not suggesting new positions at this time.

Broken support near $80.00 and the 50-dma could be overhead resistance.

- Suggested Positions -

Buy the Mar $80 call (CBI1422C80) entry $1.70

01/30/14 CBI not performing well today. This could be a warning signal.
01/28/14 new stop loss @ 73.15

Entry on January 27 at $76.17
Average Daily Volume = 1.5 million
Listed on January 25, 2014


EnerNOC, Inc. - ENOC - close: 22.90 change: +0.25

Stop Loss: 21.49
Target(s): 25.75
Current Option Gain/Loss: -13.5%
Time Frame: EXIT PRIOR to earnings on February 13th
New Positions: see below

Comments:
01/30/14: The market's widespread rally helped push ENOC to new relative highs. Shares opened at $23.05 this morning and hit $23.45 before paring their gains. Our suggested entry point was hit at $23.10 this morning.

Earlier Comments:
We will plan to exit prior to ENOC's earnings report on February 13th. FYI: The Point & Figure chart for ENOC is bullish with a $28 target.

- Suggested Positions -

Long MAR $22.50 call (ENOC1422C22.5) entry $1.85*

01/30/14 triggered at $23.10
*option entry price is an estimate since the option did not trade at the time our play was opened.

Entry on January 30 at $23.10
Average Daily Volume = 485 thousand
Listed on January 28, 2014


General Dynamics - GD - close: 100.49 change: +1.48

Stop Loss: 97.75
Target(s): 107.00
Current Option Gain/Loss: - 5.0%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
01/30/14: GD managed to outperform the S&P 500 with a +1.49% gain. Today's bounce was almost enough to erase yesterday's losses. The next challenge for the bulls is short-term resistance near the $102.00 level.

- Suggested Positions -

Long Mar $100 call (GD1422C100) entry $3.00*

01/28/14 triggered @ 100.50
*option entry price is an estimate since the option did not trade at the time our play was opened.

Entry on January 28 at $100.50
Average Daily Volume = 2.6 million
Listed on January 27, 2014


iShares Russell 2000 ETF - IWM - close: 113.00 change: +1.66

Stop Loss: 108.85
Target(s): 118.00
Current Option Gain/Loss: Unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Comments:
01/30/14: The stock market has seen an increase in volatility this week. Yet in spite of all the movement the IWM has still not hit one of our suggested entry points. There is no change from my prior comments.

Earlier Comments:
Currently we have two different entry point triggers listed. One is a buy-the-dip trigger to buy calls at $110.30 with a stop loss at $108.65 (was 108.85). We also have an alternative entry point listed to buy calls at $114.15 with a stop at $109.90.

Buy the Dip Trigger @ $110.30, stop loss 108.65

- or - Buy Trigger @ $114.15, stop loss @ 109.90.

- Suggested Positions -

Buy the Mar $115 call (IWM1422C115) current ask $1.80

01/29/14 adjust stop on buy-the-dip entry point to 108.65
01/28/14 add a secondary entry point to buy calls at $114.15
01/27/14 adjust the entry point trigger to $110.30 and move the stop loss to $108.85.

Entry on January -- at $---.--
Average Daily Volume = 31.7 million
Listed on January 25, 2014


NASDAQ-100 ETF - QQQ - close: 86.50 change: +1.57

Stop Loss: 83.90
Target(s): 92.00
Current Option Gain/Loss: -12.5%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
01/30/14: The big cap NASDAQ stocks were showing relative strength. The QQQ gapped open higher near $86 and rallied to a +1.8% gain by the close. More conservative traders may want to start raising their stop loss.

*small positions* - Suggested Positions -

Long Mar $87 call (QQQ1422C87) entry $1.60

01/27/14 adjust stop loss to $83.90
01/27/14 triggered at $86.00

Entry on January 27 at $86.00
Average Daily Volume = 29 million
Listed on January 25, 2014




PUT Play Updates

Philip Morris Intl. - PM - close: 79.09 change: -0.35

Stop Loss: 81.55
Target(s): 75.25
Current Option Gain/Loss: +30.0%
Time Frame: Exit PRIOR to earnings on Feb 6th
New Positions: see below

Comments:
01/30/14: Headlines out last night that PM is restructuring its Egyptian business did not have much influence on the stock price. PM is currently the largest international tobacco company in Egypt with almost 23% of the market.

Shares of PM continued to sink with a -0.44% decline today. Don't forget that we have less than one full week for this trade to play out.

Earlier Comments:
Our short-term target is $75.25. Please note that this is a short-term trade. PM is due to report earnings on February 6th and we do not want to hold over the report.

- Suggested Positions -

Long Feb $80 PUT (PM1422N80) entry $1.43

01/29/14 triggered @ 79.85

Entry on January -- at $---.--
Average Daily Volume = 5.9 million
Listed on January 27, 2014


Restoration Hardware - RH - close: 56.39 change: +1.43

Stop Loss: 60.25
Target(s): 51.00
Current Option Gain/Loss: -11.6%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
01/30/14: I cautioned readers last night that RH might see a bounce from the $55 level. Sure enough, with a positive market to help it, RH managed to recoup over half of yesterday's losses. Look for short-term resistance near its 10-dma (near 57.75.

Earlier Comments:
Please note that I do consider this a somewhat more aggressive, higher-risk trade because RH does have above average short interest (about 10% of the 34 million-share float). Our multi-week target is $51.00. More aggressive traders could aim lower. The Point & Figure chart for RH is bearish with a $43 target.

*Small Positions* - Suggested Positions -

Long MAR $55 PUT (RH1422o55) entry $3.00*

01/29/14 trade opened this morning. RH gapped down at $56.47.
*option entry price is an estimate since the option did not trade at the time our play was opened.

Entry on January 29 at $56.47
Average Daily Volume = 981 thousand
Listed on January 28, 2014


Sears Holding - SHLD - close: 36.50 change: +0.14

Stop Loss: 38.55
Target(s): 30.25
Current Option Gain/Loss: Unopened
Time Frame: exit PRIOR to earnings in late February
New Positions: Yes, see below

Comments:
01/30/14: Thursday ended up a quiet session for shares of SHLD. The stock managed an intraday bounce from short-term support near $36.00. There is no change from our Wednesday night new play description.

Earlier Comments:
I do consider this a more aggressive trade because there is so much short interest. The shorts are probably right on this stock but SHLD could still see short-term spikes if some of the weaker shorts rush to cover on any unexpected good news. The most recent data listed short interest at 54% of the 50.7 million share float.

I am suggesting a trigger to buy puts at $35.85. If triggered our target is $30.25. More aggressive traders could aim lower since the Point & Figure chart for SHLD is bearish with a $20 target. However, I would not hold over the earnings report expected in late February.

Trigger @ 35.85

- Suggested Positions -

Buy the MAR $30 PUT (SHLD1422o30) current ask $1.56

Entry on January -- at $---.--
Average Daily Volume = 2.6 million
Listed on January 29, 2014