Here’s an update from the lottery plays I profiled last Monday:

Entry Exit Current Action Expiration

Microsoft (MSFT, $23.93)
April 25 calls (MSQDE) $2.35 $2.90 $3.00 Hold 4/17/09

Google (GOOG, $372.54)
March 500 calls (GOPCO) $11.50 $15.00 $17.00 Hold 3/20/09

Yahoo (YHOO, $12.90)
January 17.50 calls (YHQAW) $1.30 $1.20 Buy 1/16/09

J&J (JNJ, $62.65)
Nov 60 calls (JNJKL) $3.30 $6.60 $4.70 Sell 11/21/08
April 70 calls (JNJDN) $1.50 $3.00 $2.75 Hold 4/17/09

Goldman Sachs (GS, $114.30)
January 125 calls (GSAE) $7.25 $15.00 $10.90 Hold 1/16/09

**Microsoft has a 25% stop above the $2.35 entry and would be attractive if the calls fell back to $2.35.

**Google had a sweet Friday, up nearly $20 for the day and hitting a high of $386 in the process. The October strangle two-day option trade was a huge success as it returned 100+%.

**Yahoo spiked to $13.73 on MSFT talk and the calls hit $1.50 before fading. I will be miffed if Yahoo is still solo by the end of the year.

**Johnson & Johnson was an awesome trade for the November calls and I don’t recommend any new positions in them as they returned 100% before slipping to current levels. The April calls still look good.

** Goldman Sachs rallied to $128 last Tuesday and the October 100 call options were a monster trade returning well over 100%-200% gains!

**Arch Coal (ACI, $24.15), Massey Energy (MEE, $23.30) and Patriot Coal (PCX, $16.61) were all stopped out with 20%-25% gains but I wouldn’t be a buyer of the November options anymore so I didn’t even list them.

Rick Rouse
Rick@OptionsMentoring.com

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