Google (GOOG, $372.97, down $5.80) is trending lower this morning and the party is over for our February 370 calls (GGDBN, $13.10, down $3.90). We raised the stop yesterday to $15 and the call options were profiled last Monday at $2.30. The trade made 5x your money if you got in under $3.
Akamai Technologies (AKAM, $18.13, up $0.60) is trading nearly 2% higher and I profiled this stock in the Weekly Wrap on Sunday night. The March 17.50 calls (UMUCW, $1.70, up $0.45) are up 35% and traded for $1.25 and under on Monday. There is no specific news concerning the company and the stock is rallying with the rest of Tech.
Genentech (DNA, $84.05, up $1.36). I don’t want to list the options because those calls have been left unheard. Pun intended. We learned today that Genentech asked Roche to pay $112 a share to acquire the remainder of the company it did not own last July. That figure was above Roche’s then $89-a-share offer and the current $86.50 price tag. Roche’s hostile tender offer expires on March 12 and Genentech has said it will announce something in ten days. That doesn’t help our February 95 calls (DWNBS, $0.05, unchanged) which will probably expire worthless.
The financial trades were closed yesterday which brought down the number of open positions that I have been following. I usually don’t recommend more than 3 to 5 open positions at any one time but the financial plays were something I wanted you to take advantage of.
We are getting closer to hearing something from Geithner in a few minutes and it will be interesting to see how the market reacts. The smart money says we head lower and the Dow could test 8,000 again before today is over with.