9:15am (EST)

Here is a quick rundown of what we have going on:

Barrick Gold (ABX, $35.10, up $1.46)

May 30 calls (ABXEF, $5.10, up $1.40)

Entry Price: $1.35 (4/21/09)
Exit Price: $5.00 (5/12/09)
Return: 270%

We started closing out positions yesterday and most of you should have gotten at least $5 for the call options as Barrick Gold stayed long and strong all day. Again, the May option chain expires this Friday.

Blackstone Group (BX, $12.67, up $0.03)

May 10 calls (BXEB, $2.80, down $0.25)
Entry Price: $0.65 (3/25/09)
Exit Price: $2.75 (5/12/09)
Return: 323%

June 15 calls (BKFC, $0.50 up $0.05)
Entry Price: $0.60 (5/8/09)
Exit Price: open
Return: -17%

January 2010 10 calls (KJLAB, $4.00, down $0.20)
Entry Price: $1.75 (3/25/09)
Exit Price: open
Return: 129%

The May call options opened at $2.75 and hit a high of $2.90 yesterday when I suggested closing the trade. As far as the January and June options, should the stock fall below $12, close the June trade and half of the January trade if the call options fall below $3.50. The stop of $3.50 books the 100% return.

ExxonMobil (XOM, $70.82, up $1.55).

May 70 calls (XOMEN, $1.20, up $0.55)

Entry Price: $0.65 (5/11/09)
Exit Target: $1.30 or set stops at $1.00
Return: 85%

June 75 calls (XOMFO, $0.81, up $0.15)

Entry Price: $0.63 (5/11/09)
Exit Price: open
Return: 29%

If you got into the May options then you are playing with fire. I liked the June options because they bought us more time but I have gotten a few emails asking how how I think the May options can go. I would like to target $1.30 for them and maybe they get there today but when you get nearly a double, they should have been sold yesterday. If anything, set a stop of $1.00-$1.10 to protect your profits. As far as the June calls, we have plenty of time for this trade to gain even more momentum.

Oil is picking up steam as it climbed to nearly $60 a barrel this morning in Asia. The rise is due to an “unexpected” fall in U.S. crude inventories which I suggested were stable in the Weekly Wrap. With Memorial Day approaching, demand may be picking up.

The American Petroleum Institute commented that oil supplies fell 3.2 million barrels to 371 million last week. The fat cats on Wall Street had expected a gain of about 1.5 million barrels.

Wells Fargo (WFC, $25.70, down $0.83)

June 30 calls (FHUFD, $1.00, down $0.35)

June 23 puts (WFCRI, $1.45, up $0.20)

Entry Price: $1.20 for the calls and $1.30 for the puts

Wells Fargo was all over the map yesterday, trading as high as $27 and as low as $24. Just the type of action we like to see…

Rick Rouse
Rick@OptionsMentoring.com