The market has held up rather well despite the rough outings being posted by Amazon.com (AMZN, $86.00, down $7.87) and Microsoft (MSFT, $23.43, down $2.15) today.
The Dow is currently at 9050, down 18 points while the S&P 500 has slipped 3 to 972. The Nasdaq is off by 20 points to 1953. We were probably looking at a triple-digit loss today but the bulls willingness to take this market higher has not died down.
IBM (IBM, $117.32, up $0.26) has hit $118 and we talked about taking a quarter of the trade off the table today. The IBM August 105 calls (IBMHA, $12.60, up $0.18) have hit a high of $12.70 and our entry price was $3.40. By closing a quarter or even half of the trade, we lock in profits of over 250%.
The August 115 calls (IBMHC, $3.90, up $0.20) were profiled at $1.05 on July 16th and have hit a high of $4.45.. Folks, that is a return of well over 300%. Yeah, take little off the table. It makes the rest of your position a RISK FREE trade…
Cisco Systems (CSCO, $21.73,down $0.17) saw a bit of green today if only for a few minutes but looks strong going foward. We are in the October 20 calls (CYQJD, $2.41, down $0.07) which were recommended at $1.50 on June 2nd. These calls were cut in half by the time July rolled around and many of you may have gotten in for 75 cents or less. Tech should rebound next week if the bulls are for real and these calls got as low as $2.15 this morning. I keep saying if Cisco is at $25 by October 16th these calls will be worth $5, or a double from current levels. Stops are set at $2.00.
Have a GREAT weekend everybody. I will be back Sunday night with the Weekly Wrap and an overview of what we go going on.