11:15am (EST) DryShips (DRYS, $6.74, up $0.51) is having a huge day, rallying 7%, ahead of Friday’s earnings announcement. Here are the trades I profiled from last Tuesday: August 7 calls (OOCHJ, $0.50, up $0.20) Entry Price: $0.25 (7/21/09) Exit Price: $0.50 Return: 100% Stop: None September 7.50 calls (OOCIU, $0.56, up $0.17) Entry Price: $0.35 (7/21/09) Exit Price: $0.70 Return: 50+% Stop: $0.20 Action: The August call options have hit our target and have returned 100% from our entry price. It would be wise to close out the August call options now to lock in those gains. You should raise stops to 40 cents on the September calls to protect a small profit in case the stock retreats. This will allow you to enjoy further gains if DryShips continues to run and the best part is you have already banked a double. I know it’s tough to close out a position that has returned 100% and looks ready to run further but that is why we “layered” the trade. Continue to watch both options but do not give back those profits by being greedy. I also listed some trades from the Monday Morning Playbook and most of them have hit the limit prices. Green Mountain Coffee Roasters (GMCR, $67.53, down $0.11) started off on a good note but has slipped. This is why I tell you to wait 20 minutes after the open. The August 80 calls (QGMHP, $1.40, down $0.40) had a limit price of $1.60 and you could have lowered this as Green Mountain came off its highs. If you like the trade this looks like a good entry point. Buffalo Wild Wings (BWLD, $37.05, down $0.60) has also slipped after a positive open. I was really hesitant on making this an official recommendation because of Friday’s huge run but I have mentioned it so I will include it in the track record. The August 40 calls (BQUHH, $1.10, up $0.40) are an all-or-nothing trade from here on out as the company reports earnings after the bell. Cerner (CERN, $64.87, down $1.02) is taking a break from the assault on its 52-week high and the August 70 calls (CQNHN, $1.30, down $0.30) have come down a little from Friday’s closing price. Microsoft (MSFT, $23.13, down $0.32) got some “short-term” buys from Wall Street analysts and the August 23 calls (MSQHQ, $0.78, down $0.14) look ripe for picking. I’ll will try and give an afternnon update but I did this one early because I have a busy afternnon. If I don’t post by 1pm, I’ll be back tonight with a full update. Rick@MomentumOptionsTrading.com]]>
