11:15pm (EST)

Ford (F, $8.07, down $0.37)

December 6 calls (FLI, $2.42, down $0.37)

Entry Price: $1.25 (5/18/09)
Exit Price: $2.50
Return: 100%
Stop: $2.50

December 7 calls (FLJ, $1.75, down $0.30)

Entry Price: $1.00 (5/18/09)
Exit Price: $1.75
Return: 75%
Stop: $1.75

August 7 calls (FHJ, $1.17, down $0.33)

Entry Price: $0.77 (7/31/09)
Exit Price: $1.25
Return: 62%
Stop: $1.25

Action: As they say, all good things come to an end. All of our stops were triggered on Ford’s dip below $8 today. After nearly 3 months in the December calls, they are now officially closed. The August calls still have two weeks before expiration but they are now entering the “danger zone”. This is what I call the last two weeks of an option before it expires. This is also when time decay really starts to kick in and in-the-money options can quickly move to out-the-money options.

Cisco Systems (CSCO, $22.31, up $0.14)

October 20 calls (CYQJD, $2.77, up $0.02)

Entry Price: $1.50 (6/2/09)
Exit Price: $3.00 (8/4/09 1/2 the trade was closed)
Return: 100%
Stop: $2.25, raise to $2.50

Action: The call options traded to a low of $2.35 after opening at $2.44 but our stop wasn’t touched as Cisco rebounded by the afternoon. As a trader, once you learn where support and resistance lies, it’s easy to set your stops and figure out profits levels. I still thought we were in danger of losing the other half when the stock dipped below $22 and touched a low of $21.68. If shares would have touched $21.50 our stop probably would have been hit. As of now we are still in this trade but the stop was raised to $2.50

Bank of America (BAC, $16.70, up $0.04)

November 15 calls (BYOKO, $2.87, up $0.04)

Entry Price: $1.50 (6/12/09)
Exit Price: $2.25, raise to $3.00
Return: 91%
Stop: $2.00, raise to $2.30

Action: Looks like we have a tiger by the tail…these calls traded to a high of $3.35 today which represented more than a triple-digit return as BofA shot to a high of $17.35 right out of the gate. This allowed some of you who held the August 17 calls (BYOHQ, $0.57, down $0.02) to get out at even better prices than yesterday’s “day trade”. These calls traded to a high of $1.00 after going for 44 cents yesterday…noticed how I raised the stop on the November 15’s again.

Visa (V, $68.65, up $0.27)

August 70 calls (VEHHN, $1.10, up $0.10)

Entry Price: $1.60 (7/27/09)
Exit Price: $3.20
Return: -31%
Stop: 80 cents

Action: Visa has tested $70 every single day this week only to be Shaq’ed (rejected) each and every time. I’d like to see a close above $70 on Friday to feel confident going into next week but that may be asking a bit much considering how strong the force is…$70 is our father.

Imax (IMAX, $9.40, down $0.10)

September 7.50 calls (IMQIU, $2.00, flat)

Entry Price: $1.90 (8/4/09)
Exit Price: $3.00
Return: 5%
Stop: $1.00, raise to $1.50

Action: Imax broke double-digits today which was nice to see and maybe showed us that $10 could be support instead of resistance down the road. The stock got a pop in after-hours after its CEO made some splashy comments about the business model as it was up 42 cents to $9.82. The Imax story is about to unfold my friends right in front of your eyes.

I’ll be back in the morning but don’t forget we get the jobs report. I’m expecting a huge move either way…

Rick Rouse
Rick@MomentumOptionsTrading.com