10:40pm (EST)
Bank of America (BAC, $17.14, up $0.39)
January 20 calls (BYOAT, $1.30, up $0.10)
Entry Price: $1.18 (8/12/09)
Exit Target: $2.20
Return: 10%
Stop: $1.10-$1.15
Action: BofA had a good trading day and the close above $17 continues to build that “new base”. If you still like the trade, notice the “tight” stop we have on the position. If BofA is headed to $20-$25 then these calls will do well. However, the stop is set to protect us against a reversal.
Citigroup (C, $4.48, up $0.35)
January 7.50 calls (CAQ, $0.19, up $0.05)
Entry Price: $0.14 (8/12/09)
Exit Target: 50 cents
Return: 36%
Stop: None
January (2011) 10 calls (VRNAB, $0.49, up $0.07)
Entry Price: $0.40 (8/12/09)
Exit Target: 80 cents
Return: 23%
Stop: None
Action: Yeap. The August 4 calls (CHW, $0.46, up $0.31) I profiled at 34 cents this afternoon? They ran up to 50 cents. You could have bought 50 or 100 of these contracts, easily, as over 186,000 contracts traded hands. If you would have bought 50 at 34 cents it would have cost you $1,700. You could have turned that $1,700 into $2500 in 3 hours. Of course, that wasn’t the play but it is a perfect example of a cheap at-the-money option that paid off big time. We are in Citigroup for the long and longer hauls and our gains will dwarf those if Citigroup doubles from here.
Imax (IMAX, $9.20, up $0.07)
September 7.50 calls (IMQIU, $1.70, flat)
Entry Price: $1.90 (8/4/09)
Exit Target: $3.00
Return: -11%
Stop: $1.00
March 2010 12.50 calls (IMQCV, $0.45, flat)
Entry Price: $0.45 (8/10/09)
Exit Target: $1.00+
Return: 0%
Stop: None
Action: Continue to hold.
Potash (POT, $97.16, up $1.98)
September 110 calls (PYPIB, $1.40, up $0.20)
Entry Price: $1.35 (8/20/09)
Exit Target: $2.10+
Return: 4%
Stop: 65 cents
Action: Continue to hold.
