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Bank of America (BAC, $17.75, up $0.40)

 

January 20 calls (BYOAT, $1.45, up $0.10) 

 

Entry Price: $1.18 (8/12/09) Exit Target: $2.20, lower to $1.80 Return:  23% Stop: $1.20, raise to $1.25

 

Action:  BofA made another run to $18 and the call options traded as high as $1.58.  Yesterday’s high on the call options reached $1.63.  BofA was one of the stronger stocks but this may be telling us something.  I raised the stop up another 5 cents and wanted to raise it to $1.30 but I really don’t want the market to take us out of this trade.  I lowered the exit target as well which would give us a 50% return if hit…

  

Citigroup (C, $4.75, down $0.07)

 

January 7.50 calls (CAQ, $0.275, down $0.02)

 

Entry Price: $0.14 (8/12/09) Exit Target: 50 cents (sold half on 8/24/09 at 30 cents) Return: 114% Stop:  21 cents 

 

January (2011) 10 calls (VRNAB, $0.52, down $0.06)

 

Entry Price: $0.40 (8/12/09) Exit Target: CLOSED (8/25/09) Return: 45% Stop: 50 cents

 

Action:  The 7.50’s have a stop of 21 cents and the calls traded to a low of 23 cents.  The 10’s technically hit our stop of 50 cents so this side of the trade should have been closed.  Don’t get me wrong, I still like these calls…a ton.  However, I am hear to make you money both short and long term.  We already took 100% profits on half the 7.50’s and the 10’s returned 25%.  If Citigroup trades lower then we decide a good price to get back in.  If Citigroup trades above $5 and starts moving up then we can buy a September or October call option if we feel it is going to $6 or $7.

  

Imax (IMAX, $9.35, down $0.36)

 

September 7.50 calls (IMQIU, $1.85, down $0.35)

 

Entry Price: $1.90 (8/4/09) Exit Target: CLOSED (8/25/09) Return: 0% Stop: $1.90

 

March 2010 12.50 calls (IMQCV, $0.60, flat)

 

Entry Price: $0.45 (8/10/09) Exit Target: $1.00+ Return: 33% Stop: None

 

Action:  Here is what I said yesterday…”I lowered the exit target on the September calls because Imax is not a fast mover.  Yes, we did challenge $10 today but if the stock continues to struggle with that area we will manage the position for a profit.  Ideally, we would like to see a strong breakout above $10 and hold”.

 

That didn’t happen.  Now, this is important.  We were stopped out of the September calls and we ended up flat for a return.  I profiled the September trade on August 4th so we have been holding those options for nearly 3 weeks.  If Imax is range bound between $9 and $10 until September then the calls were either going to be worth $1.50 (Imax at $9) or $2.50 (Imax at $10).

 

The other side of the coin for this trade is the March options. There is NO STOP.  We know Imax doesn’t make BIG moves put if it can add a $1 a month to its share price between now and March then we are looking at a $15-$16 stock.  That makes the March 12.50’s worth $2.50 or $3.50.  If Imax falls back to $7 then these options will probably be worth 5 cents but I like the Imax story.

 

Potash (POT, $93.94, down $2.33)

 

September 110 calls (PYPIB, $0.60, down $0.20)

 

Entry Price: $1.35 (8/20/09) Exit Target: CLOSED (8/25/09)

Return: -56% Stop: 65 cents, lower to 60 cents

 

Action:  What a debacle.  I knew when I lowered the stop Monday night we were in trouble.  I tried to buy us some wiggle room but Potash faked me out this time.  The stock made a run at $100 and I thought there would be some follow thru once we got up there.  Potash managed to hit $99 shortly after we entered the trade but faded like an old summer shirt once it got to this level.  Potash is a big mover so there is still a chance for a rebound.  However, once our stop was hit we had to move on.

 

Sirius XM (SIRI, $0.69, down $0.03)

 

December 1 calls (QXOLA, $0.15, flat)

Entry Price: $0.15 (8/21/09) Exit Target: $0.30 Return: 0% Stop: None

 

Action:  Continue to hold.