September 2009 | Members

12:30pm (EST ) NEW TRADE!

One stock I’m watching today is Freeport McMoRan (FCX, $69.54, down $0.82) which is looking like it wants to test its 52-week high of $77.  The move above $67 last week was the key bulls were looking for.  The stock is no stranger to the Blog and we have made some decent returns trading this one.  When the stock hit $70 my “alert” went off on Friday which reminded me to check my notes.  Here were my thoughts back on May 20th when the stock was at $50: 
 
“The chart for Freeport is showing more upside at the moment but it is hard to trust a stock that fell from $70 in September to under $20 in 2 months. However, the decline was steep so the retracement could get interesting.” (END)
 
Well, here we are.  There is a little resistance at $73-ish but other than that I’m going with my notes.
 
The Freeport McMoRan October 80 calls (FHZJP, $0.99, down $0.26) have traded as low as 89 cents and as high as $1.20 today.  The $70 level will need to hold and could determine if we go higher or fail at this level. 
 
Target $1.00 as an entry price but don’t pay over $1.10.  You could also use a limit order of 90 cents if it looks like the stock goes back and tests this morning’s low of $68.27.  Set stops at half your entry price.

 

9:10am (EST) Quotes are from Friday’s close

Citigroup (C, $4.61, down $0.14)
 
January 7.50 calls (CAQ, $0.16, down $0.02)
 
Entry Price: $0.32 (8/28/09)
Exit Target: $0.16
Return: -50%
Stop:  None  
 
January (2011) 10 calls (VRNAB, $0.45, up $0.01)
 
Entry Price: $0.60 (8/28/08) 
Exit Target: $1.20
Return: -33%
Stop: None
 
Action:  Continue to hold.
 
Dendreon (DNDN, $23.84, up $0.11)
 
November 45 calls (UQBKO, $0.25, down $0.01)
 
Entry Price: $0.30 (8/31/09) 
Exit Target: $0.60 
Return: -14%
Stop: None
 
Action:  Continue to hold.
 
Disney (DIS, $28.42, up $0.06)
 
October 27.50 calls (DISJY, $1.62, up $0.07)
 
Entry Price: $0.80 (9/10/09) 
Exit Target: $1.60 (closed half @ $1.50 on 9/11/09)
Return: 94%
Stop: $1.25 (on other half)
 
Action: We closed half at $1.50 and a stop of $1.25 is in place on the other half.
 
First Solar (FSLR, $136.75, down $3.40)
 
October 165 calls (HJQJM, $1.71, down $0.84)
 
Entry Price: $2.00 (9/10/09)
Exit Target: closed half @ $3.20, other half at $1.95 on 9/11/09
Return: 30%
Stop: CLOSED
 
Action:  First Solar got a pop at the open and the calls trades as high as $3.20.  You should have closed half at $3.00 on the way back down and the other half went I sent out the 1pm update.  This stock continues to be volatile and there are opportunities to trade First Solar directionally but you have to be in-and-out.  That is why I am providing daily updates.  One minute traders love it, the next minute they hate it. 
 
Imax (IMAX, $9.82, down $0.16)
 
March 2010 12.50 calls (IMQCV, $0.50, up $0.05)
 
Entry Price: $0.45 (8/10/09)
Exit Target: $1.00+
Return: 11%
Stop: None
 
Action:  Continue to hold.     
 
Sirius XM (SIRI, $0.66, down $0.01) 
 
December 1 calls (QXOLA, $0.10, down $0.05) 
 
Entry Price: $0.15 (8/21/09)
Exit Target: $0.30
Return: -33%
Stop: None
 
Action:  Continue to hold.