September 2009 | Members

9:15am (EST)

Trade Updates (quotes are from Wednesday): 
 
Citigroup (C, $4.56, up $0.02)
 
January 7.50 calls (CAQ, $0.21, up $0.02)
 
Entry Price: $0.32 (8/28/09)
Exit Target: $1.00
Return: -34%
Stop:  None  
 
January (2011) 10 calls (VRNAB, $0.50, up $0.02)
 
Entry Price: $0.60 (8/28/08) 
Exit Target: $2.00
Return: -17%
Stop: None
 
Action:  Continue to hold.
 
Dendreon (DNDN, $22.74, down $0.22)
 
November 45 calls (UQBKO, $0.24, up $0.02)
 
Entry Price: $0.30 (8/31/09) 
Exit Target: $0.60 
Return: -20%
Stop: 15 cents (see notes) 
 
Action:  To start, a 10 contract trade was only $300 and remember this is a low priced option.  The key to growing your portfolio is to take calculated risks on trades at higher levels and then use some of the winnings to go long on speculative plays.  There are a few trades that are in the red but look how far out we are. 
 
Having said that, I’m lifting the stop on DNDN because we could get stopped out if we keep the 15 cent stop in place.  If the stock can get near $27 and challenge its 52-week high then there will be a lot of people who feel like they are going to miss the next move in Dendreon.
 
There is no question the stock has been flat since the news in April but that is a good thing.  The tighter the coil the stronger the spring…up or down.  I don’t believe there is any bad news out there that can take the stock price down but we are getting close to support levels.  If we break below $21.50 then we could see some selling pressure.
 
First Solar (FSLR, $118.32, up $3.34)
 
September 100 puts (QHBUT, $1.05, down $0.45)
 
Entry Price: $1.25 (9/1/09)
Exit Target: $1.85 (9/2/09)
Return: 48%
Stop: CLOSED
 
Action:  We played this trade like a squeezebox.  In-and-out.  The opening bell was super sweet to us yesterday as First Solar started off in the red.  The selling intensified right off the bat and the stock hit a low of $112 before making a huge rebound.  That was pretty much what I expected and we were able to take all of the emotion out of the trade by carefully planning the exit.  Once we hit $1.75 on the put options we had the luxury of holding out for $1.85 as the options hit a high of $1.89.  The momentum is still down but as you can see, First Solar can turn on a dime.
 
Imax (IMAX, $9.00, down $0.07)
 
March 2010 12.50 calls (IMQCV, $0.35, flat)
 
Entry Price: $0.45 (8/10/09)
Exit Target: $1.00+
Return: -22%
Stop: None
 
Action:  Continue to hold.
 
Sirius XM (SIRI, $0.61, down $0.05)
 
December 1 calls (QXOLA, $0.05, down $0.05)
 
Entry Price: $0.15 (8/21/09)
Exit Target: $0.30
Return: -66%
Stop: None
 
Action:  Continue to hold.