September 2009 | Members

9am (EST)

Citigroup (C, $4.68, down $0.17)
 
January 7.50 calls (CAQ, $0.19, down $0.04)
 
Entry Price: $0.32 (8/28/09)
Exit Target: $0.60 
Return: -40%
Stop:  None  
 
January (2011) 10 calls (VRNAB, $0.50, down $0.07)
 
Entry Price: $0.60 (8/28/08) 
Exit Target: $1.20
Return: -17%
Stop: None
 
Action:  The 2010 call options will be more volatile than the 2011’s.  A 4 cent loss in the 2010 calls meant a drop from -20% to -40%.  This position could lose as much as 75% from the entry level price but they are CHEAP out-of-the-money so we need to keep things in perspective.  These types of moves will happen over the near-term but longer-term I still believe the stock heads higher.
 
Dendreon (DNDN, $23.73, down $0.07)
 
November 45 calls (UQBKO, $0.29, up $0.03)
 
Entry Price: $0.30 (8/31/09) 
Exit Target: $0.60 
Return: -3%
Stop: None
 
Action:  Dendreon made a quick pop to over $24 but ended the day slightly lower.  The current “bid” is 25 cents, the “ask” is 29 cents.  I’d like to see a move towards $27 this week but it will depend on what kind of news the company will presenting this week in their presentations to Wall Street.
 
Imax (IMAX, $9.22, down $0.08)
 
March 2010 12.50 calls (IMQCV, $0.40, flat)
 
Entry Price: $0.45 (8/10/09)
Exit Target: $1.00+
Return: -11%
Stop: None
 
Action:  Continue to hold.  The December 10 calls (IMQLB, 60 cents) never made it to our limit price of 50 cents so put this one on the back burner.  I still like the March 12.50’s better and if Imax does make a run to over $10 and holds, then we should be good either way.
 
Sirius XM (SIRI, $0.67, up $0.02)
 
December 1 calls (QXOLA, $0.15, up $0.05)
 
Entry Price: $0.15 (8/21/09)
Exit Target: $0.30
Return: 0%
Stop: None
 
Action:  Continue to hold.
 
Earnings Trades 
 
Both of these trades were mentioned in the Weekly Wrap and in Tuesday’s Members Area before the bell.  They were quick in-and-out trades that were aimed to add some cash into your accounts and they both did rather well.
 
Pep Boys (PBY, $10.09, up $0.79)
 
September 10 calls (PBYIB, $0.80, up $0.40)
 
Entry Price: $0.40-$0.50 (9/8/09)
Exit Price: $0.80 (9/8/09)
Return: 60% – 100%
Stop: None
 
Action:  I said earnings trades were tricky but these options opened at 55 cents and traded to a low of 40 cents.  Remember, if you are trading 10 or 20 lot contracts then you can make some decent returns to build your trading account up over the short-term.
 
Campbell Soup (CPB, $32.38, up $1.19)
 
September 32.50 calls (CPBIZ, $0.70, up $0.45)
 
Entry Price: $0.30 (9/8/09)
Exit Price: $0.60 (9/8/09)
Return: 100%
Stop: None
 
Action:  The September 32.50 calls (CPBIZ, $0.55, up $0.30) opened at 25 cents Tuesday morning and easily doubled.  This was only a one-day trade but the stock was up another 22 cents in after-hours last night…