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…
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