Trade Updates for INTC, PEP 1:00pm (EST) Intel (INTC, $19.92, up $0.17) October 20 calls (NQJD, $0.53, up $0.05) Entry Price: $0.53 (10/7/09) Exit Target: $1.00 Return: 0% Stop: None Action: Continue to hold. Pepsico (PEP, $60.13, down $1.04) November 62.50 calls (PEPKZ, $0.70, down $0.50) Entry Price: $1.15 (10/5/09) Exit Target: $2.30 Return: -39% Stop: 55 cents, lower to 45 cents Action: After opening slightly higher, Pepsico is now in the red and maybe it was those revenue numbers that missed by 1.5% that is taking us lower. Still, the company beat earning by 5 cents but this is the market for you. We were going to raise the stop this morning because it looked as though we had a profit in our back pocket. Instead, we may have to wait this one out a little which is also why I lowered the stop just a little. I don’t want to get taken out of a good position because the market is over-reacting to an otherwise outstanding earnings report. Rick@MomentumOptionsTrading.com 9:00am (EST) CURRENT TRADES Intel (INTC, $19.75, up $0.12) October 20 calls (NQJD, $0.48, up $0.02) Entry Price: $0.53 (10/7/09) Exit Target: $1.00 Return: -9% Stop: None Action: This trade was profiled in the Wednesday 1pm update and got a little cheaper as the day came to a close. This is one of those cheap out-of-the-money trades that we like to play with expiring options and earnings. They are usually all-or-nothing trades and hopefully I did a good job of explaining this yesterday. Pepsico (PEP, $61.17, up $0.30) November 62.50 calls (PEPKZ, $1.20, up $0.10) Entry Price: $1.15 (10/5/09) Exit Target: $2.30 Return: 4% Stop: 55 cents Action: Pepsico was up another 75 cents in after-hours trading last night which led me to believe they would report a good quarter this morning. They did. We should get a higher open for the calls but the beauty of this trade is that we still have plenty of time before the November call options expire. I will be back at 1pm to update the stop for this position. Citigroup (C, $4.64, down $0.03) January 7.50 calls (CAQ, $0.09, down $0.02) Entry Price: $0.32 (8/28/09) Exit Target: $0.64 Return: -72% Stop: None January (2011) 10 calls (VRNAB, $0.36, down $0.02) Entry Price: $0.60 (8/28/09) Exit Target: $1.20 Return: -40% Stop: None Action: The Financial stocks are rallying but Citigroup remains stuck in first gear. These positions were profiled back in August when the market was in transition and still have plenty of time before expiration. We have over 3 months on the 2010 call options and over 15 months before the 2011 call options expire. Imax (IMAX, $9.60, down $0.16) March 2010 12.50 calls (IMQCV, $0.40, down $0.05) Entry Price: $0.45 (8/10/09) Exit Target: $1.00+ Return: -11% Stop: None Action: Continue to hold.]]>