October 2009 | Members

9:05am (EST) Blackstone Group (BX, $16.73, down $0.38) January 20 calls (BXAD, $0.73, down $0.07) Entry Price: $0.65 (10/15/09) Exit Target: $1.30   Return: 12% Stop:  None Action:  Hold. Dendreon (DNDN, $29.91, up $0.58) January 35 calls (UQBAT, $2.40, up $0.15) Entry Price: $2.15 (10/15/09) Exit Target: $5.00   Return: 12% Stop:  None Action:  Dendreon got hot right after our 1pm update and we got a brief push to over $30.  We were able to get into the call options at $2.15 and they hit a high of $2.55 yesterday.  Once the stock can close and stay above $30 we should start seeing even higher levels after that.  We have been building higher highs and higher lows which means the stock is in a solid uptrend.  We are still subject to risk because it is a Biotech/ Drug stock but I think Dendreon is ready to rock.  Remember, the CEO has admitted Dendreon is looking for a partner to help it market Provenge. Pepsico (PEP, $62.68, up $1.06) November 62.50 calls (PEPKZ, $1.45, up $0.50)  Entry Price: $1.15 (10/5/09)  Exit Target: $2.30 Return: 26%   Stop:  45 cents, raise stops to $1.00 Action:  Welcome back, welcome back, welcome back…Even Mr. Kotter would have been proud of Pepsico’s performance yesterday.  Shares look like they are gaining momentum and could be headed to $65 over the near-term.  Notice we raised our stop from 45 cents to $1.00. Imax (IMAX, $10.79, up $0.12) March 2010 12.50 calls (IMQCV, $0.80, up $0.15) Entry Price: $0.45 (8/10/09) Exit Target: $1.00+ Return: 78% Stop: None  Action:  Imax continues to impress as the stock hit a high of $11.15.  The bigger story was the huge volume activity in the November 10 calls (IMQKB, $1.20, up $0.15) as over 4,300 contracts traded hands or over 5x the open interest of just 663 contracts.  That means before yesterday’s huge volume surge there were only 663 positions that could have been exercised at that strike price.  This is a very good indication that others are starting to catch on to the Imax experience and $10 is now becoming a solid area of support.  Hold tight and enjoy the ride…we still have over 5 months before these call options expire.  I’m getting a warm and fuzzy feeling on this one and have shares pegged at $15 by March 2010.  That means the March 12.50’s will be worth at least $2.50.  And they are at 80 cents now…]]>