October 2009 | Members

  12:40pm (EST) Intel (INTC, $21.05, up $0.56) October 20 calls (NQJD, $1.05, up $0.22) Entry Price: $0.53 (10/7/09) Exit Target: $1.20 Return: 125% Stop:  CLOSED November 20 calls (NQKD, $1.38, up $0.17) Entry Price: $0.90 (10/9/09) Exit Target: $1.80 Return: 55% Stop:  $1.25 Action:  The October call options opened at $1.29 and we going for $1.15-$1.20 for the first 5 or 10 minutes of trading.  You should be totally out of the October 20’s by now.  As far as the November options, they opened at $1.63 and have traded as low as $1.28.  Remember, I said there was no rush to sell these today and we would have to see where they opened before setting our stops.  If you will notice, there was no stop for the November call options but there is one now.  We have set the stop at $1.25.  That locks in profits of up to 40% from entry level prices. As far as our other trades…Imax (IMAX, $10.56, up $0.13) and Pepsico (PEP, $61.02, up $0.42) are higher and I will update them in the morning.  Citigroup (C, $4.95, up $0.13) is showing signs of life but still needs to get over $5.25-$5.50 for us to get excited again.   9:05am (EST) Intel (INTC, $20.49, up $0.09) October 20 calls (NQJD, $0.83, up $0.09) Entry Price: $0.53 (10/7/09)  Exit Target: $1.00 Return: 57%   Stop:  None November 20 calls (NQKD, $1.21, up $0.10) Entry Price: $0.90 (10/9/09)  Exit Target: $1.80 Return: 33%   Stop:  None Action:  Everyone should have gotten last night’s News Flash after the market closed as we provided a quick update on Intel’s earnings.  As we stand, the stock is at $21.36 in pre-market trading and it appears the gain from last night’s after-hours session is going to hold.  We are looking to sell the October call options into strength. This is important.  Usually, when we do trades in the morning, we wait 15-20 minutes AFTER the market opens if our limit price isn’t hit to make adjustments.  This time we want to sell into strength because we want to get the BEST possible price.  Now, Intel could trend higher the rest of the day but usually the peak is going to come in the first 10 minutes of trading. If the stock is at $21.35, place a sell to close limit order on the October 20’s for at least $1.35 because that is their value.  Long story short is that they are “in-the-money” by that much so you should get $1.35 or even $1.40 or $1.50.  Try $1.50 and see if it sells.  Adjust if you aren’t getting filled.  BE CAREFUL NOT TO USE MARKET ORDERS.  You may get a “cheap” fill order at $1.00 or something crazy and it can happen so be on your toes at the open. The action in Intel is going to be fast, furious and intense.  Intel is not magically going to run to $25 today so don’t get greedy with the October call options. The November call options should open up around $2 and there isn’t a rush to close these just yet.  They still have well over 30 days before expiration and by then, Intel could still be running.  If not, we set stops and get out.  So, if the November calls open at $1.75 then set stops at $1.50.  If the call options open at $2, then set stops at $1.80 which locks in the triple-digit return.  You get the picture.    Pepsico (PEP, $60.60, down $0.32) November 62.50 calls (PEPKZ, $0.70, down $0.13)  Entry Price: $1.15 (10/5/09)  Exit Target: $2.30 Return: -39%   Stop:  45 cents Action:  Continue to hold.   Imax (IMAX, $10.43, up $0.38) March 2010 12.50 calls (IMQCV, $0.55, up $0.10) Entry Price: $0.45 (8/10/09) Exit Target: $1.00+ Return: 22% Stop: None  Action:  Continue to hold.]]>