October 2009 | Members

 

1:10pm (EST) NEW TRADE!!!  Chesapeake Energy (CHK, $28.83, up $0.16) Buy to OPEN CHK November 30 calls (HKWKF, $1.05, up $0.05) Chesapeake Energy recently hit a 52-week high of $30.00 and options traders are betting on more upside.  These options are pretty active today and I like them at current prices.  Set limit prices at $1.05 and do not pay more than $1.10-$1.15 for them. As far as Google (GOOG, $552.00, up $2.15), I am not recommending positions in this trade because the premium is obviously way too much for what we do but I wanted to see what would happen if Google hits $1,000 by 2011.  The January 2011 700 calls (XGKAT, $23.50, up $0.10) would double if Google is at $750 by January 21, 2011.  If by chance the stock does hit $1,000?  It would cost you $2,350 to buy one contract but these calls would be worth $300, or $30,000, if Google trades $1,000…   9:00am (EST) CURRENT TRADES Blackstone Group (BX, $16.24, down $0.49) January 20 calls (BXAD, $0.60, down $0.13) Entry Price: $0.65 (10/15/09) Exit Target: $1.30   Return: -8% Stop:  None Action:  Hold.   Dendreon (DNDN, $29.51, down $0.40) January 35 calls (UQBAT, $2.25, down $0.15) Entry Price: $2.15 (10/15/09) Exit Target: $5.00   Return: 5% Stop:  None Action:  Hold.   Pepsico (PEP, $62.29, down $0.39) November 62.50 calls (PEPKZ, $1.15, down $0.30)  Entry Price: $1.15 (10/5/09)  Exit Target: $2.30 Return: 0%   Stop:  $1.00 Action:  Hold.      Imax (IMAX, $10.85, up $0.06) March 2010 12.50 calls (IMQCV, $0.75, down $0.05) Entry Price: $0.45 (8/10/09) Exit Target: $1.00+ Return: 67% Stop: None   Action:  Hold.]]>