November 2009 | Members

 

 

 

11:30am (EST)

CURRENT TRADES

Imax (IMAX, $10.55, down $0.22)

November 10 calls (IMQKB, $1.00, down $0.20)

Entry Price:  $0.80 (11/3/09)
Exit Target: $2.00
Return: 25%
Stop: None

Action:  There is not a lot of “action”, yet, and it will be interesting to see how Imax holds up going into the bell.  The company will report earnings before the open on Thursday so we may get a good read on what we to expect.  Remember, this is pretty much an all-or-nothing trade so don’t shoot the messenger in the morning if I bring bad news.

We are looking for Imax to have another profitable quarter but anything can happen.  After reporting its first profit last quarter, the company is looking to build momentum into the world-wide rollout of 3-D in the coming years.  If they report a loss, the stock will get crushed.

 

Barrick Gold (ABX, $39.80, up $0.63)

November 40 calls (ABXKH, $1.55, up $0.19)

Entry Price:  $1.20 (11/3/09)
Exit Target: $2.00
Return: 29%
Stop: 90 cents, raise to $1.20 

Action:  The calls have hit a high of $1.78 as the stock has traded up to $40.20 this morning.  We raised the stop because we are still in a choppy market but gold is looking strong… 

 

Garmin (GRMN, $28.15, down $3.26)

December 25 puts (GQRXE, $1.20, up $0.48)

Entry Price:  $0.75 (10/29/09)
Exit Target: $1.50+
Return: 60%
Stop:  40 cents

Action:  Folks, we had no idea Garmin would be THIS volatile today but it has been.  Most of you knew going into this trade we have been looking for a break below $30 and we got it.  However, the stock opened at $32.96 and traded as high as $33.23.

Some of you may have gotten stopped out of the trade if you had a HARD stop in.  When I first looked at the calls they were at 55 cents this morning but they appear to have opened at 30 cents.  This is where the scalpers came in and took advantage of our trade.  Unfortunately, we cannot control this but I should have figured it into the trade.

Many of you wrote us this morning and we said we still like positions based on the current 55 cents bid.  Now that we have the break, look for the $30 level to become resistance. 

 

Apollo Group (APOL, $57.54, up $0.25)

November 55 puts (OAQWK, $1.35, down $0.25)

Entry Price:  $1.00 (10/28/09)
Exit Target: $2.00
Return: 35%
Stop: $1.10, raise to $1.25

Action:  We may have to roll this position out because the November options expire in a little over two weeks.  We have raised the stop and if it is hit we will look into the December puts.  We still think this one goes below $50.