November 2009 | Members


12:50pm (EST) (PCLN, $175.07, up $3.07)

November 200 calls (PNEKA, $1.70, up $0.40)

Entry Price:  $1.10 (11/6/09)
Exit Target: $2.00
Return: 55%
Stop Limit: None

Action:  This is a tough one.  We can walk away now with a 50% profit or let it ride.  If you are just starting our service, you could take half your profits if you want to limit your exposure or close out here and take the earnings risk out of the trade.  For more aggressive accounts you can leave the position open.  We are more inclined to take the safe money but we will leave this position open for those of you willing to take the risk.  Again, the smart money closes the trade…

Apollo Group (APOL, $53.84, down $2.17)

December 50 puts (OAQXJ, $1.85, up $0.35)

Entry Price:  $1.45 (11/5/09)
Exit Target: $2.00, raise to $2.90
Return: 28%
Stop Limit: 75 cents, raise to $1.00

Action:  Continue to hold. The puts have traded to a high of $2.35 so we will raise our exit target to $2.90 which represents a 100% return.  Notice we raised the stop as well. 

Dendreon (DNDN, $29.19, up $0.58)

January 35 calls (UQBAT, $1.50, up $0.10)

Entry Price: $2.15 (10/15/09)
Exit Target: $5.00  
Return: -30%
Stop Limit: None

Action: Continue to hold.

Rick Rouse
Chief Options Strategist

“What Are You Doing TODAY to become a millionaire TOMORROW?”