9:15am (EST)

FedEx (FDX, $82.48, down $1.23)

December 90 calls (FDXLR, $0.80, down $0.35) 

Entry Price:  $1.40 (11/17/09)  
Exit:  $0.70 (11/19/09)
Return: -50%
Stop Limit: CLOSED   

Action:  Our stop was hit when the calls hit a low of 65 cents so the trade was closed on Thursday.  We still think FedEx will do well in a global recovery but we timed this one wrong.


Colgate-Palmolive (CL, $84.42, down $1.45)

January 85 calls (CLAQ, $2.70, down $1.20)

Entry Price: $1.35 (11/17/09) 
Exit: $3.30 AND $2.70 

Return: 122%
Stop Limit: CLOSED

Action: Keep the stock on your Watch List.  We may have bailed early but the current market action is just too dangerous to risk a triple-digit return.  The stock bounced back late in the session and was up 22 cents in after-hours trading yesterday.  

Some of you wrote and said you still have half positions open.  If so, place a stop of $2.25 or so to protect profits.  However, you may get a break and be able to get out for even bigger gains.   


Microsoft (MSFT, $29.78, down $0.33) 

December 30 calls (MSQLF, $0.70, down $0.17) 

Entry Price:  $0.65 (11/16/09)
Exit Target: $1.30
Return: 8%

Stop Limit:  50 cents 

Action:  This is a tough choice because we are bullish on the stock.  However, we just don’t like fighting the tape so lets see how it plays out. 

The Dell news will likely weigh on the market today and Microsoft could be dragged down with it.  However, Thanksgiving is usually a bullish week and the shares were UP 2 cents in after-hours trading while Dell was down a buck to $15.

The stop limit is 50 cents.  Now, if these calls open lower than 50 cents then you wll not be filled until 50 cents is hit again.  If it were a regular “stop” you would be filled at the open if the calls are below the stop. 

If you cannot watch the open, plan accordingly.  Hopefully, the market doesn’t take us out of the trade. 


Netflix (NFLX, $60.26, down $0.86)

December 65 calls (QNQLM, $1.00, down $0.20)

Entry Price:  $0.80 (11/13/09)
Exit Target: $1.60+
Return: 25%
Stop Limit:  NO STOP

2010 June 80 calls (QNQFP, $2.10, down $0.15)

Entry Price:  $1.65 (11/13/09)
Exit Target: $3.30++
Return: 27%

Stop Limit: NO STOP

Action:  We are limiting our exposure in the market for a moment but we like Netflix so much we are going to hold it through the storm if one is coming.  The June options are what makes this “double-trade” worth holding.

We have a $100 price target on Netflix by next summer which means the June 80 call options will be worth $20 (or $2,000) per contract.

Ten contracts would currently cost you a little over $2,000.  So if you get in at $2.50 or if the stock falls and you get in at $1.50 then you are still going to make a HUGE profit.  Yeah, based on those assumptions you would be up about $500 right now but what are YOUR expectations?

If you had bought 50 contracts, you would be up $2,500 in a week.  See where we are going with this?  Some trades we like for the short-term and we try to hit triple-digit returns or even double-digit returns.

With this one, we are looking for the quad-digit return or the “homerun”…even if we ride the December call options into the ground with no stop, we still think Netflix shares hit triple-digits. 


Dendreon (DNDN, $28.05, down $0.68)

2010 January 35 calls (UQBAT, $0.90, down $0.20)

Entry Price: $2.15 (10/15/09)
Exit Target: $5.00  
Return: -58%

Stop Limit: NO STOP

Action:  Continue to hold.

We are looking to see if there any possible trades out there today and if there is we will be back between 12:30-1:00pm with the update.  If we don’t recommend anything, we will not be updating the Members Area so we will see you Monday morning.  There is a chance we may skip this week’s Weekly Wrap due to travel but it doesn’t mean we aren’t working…