November 2009 | Members



12:45pm (EST)


Microsoft (MSFT, $29.73, up $0.10)

December 30 calls (MSQLF, $0.65, up $0.10)

Entry Price:  $0.65 (11/16/09)
Exit Target: $1.30
Return: 0%
Stop Limit:  NO STOP

Action:  The calls opened at 64 cents and traded to a low of 60 cents after the open.  You should have gotten in for 65 cents or less and notice there is no stop for the position.

The close above $29.50 was big and could become near-term support.  We could get a run to $32 which would make these options worth at least $2.00 or way more than a double from current levels.  The $30-$30.50 level will be tough but we could see momentum come into play this week and next.

Netflix (NFLX, $59.57, up $0.24)

December 65 calls (QNQLM, $1.00, up $0.05)

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

2010 June 80 calls (QNQFP, $2.00, up $0.15)

Entry Price:  $1.65 (11/13/09)
Exit Target: $3.30++
Return: 21%
Stop Limit: NO STOP

Action:  Netflix broke through $60 this morning and we would love to see a close above that level today. 

Apollo Group (APOL, $58.07, up $4.21)

December 50 puts (OAQXJ, $1.20, down $0.90)

Entry Price:  $1.45 (11/5/09)
Exit Target: $2.90
Return: -17%
Stop Limit:  CLOSE the trade NOW

Action:  The calls opened below our stop limit of $1.65 and we doubt we will be able to get that today.  Apollo got a huge lift this morning when news broke its subsidiary, University of Phoenix, got recertified for participation in the federal student financial aid programs from the government. 

This just shows how far behind our government is with the real world and many of you know my thoughts on Apollo Group.  Unfortunately, that doesn’t help today’s picture. 

We would love to hold this one open but the momentum has been busted.  We are going to close this trade for a small loss.  Some of you have been writing in and asking about the trade because the $1.65 limit was not hit.  This is what we are doing for our portfolio and normally we would place a 50% stop and see what happens.  However, because the parameters of the trade have been broken we would rather cut our losses and move on to the next trade.

Dendreon (DNDN, $28.98, up $0.04)

2010 January 35 calls (UQBAT, $1.25, flat)

Entry Price: $2.15 (10/15/09)
Exit Target: $5.00  
Return: -42%
Stop Limit: No Stop

Action:  Dendreon bounced back a little and we are looking for a break above $30 this week.  Continue to hold.