April 2010 | Members

 

1:05pm (EST)

Qualcomm (QCOM, $39.19, up $0.37)

June 36 puts (AAO100619P00036000, $0.53, down $0.19)

Entry Price:  $0.80 (4/28/10) 

Exit Target: $2.00+

Return: -34%

Stop Target:  None

Action:  If the stock runs past $40 we will take another look at the trade but for now we aren’t too worried.


Dendreon (DNDN, $45.50, up $5.88)

May 55 calls (DNDN100522C00055000, $0.90, up $0.20)

Entry Price:  $1.50 (4/26/10) 

Exit Target: $2.00+

Return: -43%

Stop Target:  None

Action:  We will try to give an update when the news is released…

 

Akamai Technologies (AKAM, $39.03, up $5.85)

May 36 calls (AKAM100522C00036000, $3.15, up $2.55)

Entry Price:  $0.92 (4/14/10) 

Exit Target: $2.00, raise to $4+ (closed half at $3.15 on 4/29/10)

Return: 242%

Stop Target:  $1.75, raise to $2.10

Action:  Shares of Akamai are now at $39 since our last update and shares did fall back after 15 minutes of trading.  However, they appear like they want to resume their strong uptrend and we could easily push $40+.  We have raised the exit target on the other half to $4+.

Let’s also raise the stop (again) to lock in these massive gains. Note:  There is a TON of call buying in the higher strike prices which is usually a bullish sign that traders are expecting an even higher stock price over the near-term.

The May 38,39,40 and 45 strike prices have traded over 1,500 call contracts apiece and we would love the other half of the position to soar to the moon.

   

JDS Uniphase (JDSU, $13.43, up $0.28)

May 14 calls (UQD100522C00014000, $0.55, up $0.10)

Entry Price:  $0.75 (4/12/10) 

Exit Target: $1.50+

Return: -27%

Stop Target:  None

Action:  Continue to hold.  The company reports earnings on May 5. 

 

Corning (GLW, $20.19, up $0.12)

August 22 calls (GLW100821C00022000, $0.75, up $0.05)

Entry Price:  $0.60 (4/12/10) 

Exit Target: $1.20+ (closed half on 4/27 @ $1.00)

Return: 46% 

Stop Target:  55 cents 

Action:  Continue to hold.

 

Garmin (GRMN, $38.60, up $0.35)

May 32 puts (GRMN100522P00032000, $0.25, down $0.05)

Entry Price:  $1.00 (4/5/10) 

Exit Target: $2.00+

Return: -75% 

Stop Target:  None

Action:  We said this morning that a 10% correction in the stock price will get this trade back on its feet.  Akamai is up nearly 20% today so if Garmin misses earnings there it is possibility shares could fall just as much.  We might be asking a lot but sooner or later, Garmin’s gig is up in the navigation device business.


TiVo (TIVO, $18.10, up $0.46)

May 20 calls (TUK100522C00020000, $0.85, up $0.25)

Entry Price:  $0.85 (3/5/10)  

Exit Target: $1.70 

Return: 0% 

Stop Target: None 

Action:  Shares traded to a high of $18.84 so we know something is going on behind the scenes with TiVo.  The options traded to a high of $1.10 which represents nearly a 30% profit but we are expecting TiVo to bust through $20, hopefully, by Friday. These options still have 22 days before expiration so we have plenty of time to hold these options.


Other 2010 Portfolio OPEN positions (4):  These are trades that are still open in the portfolio that have longer expiration dates or are on hold but are not worth mentioning until they turn around.  This way you know we are still tracking them and we will record the results, accordingly, when we close them or they expire.  Click on the 2010 Portfolio link in the Members Area to view ALL open/ closed trades. 

American Tower, Berkshire Hathaway Class B, Canadian Solar and Shuffle Master.


WATCH LIST SECTION


These trades are NOT recommendations until we send out an alert.  These are trades that we like but have not added to the portfolio as an official recommendation because of market conditions or because we are waiting for better entry prices.  We will not list entry prices because these stocks are on the verge of breaking out or they could selloff.  

We are looking at a new batch of trades to add this section and we will be back in the morning with a fresh list.

 

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9:40am (EST)    

Akamai Technologies (AKAM, $38.70, up $5.52)

May 36 calls (AKAM100522C00036000, $3.15, up $2.44)

Entry Price:  $0.92 (4/14/10) 

Exit Target: $2.00+

Return: 242%

Stop Target:  $1.00, raise to $1.75

Action:  This is why we play the game, folks.  Akamai’s 17% gain has meant a 440% gain on the options.  These are the types of trades that offset your losers as well.  We are closing half the trade at current prices and raising the stop.   

**********************************

9:05am (EST)

Qualcomm (QCOM, $38.82, up $0.90)

June 36 puts (AAO100619P00036000, $0.72, down $0.18)

Entry Price:  $0.80 (4/28/10) 

Exit Target: $2.00+

Return: -10%

Stop Target:  None

Action:  Qualcomm rallied into the close and the HP/ Palm deal could mean good news for them.  At least that is what the market is telling us.

We mentioned the breakdown in Qualcomm yesterday so don’t get nervous if shares run up to $40 which should act as resistance.  These puts do not expire for another 50 days so we have plenty of time for the trade to develop.  However, if the stock runs past $40 we may have to exit early.


Dendreon (DNDN, $39.62, down $0.42)

May 55 calls (DNDN100522C00055000, $0.75, down $0.35)

Entry Price:  $1.50 (4/26/10) 

Exit Target: $2.00+

Return: -50%

Stop Target:  None

Action:  We should hear news within the next 24-48 hours from the FDA on Provenge if it is a go or not.

 

Akamai Technologies (AKAM, $33.18, down $0.52)

May 36 calls (AKAM100522C00036000, $0.60, down $0.20)

Entry Price:  $0.92 (4/14/10) 

Exit Target: $2.00+

Return: -35%

Stop Target:  50 cents

Action:  Sometimes you have to go with your instincts. 

Akamai did not let us down and we will do an earnings write-up in the afternoon update.  All you need to know is that shares were up 9% in after-hours trading last night to $36+.  Those gains have held this morning as shares are pushing $37.  We are going to sell half into strength but you will have to wait until the market opens to get your best price.  DO NOT use market orders when you go to close half.  Instead get into the habit of using limit prices.

Stocks usually make their highs within the first 15-20 minutes and then pull back on days like this but they can also continue to go higher.

So, the plan would be to sell HALF of your position into strength in the first 20 minutes and then place a FIRM stop on the other half at $1.00.  These options should open near $1.75-$2.00.

   

JDS Uniphase (JDSU, $13.15, down $0.06)

May 14 calls (UQD100522C00014000, $0.45, down $0.05)

Entry Price:  $0.75 (4/12/10) 

Exit Target: $1.50+

Return: -40%

Stop Target:  None

Action:  Continue to hold.  The company reports earnings on May 5. 

 

Corning (GLW, $20.07, down $0.05)

August 22 calls (GLW100821C00022000, $0.70, down $0.10)

Entry Price:  $0.60 (4/12/10) 

Exit Target: $1.20+ (closed half on 4/27 @ $1.00)

Return: 42% 

Stop Target:  55 cents 

Action:  Continue to hold.

 

Garmin (GRMN, $37.25, up $0.10)

May 32 puts (GRMN100522P00032000, $0.30, down $0.05)

Entry Price:  $1.00 (4/5/10) 

Exit Target: $2.00+

Return: -70% 

Stop Target:  None

Action:  We think Garmin could miss earnings when they report on May 5. A 10% correction in the stock price will get this trade back on its feet.   


TiVo (TIVO, $17.64, down $0.10)

May 20 calls (TUK100522C00020000, $0.60, down $0.05)

Entry Price:  $0.85 (3/5/10)  

Exit Target: $1.70 

Return: -29% 

Stop Target: None 

Action:  We are expecting major news by the end of the week concerning TiVo.


Other 2010 Portfolio OPEN positions (4):  These are trades that are still open in the portfolio that have longer expiration dates or are on hold but are not worth mentioning until they turn around.  This way you know we are still tracking them and we will record the results, accordingly, when we close them or they expire.  Click on the 2010 Portfolio link in the Members Area to view ALL open/ closed trades. 

American Tower, Berkshire Hathaway Class B, Canadian Solar and Shuffle Master.


WATCH LIST SECTION


These trades are NOT recommendations until we send out an alert.  These are trades that we like but have not added to the portfolio as an official recommendation because of market conditions or because we are waiting for better entry prices.  We will not list entry prices because these stocks are on the verge of breaking out or they could selloff.  

 

Broadcom (BRCM, $35.41, up $0.59)

June 32 puts (BRCM100619P00032000, $0.56, down $0.28)

Action:  We might get into this trade if the options fall to 40- 45 cents.  However, we will send out an alert if we do and we are also looking at the 33’s which are at 85 cents.


Goldman Sachs (GS, $157.01, up $3.97)

May 130 puts (GS100522P00013000, $0.63, down $0.37)

Action:  A lot of short-sellers are getting crushed because they didn’t wait for the break below $150.  Shares traded $150.15 on Tuesday which is where the shorts got aggressive but Goldman has trended higher.  We might have to move out into the June options if we are going to keep Goldman on our Watch List.  And we may have to add some call options as well…


A123 Systems (AONE, $12.46, down $0.51)

September 15 calls (AONE100918C00015000, $0.52, down $0.05)

Action:  We would like to get into these options for under 50 cents.


Toyota Motor (TM, $76.84, down $0.15)

May 75 puts (TM100522P00075000, $1.30, down $0.05)

Action:  Continue to watch.


Massey Energy (MEE, $41.44, up $0.08) 

May 40 put (MQO100522P00040000, $1.55, down $0.10)

June 40 puts (MQO10061900045000, $2.75, up $0.20)

Action:  Continue to watch.