April 2010 | Members

 

1:15pm (EST)

DreamWorks Animation (DWA, $42.76, down $0.23)

May 45 calls (DWA100522C00045000, $0.90, down $0.10)

Entry Price:  $0.90 (4/26/10) 

Exit Target: Closed at $1.10

Return: 22%

Stop Target:  None

Action:   DreamWorks will report after the bell and was having a good day until the market started selling off.  Shares had reached a high of $43.58 and some of you may still be in the position. 

We aren’t sure we would have kept this one open even before the sell-off because we wanted to take some chips off the table with other earnings announcements and events happening this week with ALL of our trades.

 

Dendreon (DNDN, $40.11, down $1.08)

May 55 calls (DNDN100522C00055000, $1.05, down $0.15)

Entry Price:  $1.50 (4/26/10) 

Exit Target: $2.00+

Return: -30%

Stop Target:  None 

Action:  We are expecting the FDA news any day now and before Saturday’s deadline.


Akamai Technologies (AKAM, $34.03, down $0.64)

May 36 calls (AKAM100522C00036000, $0.85, down $0.20)

Entry Price:  $0.92 (4/14/10) 

Exit Target: $2.00+

Return: -8%

Stop Target:  50 cents

Action:  Continue to hold.

   

JDS Uniphase (JDSU, $13.36, down $0.45)

May 14 calls (UQD100522C00014000, $0.60, down $0.10)

Entry Price:  $0.75 (4/12/10) 

Exit Target: $1.50+

Return: -20%

Stop Target:  None

Action:  Continue to hold.

 

Corning (GLW, $20.37, down $0.55)


August 22 calls (GLW100821C00022000, $0.85, down $0.20)


Entry Price:  $0.60 (4/12/10) 

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

Return: 54% 

Stop Target:  None

Action:  Corning reports before the bell tomorrow and we wanted to take some profits off the table before the event.  The options still have 115 days before they expire so we will see where we are at after they report. 

 

Garmin (GRMN, $38.18, up $0.48)

May 32 puts (GRMN100522P00032000, $0.35, flat)

Entry Price:  $1.00 (4/5/10) 

Exit Target: $2.00+

Return: -65% 

Stop Target:  None

Action:  Continue to hold.


American Tower (AMT, $41.26, down $0.60)


May 45 calls (AMT100522C00045000, $0.15, down $0.10)

Entry Price:  $0.60 (3/29/10) 

Exit Target: $1.30+ 

Return: -75% 

Stop Target:  None

Action:  These were cheap out-of-the-money options and some people will get hung up on the percentage losses.  We don’t overtrade our account and sometimes we take chances on these types of trades.  A 10 contract trade was only $600 or if you traded 3 contracts it was only $180.

These types of trades can be all-or-nothing and we knew that going in.  We also knew American Tower is a slow moving company but they have talked about becoming a REIT and that announcement could come with earnings.

We are only speculating, of course, but the company is in a sweet spot as far as it’s build-out and we think shares will easily trade to over $50 by the end of 2010.  However, we may get caught with the May options if American Tower doesn’t say something special when they report.



TiVo (TIVO, $17.99, down $0.54)


May 20 calls (TUK100522C00020000, $0.70, down $0.15)

Entry Price:  $0.85 (3/5/10)  

Exit Target: $1.70 

Return: -18% 

Stop Target: None 

Action:  Continue to hold.


Other 2010 Portfolio OPEN positions (3):  These are trades that are still open in the portfolio that have longer expiration dates 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.  Click on the 2010 Portfolio link in the Members Area to view ALL open/ closed trades. 


Berkshire Hathaway Class B (BRK/B, $77.66, down $1.58), Canadian Solar (CSIQ, $17.39, down $0.55) and Shuffle Master (SHFL, $8.70, down $0.19).



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.  We will not list entry prices because these stocks are on the verge of breaking out or they could selloff.  



Goldman Sachs (GS, $152.91, up $0.88)


May 130 puts (GS100522P00013000, $1.00, down $0.08)


Action:  Goldman has been volatile today to say the least as shares have traded up to $156 and to a low of $150.15.  We have targeted the drop below $150 as a possible entry point and these puts traded to a low of 70 cents.  They looked good at those prices but we want to confirm the breakdown below $149-$150.

 

A123 Systems (AONE, $12.91, down $0.07

September 15 calls (AONE100918C00015000, $0.90, down $0.10)

Action:  Continue to watch.


Toyota Motor (TM, $77.40, down $1.42)

May 75 puts (TM100522P00075000, $1.20, up $0.50) 

Action:  Continue to watch.


Massey Energy (MEE, $41.78, down $1.83)

May 40 put (MQO100522P00040000, $1.45, up $0.60)

Action:  We still think Massey drops below $40.  

 

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

11:40am (EST)     

DreamWorks Animation (DWA, $43.35, up $0.36)

May 45 calls (DWA100522C00045000, $1.10, up $0.10)

Entry Price:  $0.90 (4/26/10) 

Exit Target: $1.80+

Return: 22%

Stop Target:  None

Action:   DreamWorks will report after the bell today.  As much as we want to hold this one open we have too many events happening in one day as you will see.  We are going to close at current levels just to reduce some risk.

 

Dendreon (DNDN, $40.69, down $0.50)

May 55 calls (DNDN100522C00055000, $1.10, down $0.10)


Entry Price:  $1.50 (4/26/10) 

Exit Target: $2.00+

Return: -27%

Stop Target:  None


Action:  Shares were up near $42 in pre-market and reached a high of $41.75 before pulling back.  Continue to hold.

 

Akamai Technologies (AKAM, $34.61, down $0.06)


May 36 calls (AKAM100522C00036000, $1.05, flat)


Entry Price:  $0.92 (4/14/10) 

Exit Target: $2.00+

Return: 14%

Stop Target:  50 cents


Action:  Continue to hold.

   

JDS Uniphase (JDSU, $13.62, down $0.19)


May 14 calls (UQD100522C00014000, $0.65, down $0.05)


Entry Price:  $0.75 (4/12/10) 

Exit Target: $1.50+

Return: -13%

Stop Target:  None


Action:  Continue to hold.

 

Corning (GLW, $20.90, down $0.02


August 22 calls (GLW100821C00022000, $1.00, down $0.05)


Entry Price:  $0.60 (4/12/10) 

Exit Target: $1.20+

Return: 67% 

Stop Target:  None


Action:  Let’s close HALF of the trade now.  You can close at current levels or wait before the close but either way you want to protect your profits given the current market environment.  If shares do continue higher then we have until August to enjoy further upside and if we slide we can close out the other half or wait it out.

 

Garmin (GRMN, $38.37, up $0.67)


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:  Continue to hold.



American Tower (AMT, $41.41, down $0.45)


May 45 calls (AMT100522C00045000, $0.20, down $0.05)


Entry Price:  $0.60 (3/29/10) 

Exit Target: $1.30+ 

Return: -67% 

Stop Target:  None


Action:  Continue to hold.  



TiVo (TIVO, $18.17, down $0.36)


May 20 calls (TUK100522C00020000, $0.80, down $0.05)


Entry Price:  $0.85 (3/5/10)  

Exit Target: $1.70 

Return: -6% 

Stop Target: None 


Action:  Continue to hold.

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

9:05am (EST)

DreamWorks Animation (DWA, $42.99, up $0.33) 

May 45 calls (DWA100522C00045000, $1.00, up $0.15)

Entry Price:  $0.90 (4/26/10) 

Exit Target: $1.80+

Return: 11%

Stop Target:  None 

Action:   DreamWorks will report after the bell today.

 

Dendreon (DNDN, $41.19, up $1.09)

May 55 calls (DNDN100522C00055000, $1.20, up $0.23)

Entry Price:  $1.50 (4/26/10) 

Exit Target: $2.00+

Return: -20%

Stop Target:  None

Action:  We were unable to get into the May 50 calls so we went with the 55’s.  The reason we added these options is because the FDA will likely announce their verdict on Provenge BEFORE Saturday which is the May 1st deadline.

There is still the risk of a delay or some curveball of sorts and the option prices are super inflated.  If any negative news comes out then shares will be sliced in half, no kidding. 

Folks, it’s hard to say where shares end up and this trade carries a lot of risk.  Even if the news comes out positive, shares could stay flat or sell-off.  Our hope is that shares will zoom past $50 or even $55 but these options could still lose some of their value because the premiums are so juiced.

We mentioned the trade was like the Denver Broncos taking Tim Tebow because there is so much upside with the chance of the pick blowing up in their face.  However, we have watched Dendreon grow up right in front of our eyes for over 3 years now so we have sentimental ties to it.  We profiled this company when shares were under $5 and Cramer was telling you it was a dog.

Nobody would believe us when we said that ultimately this drug gets approved so you can see our fondness for the stock.  We could be wrong on this one but how could we not take this chance after we have been talking about this event for years?

 

Akamai Technologies (AKAM, $34.67, up $0.45)

May 36 calls (AKAM100522C00036000, $1.05, up $0.15)

Entry Price:  $0.92 (4/14/10) 

Exit Target: $2.00+

Return: 14%

Stop Target:  50 cents

Action:  Akamai got us back in the black as shares touched a new 52-week high of $34.86 yesterday.  The company will announce earnings AFTER the bell on Wednesday.

   

JDS Uniphase (JDSU, $13.81, up $0.11)

May 14 calls (UQD100522C00014000, $0.70, up $0.05) 

Entry Price:  $0.75 (4/12/10) 

Exit Target: $1.50+

Return: -7%

Stop Target:  None

Action: Shares reached a high of $13.88, just 7 cents off its 52-week high.  We think JDSU has all the makings to run to $15 over the near-term if the market holds up.

 

Corning (GLW, $20.92, up $0.08)

August 22 calls (GLW100821C00022000, $1.05, up $0.05)

Entry Price:  $0.60 (4/12/10) 

Exit Target: $1.20+

Return: 75% 

Stop Target:  None

Action:  We predicted shares could hit $21 on Monday which they did and we have a long-term price tag of $25 for Corning.

The company will announce their numbers BEFORE the bell on Wednesday.

 

Garmin (GRMN, $37.70, up $0.18)

May 32 puts (GRMN100522P00032000, $0.35, down $0.05)

Entry Price:  $1.00 (4/5/10) 

Exit Target: $2.00+

Return: -65% 

Stop Target:  None

Action:  Garmin gave back much of its gains after trading over $38 and as much as we want to cut our losses something is telling us Garmin is going to miss their numbers.  We could be wrong on this one and have a totally busted trade on our hands but we know Garmin will start to crumble sometime this year.

We are just hoping it’s on May 5 when the company announces their quarterly results.    


American Tower (AMT, $41.86, down $0.51)

May 45 calls (AMT100522C00045000, $0.25, down $0.05)

Entry Price:  $0.60 (3/29/10) 

Exit Target: $1.30+ 

Return: -58% 

Stop Target:  None

Action:  Continue to hold.  


TiVo (TIVO, $18.53, up $0.04)

May 20 calls (TUK100522C00020000, $0.85, flat)

Entry Price:  $0.85 (3/5/10)  

Exit Target: $1.70 

Return: 0% 

Stop Target: None 

Action:  TiVo also hit a yearly high on Monday of $18.93 after heating up in the afternoon session.  Shares took off at 2pm but quickly came back down into the close.  This kind of action leads us to believe news is pending.

TiVo and Dish Network (DISH, $22.54, up $0.05) should reach an agreement this week on payment options as the April 30 deadline looms for Dish to pony up. 


Other 2010 Portfolio OPEN positions (3):  These are trades that are still open in the portfolio that have longer expiration dates 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.  Click on the 2010 Portfolio link in the Members Area to view ALL open/ closed trades. 

Berkshire Hathaway Class B (BRK/B, $79.24, up $0.29), Canadian Solar (CSIQ, $17.94, down $0.38) and Shuffle Master (SHFL, $8.89, down $0.03).


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.  We will not list entry prices because these stocks are on the verge of breaking out or they could selloff. 


Goldman Sachs (GS, $152.03, down $5.37)

May 130 puts (GS100522P00013000, $1.08, up $0.54)

Action:  This thing could get ugly and if Goldman breaks below $150 it could get real ugly.  A break below these levels could get the bears out on force and Goldman could see $140 then $130 in a blink of an eye.  We would use limit orders up to $1.25 to play this one but we want to clear a few trades up thinking of playing Goldman.   

 

A123 Systems (AONE, $12.98, up $0.15)

September 15 calls (AONE100918C00015000, $1.00, up $0.15)

Action:  Once we clear some trades off the board we will probably add these call options.  A123 is due for a rebound and we want to catch it on its way back over $15.  However, shares look weak after falling through major support which was at $14.  We may have to wait for a break back above this level before thinking of getting into the trade.  The company will announce earnings on May 11.


Toyota Motor (TM, $78.82, up $1.18)

May 75 puts (TM100522P00075000, $0.70, down $0.50) 

Action:  Toyota will announce their numbers on May 11 as well.  There is a chance the company could BEAT estimates despite all of the negative publicity and recalls over the last few months.   


Massey Energy (MEE, $43.61, down $0.84)

May 40 put (MQO100522P00040000, $0.85, up $0.10)


Action:  Continue to watch.