April 2010 | Members

 

12:50pm (EST)

NEW TRADE!!!

Qualcomm (QCOM, $38.20, up $0.28)

Buy to OPEN June 36 puts (QAQ100619P00036000, $0.80, down $0.10)

Action:  We listed the June 35 puts this morning but we are recommending the 36 put options instead.  Use limit prices here and you can pay up to 90-95 cents for them if they start to move up.

Qualcomm recently reported disappointing earnings and shares dropped from $42 to $39 after they offered up a weak outlook.  The 1-year chart shows support for Qualcomm at $35 but a break below those levels could lead to a test of $30.

Shares broke through their 10,20,50, and 100-day moving averages on the sell-off and resistance is now at $40. 


CURRENT TRADES  


Dendreon (DNDN, $39.85, down $0.09)

May 55 calls (DNDN100522C00055000, $0.90, down $0.15)

Entry Price:  $1.50 (4/26/10) 

Exit Target: $2.00+

Return: -40%

Stop Target:  None

Action:  We are expecting an announcement from the FDA by Friday on the company’s drug, Provenge.

 

Akamai Technologies (AKAM, $33.15, down $0.55)

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:  Akamai will report earnings AFTER the bell today.  Some of you may want to cut your losses and move on but we are going with our original plan on keeping this one open through earnings.  We have to admit it isn’t looking good but sometimes the market changes on a dime and you get caught in trades that could go either way.

We talked about the market’s range and if it weren’t for yesterday we would probably be having better feelings about leaving this one open.

 

JDS Uniphase (JDSU, $13.03, down $0.18)

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, $19.92, down $0.20)

August 22 calls (GLW100821C00022000, $0.65, down $0.15)

Entry Price:  $0.60 (4/12/10) 

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

Return: 33% 

Stop Target:  None

Action:  The options still have 115 days before they expire but we may have to close this trade and take our profits.  We will give the trade a little wiggle room but we will probably exit the other half if the calls drop below 55 cents.

 

Garmin (GRMN, $37.83, down $0.32)

May 32 puts (GRMN100522P00032000, $0.35, flat)

Entry Price:  $1.00 (4/5/10) 

Exit Target: $2.00+

Return: -65% 

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, $17.59, down $0.15)

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 (AMT, $40.71, down $0.43), Berkshire Hathaway Class B (BRK/B, $77.49, up $0.80), Canadian Solar (CSIQ, $17.49, up $0.65) and Shuffle Master (SHFL, $8.81, up $0.06).


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, $35.55, up $0.73)

June 32 puts (BRCM100619P00032000, $0.60, down $0.24)

Action:  Broadcom rallied after reporting earnings and we are trying to catch it after it peaks.  Shares have traded to a high of $36.94 and the puts traded to a low of 47 cents.  We like these puts at current levels but want to wait to see if Broadcom tops at these levels.  


Goldman Sachs (GS, $156.10, up $3.06)

May 130 puts (GS100522P00013000, $0.70, down $0.30)

Action:  We may have to move out into the June puts and watch for a break below $150 if Goldman keeps moving higher.

 

A123 Systems (AONE, $12.60, down $0.37)

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

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


Toyota Motor (TM, $76.71, down $0.28)

May 75 puts (TM100522P00075000, $1.35, up $0.10) 

Action:  We may have missed this one as we have shares going below $75.  These puts were at 85 cents on Monday.


Massey Energy (MEE, $40.87, down $0.49)

May 40 put (MQO100522P00040000, $1.90, up $0.25)

June 40 puts (MQO10061900045000, $3.00, up $0.45)

Action:  The May options opened at $1.06 yesterday and have now nearly doubled.  We were hoping for one last rally back to $43-$44 before shares fell below $40 and we may have been caught in transition with this one too…