May 2010 | Members

 

1:00pm (EST)

Amazon.com (AMZN, $128.60, down $0.11)

June 105 puts (AMZN100619P00105000, $1.75, up $0.35)

Entry Price:  $1.18 (5/6/10) 

Exit Target: $1.80, raise to $2.40

Return: 48%

Stop Target:  60 cents, raise to $1.00 

Action:  These puts have traded to a high of $2.20 and Amazon could be headed to the 1-teens. We have adjusted the targets accordingly.


SanDisk (SNDK, $38.39, down $1.36)

June 35 puts (SWF100619P00035000, $1.90, up $0.45)

Entry Price:  $0.90 (5/5/10) 

Exit Target: $1.80, raise to $4.00 (closed half at $2.90 on 5/7/10)

Return: 167%

Stop Target:  45 cents, raise to $2.00 

Action:  Continue to hold the other half although it is slightly below our stop target.


Apollo Group (APOL, $55.23, up $0.21)

June 50 puts (APOL100619P00050000, $1.70, flat)


Entry Price:  $1.25 (5/5/10) 

Exit Target: $2.50

Return: 36%

Stop Target:  60 cents


Action:  Continue to hold.  



Qualcomm (QCOM, $36.31, down $0.36)


June 36 puts (AAO100619P00036000, $1.80, up $0.25)


Entry Price:  $0.80 (4/28/10) 

Exit Target: $2.00+

Return: 125%

Stop Target:  None

Action:  Close half the trade NOW at current levels.  

       

Garmin (GRMN, $34.36, up $0.87) 

May 32 puts (GRMN100522P00032000, $0.60, down $0.20)

Entry Price:  $1.00 (4/5/10) 

Exit Target: $2.00+

Return: -40% 

Stop Target:  None


Action:  Somebody put us out of our misery.  We are going to push the envelope with this one until next week.   



TiVo (TIVO, $15.82, down $0.36)

May 20 calls (TUK100522C00020000, $0.40, down $0.10)

Entry Price:  $0.85 (3/5/10)  

Exit Target: $1.70 

Return: -53% 

Stop Target: None 

Action:  We have been in this trade for two months but we are rapidly running out of time.  We almost got back to even over the past few weeks and the position was actually positive at one point.  We will leave this one open for another week as well and we are already looking at the July or August options but we aren’t going to do anything today.


Other 2010 Portfolio OPEN positions (6):  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. 


A123 Systems, American Tower, Berkshire Hathaway Class B, Canadian Solar, Shuffle Master, JDS Uniphase.


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 will be back with a fresh list on Monday.

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

10:35am (EST)  

SanDisk (SNDK, $35.56, down $4.20)
 
June 35 puts (SWF100619P00035000, $2.90, up $1.45)
 
Entry Price:  $0.90 (5/5/10) 
Exit Target: $1.80
Return: 222%
Stop Target:  45 cents 
 
Action:   SanDisk is testing $35 again and we are going to close half the trade at current levels.  The options blew past our $1.80 target so let’s close half now and ride the rest.

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

9:00am (EST)

Note:

May options expire in 14 DAYS.

June options expire in 42 DAYS.


Amazon.com (AMZN, $128.71, down $2.22)

June 105 puts (AMZN100619P00105000, $1.40, up $0.30)

Entry Price:  $1.18 (5/6/10) 

Exit Target: $1.80

Return: 19%

Stop Target:  60 cents 

Action:  These puts hit a high of $2.21 yesterday and it would have been hard to issue a News Flash because not everybody would have gotten out at the peak during the panic. 

If we would have known the market was going to drop like it did we would have told you to take profits by setting sell limit orders but we are still expecting a retest of these levels.  Shares are slightly lower in early action.


SanDisk (SNDK, $39.76, down $2.06)

June 35 puts (SWF100619P00035000, $1.45, up $0.55)

Entry Price:  $0.90 (5/5/10) 

Exit Target: $1.80

Return: 61%

Stop Target:  45 cents 

Action:  These puts hit a high of $2.50 which is nearly a 200% return.  With this one, close half the trade if the puts hit $1.80 today. 


Apollo Group (APOL, $55.02, down $1.97)

June 50 puts (APOL100619P00050000, $1.70, up $0.40)

Entry Price:  $1.25 (5/5/10) 

Exit Target: $2.50

Return: 36%

Stop Target:  60 cents

Action:  Continue to hold.  

 

A123 Systems (AONE, $10.52, down $0.68)

June 15 calls (AONE100619C00015000, $0.15, down $0.05)

Entry Price:  $0.40 (4/30/10) 

Exit Target: $0.80+

Return: -63%

Stop Target:  None

Action:  We are going to drop coverage of A123 Systems although it will still be OPEN in our portfolio.  The options have 40+ days to recover and we mentioned the premium was cheap.  A 10 contract trade was $400 so we could save the $150 but the “bid” is 10 cents which means we have $100 on the line.  Let it ride… 


Qualcomm (QCOM, $36.67, down $0.97)

June 36 puts (AAO100619P00036000, $1.55, up $0.58)

Entry Price:  $0.80 (4/28/10) 

Exit Target: $2.00+

Return: 94%

Stop Target:  None

Action:  Continue to hold.  

       

Garmin (GRMN, $33.49, down $0.70) 

May 32 puts (GRMN100522P00032000, $0.90, up $0.20)

Entry Price:  $1.00 (4/5/10) 

Exit Target: $2.00+

Return: 20% 

Stop Target:  None

Action:  The puts traded up to $1.50 but we still think Garmin can fall below $30 over the next two weeks.


TiVo (TIVO, $16.18, down $0.62)

May 20 calls (TUK100522C00020000, $0.50, down $0.15)

Entry Price:  $0.85 (3/5/10)  

Exit Target: $1.70 

Return: -41% 

Stop Target: None 

Action:  If we can get back to even today or at current prices then we will probably close this trade and roll out into a longer-term trade.  We are torn because we could have the news we are expecting to come out on any given day but by rolling the position out when can expect more litigation news.  TiVo is going after quite a few Big Boys and they may have the patents to get even more monetary damages if the courts rule their way.


Other 2010 Portfolio OPEN positions (5):  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, Shuffle Master, JDS Uniphase.

 

WATCH LIST SECTIO


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, $32.50, down $1.34)

June 32 puts (BRCM100619P00032000, $1.60, up $0.55)

Action:  Continue to watch. 


Massey Energy (MEE, $33.47, down $1.50) 

May 35 put (MQO100522P00035000, $3.00, up $1.05)

June 30 puts (MQO10061900030000, $1.80, up $0.60)


Action:  Continue to watch.