May 2010 | Members

 

1:00pm (EST)

A123 Systems (AONE, $12.09, down $0.32)

June 15 calls (AONE100619C00015000, $0.30, down $0.05)

Entry Price:  $0.40 (4/30/10) 

Exit Target: $0.80+

Return: -25%

Stop Target:  None

Action:  Continue to hold.


Qualcomm (QCOM, $37.15, down $1.49)

June 36 puts (AAO100619P00036000, $1.20, up $0.60)

Entry Price:  $0.80 (4/28/10) 

Exit Target: $2.00+

Return: 50%

Stop Target:  None

Action:  Qualcomm is down nearly 4% which has pushed these options to a 100% gain for the day.  The chart is ugly for this one and we are expecting shares to fall to $32-$30 over the next 6 weeks.


Dendreon (DNDN, $52.04, down $3.39)

May 55 calls (DNDN100522C00055000, $1.40, down $1.30)

Entry Price:  $1.50 (4/26/10) 

Exit Target: $3.50 (closed half at $4.00 on 4/30/2010, half at $1.40 on 5/4/2010)

Return: 80% ($2.70 avg.)

Stop Target:  $1.50 

Action:  We closed at $1.40 and our Trade Alert had the average selling price at $2.80 so we wanted to correct that from the email we sent out.  Here it is again in case you missed it.

If you haven’t closed the other half of the trade, do so now as it has hit our stop target that we raised this morning.  Our put positions are picking up steam so don’t feel too bad that we have to close this one as we still made a sweet profit.

If you had 10 contracts and sold 5 at $4 then you would have netted $2,000.  The other half returned $700 at $1.40 so the total was $2,700.  The entry price was $1.50 or $1,500.  This is where we get the 80% return for those of you wondering.

     

JDS Uniphase (JDSU, $13.54, down $0.21)

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:  The company reports Wednesday after the bell.  Continue to hold. 

 

Garmin (GRMN, $37.00, down $1.98)

May 32 puts (GRMN100522P00032000, $0.45, up $0.25)

Entry Price:  $1.00 (4/5/10) 

Exit Target: $2.00+

Return: -55% 

Stop Target:  None

Action:  Garmin will report earnings on Wednesday.  We have been in the position for over a month and we would almost double down but we never break our own rules of trading. 


TiVo (TIVO, $17.06, down $1.07)

May 20 calls (TUK100522C00020000, $0.65, down $0.25)

Entry Price:  $0.85 (3/5/10)  

Exit Target: $1.70 

Return: -24% 

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 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, $40.75, down $0.53), Berkshire Hathaway Class B (BRK-B, $76.85, down $1.85), Canadian Solar (CSIQ, $17.11, down $0.91) and Shuffle Master (SHFL, $9.60, down $0.34).


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.     


The Boston Beer Company (SAM, $57.53, down $1.10)

May 60 calls (SAM100522C00060000, $1.10, down $0.35)

Action:  Just too risky for us to play.


Research In Motion (RIMM, $69.31, down $2.22)

June 80 calls (RFY100619C00080000, $0.65, down $0.20)

Action:  Continue to watch.


Broadcom (BRCM, $33.60, down $1.81)

June 32 puts (BRCM100619P00032000, $0.90, up $0.30)

Action:  If the market corrects then high flying stocks could be the first to tumble.  Continue to watch.


Massey Energy (MEE, $35.35, down $2.14) 

May 35 put (MQO100522P00035000, $2.00, up $0.75)

June 30 puts (MQO10061900030000, $1.25, up $0.40)

Action:  We seem to be a day late again with Massey and we missed some huge gains on the drop below $40.  The June 30 puts look good at these levels.

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

11:20am (EST)    

Dendreon (DNDN, $52.04, down $3.39)

May 55 calls (DNDN100522C00055000, $1.40, down $1.30)

Entry Price:  $1.50 (4/26/10) 

Exit Target: $3.50 (closed half at $4.00 on 4/30/2010, half at $1.40 on 5/4/2010)

Return: 80% ($2.80 avg.)

Stop Target:  $1.50 

Action:  If you haven’t closed the other half of the trade, do so now as it has hit our stop target that we raised this morning.  Our put positions are picking up steam so don’t feel too bad that we have to close this one as we still made a sweet profit.

If you had 10 contracts and sold 5 at $4 then you would have netted $2,000.  The other half returned $700 at $1.40 so the total was $2,700.  The entry price was $1.50 or $1,500.  This is where we get the 80% return for those of you wondering.

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

9:00am (EST)

A123 Systems (AONE, $12.51, up $0.06)

June 15 calls (AONE100619C00015000, $0.35, down $0.05)

Entry Price:  $0.40 (4/30/10) 

Exit Target: $0.80+

Return: -13%

Stop Target:  None

Action:  Continue to hold.


Qualcomm (QCOM, $38.64, down $0.04)

June 36 puts (AAO100619P00036000, $0.70, down $0.10)

Entry Price:  $0.80 (4/28/10) 

Exit Target: $2.00+

Return: -13%

Stop Target:  None

Action:  We are looking for Qualcomm to drop below $35 and to test the $30-$32 area over the next 6 weeks.


Dendreon (DNDN, $55.43, up $1.37)

May 55 calls (DNDN100522C00055000, $2.70, up $0.40)

Entry Price:  $1.50 (4/26/10) 

Exit Target: $3.50 (closed half at $4.00 on 4/30/2010)

Return: 123% ($3.35 avg.)

Stop Target:  $1.10, raise to $1.50 

Action:  Dendreon is down 50 cents in early action and we have raised the stop a little to lock in profits should shares retreat from here. 

 

Akamai Technologies (AKAM, $39.76, up $0.93)

May 36 calls (AKAM100522C00036000, $4.05, up $0.55)

 Entry Price:  $0.92 (4/14/10) 

Exit Target: $4+ (closed half at $3.15 on 4/29/10, half at $4.15 on 5/3/10)

Return: 297%

Stop Target: $2.25 

Action:  We hated to close this one out as shares made it to a high of $40.18.  It’s too early to tell if $40 will be short-term resistance but over the longer-term we believe this stock will see $60 within a year.

   

JDS Uniphase (JDSU, $13.75, up $0.74)

May 14 calls (UQD100522C00014000, $0.70, up $0.25)

Entry Price:  $0.75 (4/12/10) 

Exit Target: $1.50+

Return: -7%

Stop Target:  None

Action:  The company reports Wednesday after the bell.  Continue to hold. 

  

Garmin (GRMN, $38.98, up $1.60)

May 32 puts (GRMN100522P00032000, $0.20, down $0.15)

Entry Price:  $1.00 (4/5/10) 

Exit Target: $2.00+

Return: -80% 

Stop Target:  None

Action:  Garmin will report earnings on Wednesday.  If they miss, we could see a 10%-15% drop on the stock which should get these options going again.


TiVo (TIVO, $18.13, up $0.61)

May 20 calls (TUK100522C00020000, $0.90, up $0.25)

Entry Price:  $0.85 (3/5/10)  

Exit Target: $1.70 

Return: 6% 

Stop Target: None 

Action:  No news, yet.  Continue to hold.


Shuffle Master (SHFL, $9.93, up $0.33) 

May 10 calls (SFQ100522C00010000, $0.35, up $0.10)   

Entry Price:  $0.85 (1/19/10)  

Exit Target: $1.70 

Return: -59% 

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 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, $41.28, up $0.47), Berkshire Hathaway Class B (BRK-B, $78.44, up$1.44), Canadian Solar (CSIQ, $18.02, up $0.76).


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.     

The Boston Beer Company (SAM, $58.63, up $1.62)

May 60 calls (SAM100522C00060000, $1.45, down $0.25)

Action:  We mentioned the low volume in the option pits for this one but we wanted to see how they do after they company announces earnings.


Research In Motion (RIMM, $71.53, up $0.34)

June 80 calls (RFY100619C00080000, $0.85, down $0.05)

Action:  Continue to watch.


Broadcom (BRCM, $35.41, up $0.71)

June 32 puts (BRCM100619P00032000, $0.60, down $0.10)

Action:  If the market corrects then high flying stocks could be the first to tumble.  Continue to watch.


Massey Energy (MEE, $37.49, up $0.86) 

May 35 put (MQO100522P00035000, $1.25, down $0.35)

June 30 puts (MQO10061900030000, $0.85, down $0.25)

Action:  We missed the first drop on Massey and we would like to see shares run back to $40 which should act as resistance now.