May 2010 | Members

 

NEW TRADE!!!

Expedia (EXPE, $22.57, down $0.93)

Buy to OPEN June 20 puts (EXPE100619P00020000, $0.45, up $0.20) 

Action:  The “bid” is 40 cents while the “ask” is 50 cents.  You should get filled using limit prices or 45 to 50 cents.  You can pay up to 60 cents if needed.

 

CURRENT TRADES

Note:

May options expire in 7 days, June options expire in 35 days, July options expire in 63 days.  And yes, we have heard about the TiVo (TIVO, $11.12, down $6.27) news which hit a couple of hours ago.  Crazy that we got out yesterday and “crazy good” for us down the road as TiVo will get paid. 


Moody’s (MCO, $21.50, down $0.20)

June 20 puts (MCO100619P00020000, $1.60, up $0.10)

Entry Price:  $0.80 (5/12/10) 

Exit Target: $1.60 

Return: 100%

Stop Target:  None

Action:  Close half at current prices.  Although we think the downtrend continues into next week, look what happened last Monday.  Better to be safe than sorry and we will still enjoy gains on the other half.


eBay (EBAY, $22.15, down $0.53) 

June 21 puts (EBAY10061900021000, $0.60, up $0.15) 

Entry Price:  $0.48 (5/10/10) 

Exit Target: $1.00 

Return: 25%

Stop Target:  None

Action:  Continue to hold.   


SanDisk (SNDK, $40.91, down $1.91)

July 34 puts (SWF100717P00034000, $1.70, up $0.50)

Entry Price:  $1.50 (5/10/10) 

Exit Target: $3.00

Return: 13%

Stop Target:  75 cents

Action:  Continue to hold.


Apollo Group (APOL, $53.25, down $1.36)

June 50 puts (APOL100619P00050000, $1.90, up $0.40)

Entry Price:  $1.25 (5/5/10) 

Exit Target: $2.50

Return: 52%

Stop Target:  $1.00

Action:  Continue to hold.


Qualcomm (QCOM, $37.13, down $0.83)

June 36 puts (AAO100619P00036000, $1.10, up $0.30)

Entry Price:  $0.80 (4/28/10) 

Exit Target: $2.00+ (closed half at $1.80 on 5/7/2010) 

Return: 81%

Stop Target: $1.00

Action:  We think shares are headed to the low $30’s.


Garmin (GRMN, $32.53, down $0.38) 

May 32 puts (GRMN100522P00032000, $0.80, up $0.20)

Entry Price:  $1.00 (4/5/10) 

Exit Target: $2.00+

Return: -20% 

Stop Target:  None

Action:  This is the awe and excitement with owning options with a week left before they expire.  Continue to hold.

Garmin folded like a cheap lawn chair yesterday and our chart work is beginning to pay off.  We are still hoping for a drop to $30 or below by next week.


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.  Many of these trades 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, 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.   

PowerShares (QQQQ, $46.59, down $1.26)

June 47 puts (QQQQ10061900047000, $1.90, up $0.75)

Action:  These options opened at $1.32 and have picked up steam. 

 

Abercrombie & Fitch (ANF, $40.00, down $1.14)

June 40 puts (ANF100619P00040000, $2.65, up $0.55)

Action:  These puts have doubled in two days since we profiled them so close half if you are currently in the trade.


Sony (SNE, $30.91, down $0.62)

June 32.50 puts (SNE100619P00032500, $2.35, up $0.35)

June 30 puts (SNE100619P00030000, $1.05, up $0.20)

Action:  Both of these put options have nearly doubled as well.  You know the drill, sell half.    


American International Group (AIG, $39.49, down $1.16)

June 35 puts (AIG100619P00035000, $2.00, up $0.45)

Action:  AIG looks headed below $40 were our last words…


Freeport-McMoRan (FCX, $68.77, down $2.94)

June 65 puts (FCX100619P00065000, $2.60, up $0.90)

Action:  This trade felt good when we were typing it up and our itching palm should have been a clue…


Spider Standard & Poor’s 500 (SPY, $113.51, down $2.48)

June 110 puts (SPY100619P00110000, $2.80, up $1.10) 

Action:  This one and the QQQQ’s are rocking today.