9:00am (EST)

Amazon.com (AMZN, $124.98, down $3.73)

June 105 puts (AMZN100619P00105000, $2.45, up $1.30)

Entry Price:  $1.18 (5/6/10) 

Exit Target: $2.40

Return: 108%

Stop Target:  $1.00 

Action:  These options traded up to $2.50 and we are above our exit target.  We should have closed half on Friday but we closed out two other half positions so we wanted to push this one a little.

Shares are near $130 in pre-market action and you can see from the chart below a break below $120 was in the cards.  If we can close this one for a slight profit at the open then we will do so.  Otherwise, we are going to hold because we think a break below $120 could be in the cards.   

 

Amazon

Amazon 1-Year Chart

Amazon 1-Year Chart

SanDisk (SNDK, $37.61, down $2.15)

June 35 puts (SWF100619P00035000, $2.30, up $1.40)

Entry Price:  $0.90 (5/5/10) 

Exit Target: $4.00 (closed half at $2.90 on 5/7/2010)

Return: 189%

Stop Target:  $2.00 

Action:  We cannot lose money on this trade so we will close the other half shortly after the open.  By selling half at $2.90 we made it a risk free trade but shares are near $40 in early action.

Sandisk

Sandisk 6-month Chart

Sandisk 6-month Chart

 

 

Apollo Group (APOL, $54.41, down $0.61)

June 50 puts (APOL100619P00050000, $2.00, up $0.30)

Entry Price:  $1.25 (5/5/10) 

Exit Target: $2.50

Return: 60%

Stop Target:  60 cents

Action:  The 52-week low is $52.79 and as you can see from the chart, Apollo is on the verge of breaking major support.  This is a 2-year chart which shows support at $50.  We think we will be okay with this one so we are going to leave it open to start.

Apollo Group

Apollo Group 2-Year Chart

Apollo Group 2-Year Chart

 

Qualcomm (QCOM, $36.50, down $0.17)

June 36 puts (AAO100619P00036000, $1.75, up $0.20)

Entry Price:  $0.80 (4/28/10) 

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

Return: 122%

Stop Target: Set stop at $1.00 on other half 

Action:  Shares fell to a low of $35.23 and the puts traded up to $2.42.  Here is a 2-year chart of QCOM and you can see the magnet pulling the stock to $32-$30.  Shares are up $1 in early action and we are going to leave this one open as well.

QualComm

Qualcomm 2-Year Chart

Qualcomm 2-Year Chart

 

Garmin (GRMN, $34.26, up $0.76) 

May 32 puts (GRMN100522P00032000, $0.70, down $0.20)

Entry Price:  $1.00 (4/5/10) 

Exit Target: $2.00+

Return: -30% 

Stop Target:  None

Action: This trade has frustrated us and we could take it down to the wire or get out if we can get back to even or manage a profit.  You can see the sell-off shares got in November 2009 after the company reported earnings and they missed their numbers again last Wednesday when they reported.  However, we didn’t get the dramatic drop we were expecting.


Garmin

Garmin 1-Year Chart

Garmin 1-Year Chart

 

 

TiVo (TIVO, $15.61, down $0.57)

May 20 calls (TUK100522C00020000, $0.30, down $0.20)

Entry Price:  $0.85 (3/5/10)  

Exit Target: $1.70 

Return: -65% 

Stop Target: None 

Action: TiVo will report earnings on May 25 but these options expire before that.  The only catalyst we have is possible litigation news but that might not come in 11 days.  From the chart, TiVo looks ready to breakdown but will get a lift this morning.

Tivo

Tivo 1-Year Chart

Tivo 1-Year Chart