May 2010 | Members

 

1:00pm (EST)

NEW TRADE!!!

Moody’s (MCO, $22.22, up $0.46)

Buy to OPEN June 20 puts (MCO100619P00020000, $0.80, down $0.20)

Action:  Let’s pull the trigger on Moody’s.  The options have a current “bid” of 75 cents and an “ask” of 80 cents.  Use limit orders up to 90 cents but you should be able to get them for 80 cents right now.  Volume is brisk so the position will be really liquid, meaning you should get good fill prices.


CURRENT TRADES 

eBay (EBAY, $22.26, down $0.11) 

June 21 puts (EBAY10061900021000, $0.55, flat) 

Entry Price:  $0.48 (5/10/10) 

Exit Target: $1.00 

Return: 15%

Stop Target:  None

Action:  eBay is weak in a strong market today.  For those of you not yet in the position, we still like the trade at current prices.  Continue to hold.    


SanDisk (SNDK, $43.75, up $1.50)

July 34 puts (SWF100717P00034000, $1.15, down $0.30)

Entry Price:  $1.50 (5/10/10) 

Exit Target: $3.00

Return: -23%

Stop Target:  75 cents

Action:  Continue to hold.


Apollo Group (APOL, $55.20, up $1.04)

June 50 puts (APOL100619P00050000, $1.40, down $0.30)

Entry Price:  $1.25 (5/5/10) 

Exit Target: $2.50

Return: 12%

Stop Target:  $1.00

Action:  Shares are testing resistance again at $55-$56 but we are still expecting a significant move lower.


Qualcomm (QCOM, $38.06, up $0.58)

June 36 puts (AAO100619P00036000, $0.70, down $0.30)

Entry Price:  $0.80 (4/28/10) 

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

Return: 56%

Stop Target: $1.00

Action:  Qualcomm is getting a lift today with the overall market.  We cannot lose money on this trade as we have already closed half for over a 100% return.  Continue to hold.  


Garmin (GRMN, $33.29, down $0.88) 

May 32 puts (GRMN100522P00032000, $0.60, up $0.10)

Entry Price:  $1.00 (4/5/10) 

Exit Target: $2.00+

Return: -40% 

Stop Target:  None

Action:  Continue to hold.


TiVo (TIVO, $17.40, up $0.52)

May 20 calls (TUK100522C00020000, $0.35, down $0.05)

Entry Price:  $0.85 (3/5/10)  

Exit Target: $1.70 

Return: -59% 

Stop Target: None 

Action:  Let’s close this trade today.  We are just running out of time and we can save a little premium to use for another trade.  TiVo has all the makings to soar past $20 and anything could happen next week with litigation news but we can also roll this position out.  TiVo would need to trade near $21 for us to breakeven and we don’t see that happening if no major news comes out.   

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. 

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.   

Sony (SNE, $33.26, down $0.31)

June 32.50 puts (SNE100619P00032500, $1.35, up $0.05)

June 30 puts (SNE100619P00030000, $0.65, up $0.05)

Action:  Sony reports earnings on Thursday and the stock has been in a steady downtrend.  The chart is telling us there is a chance shares trade down to $30 but we aren’t thrilled about the earnings announcement which could go either way. 


Expedia (EXPE, $23.30, up $0.12)

June 20 puts (EXPE100619P00020000, $0.35, flat)

Action:  There may be a play on a move to under $20.


American International Group (AIG, $42.30, down $0.59)

June 35 puts (AIG100619P00035000, $1.30, down $0.10)

Action:  The puts have traded below $1.25 but we are going to hold off for now.


Freeport -McMoRan (FCX, $72.23, up $1.99)

June 65 puts (FCX100619P00065000, $1.70, down $0.50)

Action:  Continue to watch.