May 2010 | Members

 

12:45pm (EST)

Vale SA (VALE, $24.98, up $1.00)

June 22 puts (VALE100619P00022000, $0.65, down $0.30)

Entry Price:  $1.00 (5/20/10)

Exit Target: $2.00

Return: -35%

Stop Target: 50 cents

Action:  Vale traded to a low of $23.58 but rebounded with the rest of the market.  We still think the trend is down.  These options have 28 days before they expire so there is plenty of time for this trade to take shape.


PowerShares QQQ (QQQQ, $44.91, up $0.56)  

June 45 puts (QQQQ100619P00045000, $1.80, down $0.50)

Entry Price:  $1.15 (5/17/10)

Exit Target: $2.30 (closed half at $1.90 on 5/20/2010)    

Return: 61%

Stop Target: 65 cents

Action:  Continue to hold the other half.


Expedia (EXPE, $22.04, up $0.37)

June 20 puts (EXPE100619P00020000, $0.65, down $0.10)

Entry Price:  $0.45 (5/14/10)

Exit Target: $1.00 (closed half at $0.90 on 5/21/2010)       

Return: 75%

Stop Target: None

Action:  The puts traded to a high of 95 cents as shares fell to a low of $20.95 at the open.  We said to close half if they hit 90 cents this morning so you should have only half the trade open.    


eBay (EBAY, $21.35, up $0.54) 

June 21 puts (EBAY100619P00021000, $0.85, down $0.30) 

Entry Price:  $0.48 (5/10/10) 

Exit Target: $1.00 (closed half at $0.95 on 5/20/2010)       

Return: 88%

Stop Target:  75 cents 

Action:  Close the other half of the trade now.  We will look for some new trades next week to replace this one.


SanDisk (SNDK, $41.60, up $1.94)

July 34 puts (SNDK100717P00034000, $1.70, down $0.60)

Entry Price:  $1.50 (5/10/10) 

Exit Target: $3.00

Return: 7%

Stop Target:  $1.10

Action:  Shares traded to a low of $38.63 and the puts hit $2.45 but not $3.00 which is where we were looking to close half.  The options have 56 days before they expire. 


Qualcomm (QCOM, $36.18, up $0.59)

June 36 puts (AAO100619P00036000, $1.60, down $0.30)

Entry Price:  $0.80 (4/28/10) 

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

Return: 113%

Stop Target: $1.00

Action:  Continue to hold.


Garmin (GRMN, $33.44, down $0.82) 

May 32 puts (GRMN100522P00032000, $0.05, flat)

Entry Price:  $1.00 (4/5/10) 

Exit Target: $2.00+

Return: -95% 

Stop Target:  None

Action:  If you did a 10 contract trade you can try to get the nickel but the commissions will eat away at anything below this.   


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.  Many of these trades are months old so new subscribers should not be in them. We are still keeping track of the trade 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.  

Moody’s (MCO, $21.80, up $0.59)

June 17.50 puts (MCO100619P00017500, $0.75, down $0.15)

Action:  Tempting but we will wait until next week. 

   

Dendreon (DNDN, $43.25, up $2.35)

August 60 calls (DNDN100821C00060000, $1.50, up $0.35)

Action:  We started watching these options in the $1.60 area and we are trying to get them for $1.00-$1.10.  There is a big meet-greet-and speak conference in June called the ASCO for short and the drug stocks always make a move during this annual conference. Dendreon will be there.

Rumors, breaking news, and back room deals could add to the bullish tone to this annual conference.

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

11:30am (EST)

Abercrombie & Fitch (ANF, $35.98, up $0.48)

June 35 puts (ANF100619P00035000, $1.95, down $0.35) 

Entry Price:  $1.05 (5/17/10)

Exit Target: $2.00+ (closed half at $1.90 on 5/20/2010) 

Return: 86%

Stop Target: $1.50, raise to $2.00 (HARD STOP)

Action:  We have closed the other half of this trade as our hard stop has been hit.  The average selling price was $1.95 as we closed half at $2.00 and half at $1.90.  The puts traded as high as $2.70 but the market has bounced back and we want to lock in some profits before the weekend hits.

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

9:05am (EST)

Vale SA (VALE, $23.98, down $1.39)

June 22 puts (VALE100619P00022000, $0.95, up $0.32)

Entry Price:  $1.00 (5/20/10)

Exit Target: $2.00

Return: -5%

Stop Target: 50 cents

Action:  If you look at a one-year chart for Vale you will see how ugly this chart looks.  There will a little support at $22, some at $20, but this stock looks like it could fall below $18, quickly.  Mineral stocks are getting slammed and Vale has exposure.  Over 62 million shares traded hands yesterday and the options pits were active once again.

There was heavy buying in the June 20 puts as nearly 20,000 contracts traded.  The 22’s traded near 18,000 contracts.  We told you they were liquid.   


Abercrombie & Fitch (ANF, $35.50, down $1.77)

June 35 puts (ANF100619P00035000, $2.30, up $0.60)

Entry Price:  $1.05 (5/17/10)

Exit Target: $2.00+ (closed half at $1.90 on 5/20/2010) 

Return: 100%

Stop Target: $1.50, raise to $2.00 (HARD STOP)

Action:  Continue to hold the other half.



PowerShares QQQ (QQQQ, $44.35, down $1.71)  

June 45 puts (QQQQ100619P00045000, $2.30, up $0.95)

Entry Price:  $1.15 (5/17/10)

Exit Target: $2.30 (closed half at $1.90 on 5/20/2010)    

Return: 83%

Stop Target: 65 cents

Action:  Continue to hold the other half.


Expedia (EXPE, $21.67, down $0.97)

June 20 puts (EXPE100619P00020000, $0.75, up $0.30)

Entry Price:  $0.45 (5/14/10)

Exit Target: $1.00

Return: 67%

Stop Target: None

Action:  Close HALF the trade if the puts hit 90 cents or better.


eBay (EBAY, $20.81, down $0.83) 

June 21 puts (EBAY100619P00021000, $1.15, up $0.45) 

Entry Price:  $0.48 (5/10/10) 

Exit Target: $1.00 (closed half at $0.95 on 5/20/2010)       

Return: 119%

Stop Target:  75 cents 

Action:  Continue to hold.


SanDisk (SNDK, $39.66, down $0.76)

July 34 puts (SNDK100717P00034000, $2.30, up $0.40)

Entry Price:  $1.50 (5/10/10) 

Exit Target: $3.00

Return: 53%

Stop Target:  $1.10

Action:  Continue to hold.  If the put options trade up to $3.00 today, close HALF.


Qualcomm (QCOM, $35.59, down $0.86)

June 36 puts (AAO100619P00036000, $1.90, up $0.20)

Entry Price:  $0.80 (4/28/10) 

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

Return: 131%

Stop Target: $1.00

Action:  Continue to hold the other half.  Qualcomm is losing market share with its best chip so we still think shares can trade down to $30.    


Garmin (GRMN, $33.44, down $0.82) 

May 32 puts (GRMN100522P00032000, $0.20, up $0.10)

Entry Price:  $1.00 (4/5/10) 

Exit Target: $2.00+

Return: -80% 

Stop Target:  None

Action:  We have to be careful with this one because if the stock closes at $31.99 the options could automatically be exercised.  Hopefully, we get a chance to limit our losses or even make a small profit but we will keep you updated.


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.  Many of these trades are months old so new subscribers should not be in them. We are still keeping track of the trade 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.  


Moody’s (MCO, $21.21, down $0.30)

June 17.50 puts (MCO100619P00017500, $0.90, up $0.05)

Action:  Moody’s traded to a low of $18.50 back in October and the looming Wells Notice will make headlines again.  We might look at these on Monday again as a possible trade. 

   

Dendreon (DNDN, $40.91, down $1.50)

August 60 calls (DNDN100821C00060000, $1.15, down $0.20)

Action:  We started watching these options in the $1.60 area and we are trying to get them for $1.00-$1.10.  There is a big meet-greet-and speak conference in June called the ASCO for short and the drug stocks always make a move during this annual conference. Dendreon will be there.

Rumors, breaking news, and back room deals could add to the bullish tone to this annual conference.