May 2010 | Members



12:40pm (EST)


Abercrombie & Fitch (ANF, $39.47, down $0.75)

Buy to OPEN June 35 puts (ANF100619P00035000, $1.05, flat)

Action:  This is a risky trade because ANF could surprise and soar higher after announcing earnings.  However, we have had this feeling all weekend that the stock is going to break down like a rented mule.  We are getting a deal because the current “ask” is $1.05 despite the stock’s 2% drop.  Use limit prices up to $1.10 but these options will be active once we come in.

PowerShares (QQQQ, $46.46, down $0.47)  

Buy to OPEN June 45 puts (QQQQ10061900045000, $1.15, up $0.20). 

Action:  Use limit price up to $1.25 but try to get them at current levels.


Expedia (EXPE, $22.57, down $0.23)

June 20 puts (EXPE100619P00020000, $0.45, down $0.05)

Entry Price:  $0.45 (5/14/10)

Exit Target: $1.00

Return: 0%

Stop Target: None

Action:  We lost a little time premium because of the weekend but we aren’t worried.  If travel suffers then there is a chance Expedia pre-announces but we doubt they would show their hand early when they really don’t have too.  Continue to hold. 

Moody’s (MCO, $21.31, down $0.26)

June 20 puts (MCO100619P00020000, $1.60, flat)

Entry Price:  $0.80 (5/12/10) 

Exit Target: $1.60, raise to $2.00 (closed half at $1.60 on 5/14/10) 

Return: 100%

Stop Target:  None

Action:  Moody’s downgraded somebody on something today but we really don’t care.  Maybe they can do the weather one day.  Continue to hold. 

eBay (EBAY, $22.10, down $0.15) 

June 21 puts (EBAY10061900021000, $0.60, up $0.05) 

Entry Price:  $0.48 (5/10/10) 

Exit Target: $1.00 

Return: 25%

Stop Target:  None

Action:  Continue to hold.   

SanDisk (SNDK, $41.12, down $0.78)

July 34 puts (SWF100717P00034000, $1.70, up $0.20)

Entry Price:  $1.50 (5/10/10) 

Exit Target: $3.00

Return: 13%

Stop Target:  75 cents

Action:  If we get a break below $40 the selling pressure could heat up.  Continue to hold.

Apollo Group (APOL, $52.88, up $0.10)

June 50 puts (APOL100619P00050000, $2.00, down $0.05)

Entry Price:  $1.25 (5/5/10) 

Exit Target: $2.50

Return: 60%

Stop Target:  $1.00

Action:  The 52-week low is $52.20 and if Vegas was taking odds we would bet $50 that this is taken out this week.  Continue to hold.

Qualcomm (QCOM, $37.06, down $0.24)

June 36 puts (AAO100619P00036000, $1.20, up $0.10)

Entry Price:  $0.80 (4/28/10) 

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

Return: 88%

Stop Target: $1.00

Action:  Continue to hold.

Garmin (GRMN, $33.07, down $0.46) 

May 32 puts (GRMN100522P00032000, $0.55, up $0.10)

Entry Price:  $1.00 (4/5/10) 

Exit Target: $2.00+

Return: -45% 

Stop Target:  None

Action:  If shares touch $31 by Friday we break even.  At $30, the trade doubles from our entry price and anything over $32 will be a total loss.

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.



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, $30.27, down $0.92)

June 32.50 puts (SNE100619P00032500, $2.80, up $0.60)

June 30 puts (SNE100619P00030000, $1.20, up $0.20)

Action:  Lock up profits.

American International Group (AIG, $37.86, down $1.86)

June 35 puts (AIG100619P00035000, $2.45, up $0.70)

Action:  Wow…    

Freeport-McMoRan (FCX, $66.32, down $3.40)

June 65 puts (FCX100619P00065000, $3.60, up $1.40)

Action:  For those of you who play the higher priced options, rock on…