9:05am (EST)

Note:

May options expire in 4 days (this Friday), June options expire in 32 days, July options expire in 60 days.  


CURRENT TRADES

Expedia (EXPE, $22.80 down $0.70)

June 20 puts (EXPE100619P00020000, $0.50, up $0.25)

Entry Price:  $0.45 (5/14/10)

Exit Target: $1.00

Return: 11%

Stop Target: None

Action:  We are in this trade because we think travel in Europe will suffer because of the turmoil as travelers stay away from the drama.  With all of the protests and uprisings it isn’t the safest place to go right now.  Also, Iceland’s volcanic ash cloud shut down a number of airports in Europe on Sunday and London will be closed today.    


Moody’s (MCO, $21.57, down $0.13)

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

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:  We closed half of this trade on Friday after hitting a triple-digit return.  With the other trades doing well we wanted you to lock in some profits because of the recent volatility.  Continue to hold the other half. 


eBay (EBAY, $22.25, down $0.43) 

June 21 puts (EBAY10061900021000, $0.55, up $0.10) 

Entry Price:  $0.48 (5/10/10) 

Exit Target: $1.00 

Return: 15%

Stop Target:  None

Action:  We think eBay is facing stiff competition from the likes of Craigslist and others.  While eBay is the 800-pound gorilla in the space, it seems buyers and sellers are looking local to get more of their items.  Continue to hold.   


SanDisk (SNDK, $41.90, down $0.92)

July 34 puts (SWF100717P00034000, $1.50, up $0.30)

Entry Price:  $1.50 (5/10/10) 

Exit Target: $3.00

Return: 0%

Stop Target:  75 cents

Action:  We were a tad early on this one as the puts dipped near $1 when the stock hit $45 last Thursday.  We said the high-flyers would be the quickest to fall although there are solid companies that are going to get whacked if the market continues to correct to the downside.  Continue to hold.


Apollo Group (APOL, $52.78, down $1.83)

June 50 puts (APOL100619P00050000, $2.05, up $0.65)

Entry Price:  $1.25 (5/5/10) 

Exit Target: $2.50

Return: 64%

Stop Target:  $1.00

Action:  Do a search on Apollo (and Moody’s) on our website and you will see plenty of reasons on why we feel both of these stocks are an accident waiting to happen.  Continue to hold.


Qualcomm (QCOM, $37.30, down $0.66)

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 have already taken the risk out of this trade so we have left the other half open.  Qualcomm always seems to shoot themselves in the foot when they talk to Wall Street and we see a chart that might get shares near $30.  A break below $35 will open the floodgates and flush the remaining bulls out of the stock.


Garmin (GRMN, $33.53, down $0.62) 

May 32 puts (GRMN100522P00032000, $0.45, down $0.15)

Entry Price:  $1.00 (4/5/10) 

Exit Target: $2.00+

Return: -55% 

Stop Target:  None

Action:  We really don’t advise playing with options that expire in less than a week although the returns are insane if you are on the right side.  For those of you who are new, this will be a great show-and-tell experience as we are pushing for a test of $30.

We could have closed this trade for a loss last week but we looked at the risk/ reward outcome and decided to roll with it.  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.

Note:  A123 popped on Friday and we think there is major news due out over the next 6 weeks.  American Tower, Canadian Solar and JDS will expire on Friday.


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, $46.93, down $0.92)

June 47 puts (QQQQ10061900047000, $1.60, up $0.45)

Action:  We may have to move down the ladder and grab the June 45 puts (QQQQ10061900045000, $0.95, up $0.28).  We may send out an alert depending on how we open this morning.  After the initial drop this morning we will be looking to see if there is a bounce or if we keep sinking.  Either way, we will send out a Trade Alert if we add them so be on the lookout.


Abercrombie & Fitch (ANF, $40.22, down $0.92)

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

Action:  We are now looking at the June 35 puts (ANF100619P00035000, $1.05, up $0.35) as we might have missed the initial move below $40.  ANF is one of the more volatile Retail stocks so if it moves lower than the move could be hard and fast.  Additionally, the company will report earnings on Tuesday so things could get really interesting if the disappoint the Street.

We like the possibilities here but we need to do a little more research to see where ANF’s numbers might come in at.


Sony (SNE, $30.19, down $0.34)

June 32.50 puts (SNE100619P00032500, $2.20, up $0.45)

June 30 puts (SNE100619P00030000, $1.00, up $0.15)

Action:  We totally should have pulled the trigger on this trade last Wednesday but we have our fingers in too many pies.  With the May options expiring this week we can now add a few more trades.  We normally carry 6-8 trades open and we are pushing it with 10 but we see a lot of opportunities.


American International Group (AIG, $39.72, down $0.93)

June 35 puts (AIG100619P00035000, $1.80, up $0.25)

Action:  We got the break below $40 and AIG is a fluffed-up 1-for-20 reverse stock-split nightmare.    


Freeport-McMoRan (FCX, $69.72, down $1.99)

June 65 puts (FCX100619P00065000, $2.20, up $0.50)

Action:  The options are a little too pricey for us because Freeport has basically become a copper ETF.  


Spider Standard & Poor’s 500 (SPY, $113.89, down $2.10)

June 110 puts (SPY100619P00110000, $2.50, up $0.80) 

Action:   We are now looking at the June 105 puts (SPY10061900105000, $1.50, up $0.55) after the pop the 110’s got on Friday.