9:05am (EST)

Abercrombie & Fitch (ANF, $40.78, up $0.56)

June 35 puts (ANF100619P00035000, $0.85, down $0.20) 

Entry Price:  $1.05 (5/17/10)

Exit Target: $2.00+

Return: -19%

Stop Target: 50 cents

Action: Abercrombie lost money for the quarter but sales were up.  Shares are up slightly in pre-market but we went with the June options to give the trade more time to work in case ANF did spike a little after announcing. 

 

PowerShares QQQ (QQQQ, $47.08, up $0.15)  

June 45 puts (QQQQ100619P00045000, $0.90, down $0.05). 

Entry Price:  $1.15 (5/17/10)

Exit Target: $2.30

Return: -22%

Stop Target: 55 cents

Action:  The market made a rebound in the 11th hour and took the Q’s with it.  They touched a low of $46.07 and the options traded up to $1.30 before falling back.  This week will be volatile but the trend is lower.


Expedia (EXPE, $23.11, up $0.31)

June 20 puts (EXPE100619P00020000, $0.40, down $0.10)

Entry Price:  $0.45 (5/14/10)

Exit Target: $1.00

Return: -11%

Stop Target: None

Action:  Like a tide that lifts all boats, Expedia rebounded with the rest of the market after touching a low of $22.39.  This was a cheap out-of-the-money option so we aren’t too worried about the premium fluctuating. 


Moody’s (MCO, $21.56, down $0.01)

June 20 puts (MCO100619P00020000, $1.50, down $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: 94%

Stop Target:  place a HARD stop at $1.30 on the other half

Action:  We closed half of the trade on Friday to lock in some gains because of the volatility.  We have also set a HARD stop on the position meaning of $1.30 is hit we are gone.   


eBay (EBAY, $22.51, up $0.26) 

June 21 puts (EBAY100619P00021000, $0.45, down $0.10) 

Entry Price:  $0.48 (5/10/10) 

Exit Target: $1.00 

Return: -6%

Stop Target:  None

Action:  Continue to hold.   


SanDisk (SNDK, $42.68, up $0.78)

July 34 puts (SWF100717P00034000, $1.35, down $0.15)

Entry Price:  $1.50 (5/10/10) 

Exit Target: $3.00

Return: -10%

Stop Target:  75 cents

Action:  These options do not expire until July but we hope to be long gone by then.  SanDisk can be an explosive stock so we went out a couple of months to buy some time. 


Apollo Group (APOL, $57.85, up $5.07)

June 50 puts (APOL100619P00050000, $1.25, down $0.80)

Entry Price:  $1.25 (5/5/10) 

Exit Target: $2.50

Return: 0%

Stop Target:  $1.00

Action:  Shares of Apollo soared after our 1pm update and we aren’t sure of why the stock bounced so strong after nearing its 52-week low of $52.20.    

The climb came after a report said that a top Education official is stepping down.  If shares break $60 we might have to go.   


Qualcomm (QCOM, $37.37, up $0.07)

June 36 puts (AAO100619P00036000, $1.00, down $0.10)

Entry Price:  $0.80 (4/28/10) 

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

Return: 75%

Stop Target: $1.00

Action:  Continue to hold.


Garmin (GRMN, $34.01, up $0.58) 

May 32 puts (GRMN100522P00032000, $0.30, down $0.15)

Entry Price:  $1.00 (4/5/10) 

Exit Target: $2.00+

Return: -70% 

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.


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.  

Vivus (VVUS, $12.47, up $0.63)

June 12.5 calls (VVUS100619C00012500, $1.05, up $0.30)

Action:  We did a big write-up on this stock last Friday for those of you just joining us and shares looked poised to break their 52-week high of $12.88. 

TiVo (TIVO, $10.34, up $0.18)

August 15 calls (TIVO100821C00015000, $0.52, flat)

August 7.5 puts (TIVO100821P00007500, $0.49, down $0.01)

Action:  We really like TiVo as a strangle option trade and playing both the calls and puts provide protection.  It would only cost a $1 in premium and TiVo would need to trade above $16 or below $6.50 to breakeven. 

On Friday, shares got hammered after a court granted Dish Network (DISH, $23.15, up $0.25) a rare full-court review of a ruling that could have resulted in the disabling of millions of digital video recorders.  If Dish loses the review then TiVo’s stock will likely soar again and if they win.  If not, TiVo will tank because they won’t have the mustard to go after other companies in their sites.

Dendreon (DNDN, $43.40, down $0.36)

August 60 calls (DNDN100821C00060000, $1.38, up $0.04)

Action:  Now that the noise has died down we think the takeover chatter and buyouts rumors will start to heat up again for Dendreon.  Biotech M&A will continue to be strong in 2010 and it wouldn’t surprise us if someone came in with a $75/ share offer (minimum) for Dendreon which could then lead to a bidding war.