May 2010 | Members

 

1:00pm (EST)

Vale SA (VALE, $25.95, down $0.13)

June 22 puts (VALE100619P00022000, $0.40, down $0.05)

Entry Price:  $1.00 (5/20/10)

Exit Target: $2.00

Return: -60%

Stop Target: 50 cents

Action:  Continue to hold.


PowerShares QQQ (QQQQ, $45.11, up $0.27)  

June 45 puts (QQQQ100619P00045000, $1.55, down $0.35)

Entry Price:  $1.15 (5/17/10)

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

Return: 50%

Stop Target: $1.00, raise to $1.30 (HARD STOP)  

Action:  The puts have traded to a low of $1.45 and the hard stop of $1.30 ensures a 40% return.  If the puts rebound and move higher (which we expect) then we will raise the stop along the way on the other half.   


Expedia (EXPE, $21.89, up $0.11)

June 20 puts (EXPE100619P00020000, $0.50, down $0.15)

Entry Price:  $0.45 (5/14/10)

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

Return: 61%

Stop Target: 45 cents, lower to 30 cents (HARD STOP) 

Action:  The “bid’ is 45 cents so we are going to give the stop a little wiggle room.  However, if Expedia gets mustard and starts to be a hot dog then we will bail if the puts trade 30 cents. 


SanDisk (SNDK, $42.30, up $0.82)

July 34 puts (SNDK100717P00034000, $1.50, down $0.30)

Entry Price:  $1.50 (5/10/10) 

Exit Target: $3.00

Return: 0%

Stop Target:  $1.10


Action:  Continue to hold.  These options have 53 days before they expire.   


Qualcomm (QCOM, $35.85, down $0.04)

June 36 puts (AAO100619P00036000, $1.50, down $0.10)

Entry Price:  $0.80 (4/28/10) 

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

Return: 106%

Stop Target: $1.00, raise to $1.25 (HARD STOP)

Action:  After doing some number crunching we decided to raise the $1.00 hard stop to $1.25 to give the trade a minimum return of 90%.  If Qualcomm continues lower we will raise the stop along the way to lock in gains.


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 and Berkshire Hathaway Class B.


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.  


Rambus (RMBS, $24.59, up $0.39)

June 28 calls (RMBS100619C00028000, $1.10, down $0.50)

June 20 puts (RMBS100619P00020000, $1.20, down $0.30)

Action:  Some of the premium deflated over the weekend but we still don’t like this one too much because of the risks involved.  While Rambus has won some key battles, they have also lost some.  Our feeling is that the stock moves higher but we aren’t 100% convinced.


Green Mountain Coffee Roasters (GMCR, $23.89, up $0.57)

September 30 calls (GMCR100918C00030000, $1.10, up $0.13)

Action:  Could this be the “safe’ trade if the market sinks?

       

Dendreon (DNDN, $44.55, up $2.85)

August 60 calls (DNDN100821C00060000, $1.55, up $0.20)

Action:  Fly Robin, fly…