9:00am (EST)

Wells Fargo (WFC, $28.90, up $0.19)

June 25 puts (WFC100619P00025000, $0.43, down $0.11)

Entry Price:  $0.73 (5/25/10)

Exit Target: $1.50

Return: -41%

Stop Target: None

Action:  The financials got a lift yesterday like we mentioned in our opening and will continue to be volatile.  However, our near-term target for the stock is $25 and $30 should act as resistance going forward.  A close above this level might shake us out but for now we are going to hold.


Vale SA (VALE, $25.47, up $0.30)

June 22 puts (VALE100619P00022000, $0.35, down $0.10)

Entry Price:  $1.00 (5/20/10)

Exit Target: $2.00

Return: -65%

Stop Target: 50 cents

Action:  The puts traded as high as 75 cents as shares fell to $23.66 but gave back those gains in the afternoon.  There was a bullish call on the stock after the bell so shares might pop again this morning.  However, we think this stock will fall to the teens if we get the selloff we are expecting.

PowerShares QQQ (QQQQ, $44.70, up $0.04)  

June 45 puts (QQQQ100619P00045000, $1.60, down $0.15) 

Entry Price:  $1.15 (5/17/10)

Exit Target: $2.30 (closed half at $1.90 on 5/20/2010, half at $1.90 on 5/25)    

Return: 76%

Stop Target: $1.30 (HARD STOP), raise to $1.90  

Action:  Our hard stop of $1.90 was hit yesterday so everyone should be out of this trade.  We made a nice profit in a little over a week and we are sure we will be playing the Q’s again here shortly.

Expedia (EXPE, $21.61, up $0.15)

June 20 puts (EXPE100619P00020000, $0.60, flat)

Entry Price:  $0.45 (5/14/10)

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

Return: 89%

Stop Target: 30 cents (HARD STOP) 

Action:  The calls traded as high as 90 cents which is where we sold half last Friday but they were unable to hold those gains as Expedia roared back to finish in positive territory. 

SanDisk (SNDK, $43.18, up $1.37)

July 34 puts (SNDK100717P00034000, $1.35, down $0.25)

Entry Price:  $1.50 (5/10/10) 

Exit Target: $3.00

Return: -10%

Stop Target:  $1.10

Action:  Continue to hold.        

Qualcomm (QCOM, $35.61, down $0.06)

June 36 puts (AAO100619P00036000, $1.60, flat)

Entry Price:  $0.80 (4/28/10) 

Exit Target: $2.00+ (closed half at $1.80 on 5/7/2010, half at $1.60 on 5/25) 

Return: 113%

Stop Target: $1.25 (HARD STOP), raise to $1.60

Action:  Our stop on the other half of this trade was also taken out and we are now eyeballing the June 34 puts (QCOM100619P00034000, $0.85, down $0.05) which traded up to $1.40 yesterday.

We still believe Qualcomm could test $30 over the next month and this would be considered a “roll-over” trade if we add them.      

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.


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.  

We are going to watch this morning’s action to see how the next few days play out.  While there may be a chance for a few call options plays we still favor puts at this time.