June 2010 | Members

 

1:05pm (EST)

Moody’s (MCO, $19.75, down $0.75) 

July 18 puts (MCO100717P00018000, $1.25, up $0.25)

Entry Price:  $1.10 (6/1/10)

Exit Target: $2.20+

Return: 14%

Stop Target: 55 cents

Action:  The put options opened at $1.17 but traded down to $1.10 which was at the top end of our limit price.  Warren Buffett will make an appearance in front of the Financial Crisis Inquiry Commission along with Moody’s CEO to review credit ratings and how Wall Street, governments and the public uses them.  Hopefully, we get a continued downtrend as we are looking for shares to trade down to $16.


Qualcomm (QCOM, $35.85, up $0.29)

July 34 puts (QCOM100717P00034000, $0.95, flat)

Entry Price:  $1.08 (6/1/10)

Exit Target: $2.00+

Return: -12%

Stop Target: 50 cents

Action:  The puts opened at $1.08 which was within our limit range and traded up to $1.17.  We think Qualcomm could test $30 over the next six weeks.


Wells Fargo (WFC, $28.62, down $0.07)

June 25 puts (WFC100619P00025000, $0.25, down $0.05)

Entry Price:  $0.73 (5/25/10)

Exit Target: $1.50

Return: -66%

Stop Target: None

Action:  We think June could be even more volatile than May and the stock is still trading below its 200-day moving average. 

 

Vale SA (VALE, $27.13, down $0.06)

June 22 puts (VALE100619P00022000, $0.15, down $0.05) 

Entry Price:  $1.00 (5/20/10)

Exit Target: $2.00

Return: -85%

Stop Target: None

Action:  We are going to move Vale to the “hold” section as we wait for a recovery.  There may not be one however as we said these options only have 17 days before expiration.  If we can get losses back to 50% or better then we will bring back coverage. 


SanDisk (SNDK, $45.84, down $0.78)

July 34 puts (SNDK100717P00034000, $0.80, up $0.10)

Entry Price:  $1.50 (5/10/10) 

Exit Target: $3.00

Return: -47%

Stop Target:  $1.10, none 

Action:  Continue to hold.   


Other 2010 Portfolio OPEN positions (3):  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, Berkshire Hathaway Class B and Vale. 


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.  


Apollo Group (APOL, $42.67, down $0.49)

July 45 puts (APOL100717P00045000, $1.65, flat)

Action:  Shares hit a 52-week low of $51.86 this morning but we wanted to play some lower priced options in case we are wrong about the market’s direction.  Apollo doesn’t always trade in tandem with the market and is subject to a bounce on any fluffed news that bullish investors hear. 

     

PowerShares QQQ (QQQQ, $45.97, up $0.37)  

July 45 puts (QQQQ100717P00045000, $1.45, down $0.15)

Action:  Start thinking about adding these options if they hit $1.25.  The puts have traded to a low of $1.33 and we should pull the trigger here but we don’t want to go overboard with new trades until we see some momentum.