9:00am (EST)

PowerShares QQQ (QQQQ, $52.19, up $0.16)

January 53 calls (QQQQ110122C00053000, $1.65, up $0.10)

Entry Price:  $1.54 (10/27/10)

Exit Target: $3.00+

Return: 7%

Stop Target: 75 cents

Action:  We are expecting the QQQ’s to push $55-$56 by the end of the year which would be a double on anything over $56. 

 

American Tower (AMT, $50.70, down $0.14) 

April (2011) 60 calls (AMT110416C00060000, $0.60, down $0.05) 

Entry Price:  $0.65 (10/20/10)

Exit Target: $1.30+

Return: -8%

Stop Target: None

Action:  The company announces earnings next Monday.  Continue to hold.     


Biodel (BIOD, $3.57, down $0.18) (Strangle Trade)

November 7.50 calls (BIOD101120C00007500, $0.60, down $0.10) 

Entry Price:  $0.60 (10/18/10)

Exit Target: $1.20+

Return: 0%

Stop Target: None


November 2.50 puts (BIOD101120P00002500, $0.75, up $0.05)

Entry Price:  $0.50 (10/18/10)

Exit Target: $1.00

Return: 50%

Stop Target: None


March (2011) 7.50 calls (BIOD110319C00007500, $0.90, down $0.10) 

Entry Price:  $1.10 (10/18/10)

Exit Target: $2.20+

Return: -18%

Stop Target: None  

Action:  The action is pointing towards a negative ruling by the FDA but we knew that going in.  Remember, we gave the chances of the company’s drug getting approval at 30% but we like the payoff if we do hit.  The trade may end up losing a bit if there isn’t a win but we like the risk/ reward possibilities of this trade.  Continue to hold. 


Juniper Networks (JNPR, $32.11, down $0.27)

November 33 calls (JNPR101120C00033000, $0.60, down $0.10)

Entry Price:  $1.19 (10/13/10)

Exit Target: $2.00+

Return: -50%

Stop Target: None

Action:  Shares almost traded into positive territory yesterday but finished in the red.  The 52-week high is $32.84 and a break above it should get us a run to $35 over the near-term. 


Brocade Communications Systems (BRCD, $6.19, up $0.30)

January (2011) 6 calls (BRCD110122C00006000, $0.60, up $0.17)

Entry Price:  $0.40 (10/13/10)

Exit Target: $1.00+

Return: 50%

Stop Target: None


April (2011) 6 calls (BRCD110416C00006000, $0.80, up $0.18)

Entry Price:  $0.60 (10/13/10)

Exit Target: $1.20+

Return: 33%

Stop Target: None

Action:  Brocade traded over 40 million shares yesterday and the January calls traded over 28,000 contracts yesterday and have 85 days before expiration while the April calls traded over 2,000 contracts and have 169 days.  We are looking for shares to trade to $10+ on a buyout or turnaround story.  Continue to hold.


Chesapeake Energy (CHK, $21.37, up $0.11)

January (2011) 25 calls (CHK110122C00025000, $0.30, flat)

Entry Price:  $1.15 (10/13/10)

Exit Target: $2.30

Return: -74%

Stop Target: None

Action:  Continue to hold.      


Dendreon (DNDN, $37.33, up $0.30) (COVERED CALL)

Entry Price:  $41.96 (9/13/10) sold October 45 call @ $1.30
Exit Target: $45
Return: -8%
Stop Target: None

Action:  We are watching the January calls but want shares to move past $40 before we sell another covered call.

Dendreon opened at $41.96 and you could have sold the October 45 call option for $1.30 on 9/13/10.  This lowered the cost basis to $40.66. 

TiVo (TIVO, $11.29, up $0.17)

November 12 calls (TIVO101120C00012000, $0.50, flat)

Entry Price:  $0.50 (8/17/10)
Exit Target: $1.00+
Return: 10%
Stop Target: None

Action:  The calls traded to a high of 60 cents.  Continue to hold.

From Wednesday:

“Circle 11/9 on your calendars.  That is when we are expecting to hear some patent litigation news between Dish Network (DISH, $19.75, up $0.26) and TiVo.  The U.S. Patent and Trademark Office recently backed the validity of TiVo’ “Time Warp” patent, which was a huge win and helped TiVo’s position.  In fact, we think Dish has lost all of its leverage power and should have settled sooner.  We have been following this dispute for years and initially had TiVo winning $500 million in damages but there are whispers Dish may have to pay TiVo more than $2 billion as part of a settlement.

This type of verdict would be a windfall for TiVo which is slowly reinventing itself.  The firm remains a likely takeover candidate (Apple or Google) and the 52-week high is $18.93.  We doubt shares jump that much on a settlement, but they could.  A more reasonable pop would be north of $15 which would make these call options worth at least $3.” 


Other 2010 Portfolio OPEN positions (1):  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.  We are still keeping track of the trade and we will record the results, accordingly, when we close them or the options expire.  Click on the 2010 Portfolio link in the Members Area to view ALL open/ closed trades. 

Intel November 18 puts (from October) (Strangle Trade, call options closed for 42% profit)


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 sell-off.


Deckers Outdoor (DECK, $54.73, down $1.00)

November 60 calls (DECK101120C00060000, $1.35, down $0.15)

Action:  The calls opened at 60 cents on Monday and traded down to 95 cents yesterday.   The 52-week high is $56.17.  


Dish Network (DISH, $19.43, down $0.32)

November 19 puts (101120P00019000, $0.65, up $0.10)

Action:  Good news for TiVo means bad news for Dish.  If the company doesn’t settle, they could lose a lot of subscribers if there is an injunction.  If shares are under $20 by the time the news comes out then there is a chance the stock corrects 10%.  This would knock the stock down to $18 and the puts would be worth at least $1, or a double from current levels.


Genworth Financial (GNW, $13.20, down $0.24)

November 14 calls (GNW101120C00014000, $0.40, down $0.10)

November 13 puts (GNW101120P00013000, $0.50, up $0.10)

Action:  The puts opened at 54 cents while the calls started at 35 cents on Wednesday.  


BMC Software (BMC, $43.92, down $0.26)

November 50 calls (BMC101120C00050000, $0.50, down $0.20)

Action:    


Riverbed Technology (RVBD, $58.54, up $1.33)

November 60 calls (RVBD101120C00060000, $2.15, up $0.50)

Action:  These calls opened at 95 cents on Tuesday and have shown strength all week.  If you are a course member, check pages 96-101 in your option manual, “How to trade Options on Momentum Stocks”.  Here is your gift-wrapped double for those of you who have purchased the course and applied our homework.


Aruba Networks (ARUN, $21.86, up $1.62)

December 22 calls (ARUN101218C00022000, $1.60, up $0.70)

April 30 calls (ARUN110416C00030000, $0.75, up $0.25)

Action:  The December calls opened at $1.00 on Wednesday and we said of $20 held we might get into this trade.  If we can close a trade or two over the next few days then we might nibble on the April calls.  The company announces earnings on 11/18. 

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