November 2010 | Members

 

Please remember, ALL “Exit Targets” and “Stop Targets” are targets.  You should not have any “Hard Stops” entered to close any trades or “Exit Orders” in your brokerage account unless we list one.  We will send out an “Alert” or “Trade Update” if we want you to close a position OR if a new trade comes out.  Otherwise, follow instructions at all times in the 9am and 1pm updates.  Also, we will usually give you a heads-up if we think we are going to send an email outside of these time frames but it is rare that we do.

 

9:00am (EST)

Special Note:   As a reminder, we are upgrading and expanding our offices today so we may or not be able to do the 1pm update.  It is very rare we miss a scheduled post and we apologize for any inconvenience this may cause.  The unemployment figures are due out before the open and if the market does slip, look for support to hold. 

 

CURRENT TRADES

Aruba Networks (ARUN, $23.30, up $0.26)

January (2011) 25 calls (ARUN110122C00025000, $1.55, up $0.10)  

Entry Price:  $1.20 (11/2/10)

Exit Target: $2.40+

Return: 29%

Stop Target: 90 cents

Action:  Aruba made the list for one of the top 100 fastest-growing companies in the US at number 80.  We did a big write-up in our Weekly Wrap for those of you unfamiliar with the company which can be viewed on website.  Continue to hold.


PowerShares QQQ (QQQQ, $53.67, up $0.65)

January 53 calls (QQQQ110122C00053000, $2.25, up $0.25)

Entry Price:  $1.54 (10/27/10)

Exit Target: $3.00+

Return: 46%

Stop Target: $1.50

Action:  Continue to hold. 

 

American Tower (AMT, $52.41, up $0.28) 

April (2011) 60 calls (AMT110416C00060000, $0.90, up $0.05)

Entry Price:  $0.65 (10/20/10)

Exit Target: $1.30+

Return: 38%

Stop Target: None

Action:  American Tower reports earnings this morning.  We are looking for a solid quarter.


Juniper Networks (JNPR, $33.84, up $0.49)

November 33 calls (JNPR101120C00033000, $1.40, up $0.30) 

Entry Price:  $1.19 (10/13/10)

Exit Target: $2.00+

Return: 18%

Stop Target: $1.00  

Action:  These options expire in 14 days so we don’t want to lose our profits if shares stall.  The options would only be worth 84 cents if they expired today.   The other 60 cents is “time premium” which will start to evaporate rapidly if the stock languishes.


Brocade Communications Systems (BRCD, $6.20, up $0.05)

April (2011) 6 calls (BRCD110416C00006000, $0.80, flat)

Entry Price:  $0.60 (10/13/10)

Exit Target: $1.20+

Return: 33%

Stop Target: 70 cents (HARD STOP)

Action:  Continue to hold.


Chesapeake Energy (CHK, $22.29, down $0.02)

January (2011) 25 calls (CHK110122C00025000, $0.40, down $0.05)

Entry Price:  $1.15 (10/13/10)

Exit Target: $2.30

Return: -65%

Stop Target: None

Action:  Continue to hold.     


Dendreon (DNDN, $36.59, up $2.00) (COVERED CALL)

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

Action:  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.  We are looking to sell another call option. 


TiVo (TIVO, $11.50, up $0.36)

November 12 calls (TIVO101120C00012000, $0.40, up $0.05)

Entry Price:  $0.50 (8/17/10)
Exit Target: $1.00+
Return: -20%
Stop Target: None

Action:  Big news coming next week.  Continue to hold.


Other 2010 Portfolio OPEN positions (2):  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) 

Biodel March 7.50 calls (from October) 


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. 


Darden Restaurants (DRI, $47.87, up $1.09)

December 50 calls (DRI101218C00050000, $0.70, up $0.20)

Action:  The 52-week high for the stock is $49 and a break above this level leads to all-time highs or “blue-sky” territory.  If the stock can make it to $51.40 by mid-December the trade would represent a 100% return.


3M Company (MMM, $87.04, up $1.74)

December 90 calls (MMM101218C00090000, $0.80, up $0.20)

April 95 call (MMM110416C00095000, $1.45, up $0.30)

Action:  Continue to watch. 


Dish Network (DISH, $20.69, up $0.04)

November 19 puts (101120P00019000, $0.30, flat) 

Action:  Dish may have to pay TiVo up to $2 billion on a litigation settlement and they report earnings today.    


BMC Software (BMC, $46.35, up $1.06)

December 50 calls (BMC101218C00050000, $1.00, up $0.25) 

Action:  BMC continues to be a rumored buyout target.  


Riverbed Technology (RVBD, $59.13, up $0.30)

December 65 calls (RVBD101120C00060000, $1.70, flat)

Action:  Continue to watch. 

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