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.

12:45pm (EST)

Special Note:  We will be posting Friday morning’s 9am update shortly after midnight tonight.  We are expanding our offices and we are having work done to upgrade our services.  We hope to be back online by 1pm Friday for our regular update.  We apologize for any inconvenience but we will have detailed instructions for all of the current trades if there is any action to take.

Again, look for an update after midnight for Friday’s 9am update and we will try to be up and running for the 1pm update but we may be late.

 

CURRENT TRADES

Aruba Networks (ARUN, $23.35, up $0.31)

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:  Shares of Aruba have traded to a high of $23.85 and the options have hit a high of $1.75.  Continue to hold.


PowerShares QQQ (QQQQ, $53.69, up $0.67)

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

Entry Price:  $1.54 (10/27/10)

Exit Target: $3.00+

Return: 46%

Stop Target: $1.00, raise to $1.50

Action:  Continue to hold. 

 

American Tower (AMT, $52.19, up $0.06) 

April (2011) 60 calls (AMT110416C00060000, $0.85, flat)

Entry Price:  $0.65 (10/20/10)

Exit Target: $1.30+

Return: 31%

Stop Target: None

Action:  American Tower reports earnings Friday before the bell and we are up on the trade.  Please realize if they miss their numbers this trade might turn negative but we seriously doubt that happens but those are the risks.

The options have 162 days before expiration and we think American Tower will be well north of $60 by then. 


Juniper Networks (JNPR, $34.02, up $0.67)

November 33 calls (JNPR101120C00033000, $1.50, up $0.40) 

Entry Price:  $1.19 (10/13/10)

Exit Target: $2.00+

Return: 26%

Stop Target: $1.00

Action:  These options expire in 15 days so we don’t want to lose our profits.  We are tempted to close half at current levels but we will push the trade one more day and maybe close before the weekend.  We have to be careful with our November options because the time premium will start to get zapped over the next two weeks.   


Brocade Communications Systems (BRCD, $6.18, up $0.03)

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, $21.99, down $0.32)

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, $36.68, up $1.91) (COVERED CALL)

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

Action:  Provenge sales we under expectations but the company will be bringing two plants into full operation in 2011 to keep up with demand for the drug.

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, $11.46, up $0.32)

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 by 11/9.  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.   

We will update this section tonight with some new ideas as well.  Remember, look for an update shortly after midnight (EST)…

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