9:00am (EST)

Aruba Networks (ARUN, $23.04, down $0.02)

January (2011) 25 calls (ARUN110122C00025000, $1.45, down $0.05)  

Entry Price:  $1.20 (11/2/10)

Exit Target: $2.40+

Return: 21%

Stop Target: 60 cents

Action:  We got into this trade on Tuesday and the calls dipped to a low of $1.25 for those of you who may have missed the entry price.  The stock is on the verge of breaking out of a “cup-and-handle” formation so a run past $25 should be a given.  Longer-term, we are looking at a $30 stock and for those of you who are new, check out our write-up on the company from Sunday’s Weekly Wrap.  


PowerShares QQQ (QQQQ, $53.02, up $0.54)

January 53 calls (QQQQ110122C00053000, $2.00, flat)

Entry Price:  $1.54 (10/27/10)

Exit Target: $3.00+

Return: 30%

Stop Target: $1.00

Action:  We are looking for the Q’s to run past $55 and then test the $57-$58 level by Christmas.  A shot at $60 isn’t out of the question either.  Continue to hold. 

 

American Tower (AMT, $52.13, up $0.25) 

April (2011) 60 calls (AMT110416C00060000, $0.85, up $0.05)

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 expecting good numbers.   


Juniper Networks (JNPR, $33.35, up $1.12)

November 33 calls (JNPR101120C00033000, $1.10, up $0.55) 

Entry Price:  $1.19 (10/13/10)

Exit Target: $2.00+

Return: -7%

Stop Target: None

Action:  This position has been down as much as 70% and for those of you who are new to options, please remember this.  We don’t carry stop targets on options that trade near $1 because of the volatility and because they can take you out of good trades.  On higher priced options, we will list stop targets.

The trade is a month old and is now starting to mature.  We obviously didn’t get the best entry price when we recommended it but our homework was telling us shares would break to new highs.  In any event, we aren’t out of the woods, yet, because the position isn’t profitable.  For those of you who have gotten in over the past few weeks or Monday and Tuesday, you have doubled your money so protect your profits in case shares retreat.

We have also placed  a stop TARGET on the trade because if shares lose momentum, we may have to close the trade.  However, our original price target has been $35+ and we think Juniper will get there by the time these options expire. 

These call options are now in-the-money.  Continue to hold. 


Brocade Communications Systems (BRCD, $6.15, down $0.06)

April (2011) 6 calls (BRCD110416C00006000, $0.80, down $0.05)

Entry Price:  $0.60 (10/13/10)

Exit Target: $1.20+

Return: 33%

Stop Target: 70 cents (HARD STOP)

Action:  We were whipsawed out of the January 6 calls on Tuesday but that trade returned 50% so we aren’t complaining.  We still have the April call options open but we have a HARD STOP on this trade in case shares fall below $6 and lose momentum.  The calls traded to a low of 76 cents on Wednesday.

Continue to hold.


Chesapeake Energy (CHK, $22.31, up $0.26)

January (2011) 25 calls (CHK110122C00025000, $0.45, flat)

Entry Price:  $1.15 (10/13/10)

Exit Target: $2.30

Return: -61%

Stop Target: None

Action:  We recommended this trade at the same time we profiled Juniper but we went further out to give it more time because shares aren’t as volatile.

At the time of the trade, Chesapeake Energy was testing $24 and resistance and looked poised to breakout.  Shares fell back to $21 during our holding period but held and now we are making another attempt to break through this level.  However, a disappointing earnings report is weighing on shares this morning.  Continue to hold.     


Dendreon (DNDN, $38.59, up $1.09) (COVERED CALL)

Entry Price:  $41.96 (9/13/10) sold October 45 call @ $1.30
Exit Target: $45
Return: -5%
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, $11.14, up $0.14)

November 12 calls (TIVO101120C00012000, $0.35, flat)

Entry Price:  $0.50 (8/17/10)
Exit Target: $1.00+
Return: -30%
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.   


3M Company (MMM, $85.30, up $0.50)

December 90 calls (MMM101218C00090000, $0.60, up $0.02)

April 95 call (MMM110416C00095000, $1.15, flat)

Action:  Continue to watch. 


Dish Network (DISH, $20.65, up $0.38)

November 19 puts (101120P00019000, $0.30, down $0.05) 

Action:  Dish may have to pay TiVo up to $2 billion on a litigation settlement and they report earnings this Friday.  Watch for now.


BMC Software (BMC, $45.29, down $0.30)

December 50 calls (BMC101218C00050000, $0.65, down $0.10) 

Action:  BMC continues to be a rumored buyout target.  


Riverbed Technology (RVBD, $58.83, up $0.31)

December 65 calls (RVBD101120C00060000, $1.70, up $0.10)

Action:  Continue to watch.  The 2-for-1 stock split is coming which is where we may open positions.

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