9:00am (EST)

ArubaNetworks (ARUN, $23.06, up $1.46)

January (2011) 25 calls (ARUN110122C00025000, $1.50, up $0.55)  

Entry Price:  $1.20 (11/2/10)

Exit Target: $2.40+

Return: 25%

Stop Target: 60 cents

Action:  The stock added another 60 cents after our 1:20pm update and set a new 52-week high yesterday in the process. 

The company will announce earnings on Wednesday, November 11, after the market closes.  We are expecting a great report and a run past $25 for the stock. 

Depending on how quickly this plays out, the option trade will be a double if Aruba can hit our price target of $27 by mid-January.  However, if shares make a quick run to $25 over the next week or two, we could collect a 100% return sooner. 


PowerShares QQQ (QQQQ, $52.78, up $0.56)

January 53 calls (QQQQ110122C00053000, $2.00, up $0.30)

Entry Price:  $1.54 (10/27/10)

Exit Target: $3.00+

Return: 30%

Stop Target: $1.00

Action:  Continue to hold. 

 

American Tower (AMT, $51.88, up $0.09) 

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 but the option pits for another company in the sector saw some huge option activity.  Crown Castle International (CCI, $43.29, up $0.02), which also builds wireless towers, witnessed an incredible amount of volume in the 45 calls across the board for November, December and January.  CCI recently beat earnings and saw a bump in its cash flow which bodes well for American Tower.   


Juniper Networks (JNPR, $32.23, up $0.22)

November 33 calls (JNPR101120C00033000, $0.60, flat) 

Entry Price:  $1.19 (10/13/10)

Exit Target: $2.00+

Return: -50%

Stop Target: None

Action:  Continue to hold. 


Brocade Communications Systems (BRCD, $6.21, down $0.20)

January (2011) 6 calls (BRCD110122C00006000, $0.65, down $0.10)

Entry Price:  $0.40 (10/13/10)

Exit Target: $1.00+ (CLOSED at 60 cents on 11/2/10)

Return: 50%

Stop Target: 60 cents (HARD STOP)


April (2011) 6 calls (BRCD110416C00006000, $0.85, down $0.06)

Entry Price:  $0.60 (10/13/10)

Exit Target: $1.20+

Return: 42%

Stop Target: 70 cents (HARD STOP)

Action:  We were stopped out of the January calls for a 50% profit yesterday but we still have the April calls open as our 70 cent HARD STOP was not hit yesterday.  The January calls traded to a low of 57 cents.  Continue to hold the April calls.


Chesapeake Energy (CHK, $22.05, up $0.22)

January (2011) 25 calls (CHK110122C00025000, $0.45, up $0.05)

Entry Price:  $1.15 (10/13/10)

Exit Target: $2.30

Return: -61%

Stop Target: None

Action:  These options have over 2 months before expiration.  Continue to hold as the stock builds a nice base above $20.     


Dendreon (DNDN, $37.50, up $0.39) (COVERED CALL)

Entry Price:  $41.96 (9/13/10) sold October 45 call @ $1.30
Exit Target: $45
Return: -8%
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, $11.00, flat)

November 12 calls (TIVO101120C00012000, $0.35, down $0.05)

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, $84.80, up $0.82)

December 90 calls (MMM101218C00090000, $0.58, up $0.03)

April 95 call (MMM110416C00095000, $1.15, up $0.10)

Action:  Continue to watch. 


Dish Network (DISH, $20.27, down $0.04)

November 19 puts (101120P00019000, $0.35, flat) 

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, $45.59, up $0.24)

December 50 calls (BMC101218C00050000, $0.75, flat)

Action:  BMC continues to be a rumored buyout target.  


Riverbed Technology (RVBD, $58.52, up $1.95)

December 65 calls (RVBD101120C00060000, $1.60, up $0.45)

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

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