9:05am (EST)

CBOE Holdings (CBOE, $24.73, down $0.11)

December 25 calls (CBOE101218C00025000, $0.90, flat)

Entry Price:  $0.75 (11/8/10)

Exit Target: $2.40+

Return: 20%

Stop Target: None

Action:  CBOE spent much of Thursday in the hole but a late day comeback had shares in positive territory, breifly, before they finished slightly lower.  We are expecting a push past $25 and a run to $30 could be in the cards.  Continue to hold.

 

Juniper Networks (JNPR, $34.53, down $0.02)

December 35 calls (JNPR101218C00035000, $1.20, down $0.05)

Entry Price:  $1.05 (11/8/10)

Exit Target: $2.10+

Return: 14%

Stop Target: None

Action:  Juniper traded to a low of $32.63 yesterday and the options opened at 57 cents before spending the day rebounding.  Juniper held up well during the Cisco storm.  Continue to hold.

 

Darden Restaurants (DRI, $49.31, up $1.09)

December 49 calls (DRI101218C00049000, $1.80, up $0.50)

Entry Price:  $1.20 (11/8/10)

Exit Target: $2.40+

Return: 50%

Stop Target: 60 cents, raise to $1.10 

Action:  These options made over a 40% gain yesterday and the stock set a new 52-week high of $49.48 in the process.  We are looking for Darden to make a push above $50+.

 

Aruba Networks (ARUN, $23.13, down $0.49)

January (2011) 25 calls (ARUN110122C00025000, $1.40, down $0.20)

Entry Price:  $1.20 (11/2/10)

Exit Target: $2.40+

Return: 17%

Stop Target: 90 cents

Action:  Continue to hold.


PowerShares QQQ (QQQQ, $53.38, down $0.33)

January 53 calls (QQQQ110122C00053000, $1.95, down $0.15) 

Entry Price:  $1.54 (10/27/10)

Exit Target: $3.00+

Return: 27%

Stop Target: $1.50

Action:  Continue to hold. 

 

American Tower (AMT, $53.14, up $0.03) 

April (2011) 60 calls (AMT110416C00060000, $0.95, down $0.05)

Entry Price:  $0.65 (10/20/10)

Exit Target: $1.30+

Return: 46%

Stop Target: None

Action:  Continue to hold.


Chesapeake Energy (CHK, $23.21, down $0.20)

January (2011) 25 calls (CHK110122C00025000, $0.65, down $0.05)

Entry Price:  $1.15 (10/13/10)

Exit Target: $2.30

Return: -43%

Stop Target: None

Action:  Continue to hold.     


Dendreon (DNDN, $36.70, up $1.87) (COVERED CALL)

December 40 call (DNDN101218C00040000, $1.75, up $0.10)  

Entry Price:  $41.96 (9/13/10) sold October 45 call @ $1.30, (11/11/10) sold December call @$1.75
Exit Target: $45
Return: -6%
Stop Target: None

Action:  Dendreon jumped 5% after a study showed “moderate” evidence the company’s prostate cancer drug will be effective.  The real money maker comes when they can get their manufacturing plants up to full production.

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. 

On 11/11/10 we sold the December 40 call option for $1.75 which lowered our cost basis to $38.91.  If the stock gets “called away” from us by mid-December then we make 3% in 3 months.


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 (strangle trade from October) 

Biodel March 7.50 calls (from October)

TiVo November 12 calls (from August)


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. 


JC Penney (JCP, $32.22, down $0.45)

November 35 calls (JCP101120C00035000, $0.26, down $0.01)

November 30 puts (JCP101120P00030000, $0.42, up $0.20)

Action:  The calls were selling for 30 cents while the puts were selling for 25 cents in yesterday’s afternoon update. 


Foster Wheeler (FWLT, $29.21, up $0.61)

December 30 calls (FWLT101218C00030000, $1.05, up $0.35)

January (2011) 32 calls (FWLT110122C00032000, $0.88, up $0.28)

Action:  There were a lot of new positions initiated in these call options yesterday and we think shares easily run to $32-$34, quickly, if they break above $30.  Both options popped around 50% and there is little resistance from $30 to $32. 


Ingersoll-Rand (IR, $42.92, up $1.78)

December 45 calls (IR101218C00045000, $0.60, up $0.45)

Action:  The stock rallied after the market learned the company would join the S&P 500.  The options rallied 300% after closing at 15 cents on Tuesday.  This is normally a bullish event and the inclusion will take place on November 16, after the market closes.  We really think these options could do well. 


JDS Uniphase (JDSU, $11.69, down $0.08)

March 13 calls (JDSU110319C00013000, $0.75, down $0.08)

Action:  Watch for now. 


3M Company (MMM, $86.50, up $0.25)

December 90 calls (MMM101218C00090000, $0.60, flat)

April 95 call (MMM110416C00095000, $1.30, flat) 

Action:  Continue to watch. 


BMC Software (BMC, $45.71, down $0.30)

December 50 calls (BMC101218C00050000, $0.80, down $0.10)

Action:  BMC continues to be a rumored buyout target.  


Riverbed Technology (RVBD, $29.50, down $0.15)

December 35 calls (RVBD101120C00060000, $0.45, down $0.05)

Action:  Watch for now.