9:10am (EST)

Aruba Networks (ARUN, $23.13, down $0.17)

 January (2011) 25 calls (ARUN110122C00025000, $1.45, down $0.10)  

Entry Price:  $1.20 (11/2/10)

Exit Target: $2.40+

Return: 21%

Stop Target: 90 cents

Action:  Aruba made the list for one of the top 100 fastest-growing companies in the US at number 80.  Shares are flat in pre-market trading.  Continue to hold.


PowerShares QQQ (QQQQ, $53.67, flat)

January 53 calls (QQQQ110122C00053000, $2.20, down $0.05)

Entry Price:  $1.54 (10/27/10)

Exit Target: $3.00+

Return: 43%

Stop Target: $1.50

Action:  Continue to hold. 

 

American Tower (AMT, $51.92, down $0.49)

April (2011) 60 calls (AMT110416C00060000, $0.80, down $0.10)

Entry Price:  $0.65 (10/20/10)

Exit Target: $1.30+

Return: 23%

Stop Target: None

Action:  American Tower fell to $50 after reporting earning on Friday and rebounded to close slightly lower.  They had a great quarter and this position has plenty of time to mature.  Continue to hold


Juniper Networks (JNPR, $34.39, up $0.55)

November 33 calls (JNPR101120C00033000, $1.75, up $0.35) 

Entry Price:  $1.19 (10/13/10)

Exit Target: $2.00+

Return: 47%

Stop Target: $1.00, raise to $1.25 (HARD STOP)  

Action:  These options traded to a high of $1.86 on Friday and we are trying to get $2 on an exit.  These options expire next Friday so we need to start taking profits.  We may close half today depending on how the options hold up but we are trying to maximize our gains on this trade.


Brocade Communications Systems (BRCD, $6.06, down $0.14)

April (2011) 6 calls (BRCD110416C00006000, $0.75, down $0.02) 

Entry Price:  $0.60 (10/13/10)

Exit Target: $1.20+

Return: 25%

Stop Target: 70 cents (HARD STOP)

Action:  These options traded own to 72 cents on Friday so we may get stopped out today if shares fail to hold $6.  Although a profit is nice, we were hoping the momentum would hold.


Chesapeake Energy (CHK, $22.27, down $0.02)

January (2011) 25 calls (CHK110122C00025000, $0.40, flat)

Entry Price:  $1.15 (10/13/10)

Exit Target: $2.30

Return: -65%

Stop Target: None

Action:  Continue to hold.     


Dendreon (DNDN, $35.07, down $1.52) (COVERED CALL)

Entry Price:  $41.96 (9/13/10) sold October 45 call @ $1.30
Exit Target: $45
Return: -14%
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, $11.16, down $0.34)

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:  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, $48.19, up $0.32)

December 50 calls (DRI101218C00050000, $0.90, 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, $86.34, down $0.70)

December 90 calls (MMM101218C00090000, $0.70, down $0.10)

April 95 call (MMM110416C00095000, $1.35, down $0.10)

Action:  Continue to watch. 


Dish Network (DISH, $20.81, up $0.12)

November 19 puts (101120P00019000, $0.10, down $0.20) 

Action:  Watch for now.


BMC Software (BMC, $46.17, down $0.18)

December 50 calls (BMC101218C00050000, $0.95, down$0.05) 

Action:  BMC continues to be a rumored buyout target.  


Riverbed Technology (RVBD, $59.28, up $0.15)

December 65 calls (RVBD101120C00060000, $1.70, flat)

Action:  Continue to watch.