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.

1:15pm (EST)

CBOE Holdings (CBOE, $25.01, up $0.14)

December 25 calls (CBOE101218C00025000, $1.00, flat)

Entry Price:  $0.75 (11/8/10)

Exit Target: $2.40+

Return: 33%

Stop Target: None

Action:  Shares have traded to a high of $25.18 today and we would like to see a close above $25.  Continue to hold.

 

Juniper Networks (JNPR, $34.34, up $0.15)

December 35 calls (JNPR101218C00035000, $1.15, up $0.10)

Entry Price:  $1.05 (11/8/10)

Exit Target: $2.10+

Return: 10%

Stop Target: None

 

November 33 calls (JNPR101120C00033000, $1.70, up $0.10) 

Entry Price:  $1.19 (10/13/10)

Exit Target: $2.00+ (closed half at $1.65 on 11/8/10)

Return: 49%

Stop Target: $1.25 (HARD STOP)  

Action:  Juniper could jump if Cisco Systems comes in with a good quarter.  We closed half of the November calls yesterday and added the December call options as a ‘rollover”.  We are still trying to exit the other half of the November calls above $2.00.

 

Darden Restaurants (DRI, $47.52, down $0.51)

December 49 calls (DRI101218C00049000, $1.00, down $0.20)

Entry Price:  $1.20 (11/8/10)

Exit Target: $2.40+

Return: -17%

Stop Target: 60 cents

Action:  We are looking for Darden to make a push above $50 over the next 6 weeks.

 

Aruba Networks (ARUN, $23.15, up $0.02)

January (2011) 25 calls (ARUN110122C00025000, $1.40, down $0.05)  

Entry Price:  $1.20 (11/2/10)

Exit Target: $2.40+

Return: 17%

Stop Target: 90 cents

Action:  Continue to hold.


PowerShares QQQ (QQQQ, $53.71, down $0.03)

January 53 calls (QQQQ110122C00053000, $2.05, down $0.10) 

Entry Price:  $1.54 (10/27/10)

Exit Target: $3.00+

Return: 33%

Stop Target: $1.50

Action:  Continue to hold. 

 

American Tower (AMT, $52.83, up $0.46) 

April (2011) 60 calls (AMT110416C00060000, $1.00, up $0.10)

Entry Price:  $0.65 (10/20/10)

Exit Target: $1.30+

Return: 54%

Stop Target: None

Action:  Continue to hold.


Chesapeake Energy (CHK, $23.42, up $0.72)

January (2011) 25 calls (CHK110122C00025000, $0.70, up $0.20)

Entry Price:  $1.15 (10/13/10)

Exit Target: $2.30

Return: -39%

Stop Target: None

Action:  Shares are getting a nice 3% pop today.  Continue to hold.     


Dendreon (DNDN, $34.04, down $0.20) (COVERED CALL)

Entry Price:  $41.96 (9/13/10) sold October 45 call @ $1.30
Exit Target: $45
Return: -16%
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, $10.37, down $0.92)

November 12 calls (TIVO101120C00012000, $0.15, down $0.25)

Entry Price:  $0.50 (8/17/10)
Exit Target: $1.00+
Return: -70%
Stop Target: None

Action:  We are waiting for news as TiVo argues its case in court today.  Continue to hold.  After 3 months of waiting, we are hoping for some good news and a breakout.


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, $85.22, down $0.64)

December 90 calls (MMM101218C00090000, $0.45, down $0.15)

April 95 call (MMM110416C00095000, $1.00, down $0.20) 

Action:  Continue to watch. 


Dish Network (DISH, $20.09, up $0.04)

November 19 puts (101120P00019000, $0.25, flat) 

Action:  Dish fell nearly 4% yesterday after the stock was downgraded by UBS. 


BMC Software (BMC, $46.28, down $0.06)

December 50 calls (BMC101218C00050000, $0.90,down $0.10)

Action:  BMC continues to be a rumored buyout target.  


Riverbed Technology (RVBD, $29.12, down $0.51)

December 35 calls (RVBD101120C00060000, $0.35, down $0.10)

Action:  The 2-for-1 split hit today and we really like these call option at current prices.  We may be jumping on these options soon but we may look at longer-term plays.