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.

12:30pm (EST)

CBOE Holdings (CBOE, $24.74, down $0.18)

December 25 calls (CBOE101218C00025000, $0.90, down $0.05)

Entry Price:  $0.75 (11/8/10)

Exit Target: $2.40+

Return: 20%

Stop Target: None

Action:  Continue to hold.

 

Juniper Networks (JNPR, $34.22, up $0.02)

December 35 calls (JNPR101218C00035000, $1.10, flat)

Entry Price:  $1.05 (11/8/10)

Exit Target: $2.10+

Return: 5%

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, half at $1.25 on 11/10/10)

Return: 22%

Stop Target: $1.25 (HARD STOP)  

Action:  The November calls traded to a low of $1.20 this morning so we were stopped out of the other half as the $1.25 HARD STOP was triggered.  We would have loved to have kept them open but we have the December calls to play a further advance.

 

Darden Restaurants (DRI, $47.76, up $0.39)

December 49 calls (DRI101218C00049000, $1.10, up $0.15)

Entry Price:  $1.20 (11/8/10)

Exit Target: $2.40+

Return: -8%

Stop Target: 60 cents

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

 

Aruba Networks (ARUN, $23.20, up $0.50)

January (2011) 25 calls (ARUN110122C00025000, $1.45, up $0.25)

Entry Price:  $1.20 (11/2/10)

Exit Target: $2.40+

Return: 21%

Stop Target: 90 cents

Action:  Aruba has made up yesterday’s losses and is looking to challenge its 52-week high of $23.85.  These options have 72 days before expiration and we are lloking for shares to push $30 by mid-January.  Continue to hold.


PowerShares QQQ (QQQQ, $53.58, up $0.13)

January 53 calls (QQQQ110122C00053000, $2.05, up $0.05) 

Entry Price:  $1.54 (10/27/10)

Exit Target: $3.00+

Return: 33%

Stop Target: $1.50

Action:  Continue to hold. 

 

American Tower (AMT, $53.12, up $0.93) 

April (2011) 60 calls (AMT110416C00060000, $1.00, up $0.15)

Entry Price:  $0.65 (10/20/10)

Exit Target: $1.30+

Return: 54%

Stop Target: None

Action:  Shares have hit a fresh 52-week high today of $53.25 and the momentum is getting stronger in this name.  These options have 156 days before expiration.  Continue to hold.


Chesapeake Energy (CHK, $23.38, up $0.32)

January (2011) 25 calls (CHK110122C00025000, $0.70, up $0.10)

Entry Price:  $1.15 (10/13/10)

Exit Target: $2.30

Return: -39%

Stop Target: None

Action:  Continue to hold.     


Dendreon (DNDN, $34.64, up $0.80) (COVERED CALL)

Entry Price:  $41.96 (9/13/10) sold October 45 call @ $1.30
Exit Target: $45
Return: -15%
Stop Target: None

Action:  Shares are bouncing off support.

 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 but we may BUY longer-term call options if the stock trades down to $30 and holds.

The company still remains a buyout target and if shares get any cheaper we expect to hear takeover chatter.


TiVo (TIVO, $9.72, up $0.12)

November 12 calls (TIVO101120C00012000, $0.10, flat)

Entry Price:  $0.50 (8/17/10)
Exit Target: $1.00+
Return: -80%
Stop Target: None

Action:  A few analysts are saying yesterday’s pullback is a buying opportunity and we would agree but we only have until next Friday for the shares to move up to $12.50 for us to breakeven on this trade..


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) 


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, $85.88, up $0.58)

December 90 calls (MMM101218C00090000, $0.50, up $0.05)

April 95 call (MMM110416C00095000, $1.20, up $0.20) 

Action:  Continue to watch. 


BMC Software (BMC, $45.95, down $0.05)

December 50 calls (BMC101218C00050000, $0.90, flat)

Action:  BMC continues to be a rumored buyout target.  


Riverbed Technology (RVBD, $29.60, up $0.72)

December 35 calls (RVBD101120C00060000, $0.40, up $0.10)

Action:  Watch for now.