8:50am (EST)

CBOE Holdings (CBOE, $24.15, down $0.56)

December 25 calls (CBOE101218C00025000, $0.70, down $0.20)

Entry Price:  $0.75 (11/8/10)

Exit Target: $2.40+

Return: -7%

Stop Target: None

Action:  Continue to hold.

 

Juniper Networks (JNPR, $35.81, up $1.28)

December 35 calls (JNPR101218C00035000, $2.00, up $0.80)

Entry Price:  $1.05 (11/8/10)

Exit Target: $2.10+

Return: 90%

Stop Target: None

Action:  Juniper hit a high of $36 on Friday while the options traded to a high of $2.07.  The volatility from last week knocked us out of the November 33 calls (JNPR101120C00033000, $2.55, up $0.90) which have gone on to double from our entry price.  We can’t complain as we made a profit with them and we are still enjoying the strength Juniper is showing as the December calls have nearly doubled as well.  Continue to hold.

 

Darden Restaurants (DRI, $48.65, down $0.66)

December 49 calls (DRI101218C00049000, $1.60, down $0.20)

Entry Price:  $1.20 (11/8/10)

Exit Target: $2.40+

Return: 33%

Stop Target: $1.10    

Action:  We are looking for Darden to make a push above $50+ over the next 5 weeks.

 

Aruba Networks (ARUN, $22.72, down $0.41)

January (2011) 25 calls (ARUN110122C00025000, $1.30, down $0.10)

Entry Price:  $1.20 (11/2/10)

Exit Target: $2.40+

Return: 8%

Stop Target: 90 cents

Action:  The company reports earnings on Wednesday.  Continue to hold.


PowerShares QQQ (QQQQ, $52.51, down $0.88)

January 53 calls (QQQQ110122C00053000, $1.65, down $0.30) 

Entry Price:  $1.54 (10/27/10)

Exit Target: $3.00+

Return: 7%

Stop Target: $1.50

Action:  Continue to hold. 

 

American Tower (AMT, $52.36, down $0.78) 

April (2011) 60 calls (AMT110416C00060000, $0.90, down $0.05)

Entry Price:  $0.65 (10/20/10)

Exit Target: $1.30+

Return: 38%

Stop Target: None

Action:  Continue to hold.


Chesapeake Energy (CHK, $22.72, down $0.49)

January (2011) 25 calls (CHK110122C00025000, $0.55, down $0.10)

Entry Price:  $1.15 (10/13/10)

Exit Target: $2.30

Return: -52%

Stop Target: None

Action:  Continue to hold.     


Dendreon (DNDN, $35.13, up $1.09) (COVERED CALL)

December 40 call (DNDN101218C00040000, $0.80, down $0.75)  

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: -10%
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. 


Foster Wheeler (FWLT, $28.11, down $1.10)

December 30 calls (FWLT101218C00030000, $0.65, down $0.40)

January (2011) 32 calls (FWLT110122C00032000, $0.60, down $0.33)

Action:  Watch for now.


Ingersoll-Rand (IR, $42.01, down $0.91)

December 45 calls (IR101218C00045000, $0.40, down $0.20)

Action:  Watch for now. 


JDS Uniphase (JDSU, $11.67, down $0.02)

March 13 calls (JDSU110319C00013000, $0.75, flat)

Action:  Watch for now. 


3M Company (MMM, $86.24, down $0.26)

December 90 calls (MMM101218C00090000, $0.60, flat)

April 95 call (MMM110416C00095000, $1.40, up $0.10)

Action:  Continue to watch. 


BMC Software (BMC, $45.00, down $0.71)

December 50 calls (BMC101218C00050000, $0.60, down $0.20)

Action:  BMC continues to be a rumored buyout target.  


Riverbed Technology (RVBD, $29.15, down $0.35)

December 35 calls (RVBD101120C00060000, $0.40, down $0.05)

March 40 calls (RVBD110319C00040000, $0.70, down $0.10)

Action:  Watch for now.