8:45am (EST)

CBOE Holdings (CBOE, $24.60, up $0.26)

December 25 calls (CBOE101218C00025000, $0.80, up $0.05)  

Entry Price:  $0.75 (11/8/10)

Exit Target: $2.40+

Return: 7%

Stop Target: None

Action:  Continue to hold.


Darden Restaurants (DRI, $47.57, down $1.47)

December 49 calls (DRI101218C00049000, $1.00, down $0.70)

Entry Price:  $1.20 (11/8/10)

Exit Target: $2.40+

Return: -17%

Stop Target: $1.25    

Action:  Continue to hold.

 

Aruba Networks (ARUN, $21.35, down $0.24)

January (2011) 25 calls (ARUN110122C00025000, $0.90, down $0.05)

Entry Price:  $1.20 (11/2/10)

Exit Target: $2.40+

Return: -25%

Stop Target:  60 cents

Action:  The company reports earnings after the bell.  Shares hit a low of $20.60 yesterday, which is near support, and bounced to finish only slightly lower.

Wall Street is looking for a profit of $0.11 a share versus a year-ago earnings of $0.04 a share.  The company has beaten expectations in each of the past four quarters.  Continue to hold.


PowerShares QQQ (QQQQ, $51.45, down $0.86)

January 53 calls (QQQQ110122C00053000, $1.10, down $0.35) 

Entry Price:  $1.54 (10/27/10)

Exit Target: $3.00+

Return: -28%

Stop Target: 75 cents 

Action:  Continue to hold. 

 

American Tower (AMT, $50.54, down $0.92) 

April (2011) 60 calls (AMT110416C00060000, $0.65, down $0.10) 

Entry Price:  $0.65 (10/20/10)

Exit Target: $1.30+

Return:  0%

Stop Target: None

Action:  Continue to hold.


Chesapeake Energy (CHK, $21.96, down $0.35)

January (2011) 25 calls (CHK110122C00025000, $0.35, down $0.10)

Entry Price:  $1.15 (10/13/10)

Exit Target: $2.30

Return: -70%

Stop Target: None

Action:  Continue to hold.     


Dendreon (DNDN, $35.87, up $0.41) (COVERED CALL)

December 40 call (DNDN101218C00040000, $1.20, up $0.25)  

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: -8%
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. 

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 (3):  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. 

Cisco Systems (CSCO, $19.43, down $0.52)

Action:  We are looking at Cisco as a covered call trade.


Juniper Networks (JNPR, $33.66, down $0.68)

January 35 calls (JNPR110122C00035000, $1.45, down $0.25)

December 35 calls (JNPR101218C00035000, $0.80, down $0.30)

Action:  Continue to watch.


Foster Wheeler (FWLT, $27.26, down $0.52)

January 30 calls (FWLT110122C00030000, $0.85, down $0.15)

Action:  We dropped coverage of the January 32 calls and we are now following the January 30 calls.


Ingersoll-Rand (IR, $41.42, down $0.77)

January 45 calls (IR110122C00045000, $1.50, down $0.35)

Action:  We dropped coverage of the December calls and went with a lower strike and the January options.  Watch for now. 


JDS Uniphase (JDSU, $11.40, down $0.26)

March 13 calls (JDSU110319C00013000, $0.65, down $0.10)

Action:  Watch for now. 


Riverbed Technology (RVBD, $27.82, down $1.03)

December 30 calls (RVBD1012180C00030000, $0.95, down $0.55)

March 35 calls (RVBD110319C00035000, $1.20, down $0.60)

Action:  We have listed some lower strike prices to take advantage of the recent selloff in Riverbed.  This will be a hot stock in 2011 and we expect it to double from current levels.  The cloud computing space continues to be hot and we mentioned the buyout of Isilon Systems by EMC on Monday.  Riverbed is getting attention as well. 

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