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.
12:20PM (EST)
JDS Uniphase (JDSU, $12.12, up $0.09)
March 12 calls (JDSU110319C00012000, $1.25, flat)
Entry Price: $1.25 (11/19/10)
Exit Target: $2.50
Return: 0%
Stop Target: 60 cents
Action: The March options have 116 days before expiration. Continue to hold.
Juniper Networks (JNPR, $34.50, down $0.23)
January 35 calls (JNPR110122C00035000, $1.65, down $0.20)
Entry Price: $1.30 (11/17/10)
Exit Target: $2.60
Return: 27%
Stop Target: $1.00
Action: We are looking for shares to test their 52-week high of $36 within the next few weeks. Continue to hold.
Riverbed Technology (RVBD, $33.41, up $1.96)
March 35 calls (RVBD110319C00035000, $3.30, up $0.80)
Entry Price: $1.40 (11/17/10)
Exit Target: $2.80
Return: 136%
Stop Target: Set one at $2.10
Action: We want to close half of the trade but we are going to push this one a little. Shares have hit another 52-week high and look strong. Continue to hold.
CBOE Holdings (CBOE, $24.74, down $0.28)
December 25 calls (CBOE101218C00025000, $0.85, down $0.10)
Entry Price: $0.75 (11/8/10)
Exit Target: $2.40+
Return: 13%
Stop Target: None
Action: Continue to hold.
Darden Restaurants (DRI, $49.06, up $0.02)
December 49 calls (DRI101218C00049000, $1.50, flat)
Entry Price: $1.20 (11/8/10)
Exit Target: $2.40+
Return: 25%
Stop Target: $1.25
Action: We are looking for a break above $50 and a possible run to $55. Continue to hold.
Aruba Networks (ARUN, $23.96, up $0.62)
January 25 calls (ARUN110122C00025000, $1.40, up $0.20)
Entry Price: $1.20 (11/2/10)
Exit Target: $2.40+
Return: 17%
Stop Target: 60 cents
Action: Continue to hold.
PowerShares QQQ (QQQQ, $52.56, up $0.09)
January 53 calls (QQQQ110122C00053000, $1.35, flat)
Entry Price: $1.54 (10/27/10)
Exit Target: $3.00+
Return: -12%
Stop Target: 75 cents
Action: Continue to hold.
American Tower (AMT, $51.50, down $0.44)
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, $22.29, down $0.35)
January (2011) 25 calls (CHK110122C00025000, $0.30, down $0.10)
Entry Price: $1.15 (10/13/10)
Exit Target: $2.30
Return: -74%
Stop Target: None
Action: Continue to hold.
Dendreon (DNDN, $37.03, down $0.44) (COVERED CALL)
December 40 call (DNDN101218C00040000, $0.75, down $0.20)
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: -5%
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 (1): 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.
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.
Brocade Communications Systems (BRCD, $5.76, up $0.01)
January 5 calls (BRCD110122C00005000, $0.93, flat)
April 6 calls (BRCD110416C00006000, $0.57, flat)
Action: We aren’t feeling this one.
THQ (THQI, $5.14, up $0.35)
December 5 calls (THQI101218C00005000, $0.30, up $0.15)
March 5 calls (THQI110319C00005000, $0.70, up $0.15)
Action: Shares are up 7% and these options are now in-the-money.
Cisco Systems (CSCO, $19.50, down $0.11)
Action: We are looking at Cisco as a covered call trade.
Foster Wheeler (FWLT, $28.20, down $0.68)
January 30 calls (FWLT110122C00030000, $1.05, down $0.30)
Action: We may be picking these up if they get under a buck.
Ingersoll-Rand (IR, $40.82, down $0.09)
January 45 calls (IR110122C00045000, $0.40, down $0.05)
Action: Watch for now.
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