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.

12:10pm (EST)

NEW TRADE!!!

Electronic Arts (ERTS, $15.09, up $0.24)

March 20 calls (ERTS110319C00020000, $0.22, flat)

Action:  Let’s pull the trigger.  Use limit order or 22-23 cents but don’t pay over 25-30 cents for the calls.


CURRENT TRADES

JDS Uniphase (JDSU, $12.21, up $0.22)

March 12 calls (JDSU110319C00012000, $1.30, up $0.10)

Entry Price:  $1.25 (11/19/10)

Exit Target: $2.50

Return: 4%

Stop Target: 60 cents

Action:  Continue to hold.


Juniper Networks (JNPR, $34.25, up $0.77)

January 35 calls (JNPR110122C00035000, $1.50, up $0.25)

Entry Price:  $1.30 (11/17/10)

Exit Target: $2.60

Return: 15%

Stop Target: $1.00 

Action:  Continue to hold.


Riverbed Technology (RVBD, $35.12, up $1.50)

March 35 calls (RVBD110319C00035000, $4.20, up $0.80)

Entry Price:  $1.40 (11/17/10)

Exit Target: $2.80 (closed half @ $3.00 on 11/23/10)

Return: 157%

Stop Target:  $2.10

Action:  Riverbed is showing tremendous strength.  Continue to hold.


CBOE Holdings (CBOE, $23.85, down $0.85)

December 25 calls (CBOE101218C00025000, $0.40, down $0.30)

Entry Price:  $0.75 (11/8/10)

Exit Target: $2.40+

Return: -47%

Stop Target: None

Action:  CBOE is tendering shares.  We will explain this story more in-depth on Friday.  Continue to hold.


Darden Restaurants (DRI, $49.74, up $0.54)

December 49 calls (DRI101218C00049000, $1.75, up $0.30) 

Entry Price:  $1.20 (11/8/10)

Exit Target: $2.40+

Return: 46%

Stop Target: $1.25

Action:  Shares have hit a high of $49.99 this morning.  We are looking for a break above $50 and a possible run to $55.  The December 50 calls are active which means we could break $50 today or on Friday.  Continue to hold.


Aruba Networks (ARUN, $23.91, up $0.65)

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

Entry Price:  $1.20 (11/2/10)

Exit Target: $2.40+

Return: 21%

Stop Target:  60 cents

Action:  Continue to hold.


PowerShares QQQ (QQQQ, $53.12, up $1.05)

January 53 calls (QQQQ110122C00053000, $1.60, up $0.45)

Entry Price:  $1.54 (10/27/10)

Exit Target: $3.00+

Return: 4%

Stop Target: 75 cents


Action:  Continue to hold.



American Tower (AMT, $51.67, up $0.52)

April (2011) 60 calls (AMT110416C00060000, $0.60, flat)

Entry Price:  $0.65 (10/20/10)

Exit Target: $1.30+

Return:  -8%

Stop Target: None

Action:  Continue to hold.


Dendreon (DNDN, $36.62, up $0.73) (COVERED CALL)

December 40 call (DNDN101218C00040000, $0.35, up $0.05)

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: -6%

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 (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.   

Biodel March 7.50 calls (from October)

Chesapeake Energy January 25 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.


Regeneron (REGN, $29.79, down $0.20)

December 32 calls (REGN101218C00032000, $0.55, down $0.20)

Action:  Watch for now.


Skyworks Solutions (SWKS, $25.88, up $1.12)

January 26 calls (SWKS110122C00026000, $1.55, up $0.40)

Action:  We like this trade a lot.    


THQ (THQI, $5.07, up $0.15)

December 5 calls (THQI101218C00005000, $0.30, up $0.05)

March 5 calls (THQI110319C00005000, $0.65, up $0.10)

Action:  Continue to watch. 


Cisco Systems (CSCO, $19.46, up $0.20)

Action:  Shares made another 52-week low yesterday of $19.18.  We are looking at Cisco as a covered call trade.  Cisco could test $17.50-$18 which is where we are looking to establish positions.


Foster Wheeler (FWLT, $28.82, down $1.07)

January 30 calls (FWLT110122C00030000, $1.20, up $0.30)

Action:  We also like this trade a lot. 


Ingersoll-Rand (IR, $41.04, up $0.88)

January 42.50 calls (IR110122C00042500, $1.00, up $0.20)

Action:  Watch for now.