8:50pm (EST)

JDS Uniphase (JDSU, $11.99, down $0.22)

March 12 calls (JDSU110319C00012000, $1.20, down $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, $33.48, down $1.07)

January 35 calls (JNPR110122C00035000, $1.25, down $0.45)

Entry Price:  $1.30 (11/17/10)

Exit Target: $2.60

Return: -4%

Stop Target: $1.00 

Action:  Continue to hold.


Riverbed Technology (RVBD, $33.62, up $0.36)

March 35 calls (RVBD110319C00035000, $3.40, up $0.20)

Entry Price:  $1.40 (11/17/10)

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

Return: 129%

Stop Target:  $2.10

Action:  Continue to hold the other half of the position.  We don’t like geopolitical events because they can explode to bigger things on any given day.  If shares continue to show strength (which we think they will) then we can always add the March 40’s.


CBOE Holdings (CBOE, $24.69, down $0.11)

December 25 calls (CBOE101218C00025000, $0.70, down $0.15)

Entry Price:  $0.75 (11/8/10)

Exit Target: $2.40+

Return: -7%

Stop Target: None

Action:  Continue to hold.


Darden Restaurants (DRI, $49.15, down $0.05)

December 49 calls (DRI101218C00049000, $1.45, down $0.10) 

Entry Price:  $1.20 (11/8/10)

Exit Target: $2.40+

Return: 21%

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, $23.26, down $0.96)

January 25 calls (ARUN110122C00025000, $1.20, down $0.30)

Entry Price:  $1.20 (11/2/10)

Exit Target: $2.40+

Return: 0%

Stop Target:  60 cents

Action:  Continue to hold.


PowerShares QQQ (QQQQ, $52.07, down $0.84)

January 53 calls (QQQQ110122C00053000, $1.15, down $0.30)

Entry Price:  $1.54 (10/27/10)

Exit Target: $3.00+

Return: -25%

Stop Target: 75 cents

Action:  Continue to hold.


American Tower (AMT, $51.15, down $0.68)

April (2011) 60 calls (AMT110416C00060000, $0.60, down $0.10)

Entry Price:  $0.65 (10/20/10)

Exit Target: $1.30+

Return:  -8%

Stop Target: None

Action:  Continue to hold.


Dendreon (DNDN, $35.89, down $0.99) (COVERED CALL)

December 40 call (DNDN101218C00040000, $0.30, down $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 (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.

Electronic Arts (ERTS, $14.90, down $0.51)

January 20 calls (ERTS110122C00020000, $0.07, flat)

March 20 calls (ERTS110319C00020000, $0.22, down $0.03)

Action:  There was a ton of “action” in the January call options as 75,000 contracts traded while the March calls traded 40,000 contracts.  Folks, there could be a buyout offer on the way and EA is an attractive name.  Either way, traders are expecting a big move. 

We might go with the March options and if we do we will send out a Trade Alert this morning.  We want to see how they open first so don’t jump the gun.  If we do anything it will be by 10am so look for an alert if we make this one an official recommendation.

If you were to buy 10 contracts at 22 cents, it would cost you $220.  If Electronic Arts can trade up to $22 or gets a bid of $22 or more then these options will make you 10x your money.  It’s a GREAT risk/reward trade.


Regeneron (REGN, $29.99, up $0.46)

December 32 calls (REGN101218C00032000, $0.75, up $0.30)

Action:  Shares remain hot after hitting another 52-week high.  The company has a joint-venture with Bayer for a drug to help blindness and their Phase 3 trials met their primary endpoint. The stock jumped from $24 to $29 on Monday on the news and hit a high of $30.90 yesterday.  These calls traded up to 97 cents yesterday.


Skyworks Solutions (SWKS, $24.76, down $0.08)

December 25 calls (SWKS101218C00025000, $0.80, down $0.10)

January 26 calls (SWKS110122C00026000, $1.00, flat)

Action:  We like the January 26’s more but both options will do well if shares can continue to break new 52-week highs.


Brocade Communications Systems (BRCD, $5.13, down $0.57)

January 5 calls (BRCD110122C00005000, $0.45, down $0.45) 

April 6 calls (BRCD110416C00006000, $0.30, down $0.22) 

Action:  Shares fell10% yesterday and we probably should have listed some puts because in our Monday 1pm update, we said we didn’t like the calls with earnings coming into play. 

In any event, the calls options may have went on sale.  We don’t think the January’s are worth a second look but we may track the March options.  If shares can rally back to $6 then the April calls could double.  We recently closed two call option trades that were profitable with this name but we are just watching these options for now.  


THQ (THQI, $4.92, down $0.22)

December 5 calls (THQI101218C00005000, $0.25, down $0.10)

March 5 calls (THQI110319C00005000, $0.55, down $0.15)

Action:  Continue to watch. 


Cisco Systems (CSCO, $19.20, down $0.36)

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, $27.75, down $1.06)

January 30 calls (FWLT110122C00030000, $0.90, down $0.35)

Action:  The calls are back under a buck and we like them at these levels. 


Ingersoll-Rand (IR, $40.16, down $0.99)

January 42.50 calls (IR110122C00042500, $0.80, down $0.20)

Action:  We replaced the 45’s with the 42.50’s.  Shares were recently added to the S&P 500 so there will be buying soon.  Watch for now.