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.

 

12:20pm (EST)

NEW TRADES!!!

Foster Wheeler (FWLT, $28.23, down $0.88)

Buy to OPEN January 30 calls (FWLT110122C00030000, $1.00, down $0.35)

Action:  Use limit prices of $0.95-$1.00 but do not pay over $1.05-$1.10 for the call options.  We think shares are headed past $30 over the next few weeks.


FedEx (FDX, $91.96, up $0.37)

Buy to OPEN January 100 calls (FDX110122C00100000, $1.25, up $0.25)

Action:  These options opened at 95 cents and we think they can trade up to $2.00 over the near-term.  This will be a short-term trade with a tight stop.  We are hoping the momentum can continue and we are looking for a profit of 50%-100% on the options.

 

CURENT TRADES

 

Electronic Arts (ERTS, $14.75, down $0.26)

March 20 calls (ERTS110319C00020000, $0.21, down $0.02)

Entry Price:  $0.22 (11/24/10)

Exit Target: $0.50+

Return: -5%

Stop Target: None

Action:  Continue to hold.


JDS Uniphase (JDSU, $11.90, down $0.18)

March 12 calls (JDSU110319C00012000, $1.10, down $0.15)

Entry Price:  $1.25 (11/19/10)

Exit Target: $2.50

Return:  -11%

Stop Target: 60 cents

Action:  The 52-week high is $13.95 and we have nearly 4 months to wait for a run to $15.  Continue to hold.


Juniper Networks (JNPR, $33.93, down $0.01)

January 35 calls (JNPR110122C00035000, $1.35, flat)

Entry Price:  $1.30 (11/17/10)

Exit Target: $2.60

Return: 4%

Stop Target: $1.00 

Action:  We are looking for shares to rebound back towards $36, and if cleared, should pave the way for a run to $40.  Continue to hold.


Riverbed Technology (RVBD, $34.17, down $0.05)

March 35 calls (RVBD110319C00035000, $3.70, flat)

Entry Price:  $1.40 (11/17/10)

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

Return: 139%

Stop Target:  $2.50 

Action:  Continue to hold.


CBOE Holdings (CBOE, $23.68, up $0.05)

December 25 calls (CBOE101218C00025000, $0.30, flat)

Entry Price:  $0.75 (11/8/10)

Exit Target: $2.40+

Return: -60%

Stop Target: None

Action:  Continue to hold.


Darden Restaurants (DRI, $49.01, down $0.25)

December 49 calls (DRI101218C00049000, $1.30, down $0.10) 

Entry Price:  $1.20 (11/8/10)

Exit Target: $2.40+

Return: 8%

Stop Target: $1.25

Action:  Continue to hold.


Aruba Networks (ARUN, $21.75, down $1.30)

January 25 calls (ARUN110122C00025000, $0.80, down $0.25)

Entry Price:  $1.20 (11/2/10)

Exit Target: $2.40+

Return: -33%

Stop Target:  60 cents

Action:  Continue to hold.


PowerShares QQQ (QQQQ, $52.09, down $0.64)

January 53 calls (QQQQ110122C00053000, $1.25, down $0.20)

Entry Price:  $1.54 (10/27/10)

Exit Target: $3.00+

Return: -19%

Stop Target: 75 cents

Action:  Continue to hold.


American Tower (AMT, $50.70, down $0.15)

April (2011) 60 calls (AMT110416C00060000, $0.55, down $0.05)

Entry Price:  $0.65 (10/20/10)

Exit Target: $1.30+

Return:  -15%

Stop Target: None

Action:  Continue to hold.


Dendreon (DNDN, $35.93, down $0.48) (COVERED CALL)

December 40 call (DNDN101218C00040000, $0.20, down $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: -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.


CurrencyShares Euro Trust (FXE, $129.93, down $0.80)

January 125 puts (FXE110122P00125000, $1.35, up $0.20)

Action:  Continue to watch.


Skyworks Solutions (SWKS, $25.40, down $0.40)

January 26 calls (SWKS110122C00026000, $1.30, down $0.20)

Action:  Watch for now.    


THQ (THQI, $5.03, down $0.08)

March 5 calls (THQI110319C00005000, $0.65, down $0.05)

Action:  Continue to watch. 


Ingersoll-Rand (IR, $41.08, up $0.25)

January 42.50 calls (IR110122C00042500, $1.00, up $0.10)

Action:  Watch for now.