9:00am (EST)

Electronic Arts (ERTS, $15.01, up $0.19)

March 20 calls (ERTS110319C00020000, $0.23, up $0.01)

Entry Price:  $0.22 (11/24/10)

Exit Target: $0.50+

Return: 5%

Stop Target: None

Action:  We like this trade due to the fact that EA is holding support and it remains an acquisition target.  However, EA itself is also looking at some of the smaller fish (see THQ below) as acquisition targets so the entire sector could be heating up.  Continue to hold.

 

JDS Uniphase (JDSU, $12.08, down $0.26)

March 12 calls (JDSU110319C00012000, $1.25, down $0.05)

Entry Price:  $1.25 (11/19/10)

Exit Target: $2.50

Return:  0%

Stop Target: 60 cents

Action:  Shares traded to a low of $11.91 yesterday but managed a close above $12.  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, $33.94, down $0.19)

January 35 calls (JNPR110122C00035000, $1.35, down $0.05)

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, $34.22, down $0.59)

March 35 calls (RVBD110319C00035000, $3.70, down $0.30)

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:  We have closed half of the trade which gives us the luxury of resting easy while we wait for another breakout.  These are also March call options and we are expecting big things for Riverbed in 2011.  Continue to hold.


CBOE Holdings (CBOE, $23.63, up $0.13)

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, $49.26, down $0.23)

December 49 calls (DRI101218C00049000, $1.40, down $0.20) 

Entry Price:  $1.20 (11/8/10)

Exit Target: $2.40+

Return: 17%

Stop Target: $1.25

Action:  These options traded to a low of $1.15 but we are pushing this one a little.  A break below $50 could easily get shares to $51-$52 which makes this trade a double.  The stop target is not a hard stop so please keep this in mind while we wait this one out.  We would like to see the break above $50 this week but this one could go down to the river.  We would hate to fold the trade because we think shares are going to bust through $50 with authority.  Continue to hold.


Aruba Networks (ARUN, $23.05, down $0.89)

January 25 calls (ARUN110122C00025000, $1.05, down $0.35)

Entry Price:  $1.20 (11/2/10)

Exit Target: $2.40+

Return: -13%

Stop Target:  60 cents

Action:  We weren’t happy with yesterday’s 4% drop but we think the stock is headed to $28 over the short-term.  Continue to hold.


PowerShares QQQ (QQQQ, $52.73, down $0.04)

January 53 calls (QQQQ110122C00053000, $1.45, down $0.05)

Entry Price:  $1.54 (10/27/10)

Exit Target: $3.00+

Return: -6%

Stop Target: 75 cents

Action:  Continue to hold.


American Tower (AMT, $50.85, down $0.95)

April (2011) 60 calls (AMT110416C00060000, $0.60, down $0.05)

Entry Price:  $0.65 (10/20/10)

Exit Target: $1.30+

Return:  -8%

Stop Target: None

Action:  These options have 138 days before expiration and shares merely tested support yesterday.  Continue to hold.


Dendreon (DNDN, $36.41, up $0.14) (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: -7%

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.


FedEx (FDX, $91.59, up $4.09)

January 100 calls (FDX110122C00100000, $1.00, up $0.65)

Action:  These options opened at 42 cents yesterday and traded down to 40 cents before closing with a 185% return from Friday’s close.  We would like to get these on a pullback but we may not get the opportunity.


CurrencyShares Euro Trust (FXE, $130.73, down $1.25)

January 125 puts (FXE110122P00125000, $1.15, up $0.18)

Action:  These options opened at $1.30 and hit a high of $1.36 as traders rushed in this one at the bell.  We would like to get these for under a buck so let’s see how it plays out over the next few days.


Skyworks Solutions (SWKS, $25.80, down $0.19)

January 26 calls (SWKS110122C00026000, $1.50, down $0.15)

Action:  Watch for now.    


THQ (THQI, $5.11, down $0.08)

March 5 calls (THQI110319C00005000, $0.70, down $0.05)

Action:  Continue to watch. 


Foster Wheeler (FWLT, $29.11, up $0.33)

January 30 calls (FWLT110122C00030000, $1.35, up $0.10)

Action:  Watch for now. 


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

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


Action:  Watch for now.

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