December 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.

1:10pm (EST)

FedEx (FDX, $95.10 down $0.11)

January 100 calls (FDX110122C00100000, $1.95, down $0.05)

Entry Price:  $1.25 (11/30/10)

Exit Target: $2.00-$2.50 (closed half @ $2.15 on 12/2/10)

Return: 64%

Stop Target: $1.50 

Action:  Shares have traded in positive territory today and hit a high of $95.48.  The calls traded to a low of $1.63 but are holding steady.  We will push this trade and hold the other half over the weekend. 


Foster Wheeler (FWLT, $30.92, up $0.60)

January 30 calls (FWLT110122C00030000, $2.25, up $0.30)

Entry Price:  $1.00 (11/30/10)

Exit Target: $2.00+ (closed half @ $1.90 on 12/2/10)

Return: 108%

Stop Target: $1.00, raise to $1.40

Action:  Shares made a solid move above $30 yesterday so we wanted to close half into strength and take some risk off the table in case the market got a curveball.  It did but we told you Foster would be strong once it busted $30.  We have hit a triple-digit return so we have moved the stop up.  Continue to hold the other half.

 

Electronic Arts (ERTS, $15.04, down $0.04)

March 20 calls (ERTS110319C00020000, $0.22, flat)

Entry Price:  $0.22 (11/24/10)

Exit Target: $0.50+

Return: 0%

Stop Target: None

Action:  Continue to hold.


JDS Uniphase (JDSU, $12.63, down $0.02)

March 12 calls (JDSU110319C00012000, $1.50, flat)

Entry Price:  $1.25 (11/19/10)

Exit Target: $2.50

Return:  20%

Stop Target: 60 cents

Action:  We have a 3 month target of $15 for the stock which means the options would be worth $3, minimum, which is still a double from current levels.  Continue to hold.


Juniper Networks (JNPR, $34.33, down $0.65)

January 35 calls (JNPR110122C00035000, $1.40, down $0.30)

Entry Price:  $1.30 (11/17/10)

Exit Target: $2.60 (closed half @ $1.70 on 12/2/10)

Return: 19%

Stop Target: $1.30 (HARD STOP), lower to $1.25 

Action:  The options have traded to a low of $1.35 and we will give the trade a little wiggle room by lowering the stop by a nickel but we are gone at $1.25 which locks in a 15% return.  JNPR is losing a little momentum and we’d rather put our money elsewhere or find a better trade.


Riverbed Technology (RVBD, $34.35, down $0.09)

March 35 calls (RVBD110319C00035000, $3.80, flat)

Entry Price:  $1.40 (11/17/10)

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

Return: 143%

Stop Target:  $2.70 (HARD STOP on other half) 

Action:  Continue to hold.


CBOE Holdings (CBOE, $24.31, down $0.04)

December 25 calls (CBOE101218C00025000, $0.35, flat) 

Entry Price:  $0.75 (11/8/10)

Exit Target: $2.40+

Return: -53%

Stop Target: None

Action:  These options expire in two weeks and we will need a run past $25 to break even on this trade.  Let’s hold for another week as there is a good possibility shares do.  Continue to hold.


Darden Restaurants (DRI, $49.99, down $0.03)

December 49 calls (DRI101218C00049000, $1.60, down $0.10) 

Entry Price:  $1.20 (11/8/10)

Exit Target: $2.40+ (closed half @ $1.80 on 12/1/10)

Return:  42%

Stop Target: $1.25   

Action:  We will hold into next week as we think shares can push $52-$53 before a run to $55 by mid-January.


Aruba Networks (ARUN, $23.01, up $0.01)

January 25 calls (ARUN110122C00025000, $0.90, flat) 

Entry Price:  $1.20 (11/2/10)

Exit Target: $2.40+

Return: -25%

Stop Target:  Close the trade is shares fall below $20

Action:  Continue to hold for now. 


PowerShares QQQ (QQQQ, $53.75, up $0.02)

January 53 calls (QQQQ110122C00053000, $2.00, flat)

Entry Price:  $1.54 (10/27/10)

Exit Target: $3.00+

Return: 30%

Stop Target: 75 cents

Action:  Continue to hold.


American Tower (AMT, $51.74, down $0.07)

April (2011) 60 calls (AMT110416C00060000, $0.65, flat)

Entry Price:  $0.65 (10/20/10)

Exit Target: $1.30+

Return:  0%

Stop Target: None

Action:  Shares shot up to $52.48 earlier this morning.  Continue to hold.


Dendreon (DNDN, $38.30, up $0.48) (COVERED CALL)

December 40 call (DNDN101218C00040000, $0.40, 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: -2%

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, $133.23, up $1.46)

January 125 puts (FXE110122P00125000, $0.50, down $0.30)

Action:  We are licking our chops as we would love to see a run back to $135.  We think the Euro is headed to $1.25 by mid-January and we can also use these puts as protection in case the market stalls.   


Skyworks Solutions (SWKS, $27.50, up $0.51)

January 26 calls (SWKS110122C00026000, $2.45, up $0.35)

Action:  The options are on F-I-R-E!  


THQ (THQI, $5.44, up $0.04)

March 5 calls (THQI110319C00005000, $1.00, flat)

Action:  Continue to watch.


Ingersoll-Rand (IR, $42.62, down $0.07)

January 42.50 calls (IR110122C00042500, $1.65, flat)

Action:  If we had room we would have added these by now.  We think shares can rally to $45 by mid-January.  Watch for now.