9:10am (EST)

FedEx (FDX, $95.21, up $1.22) 

January 100 calls (FDX110122C00100000, $2.00, up $0.30)

Entry Price:  $1.25 (11/30/10)

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

Return: 65%

Stop Target: $1.50 

Action:  Shares reached a high of $96.23 yesterday while the options traded up to $2.29.  We closed half of the trade after two strong days but we still think shares trade up to or past $100 over the near-term.  Continue to hold the other half.     

 

Foster Wheeler (FWLT, $30.32, up $1.08)

January 30 calls (FWLT110122C00030000, $1.95, up $0.55)

Entry Price:  $1.00 (11/30/10)

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

Return: 93%

Stop Target: $1.00 (HARD STOP on other half)

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.  Continue to hold the other half.

 

Electronic Arts (ERTS, $15.08, up $0.03)

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, $12.64, up $0.51)

March 12 calls (JDSU110319C00012000, $1.50, up $0.25)

Entry Price:  $1.25 (11/19/10)

Exit Target: $2.50

Return:  20%

Stop Target: 60 cents

Action:  If we knew JDSU was going to explode like it has, we would have gone with some near-term options.  The sector was hot yesterday and we are looking for continued strength in JDSU.  Continue to hold.


Juniper Networks (JNPR, $34.98, up $0.14)

January 35 calls (JNPR110122C00035000, $1.75, down $0.05)

Entry Price:  $1.30 (11/17/10)

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

Return: 33%

Stop Target: $1.00, raise to $1.30 (HARD STOP) 

Action:  We were expecting a bigger move on Wednesday when the market broke through resistance but shares of JNPR gained just 8 cents that day.  Yesterday’s action wasn’t any better. 

Shares have a 52-week high of $36 and we are worried of a “double-top” which is why we closed half of the trade yesterday.  Continue to hold the other half but notice the hard stop we have in place.


Riverbed Technology (RVBD, $34.44, up $0.17)

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, $24.34, up $0.43)

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, $50.02, up $0.70)

December 49 calls (DRI101218C00049000, $1.70, up $0.35) 

Entry Price:  $1.20 (11/8/10)

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

Return:  44%

Stop Target: $1.25   

Action:  We got our close above $50 sand we will now look to close the other half into continued strength.  However, these are December options as well so we have to be careful not to give back our gains.    

We will update you in the midday report on if we are going to leave the trade open or send out a Trade Alert.


Aruba Networks (ARUN, $23.00, up $0.09)

January 25 calls (ARUN110122C00025000, $0.90, down $0.10) 

Entry Price:  $1.20 (11/2/10)

Exit Target: $2.40+

Return: -25%

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

Action:  We like this trade but may have to revisit it if shares don’t regain their momentum.  Tech moved higher but the leaders are now lagging.  Continue to hold for now. 


PowerShares QQQ (QQQQ, $53.73, up $0.54)

January 53 calls (QQQQ110122C00053000, $2.00, up $0.30)

Entry Price:  $1.54 (10/27/10)

Exit Target: $3.00+

Return: 30%

Stop Target: 75 cents

Action:  Continue to hold.


American Tower (AMT, $51.81, up $0.78)

April (2011) 60 calls (AMT110416C00060000, $0.65, up $0.10)

Entry Price:  $0.65 (10/20/10)

Exit Target: $1.30+

Return:  0%

Stop Target: None

Action:  Continue to hold.


Dendreon (DNDN, $37.82, up $0.26) (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: -3%

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, $131.77, up $0.90)

January 125 puts (FXE110122P00125000, $0.80, down $0.25)

Action:  We may go with our instincts and pick these up today.  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.  We wanted to get in for under a buck so stay on the alert.


Skyworks Solutions (SWKS, $26.99, up $0.51)

January 26 calls (SWKS110122C00026000, $2.10, up $0.30)

Action:  Shares set another 52-week high of $27.  These options have nearly doubled since we profiled them and we said to close half yesterday if you are in the trade.  We will continue to watch.  


THQ (THQI, $5.40, down $0.03)

March 5 calls (THQI110319C00005000, $1.00, down $0.05)

Action:  Continue to watch.


Ingersoll-Rand (IR, $42.69, up $0.59)

January 42.50 calls (IR110122C00042500, $1.65, up $0.20)

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.