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.

1:00pm (EST)

THQ (THQI, $5.75, down $0.07)

June 6 calls (THQI110618C00006000, $0.90, down $0.05)

Entry Price:  $0.75 (12/8/10)

Exit Target: $2.00

Return: 20%

Stop Target: None

Action:  Continue to hold.


Foster Wheeler (FWLT, $33.86, up $0.65)

January 30 calls (FWLT110122C00030000, $4.30, up $0.50)

Entry Price:  $1.00 (11/30/10)

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

Return: 210%

Stop Target: $2.00, raise to $3.00 

Action:  We said this morning we had another 42 days to go and we are looking for shares to trade up to $35 by then.  Check that.  It could happen next week.  Continue to hold the other half.    

 

Electronic Arts (ERTS, $15.81, up $0.06)

March 20 calls (ERTS110319C00020000, $0.25, up $0.01)

Entry Price:  $0.22 (11/24/10)

Exit Target: $0.50+

Return: 14%

Stop Target: None

Action:  Shares are approaching their 100-day moving average which is right around $16 which is also serious resistance.  The stock hit a high of $15.98 on Thursday and struggled as you can see.  However, when we do get the break above $16, it will be very bullish.  Continue to hold.


JDS Uniphase (JDSU, $13.34, down $0.13)

March 12 calls (JDSU110319C00012000, $2.00, down $0.05) 

Entry Price:  $1.25 (11/19/10)

Exit Target: $2.50

Return:  60%

Stop Target: $1.25

Action:  We have a $15 price target for JDSU which will get these options to $3+.  Continue to hold.


Riverbed Technology (RVBD, $37.19, up $0.98)

March 35 calls (RVBD110319C00035000, $5.30, up $0.70)

Entry Price:  $1.40 (11/17/10)

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

Return: 196%

Stop Target:  $3.20, raise to $3.75 (HARD STOP on other half) 

Action:  Riverbed is at new 52-week highs.  Continue to hold the other half.


Aruba Networks (ARUN, $22.97, down $0.15)

January 25 calls (ARUN110122C00025000, $0.75, down $0.10) 

Entry Price:  $1.20 (11/2/10)

Exit Target: $2.40+

Return: -38%

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

Action:  We still feel shares can make a push past $25 by mid-January.  Continue to hold.   


PowerShares QQQ (QQQQ, $54.40, up $0.27)

January 53 calls (QQQQ110122C00053000, $2.10, up $0.15) 

Entry Price:  $1.54 (10/27/10)

Exit Target: $3.00+

Return: 40%

Stop Target: $1.40 

Action:  Continue to hold.


American Tower (AMT, $50.49, down $0.36)

April (2011) 60 calls (AMT110416C00060000, $0.30, down $0.05)

Entry Price:  $0.65 (10/20/10)

Exit Target: $1.30+

Return:  -54%

Stop Target: None

Action:  Shares are building solid support at $50-$52 for the move up to $60 by early next year.  Continue to hold.


Dendreon (DNDN, $37.65, up $0.17) (COVERED CALL)

December 40 call (DNDN101218C00040000, $0.15, flat)

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:  We will be looking to SELL another call option on Dendreon in a week or two.  This will lower our cost basis even further.

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.

We will update this section with some fresh ideas on Monday.

]]>