9:20am (EST)

THQ (THQI, $5.82, up $0.21)

June 6 calls (THQI110618C00006000, $0.95, up $0.10)

Entry Price:  $0.75 (12/8/10)

Exit Target: $2.00

Return: 27%

Stop Target: None

Action:  Continue to hold.

 

Foster Wheeler (FWLT, $33.21, up $1.56)

January 30 calls (FWLT110122C00030000, $3.80, up $1.00)

Entry Price:  $1.00 (11/30/10)

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

Return: 185%

Stop Target: $2.00 

Action:  We have another 43 days to go before expiration and we are looking for shares to trade up to $35 by then.  Continue to hold the other half.    

 

Electronic Arts (ERTS, $15.75, flat)

March 20 calls (ERTS110319C00020000, $0.24, up $0.02) 

Entry Price:  $0.22 (11/24/10)

Exit Target: $0.50+

Return: 9%

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, $13.47, up $0.47)

March 12 calls (JDSU110319C00012000, $2.05, up $0.35) 

Entry Price:  $1.25 (11/19/10)

Exit Target: $2.50

Return:  64%

Stop Target: $1.25

Action:  Shares were up in our midday update yesterday but continued getting it as they closed nearly 4% higher for the day.  We have a $15 price target for JDSU which will get these options to $3+.  Continue to hold.


Riverbed Technology (RVBD, $36.21, up $1.25)

March 35 calls (RVBD110319C00035000, $4.60, up $0.80)

Entry Price:  $1.40 (11/17/10)

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

Return: 171%

Stop Target:  $3.20 (HARD STOP on other half) 

Action:  Welcome back Riverbed!  The stock jumped 3% after our update.  Continue to hold the other half.


Aruba Networks (ARUN, $23.12, up $0.22)

January 25 calls (ARUN110122C00025000, $0.85, up $0.05) 

Entry Price:  $1.20 (11/2/10)

Exit Target: $2.40+

Return: -29%

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, $54.13, up $0.05)

January 53 calls (QQQQ110122C00053000, $1.95, down $0.05) 

Entry Price:  $1.54 (10/27/10)

Exit Target: $3.00+

Return: 27%

Stop Target: $1.40 

Action:  Continue to hold.


American Tower (AMT, $50.85, down $0.22)

April (2011) 60 calls (AMT110416C00060000, $0.35, down $0.05)

Entry Price:  $0.65 (10/20/10)

Exit Target: $1.30+

Return:  -46%

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, $37.47, down $0.12) (COVERED CALL)

December 40 call (DNDN101218C00040000, $0.15, 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: -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.

Adobe Systems (ADBE, $28.60, down $0.21)

January 30 calls (ADBE110122C00030000, $0.95, down $0.25)

April 33 calls (ADBE110416C00033000, $0.95, down $0.10)

April 26 puts (ADBE110416P00026000, $1.35, up $0.15)

Action:  Watch for now.


Research In Motion (RIMM, $61.29, down $0.08)

December 65 calls (RIMM101218C00065000, $1.00, flat)

January 70 calls (RIMM110122C00070000, $1.05, down $0.05)

January 55 puts (RIMM110122P00055000, $1.40, up $0.05)

Action:  RIMM reports earnings NEXT Thursday, a day before the December options expire.  We are not taking any action on these options because we aren’t sure how this one is going to play out.  We are in the “planning stages” and we may play RIMM straight up, we may play a straddle or strangle option trade, or we may sit on the sidelines.

RIMM is usually a big mover on earnings but last time they announced earnings (September) shares fell slightly.  In June, the stock fell from $58 to $52 after reporting.

The company is going to have to say some impressive things to wow Wall Street but we don’t think they will.


Darden Restaurants (DRI, $49.63, up $0.03)

April 55 calls (DRI110416C00055000, $1.10, down $0.10)

Action:  We think Darden is worth $60 a share and these options would be worth $5 if shares can get there by mid-April.


DryShips (DRYS, $6.01, up $0.10)

March 7 calls (DRYS110319C00007000, $0.35, flat)

June 7 calls (DRYS110618C00007000, $0.55, flat)

Action:  We would like to see shares come down to $5.75.  


Juniper Networks (JNPR, $35.75, up $0.79)

January 35 calls (JNPR110122C00035000, $1.85, up $0.40)

Action:  We think a run to $40 is in the cards once $36 is taken out.


CurrencyShares Euro Trust (FXE, $131.90, down $0.23)

January 125 puts (FXE110122P00125000, $0.55, down $0.05)

Action:  We would like to see a run back to $135 before we go short.  We think the Euro is headed to $1.25.     


Skyworks Solutions (SWKS, $27.73, up $0.37)

January 28 calls (SWKS110122C00028000, $1.30, up $0.20)

Action:  Watch for now. 

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