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)

FedEx (FDX, $93.54, down $1.46)

January 100 calls (FDX110122C00100000, $1.35, down $0.50)

Entry Price:  $1.25 (11/30/10)

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

Return: 40%

Stop Target: $1.50, lower to $1.20 

Action:  We are going to give this trade a little wiggle room on the other half.  We still think the market is going higher and FDX hits $100.


Foster Wheeler (FWLT, $31.37, up $0.26)

January 30 calls (FWLT110122C00030000, $2.50, up $0.15)

Entry Price:  $1.00 (11/30/10)

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

Return: 120%

Stop Target: $1.40, raise to $1.75

Action:  Continue to hold the other half.

 

Electronic Arts (ERTS, $15.21, up $0.03)

March 20 calls (ERTS110319C00020000, $0.20, down $0.02)

Entry Price:  $0.22 (11/24/10)

Exit Target: $0.50+

Return: -9%

Stop Target: None

Action:  Continue to hold.


JDS Uniphase (JDSU, $12.80, up $0.07)

March 12 calls (JDSU110319C00012000, $1.60, flat) 

Entry Price:  $1.25 (11/19/10)

Exit Target: $2.50

Return:  28%

Stop Target: $1.25

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, $34.10, down $0.22)

January 35 calls (JNPR110122C00035000, $1.20, down $0.20)

Entry Price:  $1.30 (11/17/10)

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

Return: 13%

Stop Target: $1.25 (HARD STOP) 

Action:  Our hard stop of $1.25 was hit this morning on the other half.  We will keep Juni on our radar but the momentum has been zapped for the moment.  This trade is now closed.


Riverbed Technology (RVBD, $35.01, up $0.19)

March 35 calls (RVBD110319C00035000, $4.00, up $0.20)

Entry Price:  $1.40 (11/17/10)

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

Return: 150%

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

Action:  Shares have set another 52-week high today of $36.80 today.  Continue to hold the other half.


CBOE Holdings (CBOE, $24.40, up $0.06)

December 25 calls (CBOE101218C00025000, $0.35, flat) 

Entry Price:  $0.75 (11/8/10)

Exit Target: $2.40+

Return: -53%

Stop Target: None

Action:  We need a run past $25 this week.  Continue to hold.


Darden Restaurants (DRI, $50.04, down $0.28)

December 49 calls (DRI101218C00049000, $1.60, down $0.20) 

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:  Continue to hold the other half.


Aruba Networks (ARUN, $22.49, down $0.53)

January 25 calls (ARUN110122C00025000, $0.70, down $0.20) 

Entry Price:  $1.20 (11/2/10)

Exit Target: $2.40+

Return: -42%

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

Action:  Continue to hold for now. 


PowerShares QQQ (QQQQ, $53.77, down $0.10)

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, $51.54, down $0.04)

April (2011) 60 calls (AMT110416C00060000, $0.55, flat)

Entry Price:  $0.65 (10/20/10)

Exit Target: $1.30+

Return:  -15%

Stop Target: None

Action:  Continue to hold.


Dendreon (DNDN, $38.14, down $0.79) (COVERED CALL)

December 40 call (DNDN101218C00040000, $0.30, down $0.10)

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.


McDonald’s (MCD, $79.65, down $0.11)

January 85 calls (MCD110122C00085000, $0.25, down $0.01)

Action:  The 52-week high is $79.90 and we are looking for a break above $80.

We don’t have the luxury of playing the 82.50’s because the options only trade in increments of $5.  However, if shares can run up to $82-$83, quickly or by the end of the year on a break over $80, these options should return 50%-100%.


CurrencyShares Euro Trust (FXE, $132.40, down $1.18)

January 125 puts (FXE110122P00125000, $0.65, up $0.20)

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, $27.24, down $0.33)

January 26 calls (SWKS110122C00026000, $2.20, down $0.25)

Action:  Continue to watch.  


THQ (THQI, $5.67, up $0.18)

March 5 calls (THQI110319C00005000, $1.10, up $0.10)

Action:  Continue to watch.


Ingersoll-Rand (IR, $42.94, up $0.03)

January 42.50 calls (IR110122C00042500, $1.80, flat)

Action:  Watch for now.

 

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