9:00am (EST)

Jabil Circuit (JBL, $16.92, down $0.22)

March 19 calls (JBL110319C00019000, $0.75, down $0.05)

Entry Price:  $0.70 (12/14/10)

Exit Target: $1.50+

Return: 7%

Stop Target: None

Action:  Jabil announces earnings this Monday, December 20.  Continue to hold.  If they can beat estimates and raise guidance then we should see a new 52-week high.  A 10% move would get shares past $18.40 which is the current one-year high. 

 

THQ (THQI, $5.97, up $0.26)

June 6 calls (THQI110618C00006000, $1.00, up $0.10)

Entry Price:  $0.75 (12/8/10)

Exit Target: $2.00

Return: 33%

Stop Target: None

Action:  Shares kissed $6 yesterday and these options have 183 days before expiration.  We are expecting shares to trade up to $8, maybe $10 by mid-June.  Continue to hold.

   

Electronic Arts (ERTS, $15.71, down $0.08)

March 20 calls (ERTS110319C00020000, $0.21, down $0.02) 

Entry Price:  $0.22 (11/24/10)

Exit Target: $0.50+

Return: -5%

Stop Target: None

Action:  Would someone please tell Microsoft (MSFT, $27.85, up $0.23) to step up and buy this company?  The March options have 92 days before expiration.  We are waiting for a break above $16 to get this trade rolling.  Continue to hold.


JDS Uniphase (JDSU, $13.87, up $0.19)

March 12 calls (JDSU110319C00012000, $2.30, up $0.10) 

Entry Price:  $1.25 (11/19/10)

Exit Target: $2.50 (closed half @ $2.70 on 12/13/10)

Return:  100%

Stop Target: $2.00

Action:  We closed half at $2.70 on Monday and we are trying to squeeze a little more out of the other half.  Continue to hold.

      

Aruba Networks (ARUN, $22.35, up $0.08)

January 25 calls (ARUN110122C00025000, $0.55, flat) 

Entry Price:  $1.20 (11/2/10)

Exit Target: $2.40+

Return: -54%

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

Action:  We are still holding for a run past $25 but a break below $22 may have us exiting this trade early.  Most of our “newer” trades are with the March and April options which should carry us through the holidays as this trade is over a month old.  We haven’t gotten the action we wanted even though shares traded up to $24+ in late November.  Shares are building a nice base at current levels and are capable of making big moves but we are watching this one closely.  Continue to hold.       


PowerShares QQQ (QQQQ, $54.16, down $0.24)

January 53 calls (QQQQ110122C00053000, $1.90, down $0.20) 

Entry Price:  $1.54 (10/27/10)

Exit Target: $3.00+

Return: 23%

Stop Target: $1.75, lower to $1.55 (HARD STOP)

Action:  We have been in this trade for nearly 6 weeks but it’s been frustrating.  The calls traded to a low of $1.80 yesterday which was just a nickel above our hard stop.  Let’s go ahead and lower it as we don’t want to be taken out of the trade if the market makes new highs.  If it doesn’t, we can walk away from the trade even Steven.

We are expecting a big move in the QQQ’s on Friday which is triple-witching day.  December triple-witching has historically been bullish with average gains of 2% in 17 of the last 25 years.  Continue to hold. 


American Tower (AMT, $50.13, down $0.31)

April (2011) 60 calls (AMT110416C00060000, $0.25, down $0.05) 

Entry Price:  $0.65 (10/20/10)

Exit Target: $1.30+

Return:  -62%

Stop Target: None

Action:  These options have 120 days before expiration.  Continue to hold.


Dendreon (DNDN, $36.22, down $0.06) (COVERED CALL)

December 40 call (DNDN101218C00040000, $0..03, down $0.02)

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: -7%

Stop Target: None

Action:  The December options expire this Friday.  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.

Pan American Silver (PAAS, $39.09, down $0.73)

January 42 calls (PAAS110122C000042000, $1.00, down $0.25)

Action:  Look who is back.  We may play these options for a quick trade and we have mentioned this stock on-and-off for a while now.  Silver could be undervalued, according to some, and we have made our thoughts on gold clear, it’s going up, but it is hard to trust.  In any event, silver has shown some strong momentum that could stick around. 


FedEx (FDX, $92.39, down $0.94)

January 100 calls (FDX110122C00100000, $0.95, down $0.10)

Action:  We think FedEx will beat estimates but we just don’t need to take any unnecessary risks right now. As much as we would love to take a shot at these calls, we are going to sit on the sidelines.


Adobe Systems (ADBE, $27.72, down $0.43)

January 30 calls (ADBE110122C00030000, $0.60, down $0.10) 

April 31 calls (ADBE110416C00031000, $1.10, down $0.10) 

April 26 puts (ADBE110416P00026000, $1.55, up $0.15)

Action:  Watch for now.


Darden Restaurants (DRI, $48.99, up $0.64)

April 55 calls (DRI110416C00055000, $0.95, up $0.25)

Action:  We could be close to pulling the trigger on this one.  We think Darden is worth $60 a share and these options will be worth $5 if shares can get there by mid-April.


DryShips (DRYS, $5.97, down $0.23)

March 7 calls (DRYS110319C00007000, $0.35, down $0.05) 

June 7 calls (DRYS110618C00007000, $0.55, down $0.10) 

Action:  Continue to watch.  


Juniper Networks (JNPR, $35.93, up $0.18)

January 35 calls (JNPR110122C00035000, $1.95, up $0.15)

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


CurrencyShares Euro Trust (FXE, $131.69, down $1.61)

January 130 puts (FXE110122P00130000, $1.55, up $0.60)

Action:  We keep getting close to $135 which is where we want to go short.  We think the Euro is headed to $1.25 early next year and a break below $130 on this ETF will get things going.     


Skyworks Solutions (SWKS, $27.00, up $0.12)

January 28 calls (SWKS110122C00028000, $0.85, flat)

Action:  Watch for now.

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