9:00am (EST)

Jabil Circuit (JBL, $17.15, up $0.44)

March 19 calls (JBL110319C00019000, $0.80, up $0.15)

Entry Price:  $0.70 (12/14/10)

Exit Target: $1.50+

Return: 14%

Stop Target: None

Action:  Jabil announces earnings this Monday, December 20.  Over the last 4 quarters, they have beaten estimates by 3, 1, 7 and 4 cents.  The last 2 times they have announced earnings, shares traded higher after the news.

We weren’t betting on earnings taking the stock higher when we initiated the trade but it could be an added bonus if Jabil says some good things in their update next week.


THQ (THQI, $5.71, up $0.09)

June 6 calls (THQI110618C00006000, $0.90, up $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, $33.89, down $0.62)

January 30 calls (FWLT110122C00030000, $3.45, down $0.65)

Entry Price:  $1.00 (11/30/10)

Exit Target: $2.00+ (closed half @ $1.90 on 12/2/10, closed half @$3.50 on 12/14/10)

Return: 170%

Stop Target: $3.50 (HARD STOP)

Action:  This trade is now closed.

We saw a little weakness in the charts yesterday for Foster Wheeler and we raised the hard stop in our afternoon update.  We still did very well with this trade as we got in before the break above $30.  However, shares resumed their downtrend after our update yesterday and the calls traded to a low of $3.45 which took us out of the other half of the trade.  We sold half at $1.90 earlier this month, half at $3.50, which gives us an average selling price of $2.70.  We got in at $1.00 so the return was 170%.  

Now that we are out, we would like to see shares come back down to $30 and hold which is where prior resistance was.  In any event, we will keep this one on our Watch List for a future trade.   

 

Electronic Arts (ERTS, $15.79, up $0.03)

March 20 calls (ERTS110319C00020000, $0.23, flat) 

Entry Price:  $0.22 (11/24/10)

Exit Target: $0.50+

Return: 5%

Stop Target: None

Action:  We are waiting for a break above $16 to get this trade rolling.  Continue to hold.


JDS Uniphase (JDSU, $13.68, down $0.17)

March 12 calls (JDSU110319C00012000, $2.20, down $0.10) 

Entry Price:  $1.25 (11/19/10)

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

Return:  96%

Stop Target: $2.00

Action:  Continue to hold the other half.


Riverbed Technology (RVBD, $34.25, down $1.67)

March 35 calls (RVBD110319C00035000, $3.40, down $1.10)

Entry Price:  $1.40 (11/17/10)

Exit Target: $2.80 (closed half @ $3.00 on 11/23/10, closed half @ $3.75 on 12/14/10)

Return: 141%

Stop Target:  $3.75 (HARD STOP on other half) 

Action:  We also closed this trade yesterday as the calls opened at $4.30 but quickly came down in price and the stop of $3.75 was taken out on the other half.

The total return was over 140% for the trade but we are not done with Riverbed.  We think shares are headed to $50 and we will be back to play this one for sure in 2011.


Aruba Networks (ARUN, $22.27, down $0.23)

January 25 calls (ARUN110122C00025000, $0.55, down $0.05) 

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 should probably close this trade at current levels but we are going to stick with it if shares can hold $20.       


PowerShares QQQ (QQQQ, $54.40, up $0.10)

January 53 calls (QQQQ110122C00053000, $2.10, up $0.05) 

Entry Price:  $1.54 (10/27/10)

Exit Target: $3.00+

Return: 37%

Stop Target: $1.75 (HARD STOP)

Action:  We still think the Q’s push higher but we want to protect our profits in case they slip.


American Tower (AMT, $50.44, up $0.43)

April (2011) 60 calls (AMT110416C00060000, $0.30, flat)

Entry Price:  $0.65 (10/20/10)

Exit Target: $1.30+

Return:  -54%

Stop Target: None

Action:  Continue to hold.


Dendreon (DNDN, $36.28, down $0.28) (COVERED CALL)

December 40 call (DNDN101218C00040000, $0.05, 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: -7%

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.

FedEx (FDX, $93.33, down $0.98)

January 100 calls (FDX110122C00100000, $1.00, down $0.30)

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, $28.15, up $0.34)

January 30 calls (ADBE110122C00030000, $0.70, up $0.05) 

April 31 calls (ADBE110416C00031000, $1.20, down $0.10) 

April 26 puts (ADBE110416P00026000, $1.40, down $0.15)

Action:  Watch for now.


Darden Restaurants (DRI, $48.35, down $0.19)

April 55 calls (DRI110416C00055000, $0.70, down $0.15)

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, $6.20, down $0.10)

March 7 calls (DRYS110319C00007000, $0.40, down $0.05) 

June 7 calls (DRYS110618C00007000, $0.65, down $0.05) 

Action:  Continue to watch.  


Juniper Networks (JNPR, $35.75, down $0.41)

January 35 calls (JNPR110122C00035000, $1.80, down $0.20)

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


CurrencyShares Euro Trust (FXE, $133.30, down $0.12)

January 130 puts (FXE110122P00130000, $0.95, down $0.10)

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


Skyworks Solutions (SWKS, $26.89, down $0.20)

January 28 calls (SWKS110122C00028000, $0.85, down $0.10)


Action:  Watch for now.

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