January 2011 | 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.

12:10pm (EST)

NEW TRADE!!!

Apollo Group (APOL, $38.30, down $1.17)

Buy to OPEN February 34 puts (APOL110219P00035000, $0.85, up $0.10)

Action:  Use limit orders up to $1.00 for these options. 

We can’t help ourselves because many of you know our feelings on this stock.  There is HEAVY volume in the January puts but we want to buy a little more time and be safer with the February puts.

Apollo reports on Monday after the market closes.


CURRENT TRADES

Louisiana-Pacific (LPX, $9.75, down $0.23)

May 11 calls (LPX110521C00011000, $0.70, down $0.10)

Entry Price:  $0.70 (1/5/11)

Exit Target: $1.40

Return: 0%

Stop Target: None

Action:  Continue to hold.

 

Brocade Communications (BRCD, $5.67, down $0.01)

July 6 calls (BRCD110716C00006000, $0.70, flat)

Entry Price:  $0.67 (1/4/11)

Exit Target: $1.35

Return: 4%

Stop Target: None

Action:  Continue to hold.   

   

Micron Technology (MU, $8.61, up $0.03)

April 9 calls (MU110416C00009000, $0.67, up $0.01)

Entry Price:  $0.50 (1/3/11)

Exit Target: $1.00

Return: 34%

Stop Target: None

Action:  We have a $10 price target on shares over the near-term which gets these options to a least $1. 


Riverbed Technology (RVBD, $38.25, down $0.21)

March 40 calls (RVBD110319C00040000, $3.00, down $0.10)

Entry Price:  $1.70 (12/29/10)

Exit Target: $3.40

Return: 76%

Stop Target: 85 cents

Action:  Close HALF the trade at current levels.


Skyworks Solutions (SWKS, $29.95, down $0.20)

May 32 calls (SWKS110521C00032000, $2.10, down $0.10) 

Entry Price:  $1.70 (12/29/10)

Exit Target: $3.40

Return: 24%

Stop Target: 85 cents

Action:  Continue to hold.


JDS Uniphase (JDSU, $16.13, up $0.09)

March 15 calls (JDSU110319C00015000, $1.80, up $0.05)

Entry Price:  $0.78 (12/27/10)

Exit Target: $1.60

Return: 131%

Stop Target: None

Action:  Close HALF at current levels.  We have already hit our exit target so it’s the prudent thing to do.  We may also look at some June options because we expect this stock to have a great year.


Seattle Genetics (SGEN, $15.38, down $0.36)

March 17.50 calls (SGEN110319C00017500, $0.80, down $0.10)

Entry Price:  $0.70 (12/27/10)

Exit Target: $1.40

Return: 14%

Stop Target: None

Action:  Continue to hold.


Jabil Circuit (JBL, $21.16, down $0.29)

March 19 calls (JBL110319C00019000, $2.75, down $0.40)

Entry Price:  $0.70 (12/14/10)

Exit Target: $1.50+ (closed half @ $1.70 on 12/21/10)

Return: 214%

Stop Target:  $2.25 (HARD STOP)

Action:  Continue to hold the other half.


THQ (THQI, $6.11, down $0.04      

June 6 calls (THQI110618C00006000, $1.10, flat)

Entry Price:  $0.75 (12/8/10)

Exit Target: $2.00

Return: 47%

Stop Target: None

Action:  Continue to hold.


Electronic Arts (ERTS, $16.09, down $0.14)

March 20 calls (ERTS110319C00020000, $0.14, flat) 

Entry Price:  $0.22 (11/24/10)

Exit Target: $0.50+

Return: -27%

Stop Target: None

Action:  Continue to hold.  


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)

American Tower April 60 calls (from October)

Constellation Brands February 22.50 calls (from January) 


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.


Pfizer (PFE, $18.15, down $0.03)

February 18 calls (PFE110219C00018000, $0.54, down $0.02) 

March 18 calls (PFE11031900018000, $0.70, flat)

Thoughts:  It might be time to pull the trigger…


TiVo (TIVO, $9.79, down $0.14)

May 17.50 calls (TIVO110521C00017500, $0.65, down $0.05)

May 20 calls (TIVO110521C00020000, $0.35, down $0.05)

Thoughts:  Watch for now.


Imax (IMAX, $27.40, down $0.46)

June 35 calls (IMAX110618C00035000, $1.00, down $0.15)

Thoughts:  We may get a chance to swing the bat on these options next week.


JP Morgan (JPM, $43.38, down $1.10)

January 45 calls (JPM110122C00045000, $0.45, down $0.30)

Thoughts:  Watch for now. 


Green Mountain Coffee Roasters (GMCR, $35.56, up $0.93)

February 40 calls (GMCR110219C00040000, $0.82, up $0.10)

Thoughts:  Continue to watch. 


Best Buy (BBY, $35.12, down $0.13) 

March 40 calls (BBY110319C00040000, $0.40, down $0.05)

Thoughts:  These options look tempting but we will wait to see what they look like next week. 


CurrencyShares Euro Trust (FXE, $128.88, down $0.76)

February 125 puts (FXE110219P00125000, $1.05, up $0.10)

Thoughts:  Watch for now.


Bank of America (BAC, $14.14, down $0.30)

February 14 calls (BAC110219C00014000, $0.90, down $0.05) 

Thoughts:  Let’s see if $14 holds…


Darden Restaurants (DRI, $46.65, up $0.22)

April 50 calls (DRI110416C00050000, $1.15, up $0.05)

Thoughts:  Still watching… 

============================

9:00am (EST)

Louisiana-Pacific (LPX, $9.98, down $0.07)

May 11 calls (LPX110521C00011000, $0.80, flat)

Entry Price:  $0.70 (1/5/11)

Exit Target: $1.40

Return: 14%

Stop Target: None

Action:  Continue to hold.

 

Brocade Communications (BRCD, $5.67, down $0.05)

July 6 calls (BRCD110716C00006000, $0.70, down $0.04)

Entry Price:  $0.67 (1/4/11)

Exit Target: $1.35

Return: 4%

Stop Target: None

Action:  Continue to hold.   


Constellation Brands (STZ, $19.84, down $1.74) 

February 22.50 calls (STZ110219C00022500, $0.15, down $0.40)

Entry Price:  $0.35 (1/4/11)

Exit Target: $0.70

Return: -57%

Stop Target: None

Action:  The company missed on their revenue number as wine sales slipped but raised guidance for 2011.  It didn’t help.  These are cheap options and do not expire for another 42 days.  We will monitor the trade but we are moving it to a “hold” status. 

 

Micron Technology (MU, $8.58, up $0.04)

April 9 calls (MU110416C00009000, $0.66, up $0.02)

Entry Price:  $0.50 (1/3/11)

Exit Target: $1.00

Return: 32%

Stop Target: None

Action:  We have a $10 price target on shares over the near-term which gets these options to a least $1. 


Riverbed Technology (RVBD, $38.46, up $1.09)

March 40 calls (RVBD110319C00040000, $3.10, up $0.40)

Entry Price:  $1.70 (12/29/10)

Exit Target: $3.40

Return: 82%

Stop Target: 85 cents

Action:  Shares of Riverbed nearly took out $40 and traded to a high of $3.73 yesterday.  This represented a return well over 100% but we decided to push this one instead of closing half.  However, we still may close half before the weekend hits here to protect profits.    


Skyworks Solutions (SWKS, $30.15, down $0.05)

May 32 calls (SWKS110521C00032000, $2.20, flat) 

Entry Price:  $1.70 (12/29/10)

Exit Target: $3.40

Return: 29%

Stop Target: 85 cents

Action:  Shares traded to a high of $30.92 yesterday while the options touched $2.50.  Continue to hold.

 

JDS Uniphase (JDSU, $16.04, up $1.01)

March 15 calls (JDSU110319C00015000, $1.75, up $0.65)

Entry Price:  $0.78 (12/27/10)

Exit Target: $1.60

Return: 124%

Stop Target: None

Action:  JDSU hit another 52-week high of $16.06 and will face slight resistance up to $17.  However, the momentum in the stock is strong and we think shares can reach 20+ over the next few months.  Continue to hold.


Seattle Genetics (SGEN, $15.74, up $0.20)

March 17.50 calls (SGEN110319C00017500, $0.90, up $0.05)

Entry Price:  $0.70 (12/27/10)

Exit Target: $1.40

Return: 29%

Stop Target: None

Action:  Continue to hold.


Jabil Circuit (JBL, $21.45, up $0.19)

March 19 calls (JBL110319C00019000, $3.10, up $0.20)

Entry Price:  $0.70 (12/14/10)

Exit Target: $1.50+ (closed half @ $1.70 on 12/21/10)

Return: 243%

Stop Target:  $1.90, raise to $2.25 (HARD STOP)

Action:  Shares were under $17 when we profiled this trade and we closed half after the company announced strong earnings a week later.  The calls had more than doubled after shares ran up to $20 on the news and we took half off the table to make it a risk-free trade and to protect profits.

The stock continues to move higher which is a great problem for us to have.  We have raised the hard stop but continue to hold the other half.


THQ (THQI, $6.15, down $0.26)      

June 6 calls (THQI110618C00006000, $1.10, down $0.10)

Entry Price:  $0.75 (12/8/10)

Exit Target: $2.00

Return: 47%

Stop Target: None

Action:  Continue to hold.


Electronic Arts (ERTS, $16.23, down $0.05)

March 20 calls (ERTS110319C00020000, $0.14, down $0.02) 

Entry Price:  $0.22 (11/24/10)

Exit Target: $0.50+

Return: -27%

Stop Target: None

Action:  Continue to hold.  


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)

American Tower April 60 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.

Pfizer (PFE, $18.18, up $0.07)

February 18 calls (PFE110219C00018000, $0.56, up $0.03) 

March 18 calls (PFE11031900018000, $0.70, up $0.03)

Thoughts:  It might be time to pull the trigger…


TiVo (TIVO, $9.92, up $0.07)

May 17.50 calls (TIVO110521C00017500, $0.70, down $0.03)

May 20 calls (TIVO110521C00020000, $0.40, down $0.02)

Thoughts:  Watch for now.


Imax (IMAX, $27.86, down $0.26)

June 35 calls (IMAX110618C00035000, $1.15, down $0.35)

Thoughts:  The bid/ ask got a lot better following Wednesday’s fluff and are now at $1.10/ $1.25.


JP Morgan (JPM, $44.48, down $0.22)

January 45 calls (JPM110122C00045000, $0.75, down $0.12)

Thoughts:  Watch for now. 


Green Mountain Coffee Roasters (GMCR, $34.63, up $0.49)

February 40 calls (GMCR110219C00040000, $0.72, up $0.12)

Thoughts:  Continue to watch. 


Best Buy (BBY, $35.25, down $0.45) 

March 40 calls (BBY110319C00040000, $0.45, down $0.10)

Thoughts:  These options look tempting but we will wait to see what they look like next week. 


CurrencyShares Euro Trust (FXE, $129.64, down $1.40)

February 129 puts (FXE110219P00129000, $2.30, up $0.55)

Thoughts:  These options have doubled over the last two days.  The February 125 puts closed at $1.00, up $0.45, or 80%.  We may have missed the trade because our portfolio is full but if you didn’t then make sure you protect profits. 


Schnitzer Steel Industries (SCHN, $68.87, up $0.77)

January 70 calls (SCHN110122C00070000, $2.05, up $0.25)

Thoughts:  The stock was down over $3 in after-hours last night after failing to meet Wall Street’s expectations.  The options were thinly traded to start with and we mentioned this in our video Sunday night that it would keep us on the sidelines but we were surprised by the miss.


Bank of America (BAC, $14.44, down $0.06)

February 14 calls (BAC110219C00014000, $0.90, down $0.05) 

Thoughts:  Continue to watch.


Darden Restaurants (DRI, $46.43, up $0.59)

April 50 calls (DRI110416C00050000, $1.10, up $0.20)

Thoughts:  Still watching…