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.

1:45pm (EST)

JPMorgan Chase (JPM, $45.55, down $1.10)

February 46 calls (JPM110219C00046000, $1.12, up $0.22) 

Entry Price:  $0.88 (1/12/11)

Exit Target: $1.75  

Return: 26%

Stop Target: None

Action:  We had a good feeling JPM might rebound.  Their numbers were solid.  Continue to hold.  


Vivus (VVUS, $10.89, down $0.16)    

June 14 calls (VVUS110618C00014000, $1.25, down $0.05)


Entry Price:  $1.10 (1/12/11)

Exit Target: $1.70    

Return: 14%

Stop Target: None

Action:  Vivus plans to complete the new drug application (NDA) filing for Avanafil, its “good wood” drug, in the second quarter of 2011.  Qnexa, the company’s diet drug could get fast-track approval this year.  Continue to hold. 

 

Apollo Group (APOL, $42.56, up $0.17)

February 34 puts (APOL110219P00035000, $0.25, flat)

Entry Price:  $0.85 (1/7/11)

Exit Target: $1.70 (closed half @ $1.70 on 1/10/11)   

Return: 15%

Stop Target: None

Action:  We closed half at $1.70 and the current 25 cents on the other half gives an average price of $0.975.  Shares have broken out over $40 and there is little resistance until $45.  We may end up breaking even on this trade but we feel when the other Educational stocks start to report earnings, and miss expectations, then Apollo will reverse course.  In the meantime, we will have to wait it out.


Louisiana-Pacific (LPX, $9.86, up $0.18)

May 11 calls (LPX110521C00011000, $0.65, down $0.05)

Entry Price:  $0.70 (1/5/11)

Exit Target: $1.40

Return: -7%

Stop Target: None

Action:  Continue to hold for now.     

 

Brocade Communications (BRCD, $5.97, up $0.06)

July 6 calls (BRCD110716C00006000, $0.83, up $0.03)

Entry Price:  $0.67 (1/4/11)

Exit Target: $1.35

Return: 24%

Stop Target: None

Action:  Continue to hold.   

   

Micron Technology (MU, $9.75, up $0.12)

April 9 calls (MU110416C00009000, $1.30, up $0.05)

Entry Price:  $0.50 (1/3/11)

Exit Target: $1.00

Return: 160%

Stop Target:  75 cents

Action:  We have a $10 price target on shares over the near-term but the 52-week high is $11.40 which could be taken out as well.  If so, these options will be worth $2.50+.  Continue to hold but notice we have now placed a stop target on the trade.


Riverbed Technology (RVBD, $39.20, down $0.52)     

March 40 calls (RVBD110319C00040000, $3.30, down $0.20)

Entry Price:  $1.70 (12/29/10)

Exit Target: $3.40 (closed half @ $3.00 on 1/7/11)   

Return: 85%

Stop Target: $1.90 

Action:  Continue to hold.  


Skyworks Solutions (SWKS, $32.10, up $0.30)

May 32 calls (SWKS110521C00032000, $3.20, up $0.10)   

Entry Price:  $1.70 (12/29/10)

Exit Target: $3.40

Return: 88%

Stop Target: $1.75 

Action:  Continue to hold.

 

JDS Uniphase (JDSU, $17.50, up $0.04)

March 15 calls (JDSU110319C00015000, $2.80, flat)

Entry Price:  $0.78 (12/27/10)

Exit Target: $4 (closed half @ $1.80 on 1/7/11)

Return: 195%

Stop Target: $1.75 (HARD STOP)

Action:  Continue to hold the other half as we think JDSU can run to $20 over the near-term.  We have also set a hard stop on the other half of this trade. 


Seattle Genetics (SGEN, $17.28, up $0.05)

March 17.50 calls (SGEN110319C00017500, $1.40, flat) 

Entry Price:  $0.70 (12/27/10)

Exit Target: $1.40

Return: 100%

Stop Target: 70 cents

Action:  The 52-week high for SGEN is $18 and change set back in October.  Continue to hold.


THQ (THQI, $5.88, down $0.28) 

June 6 calls (THQI110618C00006000, $0.90, down $0.20) 

Entry Price:  $0.75 (12/8/10)

Exit Target: $2.00

Return: 20%

Stop Target: 50 cents

Action:  For new subscribers, we will give you a fresh update on why we like this trade on Tuesday and the catalysts that should drive the stock higher over the next 5 months.  However, if shares can’t hold $6 we might have to close the trade early and protect profits.  Continue to hold.    



Electronic Arts (ERTS, $15.78, down $0.26)

March 20 calls (ERTS110319C00020000, $0.13, down $0.01) 

Entry Price:  $0.22 (11/24/10)

Exit Target: $0.50+

Return: -41%

Stop Target: None

Action:  Continue to hold.  


Other 2010 Portfolio OPEN positions (3):  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.

We will update this section on Tuesday.

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

8:50am (EST)

JPMorgan Chase (JPM, $44.45, down $0.26)

February 46 calls (JPM110219C00046000, $0.90, down $0.05) 

Entry Price:  $0.88 (1/12/11)

Exit Target: $1.75  

Return: 2%

Stop Target: None

Action:  Shares of JPM were up 34 cents in after-hours last night but are down 19 cents this morning.  Not too bad, we should be alright.  


Vivus (VVUS, $11.05, up $0.38)

June 14 calls (VVUS110618C00014000, $1.30, up $0.15)

Entry Price:  $1.10 (1/12/11)

Exit Target: $1.70    

Return: 18%

Stop Target: None

Action:  Vivus plans to complete the new drug application (NDA) filing for Avanafil, its “good wood” drug, in the second quarter of 2011.  Qnexa, the company’s diet drug could get fast-track approval this year.  Continue to hold. 

 

Apollo Group (APOL, $42.39, up $0.53)

February 34 puts (APOL110219P00035000, $0.25, flat)

Entry Price:  $0.85 (1/7/11)

Exit Target: $1.70 (closed half @ $1.70 on 1/10/11)   

Return: 15%

Stop Target: None

Action:  We closed half at $1.70 and the current 25 cents on the other half gives an average price of $0.975.  Shares have broken out over $40 and there is little resistance until $45.  We may end up breaking even on this trade but we feel when the other Educational stocks start to report earnings, and miss expectations, then Apollo will reverse course.  In the meantime, we will have to wait it out.


Louisiana-Pacific (LPX, $9.68, down $0.19)

May 11 calls (LPX110521C00011000, $0.65, down $0.05)

Entry Price:  $0.70 (1/5/11)

Exit Target: $1.40

Return: -7%

Stop Target: None

Action:  We are not too happy with the recent price action with this one so we may cut our losses short and find a better opportunity.  Continue to hold for now but we may cut the cord as early as this afternoon.

 

Brocade Communications (BRCD, $5.91, up $0.07)

July 6 calls (BRCD110716C00006000, $0.80, up $0.03)

Entry Price:  $0.67 (1/4/11)

Exit Target: $1.35

Return: 19%

Stop Target: None

Action:  Continue to hold.   

   

Micron Technology (MU, $9.63, up $0.29)

April 9 calls (MU110416C00009000, $1.25, up $0.25)

Entry Price:  $0.50 (1/3/11)

Exit Target: $1.00

Return: 150%

Stop Target:  75 cents

Action:  We have a $10 price target on shares over the near-term but the 52-week high is $11.40 which could be taken out as well.  If so, these options will be worth $2.50+.  Continue to hold but notice we have now placed a stop target on the trade.


Riverbed Technology (RVBD, $39.72, up $1.16)     

March 40 calls (RVBD110319C00040000, $3.50, up $0.50)

Entry Price:  $1.70 (12/29/10)

Exit Target: $3.40 (closed half @ $3.00 on 1/7/11)   

Return: 91%

Stop Target: $1.90 

Action:  Continue to hold.  


Skyworks Solutions (SWKS, $31.80, down $0.08)

May 32 calls (SWKS110521C00032000, $3.10, flat)   

Entry Price:  $1.70 (12/29/10)

Exit Target: $3.40

Return: 82%

Stop Target: $1.75 

Action:  Continue to hold.

 

JDS Uniphase (JDSU, $17.46, up $0.74)

March 15 calls (JDSU110319C00015000, $2.80, up $0.60)

Entry Price:  $0.78 (12/27/10)

Exit Target: $4 (closed half @ $1.80 on 1/7/11)

Return: 195%

Stop Target: $1.75 (HARD STOP)

Action:  Continue to hold the other half as we think JDSU can run to $20 over the near-term.  We have also set a hard stop on the other half of this trade. 


Seattle Genetics (SGEN, $17.34, up $0.31)

March 17.50 calls (SGEN110319C00017500, $1.40, up $0.10) 

Entry Price:  $0.70 (12/27/10)

Exit Target: $1.40

Return: 100%

Stop Target: 70 cents

Action:  The 52-week high for SGEN is $18 and change set back in October.  Continue to hold.


THQ (THQI, $6.16, down $0.05) 

June 6 calls (THQI110618C00006000, $1.10, down $0.05) 

Entry Price:  $0.75 (12/8/10)

Exit Target: $2.00

Return: 48%

Stop Target: 50 cents

Action:  For new subscribers, we will give you a fresh update on why we like this trade on Tuesday and the catalysts that should drive the stock higher over the next 5 months.  However, if shares can’t hold $6 we might have to close the trade early and protect profits.  Continue to hold.    


Electronic Arts (ERTS, $16.04, up $0.01)

March 20 calls (ERTS110319C00020000, $0.14, flat) 

Entry Price:  $0.22 (11/24/10)

Exit Target: $0.50+

Return: -36%

Stop Target: None

Action:  Continue to hold.  


Other 2010 Portfolio OPEN positions (3):  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.

Jabil Circuit (JBL, $21.01, up $0.05)

February 22 calls (JBL110219C00019000, $0.55, flat)

Thoughts:  We like this trade a lot.


Imax (IMAX, $27.93, up $0.01)

June 35 calls (IMAX110618C00035000, $0.95, flat)

Thoughts:  Shares traded to a high of $28.49 on renewed takeover chatter but ended flat for the day.


Green Mountain Coffee Roasters (GMCR, $35.47, up $0.14)

February 40 calls (GMCR110219C00040000, $0.65, flat) 


Thoughts:  Continue to watch. 


Bank of America (BAC, $14.77, down $0.22)

February 14 calls (BAC110219C00014000, $1.10, down $0.15) 

Thoughts:  Continue to watch.