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.

1:00pm (EST)

JPMorgan Chase (JPM, $44.75, up $0.04)

February 46 calls (JPM110219C00046000, $0.95, flat) 

Entry Price:  $0.88 (1/12/11)

Exit Target: $1.75  

Return: 8%

Stop Target: None

Action:  JPMorgan announces earnings before the bell on Friday and shares could move 5% one way or the other.  Obviously, we are looking for the company to have a blowout quarter but shares haven’t traded well after earnings.  We are hoping this time is different.


Vivus (VVUS, $11.32, up $0.65)

June 14 calls (VVUS110618C00014000, $1.45, up $0.30)

Entry Price:  $1.10 (1/12/11)

Exit Target: $1.70    

Return: 32%

Stop Target: None

Action:  Vivus could have a one-two punch with its diet drug, Qnexa, and its good wood drug, Avanafil, which produces erections in as fast as 15 minutes.  Both drugs are HUGE markets and have SOLID prospects.  We could get news on Qnexa over the next week or so as the company said back in December that they would be meeting with the FDA this month.  The drug could get fast-track approval as Vivus went on record yesterday and said they are seeking a partner to help sell Qnexa overseas.

For those who are new, please feel free to “search” our website for old articles on VVUS.  We brought this story to our subscribers 2 years ago when shares were under $5.

 

Apollo Group (APOL, $41.99, up $0.13)

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, $9.70, down $0.09)

May 11 calls (LPX110521C00011000, $0.70, flat)

Entry Price:  $0.70 (1/5/11)

Exit Target: $1.40

Return: 0%

Stop Target: None

Action:  Continue to hold.

 

Brocade Communications (BRCD, $5.88, up $0.04)

July 6 calls (BRCD110716C00006000, $0.77, flat)

Entry Price:  $0.67 (1/4/11)

Exit Target: $1.35

Return: 15%

Stop Target: None

Action:  Continue to hold.   

   

Micron Technology (MU, $9.75, up $0.41)

April 9 calls (MU110416C00009000, $1.30, up $0.30)

Entry Price:  $0.50 (1/3/11)

Exit Target: $1.00

Return: 160%

Stop Target: None

Action:  Shares are rocking again today.  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.


Riverbed Technology (RVBD, $39.63, up $1.07)     

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, $31.87, down $0.01)

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, $17.75, up $1.03)

March 15 calls (JDSU110319C00015000, $3.20, up $1.00)

Entry Price:  $0.78 (12/27/10)

Exit Target: $1.60 (closed half @ $1.80 on 1/7/11)

Return: 221%

Stop Target: None

Action:  We have a tiger by the tail.  Continue to hold the other half as we think JDSU can run to $20 over the near-term.


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:  Shares got a nice pop to close above $17 yesterday and we are looking for shares to test $20 over the near-term.  Continue to hold.



THQ (THQI, $6.23, up $0.02) 

June 6 calls (THQI110618C00006000, $1.15, flat)

Entry Price:  $0.75 (12/8/10)

Exit Target: $2.00

Return: 53%

Stop Target: 50 cents

Action:  Continue to hold.    


Electronic Arts (ERTS, $16.12, up $0.09)

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.

We will update this section in the morning.

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

9:00am (EST)

JPMorgan Chase (JPM, $44.71, up $1.11)

February 46 calls (JPM110219C00046000, $0.95, up $0.33) 

Entry Price:  $0.88 (1/12/11)

Exit Target: $1.75  

Return: 8%

Stop Target: None

Action:  This is a risky trade because JPMorgan announces before the bell on Friday.  The January options expire next Friday so it really would have been a hit or miss trade.  We opted to go with the February call options to give us more time and to cushion the fall in case we get head-faked by the “breakout” the sector is in.

We have been waiting for the Financials to lead the next leg of the rally and it could be happening.   


Vivus (VVUS, $10.67, up $0.03)

June 14 calls (VVUS110618C00014000, $1.15, up $0.05)

Entry Price:  $1.10 (1/12/11)

Exit Target: $1.70    

Return: 5%

Stop Target: None

Action:  Vivus could have a one-two punch with its diet drug, Qnexa, and its good wood drug, Avanafil, which produces erections in as fast as 15 minutes.  Both drugs are HUGE markets and have SOLID prospects.  We could get news on Qnexa over the next week or so as the company said back in December that they would be meeting with the FDA this month.  The drug could get fast-track approval as Vivus went on record yesterday and said they are seeking a partner to help sell Qnexa overseas.

For those of you who are new, please feel free to “search” our website for old articles on VVUS.  We brought this story to our subscribers 2 years ago when shares were under $5.

 

Apollo Group (APOL, $41.86, up $1.12)

February 34 puts (APOL110219P00035000, $0.25, down $0.05)

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, $9.87, up $0.19)

May 11 calls (LPX110521C00011000, $0.70, up $0.05)

Entry Price:  $0.70 (1/5/11)

Exit Target: $1.40

Return: 0%

Stop Target: None

Action:  Continue to hold.

 

Brocade Communications (BRCD, $5.84, up $0.10)

July 6 calls (BRCD110716C00006000, $0.77, up $0.02)

Entry Price:  $0.67 (1/4/11)

Exit Target: $1.35

Return: 15%

Stop Target: None

Action:  Continue to hold.   

   

Micron Technology (MU, $9.34, up $0.62)

April 9 calls (MU110416C00009000, $1.00, up $0.42)

Entry Price:  $0.50 (1/3/11)

Exit Target: $1.00

Return: 100%

Stop Target: None

Action:  Shares surged 7% on Wednesday and we have our double.  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 would be worth $2.50+.  Continue to hold.


Riverbed Technology (RVBD, $38.56, up $0.17)

March 40 calls (RVBD110319C00040000, $3.00, flat)

Entry Price:  $1.70 (12/29/10)

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

Return: 76%

Stop Target: $1.90 

Action:  Our near-term target remains $45 which would get these options to at least $5.  Continue to hold.  


Skyworks Solutions (SWKS, $31.88, up $0.27)

May 32 calls (SWKS110521C00032000, $3.10, up $0.20) 

Entry Price:  $1.70 (12/29/10)

Exit Target: $3.40

Return: 82%

Stop Target: $1.75 

Action:  Continue to hold.

 

JDS Uniphase (JDSU, $16.72, up $0.38)

March 15 calls (JDSU110319C00015000, $2.20, up $0.30)

Entry Price:  $0.78 (12/27/10)

Exit Target: $1.60 (closed half @ $1.80 on 1/7/11)

Return: 156%

Stop Target: None

Action:  Shares hit another 52-week high of $16.78 yesterday and look strong.  Continue to hold the other half as we think JDSU can run to $20 over the near-term.


Seattle Genetics (SGEN, $17.03, up $0.20)

March 17.50 calls (SGEN110319C00017500, $1.30, up $0.10) 

Entry Price:  $0.70 (12/27/10)

Exit Target: $1.40

Return: 86%

Stop Target: 70 cents 

Action:  Continue to hold.


THQ (THQI, $6.21, up $0.02) 

June 6 calls (THQI110618C00006000, $1.15, down $0.05)

Entry Price:  $0.75 (12/8/10)

Exit Target: $2.00

Return: 53%

Stop Target: 50 cents

Action:  Continue to hold.    


Electronic Arts (ERTS, $16.03, up $0.03)

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, $20.96, up $0.10)

February 22 calls (JBL110219C00019000, $0.55, flat)

Thoughts:  We like this trade a lot.


Imax (IMAX, $27.92, up $1.09)

June 35 calls (IMAX110618C00035000, $0.95, up $0.10)

Thoughts:  These options look so, so tempting…  


Green Mountain Coffee Roasters (GMCR, $35.33, up $0.46)

February 40 calls (GMCR110219C00040000, $0.65, flat) 

Thoughts:  Continue to watch. 


Best Buy (BBY, $35.67, down $0.02)

March 40 calls (BBY110319C00040000, $0.40, flat)

Thoughts:  Watch for now.


Bank of America (BAC, $14.99, up $0.30)

February 14 calls (BAC110219C00014000, $1.25, up $0.20)

Thoughts:  Continue to watch.