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.

1:40pm (EST)

Vivus (VVUS, $10.70, up $0.06)

Buy to OPEN June 14 calls (VVUS110618C00014000, $1.10, flat)

Action:  Use limit prices up to $1.20 to get filled and you can up to $1.25-$1.30 if volume starts to pick up.  We have covered this stock numerous times and we are expecting big move over the next few months.   


JPMorgan Chase (JPM, $44.65, up $1.05)

Buy to OPEN February 46 calls (JPM110219C00046000, $0.88, up $0.26) 

Action:  Use limit orders up to 90-95 cents but do not pay over $1.00 for these options.  We are being aggressive with the Financials but we want to give ourselves some play in case JPMorgan doesn’t move much on Friday.

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

12:35pm (EST)

Apollo Group (APOL, $41.55, up $0.81)

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, $9.80, up $0.12)

May 11 calls (LPX110521C00011000, $0.65, flat)

Entry Price:  $0.70 (1/5/11)

Exit Target: $1.40

Return: -7%

Stop Target: None

Action:  Continue to hold.

 

Brocade Communications (BRCD, $5.85, up $0.11)

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, $9.23, up $0.50)

April 9 calls (MU110416C00009000, $0.95, up $0.37)

Entry Price:  $0.50 (1/3/11)

Exit Target: $1.00

Return: 90%

Stop Target: None

Action:  Shares are up 6% today which has pushed this trade near a 100% return.  We have a $10 price target on shares over the near-term which gets these options to a least $1 which is where we may close at least half of the trade.  Continue to hold.


Riverbed Technology (RVBD, $38.76, up $0.03)

March 40 calls (RVBD110319C00040000, $3.20, up $0.20)

Entry Price:  $1.70 (12/29/10)

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

Return: 82%

Stop Target: $1.90 

Action:  Shares touched a high of $39.83 yesterday and we said a break above $40 was coming.  Our near-term target remains $45 which would get these options to at least $5.  Continue to hold.  


Skyworks Solutions (SWKS, $32.02, up $0.41)

May 32 calls (SWKS110521C00032000, $3.20, up $0.30)

Entry Price:  $1.70 (12/29/10)

Exit Target: $3.40

Return: 88%

Stop Target: $1.75 

Action:  Continue to hold.

 

JDS Uniphase (JDSU, $16.62, up $0.28)

March 15 calls (JDSU110319C00015000, $2.10, up $0.20)

Entry Price:  $0.78 (12/27/10)

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

Return: 150%

Stop Target: None

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


Seattle Genetics (SGEN, $16.63, down $0.02)

March 17.50 calls (SGEN110319C00017500, $1.20, flat)

Entry Price:  $0.70 (12/27/10)

Exit Target: $1.40

Return: 71%

Stop Target: 70 cents

Action:  Continue to hold.


THQ (THQI, $6.23, up $0.04) 

June 6 calls (THQI110618C00006000, $1.20, flat)

Entry Price:  $0.75 (12/8/10)

Exit Target: $2.00

Return: 60%

Stop Target: 50 cents

Action:  The June calls have 156 days before expiration.  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.

We will update this section in the morning.

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

9:10am (EST)

Apollo Group (APOL, $40.74, up $4.80)

February 34 puts (APOL110219P00035000, $0.30, down $1.20)

Entry Price:  $0.85 (1/7/11)

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

Return: 18%

Stop Target: None

Action:  It would have been nice to have had a big payday but shares of Apollo surged after posting better-than-expected earnings.  This is a risk-free trade from here on out and we would like to see shares close below $40 by the end of the week.  We have plenty of time to wait as these options do not expire for another 37 days.

We closed half at $1.70 and the current 30 cents on the other half gives an average price of $1.00.


Louisiana-Pacific (LPX, $9.68, down $0.45)

May 11 calls (LPX110521C00011000, $0.65, down $0.20)

Entry Price:  $0.70 (1/5/11)

Exit Target: $1.40

Return: -7%

Stop Target: None

Action:  UBS downgraded shares of LPX from “Neutral” to “Sell” which caused a drop of over 4%.  This is a way to play a rebound in housing which is what we are hoping for but we were T-boned by the downgrade.  This is what makes a market.

We are still looking for the stock to test its 52-week high of $13.44 over the next 5 months.  This would make the calls worth $2.50 if our price target of $13.50 is hit.  The company reports earnings on February 11 and these options have 129 days before they expire.  Continue to hold.

 

Brocade Communications (BRCD, $5.74, flat)

July 6 calls (BRCD110716C00006000, $0.75, up $0.01)

Entry Price:  $0.67 (1/4/11)

Exit Target: $1.35

Return: 12%

Stop Target: None

Action:  Continue to hold.   

   

Micron Technology (MU, $8.72, up $0.17)

April 9 calls (MU110416C00009000, $0.68, up $0.08)

Entry Price:  $0.50 (1/3/11)

Exit Target: $1.00

Return: 36%

Stop Target: None

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


Riverbed Technology (RVBD, $38.73, up $0.46)

March 40 calls (RVBD110319C00040000, $3.20, up $0.20)

Entry Price:  $1.70 (12/29/10)

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

Return: 82%

Stop Target: $1.90 

Action:  Shares touched a high of $39.83 and we said a break above $40 was coming.  Out near-term target remains $45 which would get these options to at least $5.  Continue to hold.  


Skyworks Solutions (SWKS, $31.61, down $0.09)

May 32 calls (SWKS110521C00032000, $2.90, down $0.10) 

Entry Price:  $1.70 (12/29/10)

Exit Target: $3.40

Return: 71%

Stop Target: $1.75

Action:  Skyworks also hit a new 52-week high of $32.19 before slipping.  The company is set to present at the Needham Growth Conference on Thursday.  We think Skyworks is headed to $35, possibly $40 over the next 5 months.  The May options have 128 days before they expire. The company reports earnings on January 19, or next Wednesday.  Continue to hold.


JDS Uniphase (JDSU, $16.34, down $0.12)

March 15 calls (JDSU110319C00015000, $1.90, down $0.10)

Entry Price:  $0.78 (12/27/10)

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

Return: 137%

Stop Target: None

Action:  Shares hit a 52-week high of $16.71 shortly after the open but faded. Continue to hold the other half as we think JDSU can run to $20 over the near-term.


Seattle Genetics (SGEN, $16.83, up $1.01)

March 17.50 calls (SGEN110319C00017500, $1.30, up $0.45)

Entry Price:  $0.70 (12/27/10)

Exit Target: $1.40

Return: 86%

Stop Target: 70 cents

Action:  Shares got a nice 6% surge yesterday and touched a 52-week high of $16.95.  Continue to hold.


THQ (THQI, $6.19, up $0.01) 

June 6 calls (THQI110618C00006000, $1.20, flat)

Entry Price:  $0.75 (12/8/10)

Exit Target: $2.00

Return: 60%

Stop Target: 50 cents

Action:  The June calls have 156 days before expiration.  Continue to hold.    


Electronic Arts (ERTS, $16.00, down $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, $20.86, down $0.04)

February 22 calls (JBL110219C00019000, $0.55, down $0.05)

Thoughts:  We like this trade a lot.


TiVo (TIVO, $10.05, up $0.12)

May 17.50 calls (TIVO110521C00017500, $0.60, flat) 

Thoughts:  Watch for now.


Imax (IMAX, $26.83, down $0.26)

June 35 calls (IMAX110618C00035000, $0.85, down $0.10)

Thoughts:  These options look so, so tempting…  


Green Mountain Coffee Roasters (GMCR, $34.87, down $0.98)

February 40 calls (GMCR110219C00040000, $0.65, down $0.35) 

Thoughts:  Continue to watch. 


Best Buy (BBY, $35.69, down $0.22)

March 40 calls (BBY110319C00040000, $0.40, flat)

Thoughts:  Watch for now.


CurrencyShares Euro Trust (FXE, $129.28, up $0.24)

February 125 puts (FXE110219P00125000, $0.85, down $0.10)

Thoughts:  Watch for now but we may take action soon.


Bank of America (BAC, $14.69, up $0.29)

February 14 calls (BAC110219C00014000, $1.05, up $0.20) 

Thoughts:  Continue to watch.