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.

1:10pm (EST)

PowerShares QQQ (QQQQ, $56.38, up $0.70)

March 58 calls (QQQQ110319C00058000, $0.67, up $0.11)

Entry Price:  $0.75 (1/21/11)

Exit Target: $1.50 

Return: -11%

Stop Target: None

Action:  Continue to hold.


Spider S&P 500 (SPY, $129.07, up $0.70)

February 131 calls (SPY110219C00131000, $1.00, up $0.10)

Entry Price:  $0.95 (1/21/11)

Exit Target: $1.90  

Return: 5%

Stop Target: None

Action:  We are expecting to close this trade by the end of the month with a double or at least 50%.  We normally like to buy a little more time with our trades but if we can get a run over 1,300 for the S&P these options will be fine. 


Micron Technology (MU, $9.86, up $0.02)

April 10 calls (MU110416C00010000, $0.80, flat)

Entry Price:  $0.75 (1/21/11)

Exit Target: $1.50  

Return: 7%

Stop Target: None

Action:  We are expecting a breakout over $10 to a run up to $11-$12.  We recently closed the April 9 calls for a sweet triple-digit return so this could be considered a “rollover” trade.  


JPMorgan Chase (JPM, $45.02, down $0.27)

February 46 calls (JPM110219C00046000, $0.73, down $0.13) 

Entry Price:  $0.88 (1/12/11)

Exit Target: $1.75  

Return: -17%

Stop Target: None

Action:  JP rebounded nicely by the end of the week and we are looking for a run up to $48.  We still don’t trust the Financial stocks but JP is one of the stronger names.  Continue to hold.


Vivus (VVUS, $8.50, down $0.24)        

June 14 calls (VVUS110618C00014000, $0.35, down $0.05)

Entry Price:  $1.10 (1/12/11)

Exit Target: $1.70    

Return: -68%

Stop Target: 75 cents         

Action:  Vivus will have to do some more studies for Qnexa but let’s not forget the company has other drugs in development.  Shares will continue to volatile and with Orexigen (OREX, $ scheduled to hear from the FDA by the end of the month on its diet drug, Vivus could still rebound if Orexigen gets the okay.  If not, Vivus could also continue lower so there is still risk.       

 

Apollo Group (APOL, $41.92, down $0.43)

February 34 puts (APOL110219P00035000, $0.14, flat)

Entry Price:  $0.85 (1/7/11)

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

Return: 8%

Stop Target: None

Action:  We closed half at $1.70 on 1/10/11 and the current 14 cents on the other half gives an average price of $0.92 so far.  Continue to hold the other half.

     

Brocade Communications (BRCD, $5.61, down $0.04)

July 6 calls (BRCD110716C00006000, $0.58, down $0.05)

Entry Price:  $0.67 (1/4/11)

Exit Target: $1.35

Return: -13%

Stop Target: None   

Action:  The 52-week high is $8 which gets these calls to $2 on a continued turnaround story.  Brocade could also be a takeover target down the road.  Continue to hold.   

     

Skyworks Solutions (SWKS, $29.23, up $0.04)

May 32 calls (SWKS110521C00032000, $1.60, down $0.10)   

Entry Price:  $1.70 (12/29/10)

Exit Target: $3.40 (closed half @ $3.30 on 1/18/11)

Return: 44%

Stop Target: $1.20 (HARD STOP on other half)     

Action:  Skyworks beat and raised its outlook when the company reported earnings last week.  We have already locked in half profits but we wanted to keep the other half open.  We have set a HARD STOP of $1.20 on the other half but we are looking for a rebound this week.

          

Other 2011 Portfolio OPEN positions (4):  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 2010)

American Tower April 60 calls (from October 2010)  

Electronic Arts March 20 calls (from November 2010)

Constellation Brands February 22.50 calls (from January 2011) 


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)

PowerShares QQQ (QQQQ, $55.68, down $0.43)

March 58 calls (QQQQ110319C00058000, $0.58, down $0.12)

Entry Price:  $0.75 (1/21/11)

Exit Target: $1.50 

Return: -23%

Stop Target: None

Action:  We were going to wait until today to start new trades but we opened them on Friday because we were expecting an up day today.  We thought Friday’s pop at the open would hold but it faded into the close.  That didn’t worry us as we took it as a sign the bulls want to push resistance at least one more time.


Spider S&P 500 (SPY, $128.37, up $0.29)

February 131 calls (SPY110219C00131000, $0.90, up $0.04)

Entry Price:  $0.95 (1/21/11)

Exit Target: $1.90  

Return: -5%

Stop Target: None

Action:  We are expecting to close this trade by the end of the month with a double or at least 50%.  We normally like to buy a little more time with our trades but if we can get a run over 1,300 for the S&P these options will be fine. 


Micron Technology (MU, $9.84, up $0.24)

April 10 calls (MU110416C00010000, $0.80, up $0.10)

Entry Price:  $0.75 (1/21/11)

Exit Target: $1.50  

Return: 7%

Stop Target: None

Action:  We are expecting a breakout over $10 to a run up to $11-$12.  We recently closed the April 9 calls for a sweet triple-digit return so this could be considered a “rollover” trade.  



JPMorgan Chase (JPM, $45.29, up $0.54)

February 46 calls (JPM110219C00046000, $0.86, up $0.18) 

Entry Price:  $0.88 (1/12/11)

Exit Target: $1.75  

Return: -2%

Stop Target: None

Action:  JP rebounded nicely by the end of the week and we are looking for a run up to $48.  We still don’t trust the Financial stocks but JP is one of the stronger names.  Continue to hold.


Vivus (VVUS, $8.74, down $1.69)        

June 14 calls (VVUS110618C00014000, $0.40, down $0.60)

Entry Price:  $1.10 (1/12/11)

Exit Target: $1.70    

Return: -64%

Stop Target: 75 cents         

Action:  Vivus will have to do some more studies for Qnexa but let’s not forget the company has other drugs in development.  Shares will continue to volatile and with Orexigen (OREX, $ scheduled to hear from the FDA by the end of the month on its diet drug, Vivus could still rebound if Orexigen gets the okay.  If not, Vivus could also continue lower so there is still risk.       

 

Apollo Group (APOL, $42.35, down $0.88)

February 34 puts (APOL110219P00035000, $0.14, flat)

Entry Price:  $0.85 (1/7/11)

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

Return: 8%

Stop Target: None

Action:  We closed half at $1.70 on 1/10/11 and the current 14 cents on the other half gives an average price of $0.92 so far.  Continue to hold the other half.

     

Brocade Communications (BRCD, $5.65, down $0.05)

July 6 calls (BRCD110716C00006000, $0.63, down $0.02)

Entry Price:  $0.67 (1/4/11)

Exit Target: $1.35

Return: -6%

Stop Target: None   

Action:  The 52-week high is $8 which gets these calls to $2 on a continued turnaround story.  Brocade could also be a takeover target down the road.  Continue to hold.   

     

Skyworks Solutions (SWKS, $29.19, down $0.84)

May 32 calls (SWKS110521C00032000, $1.70, down $0.40)   

Entry Price:  $1.70 (12/29/10)

Exit Target: $3.40 (closed half @ $3.30 on 1/18/11)

Return: 47%

Stop Target: $1.20 (HARD STOP on other half)     

Action:  Skyworks beat and raised its outlook when the company reported earnings last week.  We have already locked in half profits but we wanted to keep the other half open.  We have set a HARD STOP of $1.20 on the other half but we are looking for a rebound this week.   


Other 2011 Portfolio OPEN positions (4):  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 2010)

American Tower April 60 calls (from October 2010)  

Electronic Arts March 20 calls (from November 2010)

Constellation Brands February 22.50 calls (from January 2011) 


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.


CurrencyShares Euro Trust (FXE, $135.63, up $1.42)

March 130 puts (FXE110319P00130000, $0.90, down $0.40)

Thoughts:  We have been waiting for the Euro to rally back to these levels and these puts look attractive.  Although the euro has been rallying, we still see the currency falling back below $1.30 within the next month or two.     


Cree (CREE, $51.26, down $1.10)

March 55 calls (CREE110319C00055000, $1.95, down $0.55)

Thoughts:  Cree got slammed last week and held support but we are still watching this one.  The 52-week low is $47.30 and we want to make sure $50 can hold.  We are also watching the September calls as a longer-term play on a rebound.  


Jabil Circuit (JBL, $19.84, down $0.81)

March 21 calls (JBL110319C00021000, $0.80, down $0.30)

Thoughts:  We were going to add these options on Friday as well but we don’t want to overload our positions right now until we get the breakout.  If the bulls can break resistance then we may have a little fluff to add some of these trades.


Imax (IMAX, $26.36, down $0.47)

June 35 calls (IMAX110618C00035000, $0.60, down $0.10) 

Thoughts:  Still watching but these options look like a steal at these levels.


Green Mountain Coffee Roasters (GMCR, $34.47, up $0.36)

March 38 calls (GMCR110319C00038000, $1.25, up $0.10)

Thoughts:  Green Mountain reports after the bell today.  Although we have calls listed, we are looking at the puts as well for a possible strangle or straddle trade.