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.

1:05pm (EST)

PowerShares QQQ (QQQQ, $56.37, down $0.08)

March 58 calls (QQQQ110319C00058000, $0.67, down $0.02)

Entry Price:  $0.75 (1/21/11)

Exit Target: $1.50 

Return: -11%

Stop Target: None

Action:  These options have 52 days before expiration.  Continue to hold.


Spider S&P 500 (SPY, $128.77, down $0.33)

February 131 calls (SPY110219C00131000, $0.95, down $0.10)

Entry Price:  $0.95 (1/21/11)

Exit Target: $1.90  

Return: 0%

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, $9.96, down $0.09)

April 10 calls (MU110416C00010000, $0.88, down $0.05)

Entry Price:  $0.75 (1/21/11)

Exit Target: $1.50  

Return: 17%

Stop Target: None

Action:  We are expecting a run up to $11-$12 over the next month or two.  These options have 80 days before expiration.  Continue to hold.


JPMorgan Chase (JPM, $44.80, down $0.22)

February 46 calls (JPM110219C00046000, $0.60, down $0.10) 

Entry Price:  $0.88 (1/12/11)

Exit Target: $1.75  

Return: -32%

Stop Target: None

Action:  Shares were higher before retreating.  We don’t want to give up on the Financials just yet but the sector still looks weak.  Continue to hold for now.

   

Apollo Group (APOL, $41.90, up $0.03)

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 would like to see a break back below $40 this week.  We closed half of the trade 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, $5.54, down $0.05)

July 6 calls (BRCD110716C00006000, $0.55, down $0.03)

Entry Price:  $0.67 (1/4/11)

Exit Target: $1.35

Return: -18%

Stop Target: None   

Action:  These options have 172 days before they expire.  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, $29.97, up $0.78)

May 32 calls (SWKS110521C00032000, $1.90, up $0.40)   

Entry Price:  $1.70 (12/29/10)

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

Return: 53%

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

Action:  The May call options have 115 days before they expire and we are looking for Skyworks to run back above $30 on a continued Tech rebound.

          

Other 2011 Portfolio OPEN positions (5):  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) 

Vivus June 14 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.


Molycorp (MCP, $48.17, up $1.35)

February 55 calls (MCP110219C00055000, $1.20, flat)

Thoughts:  Watch for now.


Patriot Coal (PCX, $23.57, down $0.36)

March 28 calls (PCX110319C00028000, $0.85, down $0.15)

Thoughts:  We missed a golden opportunity back in December to make nearly 500% on the January 19 calls which we recommended as a covered call position.  The stock zoomed from $17 to a high of $27 in a month but has since gone back to fill in some gaps.


CurrencyShares Euro Trust (FXE, $135.87, down $0.05)

March 130 puts (FXE110319P00130000, $0.75, flat)

Thoughts:  We have been waiting for the Euro to rally back to these levels and these puts look attractive.  We are thisclose to adding these puts.     


Cree (CREE, $52.06, up $0.61)

March 55 calls (CREE110319C00055000, $1.95, up $0.10)

Thoughts:  Watch for now.  


Jabil Circuit (JBL, $19.76, down $0.41)

March 21 calls (JBL110319C00021000, $0.65, down $0.20)

Thoughts:  Watch for now.


Imax (IMAX, $26.17, down $0.48)

June 35 calls (IMAX110618C00035000, $0.60, down $0.05) 

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


Green Mountain Coffee Roasters (GMCR, $34.90, down $0.27)

March 38 calls (GMCR110319C00038000, $1.35, down $0.05)

Thoughts:  Watch for now.

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

9:00am (EST)

PowerShares QQQ (QQQQ, $56.45, up $0.77)

March 58 calls (QQQQ110319C00058000, $0.69, up $0.13)

Entry Price:  $0.75 (1/21/11)

Exit Target: $1.50 

Return: -8%

Stop Target: None

Action:  Continue to hold.


Spider S&P 500 (SPY, $129.10, up $0.73)

February 131 calls (SPY110219C00131000, $1.05, up $0.15)

Entry Price:  $0.95 (1/21/11)

Exit Target: $1.90  

Return: 11%

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, $10.05, up $0.21)

April 10 calls (MU110416C00010000, $0.93, up $0.13)

Entry Price:  $0.75 (1/21/11)

Exit Target: $1.50  

Return: 24%

Stop Target: None

Action:  We are expecting a run up to $11-$12 over the next month or two.  Continue to hold.


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

February 46 calls (JPM110219C00046000, $0.70, down $0.15) 

Entry Price:  $0.88 (1/12/11)

Exit Target: $1.75  

Return: -20%

Stop Target: None

Action:  Continue to hold.


Vivus (VVUS, $8.59, down $0.15)        

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:  We are going to move Vivus to our “Hold” section.  These options have 144 days before they expire and if the position comes back, we will start coverage again.

 

 

Apollo Group (APOL, $41.87, down $0.48)

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 would like to see a break back below $40 this week.  We closed half of the trade 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, $5.59, down $0.06)

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:  These options have 172 days before they expire.  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, flat)

May 32 calls (SWKS110521C00032000, $1.50, down $0.20)   

Entry Price:  $1.70 (12/29/10)

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

Return: 41%

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

Action:  The May call options have 116 days before they expire and we are looking for Skyworks to run back above $30 on a continued Tech rebound.

          

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.


Molycorp (MCP, $46.82, up $3.83)

February 55 calls (MCP110219C00055000, $1.20, up $0.45)

Thoughts:  Shares could get hot again following yesterday’s 9% surge.


Patriot Coal (PCX, $23.93, up $0.75)

March 28 calls (PCX110319C00028000, $1.00, down $0.15)

Thoughts:  We missed a golden opportunity back in December to make nearly 500% on the January 19 calls which we recommended as a covered call position.  The stock zoomed from $17 to a high of $27 in a month but has since gone back to fill in some gaps.


CurrencyShares Euro Trust (FXE, $135.92, up $0.29)

March 130 puts (FXE110319P00130000, $0.75, down $0.15)

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, $51.45, up $1.19)

March 55 calls (CREE110319C00055000, $1.85, down $0.10)

Thoughts:  Watch for now.  


Jabil Circuit (JBL, $20.17, up $0.33)

March 21 calls (JBL110319C00021000, $0.85, up $0.05)

Thoughts:  Watch for now.


Imax (IMAX, $26.65, up $0.29)

June 35 calls (IMAX110618C00035000, $0.65, up $0.05) 

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


Green Mountain Coffee Roasters (GMCR, $35.17, up $0.70)

March 38 calls (GMCR110319C00038000, $1.40, up $0.15)

Thoughts:  Watch for now.