June 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.

12:20pm (EST)

LinkedIn (LNKD, $67.06, down $1.21)

July 55 puts (LNKD110716P00055000, $1.90, up $0.15)

Entry Price:  $1.25 (6/16/11)

Exit Target: $2.50+  

Return:  52%

Stop Target:  60 cents, raise to $1.25

Action:  We are looking for shares to stay under $70 today.  The stock has reached a high of $70.50 today and this area should act as short-term resistance going forward.  We are looking for a drop to the $50’s over the next few weeks.  We would normally take half profits after 1-day gains of 50% but we are going to push this one a little. 

 

Krispy Kreme Doughnuts (KKD, $9.39, up $0.60)

July 10 calls (KKD110716C00010000, $0.45, up $0.15)

Entry Price:  $0.20 (6/14/11)

Exit Target: $0.40+  

Return:  125%

Stop Target:  None

Action:  Continue to hold.

 

RealD (RLD, $24.64, up $0.42)

July 20 puts (RLD110716P00020000, $0.50, down $0.10) 

Entry Price:  $0.45 (6/9/11)

Exit Target: $0.90+ (closed half at $1.60 on 6/10/2011)

Return:  133%

Stop Target:  75 cents

Action:  We are looking for shares to trade down to $18 by mid-July.  This would get the options to $2 on the other half.  We do not recommend new positions but we are looking at a piggy-back trade. 


Research In Motion (RIMM, $$27.42, down $7.91)  

July 32.50 puts (RIMM110716P00032500, $5.25, up $3.80)

Entry Price:  $0.75 (6/6/11)    

Exit Target: $1.50 (closed half at $1.35 on 6/15/2011)

Return:  340%

Stop Target:  Set a HARD STOP of $3 on the other half

Action:  We have a tiger by the tail.  Continue to hold but notice we have now set a hard stop on the other half.     


Zagg (ZAGG, $12.19, down $0.15)

July 12 calls (ZAGG110716C00012000, $0.90, down $0.05)

Entry Price:  $0.35 (6/1/11)

Exit Target: $0.70 (closed half at $1.00 on 6/15/2011)

Return:  171%

Stop Target:  40 cents (on other half) 

Action:  Continue to hold as we have a near-term target of $14-$15 for Zagg. 


Darling International (DAR, $17.57, up $0.50)    

July 20 calls (DAR110716C00020000, $0.20, flat)

Entry Price:  $0.50 (5/27/11)
Exit Target: $1.00
Return:  -60%
Stop Target: None

Action:  Continue to hold. 


Vivus (VVUS, $7.95, up $0.11)

September 10 calls (VVUS110917C00010000, $0.30, flat)

Entry Price:  $0.65 (5/20/11)
Exit Target: $1.30
Return:  -54%
Stop Target:  None

Action:  Vivus spoke at an investor’s conference yesterday and will do it again next Wednesday at the Wells Fargo Securities Healthcare Conference.  Maybe they throw us a bone.  

The company may have a winner with Qnexa on two fronts which is what most analysts are forgetting.  The drug has completed Phase 3 trials for obesity and is still awaiting approval from the FDA.  However, Qnexa has also completed Phase 2 clinical trials and is hoping to get approval to treat diabetes and obstructive sleep apnea as well.   


Seattle Genetics (SGEN, $19.39, down $0.16)

September 20 calls (SGEN110917C00020000, $2.20, down $0.15)

Entry Price:  $1.50 (5/9/11)

Exit Target: $3.00 (closed half at $2.20 on 6/8/2011)

Return:  47%

Stop Target:  $1.60 (HARD STOP on other half)

Action:  We said yesterday’s drop was an overreaction and smart buyers listened as they scooped the stock up off the lows.  We are still waiting for a break above $20 to add to positions. 


Other 2011 Portfolio OPEN positions (8):  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.  This means we would not open any new positions.  We are still keeping track of the trades and we will record the results, accordingly, when we close them or the options expire.  Click on the 2011 Portfolio link in the Members Area to view ALL open/ closed trades.

Vivus June 14 calls (from January 2011) – expires TODAY!

eBay July 40 calls (from February 2011)

RF MicroDevices August 10 calls (from February 2011)

Dendreon August 50 calls (from April 2011)

KLA-Tencor June 48 calls (from May 2011) – expires TODAY! 

Starbucks June 38 calls (from May 2011) – expires TODAY! 

MGM Resorts International September 17 calls (from May 2011)

Rediff.com India October 15 calls (from June 2011)


WATCH LIST SECTION

These trades are NOT recommendations.  They 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 try not to have more than 12-15 open trades at any one time which is why we created a Watch List.  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 Monday.