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.

12:35pm (EST)

Seattle Genetics (SGEN, $21.02, down $0.07)

August 22.50 calls (SGEN110820C00022500, $1.10, down $0.05)

Entry Price:  $1.10 (6/28/11)

Exit Target: $2.50

Return:  0%

Stop Target:  $0.55 


September 20 calls (SGEN110917C00020000, $2.90, down $0.20) 

Entry Price:  $1.50 (5/9/11)

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

Return:  70%

Stop Target:  $2.20 (HARD STOP on other half)

Action:  We like these trades a lot and have big expectations for both call options as we have a $25-$30 price target for the stock by the end of summer.

 

LinkedIn (LNKD, $89.80, up $1.81)

July 55 puts (LNKD110716P00055000, $0.30, down $0.05)

Entry Price:  $1.20 (6/24/11)

Exit Target: $2.40 

Return:  -75%  

Stop Target:  None

Action:  The options are still holding up well but we will need a major reversal by tomorrow to get the momentum back in our favor.

 

Symantec (SYMC, $19.67, up $0.14)

October 20 calls (SYMC111022C00020000, $1.15, up $0.05)

Entry Price:  $0.93 (6/21/11)

Exit Target: $2.00  

Return:  24%

Stop Target:  None

Action:  We are looking for a close above $19.65 this week and the shares have traded up to $19.77 today.  A break above this level should clear the way for a run at the 52-week high of $20.50.  These options have 113 days before they expire and we are expecting shares to run up to $22+ by mid-October which gets these calls to at least $2+.

 

Wells Fargo (WFC, $28.20, up $0.13)  

July 26 puts (WFC110716P00026000, $0.15, flat)

Entry Price:  $0.50 (6/20/11)

Exit Target: $1.00+  

Return:  -70%

Stop Target:  None

Action:  Shares are still above resistance at $28 which isn’t a good sign but we know support and resistance levels can get stretched.  We only need shares to drop to $25 to make a double so we still like the risk/ reward as the options were only 50 cents.  


Rambus (RMBS, $14.64, up $0.19)

August 17 calls (RMBS110820C00017000, $0.40, flat)

Entry Price:  $0.60 (6/20/11)

Exit Target: $1.20+  

Return:  -33%

Stop Target:  None

Action:  If Rambus can win it current litigation case then there is a big gap to fill on positive news.  A break above $15 could get us off to the races. 


Krispy Kreme Doughnuts (KKD, $9.57, down $0.13)

July 10 calls (KKD110716C00010000, $0.30, down $0.05)

Entry Price:  $0.20 (6/14/11)

Exit Target: $0.40+  

Return:  50%

Stop Target:  None

Action:  Close the trade at current levels but set limit prices at 30 cents. 

We may have to go with the August calls to play a breakout but we don’t want to hold the July calls ahead of a 3-day weekend.


RealD (RLD, $23.89, up $0.48)       

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:  30 cents

Action:  Same deal for RealD.  We can use the August puts if and when the stock falls below $22.50.  This will clear the way for us to add two new trades on Friday or early next week.


Other 2011 Portfolio OPEN positions (7):  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.

eBay July 40 calls (from February 2011)

RF MicroDevices August 10 calls (from February 2011)

Dendreon August 50 calls (from April 2011)  

MGM Resorts International September 17 calls (from May 2011)

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

Darling International July 20 calls (from May 2011)  
Vivus (September 10 calls (from May 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 in the morning.