July 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.

Special Notice:  Folks, we wanted to send an apology to everyone who has had trouble receiving our emails this week.  We had serious problems connecting to the internet long enough to send our emails out this week because we were on travel but we still watched the market all day.  We got back to the office this morning after cutting our trip short to ensure that you got today’s afternoon update.

We were able to update the website and our support team did a great job on that.  However, we know most of the time you may not visit the website and prefer the emails.  If however, you do not receive our email by 9am or 1-2pm (EST) then please remember you can check the site.

Again, we apologize for the inconvenience and we will upgrade our technology the next time we make a road trip.    


3:15pm (EST)

TiVo (TIVO, $10.90, up $0.18)

August 11 calls (TIVO110820C00011000, $0.50, flat)

Entry Price:  $0.55 (7/1/11)

Exit Target: $1.10

Return:  -9%

Stop Target:  None 

Action:  Shares are right near the 1-year resistance level and if they can get through this area then we could see a quick run up to $18 on short covering, buyout news, or a partnership with Google or someone else.  TiVo seems to be turning the corner after a decade of losing money and is becoming attractive.      


iShares Russell 2000 (IWM, $84.91, down $0.75)

August 86 calls (IWM110820C00086000, $1.60, down $0.50)

Entry Price:  $1.10 (7/1/11)

Exit Target: $2.20

Return:  45%

Stop Target:  $0.55 

Action:  The 52-week high for the iShares is $86.81 and we would like to see a close above $85 today.


Freeport-McMoRan (FCX, $55.02, down $0.47)

August 57 calls (FCX110820C00057000, $1.60, down $0.25)

Entry Price:  $1.18 (7/1/11)

Exit Target: $2.40

Return:  36%

Stop Target:  $0.60

Action:  We would like to see Freeport hold double-nickels ($55) today and challenge $57 next week.  The 52-week high is $61.35.    

 

Seattle Genetics (SGEN, $20.93, up $0.30)

August 22.50 calls (SGEN110820C00022500, $1.15, up $0.15)

Entry Price:  $1.10 (6/28/11)

Exit Target: $2.50

Return:  5%

Stop Target:  $0.55 


September 20 calls (SGEN110917C00020000, $2.80, up $0.30) 

Entry Price:  $1.50 (5/9/11)

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

Return:  67%

Stop Target:  $2.20   

Action:  Shares have traded above $21 today which is where we would love to see a close.  The bullish channel is giving us a $25-$30 price target by the end of summer as the company moves closer towards approval of its drugs. We should hear some preliminary news in a few weeks and a final decision by the end of August.

 

Symantec (SYMC, $19.64, down $0.22)

October 20 calls (SYMC111022C00020000, $1.05, down $0.10) 

Entry Price:  $0.93 (6/21/11)

Exit Target: $2.00  

Return:  13%

Stop Target:  None

Action:  We were looking for a close above $19.65 (black line) last week and we got there on Thursday.  This area should hold as short-term support (green circles). The 52-week high is $20.50 and we are expecting shares to run up to $22+ by mid-October which gets these calls to 2+.

 

Rambus (RMBS, $14.56, down $0.37)

August 17 calls (RMBS110820C00017000, $0.30, down $0.10)

Entry Price:  $0.60 (6/20/11)

Exit Target: $1.20+  

Return:  -50%

Stop Target:  None

Action:  If Rambus can win it current litigation case then there is a big gap to fill on positive news.    


Other 2011 Portfolio OPEN positions (9):  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)

LinkedIn July 55 puts (from June 2011)   

Wells Fargo July 26 puts (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.