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.

1:45pm (EST)

TiVo (TIVO, $10.65, down $0.18)

August 11 calls (TIVO110820C00011000, $0.60, down $0.05)

Entry Price:  $0.55 (7/1/11)

Exit Target: $1.10

Return:  9%

Stop Target:  None 

Action:  The August options have 45 days before they expire so we have plenty of time fore this trade to play out.  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, $84.01, up $0.18)

August 86 calls (IWM110820C00086000, $1.40, up $0.10)

Entry Price:  $1.10 (7/1/11)

Exit Target: $2.20

Return:  27%

Stop Target:  $0.55 

Action:  We like the small-caps on the next leg higher.  The 52-week high for the iShares is $86.81 and a break above $85-ish should lead to blue-sky territory.


Freeport-McMoRan (FCX, $53.73, up $0.23)

July 55 calls (FCX110708C00055000, $0.25, down $0.08)

Entry Price:  $0.24 (7/1/11)

Exit Target: $0.50

Return:  4%

Stop Target:  None 


August 57 calls (FCX110820C00057000, $1.27, flat)

Entry Price:  $1.18 (7/1/11)

Exit Target: $2.40

Return:  8%

Stop Target:  $0.60

Action:  We think Freeport can break through resistance at $55 and challenge $57 over the near-term.  The 52-week high is $61.35 and the stock is usually a good indicator for rallies, trends, or market tops and bottoms so we shall see.

 

Seattle Genetics (SGEN, $20.96, up $0.10)

August 22.50 calls (SGEN110820C00022500, $1.05, up $0.05)

Entry Price:  $1.10 (6/28/11)

Exit Target: $2.50

Return:  -5%

Stop Target:  $0.55 


September 20 calls (SGEN110917C00020000, $2.50, flat) 

Entry Price:  $1.50 (5/9/11)

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

Return:  57%

Stop Target:  $2.20   


Action:  We are looking for share to challenge their 52-week high of $21.41 this week.  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, $19.80, down $0.03)

October 20 calls (SYMC111022C00020000, $1.15, flat) 

Entry Price:  $0.93 (6/21/11)

Exit Target: $2.00  

Return:  24%

Stop Target:  None

Action:  The October options have 108 days before they expire.  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, $14.78, down $0.11)

August 17 calls (RMBS110820C00017000, $0.35, down $0.05) 

Entry Price:  $0.60 (6/20/11)

Exit Target: $1.20+  

Return:  -42%

Stop Target:  None

Action:  There is a huge gap to fill from $15 up to $19 which was prior support before the cliff dive.  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 in the morning.