TiVo (TIVO, $10.83, up $0.54)
August 11 calls (TIVO110820C00011000, $0.65, up $0.25)
Entry Price: $0.55 (7/1/11)
Exit Target: $1.10
Stop Target: None
Action: Shares are right near the 1-year resistance level (black line, green circles) 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.
August 86 calls (IWM110820C00086000, $1.30, up $0.40)
Entry Price: $1.10 (7/1/11)
Exit Target: $2.20)
Stop Target: $0.55
Action: We like the small-caps on the next leg higher if there is a breakout and these August options have plenty of time before they expire. The 52-week high for the iShares is $86.81 and a break above $85-ish (red line, green circles) should lead to blue-sky territory.
Freeport-McMoRan (FCX, $53.50, up $0.60)
July 55 calls (FCX110708C00055000, $0.30, up $0.08)
Entry Price: $0.24 (7/1/11)
Exit Target: $0.50
Stop Target: None
August 57 calls (FCX110820C00057000, $1.27, up $0.10)
Entry Price: $1.18 (7/1/11)
Exit Target: $2.40
Stop Target: $0.60
Action: Have you ever been to the Blackjack table and been dealt 2 Aces? Well that is how we feel with this trade. Hopefully the dealer hits us with a 10 on Tuesday so that we can quickly double or triple up on the Weekly options so that our August calls are a free trade. We think Freeport can break through resistance at $55 (green line, red circles) and challenge $57 over the near-term (black line, orange circles). The 52-week high is $61.35. The stock is usually a good indicator or rallies, trend, or market tops and bottoms so we shall see.
Seattle Genetics (SGEN, $20.86, up $0.34)
August 22.50 calls (SGEN110820C00022500, $1.00, flat)
Entry Price: $1.10 (6/28/11)
Exit Target: $2.50
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)
Stop Target: $2.20
Action: We love this trade going foward and we said once shares broke $20 it would act as support (red line). The bullish channel (green lines) 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, $19.83, up $0.11)
October 20 calls (SYMC111022C00020000, $1.15, flat)
Entry Price: $0.93 (6/21/11)
Exit Target: $2.00
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, $14.89, up $0.21)
August 17 calls (RMBS110820C00017000, $0.40, flat)
Entry Price: $0.60 (6/20/11)
Exit Target: $1.20+
Stop Target: None
Action: There is a huge gap to fill from $15 up to $19 which was prior support (green line, black circles) before the cliff dive. Shares made a push past short-term resistance by the end of the week (red line) which looks promising. 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) – eBay had a nice week jumping from $28 to $32.74 but we will probably run out of time as these options expire in 11 days. This is one of two trades left over from February.
RF MicroDevices August 10 calls (from February 2011) – the August options have 43 days before they expire but shares took a major hit in June but seem to be rebounding. We may also run out of time with this one unless there isa buyout offer. Continue to hold.
Dendreon August 50 calls (from April 2011) – we talked about Dendreon in our Friday morning update and shares popped 5% after dipping below $40. The 52-week high is $44 and we could see buyers rush in as the momentum builds. The calls are at 30 cents and if they make it back to 70-80 cents we will bring back daily coverage.
MGM Resorts International September 17 calls (from May 2011) – MGM also made a huge move on Friday as shares jumped nearly 4%. The calls are trading at 20 cents and if they get back to 35-40 cents we will also bring back daily coverage.
Rediff.com India October 15 calls (from June 2011) – maybe…
Darling International July 20 calls (from May 2011) – stick a fork in this trade following the U.S. crop report. The ask is 10 cents so try to sell these options if you can with a limit price.
Vivus September 10 calls (from May 2011) – Vivus is back over $8 after gaining approval of its good wood drug, Avanafil.
LinkedIn July 55 puts (from June 2011) – We got smashed on this trade and we should have “strangled” it because we knew the volatility would be insane. However, there is still hope because the company isn’t profitable and is way overvalued.
Wells Fargo July 26 puts (from June 2011) – Support at $28 didn’t hold and its hard to believ the bottom in financial literally happened overnight. In any event, the current puts we have in the portfolio will provide protection if there is a selloff but we aren’t counting on them to make a comeback.
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.
Cisco Systems (CSCO, $15.86, up $0.25)
August 16 calls (CSCO110820C00016000, $0.55, up $0.10)
September 16 calls (CSCO110917C00016000, $0.70, up $0.10)
Thoughts: Cisco surged nearly a buck last week and we said shares could make a run back to $17-$18 as investors look to get back into this blue-chip. The September calls opened at 59 cents on Friday while the August calls opened at 44 cents. A break above resistance at $16 (black line, red circle) could get some attention on Wall Street as fund managers look to buy on the rebound.
Patriot Coal (PCX, $22.70, up $0.44)
August 24 calls (PCX110820C00024000, $0.95, up $0.10
Thoughts: Shares made a strong move above prior support/ resistance (black line, green circles) just above $22 and the next area of resistance is at $24 (red line). If cleared, Patriot could challenge $26.
The July 21 calls (PCX110716C00021000, $1.95, up $0.40) were profiled in our Weekly Wrap at 95 cents and easily doubled for the week. Although we suggested selling them the Weekly is another tool to find invaluable information.
VeriFone Systems (PAY, $44.10, down $0.25)
August 50 calls (PAY110820C00050000, $0.85, down $0.05)
August 40 puts (PAY110840P00040000, $1.45, up $0.25)
Thoughts: The chart show resistance at $48 (blue line, green circles) with support at $40 (red line, black circles). We think there is enough volatility to play a strangle option trade with VeriFone but we will watch for now.
August 65 calls (CSTR110820C00065000, $0.80, up $0.10)
Thoughts: The 52-week high for Coinstar is $67 and the close above $55 was bullish (orange line) as it represented prior support (blue circle). The 52-week high is $67.56 (green circle) and represents the next level of resistance (red line).
July 67.50 calls (PLCM110716C00067500, $0.80, down $0.20)
The 2-for-1 stock split should hit tody so we will list new options once they list.
PowerShares QQQ Trust (QQQ, $57.91, up $0.86)
August 60 calls (QQQ110701C00055000, $0.43, up $0.19)
Thoughts: If the Q’s run to $60+ these options should double. They opened at 22 cents on Friday and doubled off the low after the better-than-expected economic news we got on Friday. There is resistance at $x (purple line) but there could be run to $60 in the cards on a breakout.
Williams-Sonoma (WSM, $36.39, down $0.10)
August 39 calls (WSM110716C00039000, $0.75, flat)
Thoughts: This is our favorite trade going into next week and it could be an official recommendation if the market holds up. Support (black line, green circles) at $35 held up well.
SanDisk (SNDK, $42.80, up $1.30)
August 47 calls (SNDK110820P00047000, $0.95, up $0.25)
August 38 puts (SNDK110820P00038000, $0.85, down $0.30)
Thoughts: If we do a strangle trade this could become an official recommendation as the volatility and the headline news should moves shares above or below these targets over the next 6 weeks.