9:00AM (EST)

Global Payments (GPN, $51.21, up $0.54)

August 55 calls (GPN110820C00055000, $0.50, up $0.10)


Entry Price:  $0.40 (7/13/11)


Exit Target: $0.80


Return:  25%


Stop Target:  None 


Action:  Global Payments traded to a high of $51.87 and the 52-week high is $53.67.  The company reports earnings next Thursday and is usually a strong mover.  We are expecting the company to beat expectations and hit new highs of $55+.    


Patriot Coal (PCX, $21.84, down $0.73) 

August 24 calls (PCX110820C00024000, $0.65, down $0.20)

Entry Price:  $0.90 (7/13/11)


Exit Target: $1.80


Return:  -28%

Stop Target:  None 

Action:  Support is strong at $22.  Shares face resistance at $24 which if reached in a few weeks should get the trade to a 50%-75% return.  A run to $25-$26 gets us a double.  


Qualcomm (QCOM, $54.92, down $1.17)


October 65 calls (QCOM111022C00065000, $0.40, down $0.15)

Entry Price:  $0.85 (7/11/11)


Exit Target: $1.70


Return:  -53%


Stop Target:  None 

Action:  We had a feeling shares could test $55 when we opened this trade but the chart is also showing a run past $60 is coming.  We are expecting a blowout quarter from Qualcomm which reports numbers next Wednesday.  The 52-week high is $59.84 which is why we got positioned early and a break above $60 will represent blue-sky territory. 


TiVo (TIVO, $10.13, down $0.33)

August 11 calls (TIVO110820C00011000, $0.35, down $0.05)

Entry Price:  $0.55 (7/1/11)


Exit Target: $1.10


Return:  -36%


Stop Target:  None 

Action:  TiVo fell 3% yesterday and is now at the bottom of its current range while it continues to tease us as we wait for a breakout above $11.  The stock is currently in a clearly defined trading range and will either breakout or breakdown once $10 or $11 is violated.  TiVo could run to $18 on short covering, buyout news, or a partnership.  Our breakeven point is $11.55 and we have a little over a month to wait for a surge past $11. 

iShares Russell 2000 (IWM, $82.26, down $1.33)

August 86 calls (IWM110820C00086000, $0.80, down $0.35)


Entry Price:  $1.10 (7/1/11)


Exit Target: $2.20


Return:  -27%


Stop Target:  $0.55 

Action:  We are pushing for a close past $85 today.  The 52-week high is $86.81 and we are expecting a run to $89-$90 for the small-cap index over the next few weeks.

Freeport-McMoRan (FCX, $54.25, down $0.64)

August 57 calls (FCX110820C00057000, $1.45, down $0.25)

Entry Price:  $1.18 (7/1/11)


Exit Target: $2.40


Return:  23%


Stop Target:  $0.60

Action:  Shares traded to a high of $55.50 but fell a little over 1% for the day after holding the $54 level.  The options traded up to $1.88 but also finished lower.

The company reports earnings on July 21 which should be the catalyst to take the stock to new highs or back under $50.  We think Freeport can trade to $60+ if the market holds up and they come in with better-than-expected earnings AND guidance.


Seattle Genetics (SGEN, $20.33, HALTED)

August 22.50 calls (SGEN110820C00022500, $0.95, flat)


Entry Price:  $1.10 (6/28/11)


Exit Target: $2.50


Return:  -14%


Stop Target:  $0.55 



September 20 calls (SGEN110917C00020000, $2.40, flat) 


Entry Price:  $1.50 (5/9/11)


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


Return:  53%


Stop Target:  $2.20   

Action:  We may take half profits at the open on the August calls.  We would like to get $2.50 on half of the trade but will settle for $2.20 which would make it a risk-free trade going foward.  We will send out a Trade Alert if we decide to take action.  Otherwise, continue to hold.


Symantec (SYMC, $18.97, down $0.30)

October 20 calls (SYMC111022C00020000, $0.80, down $0.10) 


Entry Price:  $0.93 (6/21/11)


Exit Target: $2.00  


Return:  -14%


Stop Target:  None

Action:  There is risk down to $18.50 but we like this trade for the long-term which is why we went with the October call options.

The company is set to report earnings on July 27.  The 52-week high is $20.50 and we are expecting shares to run up to $22+ by mid-October.  However, a breech below $19 would probably have a negative impact on the trade over the short-term.   


Rambus (RMBS, $14.03, down $0.20)

August 17 calls (RMBS110820C00017000, $0.25, flat)

Entry Price:  $0.60 (6/20/11)


Exit Target: $1.20+  


Return:  -58%


Stop Target:  None

Action:  If Rambus can win its current litigation case then expect a breakout and a run into the $20’s.  This is a day-to-day trial that could take a month or more so this trade carries risk and is already down over 50%.  However, this trade will make 5x the entry price if the stock trades $20 which is possible on a settlement – which could happen any day.

Rambus will report earnings next Thursday, July 21.  Resistance is at $15 and there is a big gap to fill from $15 up to $19 which was prior support. 


Rediff.com India (REDF, $12.60, up $0.89)

October 15 calls (REDF111022C00015000, $1.20, up $0.20)

Entry Price:  $1.25 (6/01/11)


Exit Target: $2.50


Return:  -4%


Stop Target:  None

Action:  Shares traded to a high of $12.96 yesterday and kissed $13 in after-hours last night.  We said a break above $13 would be rather bullish so let’s hope the gains carry over into this morning’s session.

The October options have 3 months before they expire and Rediff.com remains a likely takeover target.      


MGM Resorts International (MGM, $14.72, down $0.14)

September 17 calls (MGM110917C00017000, $0.45, down $0.05)

Entry Price:  $0.70 (5/13/11)

Exit Target: $1.40

Return:  -36%

Stop Target:  None

Action:  Shares traded to a high of $15.07 yesterday and we have 63 days for this story to play out.


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) –  expires today


RF MicroDevices August 10 calls (from February 2011)  
 

Dendreon August 50 calls (from April 2011)   


Darling International July 20 calls (from May 2011) – expires today 


Vivus September 10 calls (from May 2011)


LinkedIn July 55 puts (from June 2011) – expires today   


Wells Fargo July 26 puts (from June 2011) – expires today   


 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.

Travelzoo (TZOO, $74.75, down $1.30) 

August 90 calls (TZOO110820C00090000, $2.50, down $0.70)

August 60 puts (TZOO110820P00060000, $2.50, up $0.60)

Thoughts:  These options are super expensice and are $15 out-of-the-money both ways.  Shares are capable of moving $20, they did last time out the company reported.  However, we will still probably sit on the sidelines.


Quality Systems (QSII, $87.47, down $1.02)

September 100 calls (QSII110917C00100000, $0.80, down $0.10)

Thoughts:  The 52-week high is $92.38 and the chart on Quality Systems is a thing of beauty.  We have 3 trades expiring today so we will have room for one or two new trades next week.  Continue to watch in the meantime.  


RealD (RLD, $19.77, down $0.01)

August 17.50 puts (RLD110820P00017500, $1.20, down $0.20)

Thoughts:  Watch for now.


Cisco Systems (CSCO, $15.43, down $0.14)

September 16 calls (CSCO110917C00016000, $0.53, down $0.07) 

Thoughts:  If shares can hold support and trade up to $17 over the next 9 weeks then these calls will double. 


Polycom (PLCM, $30.57, down $0.44) 

August 33.75 calls (PLCM110716C00033750, $0.80, down $0.10)

 Thoughts:  Here is our next favorite trade on the Watch List – as long as shares hold $30. 


 Juniper Networks (JNPR, $30.36, down $0.67)

August 33 calls (110820C00033000, $0.55, down $0.25)  

Thoughts:  We have dropped the 35’s and are now following the 33’s.  These are also “cheap” call options to play on a run back to $35 and look very tempting.


Williams-Sonoma (WSM, $38.12, up $0.16)

August 39 calls (WSM110716C00039000, $1.20, flat)

Thoughts:  We can feel a run past $40 coming.