9:00am (EST)

Qualcomm (QCOM, $58.24, down $1.12)

October 65 calls (QCOM111022C00065000, $0.90, down $0.10)

Entry Price:  $0.85 (7/11/11)

Exit Target: $1.70

Return:  6%

Stop Target:  None 

Action:  We think Qualcomm can trade to $70 over the next 3 months but could test $55 over the short-term.  The company reports earnings on July 20 and is rumored to be the chip of choice in the iPhone5. 

 

TiVo (TIVO, $10.31, down $0.47)

August 11 calls (TIVO110820C00011000, $0.35, down $0.15)

Entry Price:  $0.55 (7/1/11)

Exit Target: $1.10

Return:  -36%

Stop Target:  None 

Action:  Tivo fell 4% yesterday but has been testing its 2-year resistance level of $11.  If shares 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.  Our breakeven point is $11.55 and we have a little over a month to wait for a surge past resistance.


iShares Russell 2000 (IWM, $83.32, down $1.81)

August 86 calls (IWM110820C00086000, $1.10, down $0.65)

Entry Price:  $1.10 (7/1/11)

Exit Target: $2.20

Return:  0%

Stop Target:  $0.55 

Action:  The bears are pushing support but the trend is higher over the next month.


Freeport-McMoRan (FCX, $53.30, down $1.82)

August 57 calls (FCX110820C00057000, $1.05, down $0.50)

Entry Price:  $1.18 (7/1/11)

Exit Target: $2.40

Return:  -11%

Stop Target:  $0.60

Action:  We probably should have sold these options last Thursday when we closed the July options for nearly 300% but we went out into August because we still think FCX can hit $60 by then.  This would still represent a triple-digit return from our entry price so that is what we are focusing on instead of jumping in and out of trades. 


Seattle Genetics (SGEN, $20.54, down $0.54)

August 22.50 calls (SGEN110820C00022500, $1.00, down $0.15)

Entry Price:  $1.10 (6/28/11)

Exit Target: $2.50

Return:  -9%

Stop Target:  $0.55 


September 20 calls (SGEN110917C00020000, $2.50, down $0.30) 

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:  The $20.50 level held as short-term support again on Monday and 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, $19.36, down $0.37)

October 20 calls (SYMC111022C00020000, $0.95, down $0.10) 

Entry Price:  $0.93 (6/21/11)

Exit Target: $2.00  

Return:  2%

Stop Target:  None

Action:  The 52-week high is $20.50 and we are expecting shares to run up to $22+ by mid-October.   


Rambus (RMBS, $14.26, down $0.35)

August 17 calls (RMBS110820C00017000, $0.25, down $0.05)

Entry Price:  $0.60 (6/20/11)

Exit Target: $1.20+  

Return:  -58%

Stop Target:  None

Action:  Resistance is at $15 and there is a big gap to fill from $15 up to $19 which was prior support.  If Rambus can win its current litigation case then expect a breakout and a run into the $20’s.


Rediff.com India (REDF, $11.55, down $0.47)

October 15 calls (REDF111022C00015000, $0.90, down $0.20)

Entry Price:  $1.25 (6/01/11)

Exit Target: $2.50

Return:  -28%

Stop Target:  None

Action:  The October options 3 months before they expire and Rediff.com remains a likely takeover target for a company wanting to get a footprint in India’s online community of users.    


MGM Resorts International (MGM, $14.07, down $0.89)

September 17 calls (MGM110917C00017000, $0.35, down $0.15)

Entry Price:  $0.70 (5/13/11)

Exit Target: $1.40

Return:  -50%

Stop Target:  None

Action:  MGM traded to a high of $15.25 at the open yesterday but is testing support at $14.  There is further support down to $12.


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)   

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.


Mattel (MAT, $27.13, down $0.52)

August 28 calls (MAT110820C00028000, $0.55, down $0.20)

Thoughts:  Mattel got a downgrade yesterday but there were still plenty of bullish bets being made.  Support should hold at $27 which was prior resistance and the company announces earnings on Friday. 

 

Cisco Systems (CSCO, $15.43, down $0.31)

September 16 calls (CSCO110917C00016000, $0.50, down $0.10)

Thoughts:  There is strong support down to $15 but these options could be worth a gamble.  If shares can hold support and trade to $17 over the next 9 weeks then these calls will double. 


Patriot Coal (PCX, $21.99, down $0.99)

August 24 calls (PCX110820C00024000, $0.65, down $0.35)

Thoughts:  We like this trade but let’s make sure $22 holds.  If not, shares could fall back to $20.


Polycom (PLCM, $31.75, down $0.64)

August 35 calls (PLCM110716C00067500, $0.75, down $0.20)

Thoughts:  Watch for now. 


Juniper Networks (JNPR, $31.45, down $0.61)

August 35 calls (110820C00035000, $0.45, down $0.15)

Thoughts:  These are “cheap” call options to play on a run back to $35.

 

Williams-Sonoma (WSM, $37.51, down $0.58)

August 39 calls (WSM110716C00039000, $1.05, down $0.15)

Thoughts:  Continue to watch.