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.

1:15pm (EST)

Global Payments (GPN, $50.68, down $0.61)

August 55 calls (GPN110820C00055000, $0.35, down $0.10)

Entry Price:  $0.40 (7/13/11)

Exit Target: $0.80

Return:  -13%

Stop Target:  None 

Action:  Global Payments reports earnings this Thursday and the stock is usually a big mover.  We are expecting the company to beat expectations and offer a rosy outlook which could lead to new highs of $55+.  However, if Global disappoints, shares will easily fall below $50.    


Patriot Coal (PCX, $23.42, down $0.06) 

August 24 calls (PCX110820C00024000, $1.20, down $0.05)

Entry Price:  $0.90 (7/13/11)

Exit Target: $1.80

Return:  33%

Stop Target:  None 

Action:  After a brief drop below $23, shares are trying to push $24 which is the next wave of resistance.  Patriot Coal will report earnings on July 26.    

 

Qualcomm (QCOM, $54.82, down $0.14)

October 65 calls (QCOM111022C00065000, $0.40, flat)

Entry Price:  $0.85 (7/11/11)

Exit Target: $1.70

Return:  -53%

Stop Target:  None 

Action:  The company reports earnings on Wednesday.  A beat-and-raise on earnings should get the stock pushing $60 again but a miss could send shares below $53, possibly $50.

 

TiVo (TIVO, $10.02, down $0.10)

August 11 calls (TIVO110820C00011000, $0.35, flat)

Entry Price:  $0.55 (7/1/11)

Exit Target: $1.10

Return:  -36%

Stop Target:  None 

Action:  TiVo 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, $81.25, down $1.56)

August 86 calls (IWM110820C00086000, $0.45, down $0.40)

Entry Price:  $1.10 (7/1/11)

Exit Target: $2.20

Return:  -59%

Stop Target:  $0.55 

Action:  Continue to hold.


Freeport-McMoRan (FCX, $55.01, down $0.33)

August 57 calls (FCX110820C00057000, $1.60, down $0.20)

Entry Price:  $1.18 (7/1/11)

Exit Target: $2.40

Return:  36%

Stop Target:  $0.60, raise to $1.00

Action:  After pushing $56, shares are slightly lower as we head towards the second half.  We would love to see a close above $56.

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, $18.17, down $0.70)

August 22.50 calls (SGEN110820C00022500, $0.20, down $0.10)

Entry Price:  $1.10 (6/28/11)

Exit Target: $2.50

Return:  -82%

Stop Target:  $0.55 


September 20 calls (SGEN110917C00020000, $1.10, down $0.30) 


Entry Price:  $1.50 (5/9/11)

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

Return:  10%

Stop Target:  $2.20   


Action:  There is strong support in the $18.50 area and down to $18 which is where shares traded at on Friday.  There is additional help down at $17 which represented prior resistance before the breakout.  


Symantec (SYMC, $18.75, down $0.22)

October 20 calls (SYMC111022C00020000, $0.75, down $0.05) 

Entry Price:  $0.93 (6/21/11)

Exit Target: $2.00  

Return:  -19%

Stop Target:  None

Action:  Shares are approaching their 100-day MA which is also near strong support at $18.65.  There could be a test down to this area but our target is $22 for Symantec over the next 3-6 months.  The company is set to report earnings on July 27. 


Rambus (RMBS, $13.89, down $0.27)

August 17 calls (RMBS110820C00017000, $0.2520, down $0.05)

Entry Price:  $0.60 (6/20/11)

Exit Target: $1.20+  

Return:  -67%

Stop Target:  None

Action:  If Rambus can win its current litigation case then expect a breakout and a run into the $20’s.  The company will report earnings next Thursday, July 21.  The stock held $14 all last week but could face pressure down to $13-and change.  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, $13.67, up $0.23)

October 15 calls (REDF111022C00015000, $1.60, up $0.10)

Entry Price:  $1.25 (6/01/11)

Exit Target: $2.50

Return:  28%

Stop Target:  None

Action:  Shares have pushed $14 today.  Continue to hold.


MGM Resorts International (MGM, $14.65, down $0.28)

September 17 calls (MGM110917C00017000, $0.50, up $0.05)

Entry Price:  $0.70 (5/13/11)

Exit Target: $1.40

Return:  -29%

Stop Target:  None

Action:  Wynn Resorts reports after the bell and could give the Casino stocks a lift on Tuesday if they come in with good numbers.  We have over 2 months before these options expire and we are looking for shares to make a run at $17 once $15.75 is cleared.  Support is strong at $14. 


Other 2011 Portfolio OPEN positions (3):  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.

RF MicroDevices August 10 calls (from February 2011)  

Dendreon August 50 calls (from April 2011)

Vivus September 10 calls (from May 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.