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.

12:55pm (EST)

Broadcom (BRCM, $34.71, down $0.35)

August 38 calls (BRCM110820C00038000, $0.50, down $0.10)

Entry Price:  $0.55 (7/20/11)

Exit Target: $1.10

Return:  -9%

Stop Target:  None 

Action:  The first wave of resistance is at $36 and then the $38.  A break above $38 should have enough momentum to get the stock to $40.


Global Payments (GPN, $52.40, up $0.27)

August 55 calls (GPN110820C00055000, $0.65, up $0.10)

Entry Price:  $0.40 (7/13/11)

Exit Target: $0.80

Return:  63%

Stop Target:  None 

Action:  We will be at the mercy of the market after the closing bell as we are leaving this trade open. 

All signs are pointing towards a higher stock price but earnings are tricky as we have been mentioning.  For those of you with small accounts, it may be wise to lock in profits.  If you are able to let the dice roll, leave the trade open.

The 52-week high is $53.67 and we are looking for a run past $55 when the company reports earnings after the bell today.  If they miss their numbers, shares could suffer and the options could expire worthless so this is a high risk/ high reward trade.  However, if they beat estimates and raise guidance then shares should move past double nickels.   


Patriot Coal (PCX, $24.48, up $0.02) 

August 24 calls (PCX110820C00024000, $1.60, down $0.05)

Entry Price:  $0.90 (7/13/11)

Exit Target: $1.80 (closed at $1.60 on 7/21/2011)

Return:  100%

Stop Target:  $1.20 (Hard Stop)

Action:  If shares fall back to $22 we may take another look at some call options again.


Qualcomm (QCOM, $56.86, down $0.44)

October 65 calls (QCOM111022C00065000, $0.55, down $0.20)

Entry Price:  $0.85 (7/11/11)

Exit Target: $1.70

Return:  -35%

Stop Target:  None 

Action:  Qualcomm has almost traded in positive territory and we like how shares are holding up.  These options have 92 days before they expire so we have plenty of time to wait for a run past $60.  

 

TiVo (TIVO, $10.05, up $0.06)

August 11 calls (TIVO110820C00011000, $0.25, flat)

Entry Price:  $0.55 (7/1/11)

Exit Target: $1.10

Return:  -55%

Stop Target:  None 

Action:   We are looking for a 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, $83.96, up $0.78)

August 86 calls (IWM110820C00086000, $1.05, up $0.15)

Entry Price:  $1.10 (7/1/11)

Exit Target: $2.20

Return:  -5%

Stop Target:  $0.55 

Action:  We are looking for a test to new highs in July or by mid-August which will more than double these calls.  The 52-week high is $86.81 and we would like to see a move above $84.50-$85 today.  


Freeport-McMoRan (FCX, $55.49, down $0.43)

August 57 calls (FCX110820C00057000, $1.40, down $0.30)

Entry Price:  $1.18 (7/1/11)

Exit Target: $2.40

Return:  19%

Stop Target:  $1.40 

Action:  Continue to hold.    


Symantec (SYMC, $19.07, up $0.18)

October 20 calls (SYMC111022C00020000, $0.75, flat) 

Entry Price:  $0.93 (6/21/11)

Exit Target: $2.00  

Return:  -19%

Stop Target:  None

Action:  Our near-term target is $22 for Symantec and the company will report earnings on July 27. 


Rambus (RMBS, $14.90, up $0.21)

August 17 calls (RMBS110820C00017000, $0.20, flat)

Entry Price:  $0.60 (6/20/11)

Exit Target: $1.20+  

Return:  -67%

Stop Target:  None

Action:  Continue to hold.  


Rediff.com India (REDF, $11.57, down $0.69)

October 15 calls (REDF111022C00015000, $0.85, down $0.15)

Entry Price:  $1.25 (6/01/11)

Exit Target: $2.50

Return:  -32%

Stop Target:  $1.00

Action:  Continue to hold.


MGM Resorts International (MGM, $15.65, up$0.23)

September 17 calls (MGM110917C00017000, $0.65, up $0.05) 

Entry Price:  $0.70 (5/13/11)

Exit Target: $1.40

Return:  -7%

Stop Target:  None 

Action:  We have over 2 months before these options expire and we are looking for MGM to make a run at $17 once $15.75 is cleared.  Support is strong at $14. 


Other 2011 Portfolio OPEN positions (5):  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)

Seattle Genetics August 22.50 calls (from June 2011)

Seattle Genetics September 20 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 morning.

*********************************

12:05pm (EST)

Patriot Coal (PCX, $24.44, down $0.02) 

August 24 calls (PCX110820C00024000, $1.60, down $0.05)

Entry Price:  $0.90 (7/13/11)

Exit Target: $1.80

Return:  78%

Stop Target:  $1.20 (Hard Stop)

Action:  Close the trade at current levels.

We would love to leave this trade open but shares seem to be struggling with pushing the next area of resistance which is at $26.      

*********************************

9:00am (EST)

Broadcom (BRCM, $35.06, up $0.38)

August 38 calls (BRCM110820C00038000, $0.60, up $0.10)

Entry Price:  $0.55 (7/20/11)

Exit Target: $1.10

Return:  9%

Stop Target:  None 

Action:  The first wave of resistance is at $36 and then the $38.  A break above $38 should have enough momentum to get the stock to $40.


Global Payments (GPN, $52.13, up $0.20)

August 55 calls (GPN110820C00055000, $0.50, up $0.05)

Entry Price:  $0.40 (7/13/11)

Exit Target: $0.80

Return:  25%

Stop Target:  None 

Action:  The 52-week high is $53.67 and we are looking for a run past $55 when the company reports earnings after the bell today.  If they miss their numbers, shares could suffer and the options could expire worthless so this is a high risk/ high reward trade.  However, if they beat estimates and raise guidance then shares should move past double nickels.   


Patriot Coal (PCX, $24.46, down $0.21) 

August 24 calls (PCX110820C00024000, $1.65, down $0.15)

Entry Price:  $0.90 (7/13/11)

Exit Target: $1.80

Return:  83%

Stop Target:  $1.20 (Hard Stop)

Action:  The next area of resistance is at $26 which is probably where we will start taking profits on at least half.  Patriot Coal will report earnings on July 26.    

 

Qualcomm (QCOM, $57.30, up $0.32)

October 65 calls (QCOM111022C00065000, $0.75, up $0.15)

Entry Price:  $0.85 (7/11/11)

Exit Target: $1.70

Return:  -12%

Stop Target:  None 

Action:  Qualcomm reported a sweet quarter and is above $56 so shares could rebound and trade higher today.  These options have 92 days before they expire so ewe have plenty of time to wait for a recovery.  

 

TiVo (TIVO, $9.99, down $0.19)

August 11 calls (TIVO110820C00011000, $0.25, down $0.05)

Entry Price:  $0.55 (7/1/11)

Exit Target: $1.10

Return:  -55%

Stop Target:  None 

Action:  TiVo slipped below $10 again yesterday and continues to tease us.  We are looking for a 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, $83.18, down $0.14)

August 86 calls (IWM110820C00086000, $0.80, down $0.05)

Entry Price:  $1.10 (7/1/11)

Exit Target: $2.20

Return:  -27%

Stop Target:  $0.55 

Action:  We are looking for a test to new highs in July or by mid-August which will more than double these calls.  The 52-week high is $86.81 and we would like to see a move above $84.50-$85 today.  


Freeport-McMoRan (FCX, $55.92, down $0.38)

August 57 calls (FCX110820C00057000, $1.90, down $0.10)

Entry Price:  $1.18 (7/1/11)

Exit Target: $2.40

Return:  61%

Stop Target:  $1.40 

Action:  Freeport announced earnings this morning and said profits doubled for the quarter compared to last year.  Shares are higher in pre-market action.    


Symantec (SYMC, $18.89, down $0.57)

October 20 calls (SYMC111022C00020000, $0.75, down $0.20) 

Entry Price:  $0.93 (6/21/11)

Exit Target: $2.00  

Return:  -19%

Stop Target:  None

Action:  Our near-term target is $22 for Symantec and the company will report earnings on July 27. 


Rambus (RMBS, $14.69, up $0.09)

August 17 calls (RMBS110820C00017000, $0.20, flat)

Entry Price:  $0.60 (6/20/11)

Exit Target: $1.20+  

Return:  -67%

Stop Target:  None

Action:  Continue to hold.  


Rediff.com India (REDF, $12.26, down $0.22)

October 15 calls (REDF111022C00015000, $1.00, down $0.20)

Entry Price:  $1.25 (6/01/11)

Exit Target: $2.50

Return:  -20%

Stop Target:  $1.00

Action:  Continue to hold. 


MGM Resorts International (MGM, $15.42, down $0.03)

September 17 calls (MGM110917C00017000, $0.60, down $0.05) 

Entry Price:  $0.70 (5/13/11)

Exit Target: $1.40

Return:  -14%

Stop Target:  None

Action:  We have over 2 months before these options expire and we are looking for MGM to make a run at $17 once $15.75 is cleared.  Support is strong at $14. 


Other 2011 Portfolio OPEN positions (5):  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)

Seattle Genetics August 22.50 calls (from June 2011)

Seattle Genetics September 20 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.

Amgen (AMGN, $54.99, down $0.28)

August 55 calls (AMGN110820C00055000, $1.30, down $0.10)

Thoughts:  Amgen has traded lower for much of July and has dropped from $58 to $55 in a couple of weeks.  The company reports earnings on July 29.


Mead Johnson Nutrition (MJN, $68.95, down $0.89)

August 70 calls (MJN110820C00070000, $1.30, down $0.40)

November 80 calls (MJN111119C00070000, $0.70, down $0.15)

Thoughts:  Watch for now.   

  

Quality Systems (QSII, $87.65, down $0.92)

September 100 calls (QSII110917C00100000, $0.60, down $0.20)

Thoughts:  Watch for now.


RealD (RLD, $18.04, down $0.90)

August 17.50 puts (RLD110820P00017500, $1.80, up $0.25)

Thoughts:  Shares traded to a low of $17.63 yesterday and we had a feeling $15 might come before $20 which is where we were looking to establish positions. 


Polycom (PLCM, $30.94, down $1.19) 

August 33.75 calls (PLCM110716C00033750, $0.80, down $0.25)

Thoughts:  Watch for now. 


Juniper Networks (JNPR, $31.15, down $0.43)

August 33 calls (110820C00033000, $0.75, down $0.10)

Thoughts:  Continue to watch. 

 

Williams-Sonoma (WSM, $38.14, down $0.43)

August 39 calls (WSM110716C00039000, $1.25, down $0.25)

Thoughts:  The stock held support at $38 and is looking to make a run to $40+.  The 52-week high is $45.48 so watch these options closely.