9:00am (EST)

Global Payments (GPN, $50.52, down $0.77)

August 55 calls (GPN110820C00055000, $0.30, down $0.15)

Entry Price:  $0.40 (7/13/11)

Exit Target: $0.80

Return:  -25%

Stop Target:  None 

Action:  These are “cheap” options on an earnings play so they will either payoff or expire worthless.  The company reports earnings this Thursday and we are expecting a 10% move, either way.  A knock-your-socks off quarter could send shares to new highs while a disappointing quarter and outlook will send the stock tumbling.    


Patriot Coal (PCX, $23.93, up $0.45) 

August 24 calls (PCX110820C00024000, $1.50, up $0.25)

Entry Price:  $0.90 (7/13/11)

Exit Target: $1.80

Return:  67%

Stop Target:  None 

Action:  Shares turned positive after our afternoon update and traded to a high of $23.99.  We said he next wave of resistance is at $24 and if cleared, opens the door for a run to $26.  Patriot Coal will report earnings on July 26.    

 

Qualcomm (QCOM, $55.28, up $0.32)

October 65 calls (QCOM111022C00065000, $0.45, up $0.05)

Entry Price:  $0.85 (7/11/11)

Exit Target: $1.70

Return:  -47%

Stop Target:  None 

Action:  The company reports 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, $9.99, down $0.13)

August 11 calls (TIVO110820C00011000, $0.30, down $0.05) 

Entry Price:  $0.55 (7/1/11)

Exit Target: $1.10

Return:  -45%

Stop Target:  None 

Action:  TiVo closed below $10 yesterday so let’s see if shares got streched or if they continue lower.  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, $81.48, down $1.33)

August 86 calls (IWM110820C00086000, $0.50, down $0.35)

Entry Price:  $1.10 (7/1/11)

Exit Target: $2.20

Return:  -55%

Stop Target:  $0.55 

Action:  We don’t like to “day trade” the indexes because we like to play trends but we have given back our gains on this trade.  However, we are looking for a test to new highs in July or by mid-August which will more than double these calls.  Continue to hold.


Freeport-McMoRan (FCX, $55.05, down $0.29)

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

Entry Price:  $1.18 (7/1/11)

Exit Target: $2.40

Return:  36%

Stop Target:  $1.00

Action:  We believe copper prices will continue to rise and we have 5 more weeks to ride this trade to a double.  However, the company reports earnings on Thursday so it may be a roadblock.  Once the numbers hit the Street, we expect the stock to test new highs or fall back under $50.  


Seattle Genetics (SGEN, $17.90, down $0.97)

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, $1.00, down $0.40) 

Entry Price:  $1.50 (5/9/11)

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

Return:  7%

Stop Target:  $2.20   

Action:  There is strong support at $17 which represented prior resistance before the breakout but we are frustrated with this trade because it is one of our favorite stocks.  The company may need to do more clinical tests but their drugs and royalties are going to grow earnings for years to come.   

   

Symantec (SYMC, $18.65, down $0.11)

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:  We said yesterday “shares are approaching their 100-day MA which is also near strong support at $18.65”.  Let’s see if shares can hold this level but if they can’t, $17.50 could come into play.  Our near-term target is $22 for Symantec and the company will report earnings on July 27. 


Rambus (RMBS, $14.00, down $0.16)

August 17 calls (RMBS110820C00017000, $0.20, 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 and we said there could be a test down to $13-and change as the low came in at $13.85 yesterday.  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, $13.94, up $0.50)

October 15 calls (REDF111022C00015000, $1.75, up $0.25)

Entry Price:  $1.25 (6/01/11)

Exit Target: $2.50

Return:  40%

Stop Target:  $1.00, or if shares fall back below $12

Action:  Shares pushed $14 again late in the session and we are targeting a run to $17-$18.  However, we may protect gains if there is some slippage because we want to protect our profits due to the volatility associated with this name.  A break above $14 (orange line) would be beautiful while a drop below $12 (red line) would force us out.


MGM Resorts International (MGM, $14.79, down $0.14)

September 17 calls (MGM110917C00017000, $0.45, flat)

Entry Price:  $0.70 (5/13/11)

Exit Target: $1.40

Return:  -36%

Stop Target:  None

Action:  Wynn Resorts came through for us and shares we up over $15 in after-hours last night.  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.


Amgen (AMGN, $54.66, down $0.39)

August 55 calls (AMGN110820C00055000, $1.25, down $0.25)

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, before the bell, and shares are at a nice area of support.


Mead Johnson Nutrition (MJN, $68.55, down $0.72)

August 70 calls (MJN110820C00070000, $1.30, down $0.20)

November 80 calls (MJN111119C00070000, $0.70, down $0.10)

Thoughts:  Over 5,000 contracts traded on the August 70’s while 500+ traded on the November 80’s.  Shares are near their 52-week high of $69.99 and looked poised to hit the mid-to-upper $70’s. 


Travelzoo (TZOO, $84.91, up $7.82)

August 90 calls (TZOO110820C00090000, $6.30, up $3.30)

August 60 puts (TZOO110820P00060000, $1.90, down $0.40)

Thoughts:  The calls opened at $3.10 and easily doubled while the puts opened at $2.20.  If you bought at the open, you are up 50%.  The company reports earnings today so we will check-in on these options in our afternoon update. 

The 52-week high is $103, the low is $13.75.  Last time out shares moved over $20 and have moved higher in the last 4 quarters.  If the company can impress the Street, then the stock could hit triple-digits again.  If not a drop to double-nickels ($55) could be in the cards.  


Quality Systems (QSII, $85.55, down $1.17)

September 100 calls (QSII110917C00100000, $0.40, down $0.30)

Thoughts:  The 52-week high is $92.38 and the chart on Quality Systems is a thing of beauty.  There is strong support at these levels and if it holds we would expect shares to make a run back to $90 and new highs.  


RealD (RLD, $19.04, down $1.05)

August 17.50 puts (RLD110820P00017500, $1.55, up $0.45)

Thoughts:  Shares traded down to $18.04 yesterday while the options reached $1.75.  Shares got an “upgrade” from Sell to Neutral yesterday but obviously the analyst hasn’t done his homework.  


Cisco Systems (CSCO, $15.44, down $0.16)

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

Thoughts:  Continue to watch.


Polycom (PLCM, $30.74, down $0.28)   

August 33.75 calls (PLCM110716C00033750, $0.75, down $0.15)

Thoughts:  Watch for now. 


Juniper Networks (JNPR, $30.03, down $0.60)

August 33 calls (110820C00033000, $0.45, down $0.20)

Thoughts:  Shares of Juniper are holding short-term support but still face risk down to $29.  

 

Williams-Sonoma (WSM, $37.77, down $0.24)

August 39 calls (WSM110716C00039000, $1.10, down $0.10)

Thoughts:  The stock has made a nice bounce off $35 and is having trouble clearing resistance at $38.  If it can, then we expect a run to $40+.