9:00am (EST)

Spider S&P 500 (SPY, $130.22, down $0.28)

August 135 calls (SPY110820C00135000, $0.75, down $0.05)  

Entry Price:  $0.95 (7/27/11)

Exit Target: $1.40-$1.90  

Return:  -21%

Stop Target:  None

Action:  The S&P could test 1,275 today, and maybe 1,250 if blood hits the Street.   


Spider Dow Jones Industrial Average (DIA, $122.28, down $0.56)

August 126 calls (DIA110820C00126000, $0.70, down $0.10)

Entry Price:  $1.05 (7/27/11)

Exit Target: $1.60-$2.20  

Return:  -33%

Stop Target:  None

Action:  We expect Dow 12,000 to hold and over the next 3 weeks we will need the Dow to test new highs. 

 

Mead Johnson Nutrition (MJN, $71.76, up $4.28)

November 80 calls (MJN111119C00080000, $1.05, up $0.40)

Entry Price:  $0.55 (7/26/11)

Exit Target: $1.10+ (closed half at $1.25 on 7/28/2011)   

Return:  109%

Stop Target:  75 cents

Action:  These options traded to a high of $1.32 as nearly 800 contracts traded.  However, over 10,000 contracts traded on the November 75 calls.  We liked the action but we will probably close the other half of the trade if shares fall back below $70.  


Rambus (RMBS, $14.36, down $0.07)

September 17 calls (RMBS110917C00017000, $0.40, flat) 

Entry Price:  $0.65 (7/22/11)

Exit Target: $1.30+  

Return:  -38%

Stop Target:  None


August 17 calls (RMBS110820C00017000, $0.10, flat)

Entry Price:  $0.60 (6/20/11)

Exit Target: $1.20+  

Return:  -83%

Stop Target:  None

Action:  The technical picture:  We are expecting a run up to $19 over the next few weeks and the August options have over 3 weeks before they expire.  The September calls have 51 days.

The legal battle:  The current litigation isn’t expected to end until August but we are hearing things could wrap up this week or next.  In other words, there could be a settlement or a verdict very soon.

 

Broadcom (BRCM, $36.84, down $0.20)

August 38 calls (BRCM110820C00038000, $0.85, down $0.10) 

Entry Price:  $0.55 (7/20/11)

Exit Target: $1.50 (closed half at $1.65 on 7/26/2011) 

Return:  127%

Stop Target:  70 cents 

Action:  Shares traded up to $37.81 as the options hit $1.20 but Broadcom gave back its gains along with the rest of the market.  Continue to hold the other half.  


Qualcomm (QCOM, $55.99, up $0.40)

October 65 calls (QCOM111022C00065000, $0.35, up $0.05)

Entry Price:  $0.85 (7/11/11)

Exit Target: $1.70

Return:  -59%

Stop Target:  None 

Action:  These options have 3 months before they expire and we are looking for a run past resistance at $60.  Support is strong at $55.      


iShares Russell 2000 (IWM, $79.84, down $0.13)

August 86 calls (IWM110820C00086000, $0.25, flat)

Entry Price:  $1.10 (7/1/11)

Exit Target: $2.20

Return:  -77%

Stop Target:  $0.55 

Action:  Continue to hold.


Freeport-McMoRan (FCX, $54.04, down $0.41)

August 57 calls (FCX110820C00057000, $0.85, down $0.20)

Entry Price:  $1.18 (7/1/11)

Exit Target: $2.40

Return:  -28%

Stop Target:  $0.60 

Action:  Freeport will rebound and push $60 once the market reverses course and hopefully we have enough time before these options expire.       

 

Symantec (SYMC, $19.49, up $1.07)

October 20 calls (SYMC111022C00020000, $0.85, up $0.25) 

Entry Price:  $0.93 (6/21/11)

Exit Target: $2.00  

Return:  -9%

Stop Target:  None

Action:  Shares traded up to $19.81 while the options kissed 97 cents after the company reported a sweet quarter yesterday  The $19.50 area has been strong resistance over the past few months and we finished a penny below this level.  Support has been solid at $18.65.  Our price target is $22 for Symantec over the next 3-6 months.


MGM Resorts International (MGM, $15.30, down $0.13)

September 17 calls (MGM110917C00017000, $0.55, flat) 

Entry Price:  $0.70 (5/13/11)

Exit Target: $1.40

Return:  -21%

Stop Target:  None

Action:  Support is strong at $14.50. 


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.


RF MicroDevices August 10 calls (from February 2011)  

Dendreon August 50 calls (from April 2011)

Vivus September 10 calls (from May 2011)

Rediff.com India October 15 calls (from June 2011) 

Seattle Genetics August 22.50 calls (from June 2011)

Seattle Genetics September 20 calls (from May 2011) 

Global Payments August 55 calls (from July 2011)

TiVo August 11 calls (from July 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. 


Coinstar (CSTR, $51.33, up $1.01)    

August 45 puts (CSTR110820P00045000, $0.70, down $0.20)

Thoughts:    The company reported profits doubled but missed on estimates.


Amgen (AMGN, $53.43, down $0.37)

September 55 calls (AMGN110917C00055000, $1.20, down $0.10)

Thoughts:  The company reported earnings this morning.


Quality Systems (QSII, $89.87, up $3.70)

September 100 calls (QSII110917C00100000, $0.80, up $0.40)

Thoughts:  Another great quarter and the company announced a 2-for-1 split.  Shares could trade to $100 up into the stock-split which will take place at the end of October.


RealD (RLD, $18.42, up $0.52)   

August 17.50 puts (RLD110820P00017500, $1.30, down $0.35)

Thoughts:  Keep on climbing RealD.  We are hoping to get another shot at these options if shares trade back near $20.  The 52-week low for the stock is $15.63.  

   

Polycom (PLCM, $27.98, down $0.38) 

September 30 calls (PLCM11091700030000, $0.95, down $0.15)

Thoughts:  Shares could test $28 again which was prior support.    

    

Williams-Sonoma (WSM, $37.02, down $0.43)

August 39 calls (WSM110716C00039000, $0.80, down $0.15) 

Thoughts:  Watch for now.