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.

1:05pm (EST)

Rambus (RMBS, $15.36, down $0.25)

September 17 calls (RMBS110917C00017000, $0.60, down $0.05) 

Entry Price:  $0.65 (7/22/11)

Exit Target: $1.30+  

Return:  -8%

Stop Target:  None


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:  Rambus has held $15 today which was prior resistance and should act as short-term support.  We are expecting a run up to $19 over the next few weeks and the August options have 25 days before they expire.  The September calls have 53 days before they expire.

We have been following this company for years and this could finally be the case that wins Rambus a windfall.  The current litigation isn’t expected to end until August but we are hearing things could wrap up sooner than that.  In other words, there could be a settlement or a verdict soon.

 

Broadcom (BRCM, $34.82, down $0.65)

August 38 calls (BRCM110820C00038000, $0.55, down $0.15)

Entry Price:  $0.55 (7/20/11)

Exit Target: $1.10

Return:  0%

Stop Target:  None 

Action:  The company reports earnings today!


Qualcomm (QCOM, $57.20, down $0.26)

October 65 calls (QCOM111022C00065000, $0.50, down $0.05)

Entry Price:  $0.85 (7/11/11)

Exit Target: $1.70

Return:  -41%

Stop Target:  None 

Action:  These options have 3 months before they expire and we are looking for a run past resistance at $60.  If cleared, we believe Qualcomm can make a run to $70.


TiVo (TIVO, $10.07, down $0.22)

August 11 calls (TIVO110820C00011000, $0.20, down $0.05)

Entry Price:  $0.55 (7/1/11)

Exit Target: $1.10

Return:  -64%

Stop Target:  None 

Action:  TiVo fell to the bottom of its trading range and is holding support at $10.  If shares can break above resistance at $11 they have a little room to run.  We are looking for a surge to $18 on short covering, buyout news, or a partnership.  Our breakeven point is $11.55 and we have until mid-August to wait for a move. 


iShares Russell 2000 (IWM, $83.67, down $0.38)

August 86 calls (IWM110820C00086000, $0.90, down $0.10)

Entry Price:  $1.10 (7/1/11)

Exit Target: $2.20

Return:  -18%

Stop Target:  $0.55 

Action:  The 52-week high is $86.81 and we would like to see a move above $85.50 this week which is short-term resistance and prior support.


Freeport-McMoRan (FCX, $55.49, down $0.18) 

August 57 calls (FCX110820C00057000, $1.30, down $0.15)

Entry Price:  $1.18 (7/1/11)

Exit Target: $2.40

Return:  10%

Stop Target:  $1.40 

Action:  Shares face resistance at $57-$58 which should lead to a pop to $60 is taken out.  Support has been strong at $55 which was prior resistance.     


Symantec (SYMC, $19.16, up $0.10)

October 20 calls (SYMC111022C00020000, $0.75, flat) 

Entry Price:  $0.93 (6/21/11)

Exit Target: $2.00  

Return:  -19%

Stop Target:  None

Action:  Symantec will announce earnings on Wednesday.  Shares reached a high of $19.55 last week which has been strong resistance over the past few months.  Support has been strong at $18.65 and our price target is $22 for Symantec over the next 3-6 months.


Rediff.com India (REDF, $11.40, up $0.07)

October 15 calls (REDF111022C00015000, $0.75, flat)

Entry Price:  $1.25 (6/01/11)

Exit Target: $2.50

Return:  -40%

Stop Target:  $1.00

Action:  The company reports earnings on Tuesday and is testing near-term support.  With earnings due out, shares will either challenge resistance near $14 on a beat-and-raise or plunge on an earnings miss.         


MGM Resorts International (MGM, $15.77, down $0.03)

September 17 calls (MGM110917C00017000, $0.65, flat) 

Entry Price:  $0.70 (5/13/11)

Exit Target: $1.40

Return:  -7%

Stop Target:  None

Action:  MGM cleared and closed above $15.75 on Friday which has been strong resistance and holding today.  The 52-week high is $16.95 which will also be the next area of resistance if $15.75 holds this week.  Support is strong at $14.50. 


Other 2011 Portfolio OPEN positions (6):  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) 

Global Payments August 55 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.

We will update this section in the morning.