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.

1:20pm (EST)

Spider S&P 500 (SPY, $131.37, up $0.77)

August 135 calls (SPY110820C00135000, $0.90, up $0.10)

Entry Price:  $0.95 (7/27/11)

Exit Target: $1.40-$1.90  

Return:  -5%

Stop Target:  None

Action:  We are hoping to get out of these on Friday with profits of 50% or more if a deal is reached tonight.  If not, we may have to hold over the weekend. 


Spider Dow Jones Industrial Average (DIA, $123.23, up $0.39)

August 126 calls (DIA110820C00126000, $0.90, up $0.10)

Entry Price:  $1.05 (7/27/11)

Exit Target: $1.60-$2.20  

Return:  -14%

Stop Target:  None

Action:  We are looking for the Dow to make a run back to 12,800. 

 

Mead Johnson Nutrition (MJN, $72.19, up $4.71

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:  None

Action:  If shares fall back below $70 we will close the other half.  Meanwhile, let’s hope we can make a run to $100 by November.  


Rambus (RMBS, $14.64, up $0.21)

September 17 calls (RMBS110917C00017000, $0.45, up $0.05) 

Entry Price:  $0.65 (7/22/11)

Exit Target: $1.30+  

Return:  -31%

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, $37.34, up $0.30)

August 38 calls (BRCM110820C00038000, $1.05, up $0.10)

Entry Price:  $0.55 (7/20/11)

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

Return:  145%

Stop Target:  $1.15

Action:  Continue to hold the other half.  


Qualcomm (QCOM, $55.47, up $0.88)

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 and support is strong at $55.    


   

TiVo (TIVO, $9.64, flat)

August 11 calls (TIVO110820C00011000, $0.15, flat)

Entry Price:  $0.55 (7/1/11)

Exit Target: $1.10

Return:  -73%

Stop Target:  None 

Action:  TiVo closed below $10 again and now faces risk of falling back to $8.50-$9.  If shares can break above resistance at $11 they have a little room to run but we need to get above $10.50, first.  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, $80.66, up $0.69)

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, $54.63, up $0.18) 

August 57 calls (FCX110820C00057000, $1.05, flat)

Entry Price:  $1.18 (7/1/11)

Exit Target: $2.40

Return:  -11%

Stop Target:  $1.40 

Action:  Shares face resistance at $57-$58 which should lead to a pop to $60 if cleared.  Support has been strong at $54.50-$55.     


Symantec (SYMC, $19.77, up $1.36)

October 20 calls (SYMC111022C00020000, $0.95, up $0.35) 

Entry Price:  $0.93 (6/21/11)

Exit Target: $2.00  

Return:  2%

Stop Target:  None

Action:  The options have jumped 50% today and we are back in the green.  The $19.50 area has been strong resistance over the past few months while support has been solid at $18.65.  Our price target is $22 for Symantec over the next 3-6 months.


MGM Resorts International (MGM, $15.65, up $0.22)

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

Entry Price:  $0.70 (5/13/11)

Exit Target: $1.40

Return:  -14%

Stop Target:  None

Action:  The 52-week high is $16.95 which will also be the next area of resistance if $15.75 holds.  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)

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)


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.

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10:25am (EST)

Mead Johnson Nutrition (MJN, $72.00, up $4.52)

November 80 calls (MJN111119C00080000, $1.25, up $0.60)

Entry Price:  $0.55 (7/26/11)

Exit Target: $1.10+  

Return:  127%

Stop Target:  None

Action:  We would love to keep the entire trade open but we need to take some risk off the table with so many headwinds surrounding the market.  Also, we are long a lot of positions and although we think the debt-limit fiasco gets solved…you never know.  Let’s lock in profits of 127% on half this position and let the rest ride.

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9:00am (EST)

Spider S&P 500 (SPY, $130.60, down $2.73)

August 135 calls (SPY110820C00135000, $0.80, down $0.70)

Entry Price:  $0.95 (7/27/11)

Exit Target: $1.40-$1.90  

Return:  -16%

Stop Target:  None

Action:  We picked up the two Spider trades in anticipation of a bounce this week and because we see 1,300 holding on the S&P.  These are meant to be quick trades so we will see how they play out. 


Spider Dow Jones Industrial Average (DIA, $122.84, down $1.99)

August 126 calls (DIA110820C00126000, $0.80, down $0.60)

Entry Price:  $1.05 (7/27/11)

Exit Target: $1.60-$2.20  

Return:  -24%

Stop Target:  None

Action:  We are looking for the Dow to make a run back to 12,800. 

 

Mead Johnson Nutrition (MJN, $67.48, down $1.36)

November 80 calls (MJN111119C00080000, $0.65, down $0.05)

Entry Price:  $0.55 (7/26/11)

Exit Target: $1.10+  

Return:  18%

Stop Target:  None

Action:  The company reported earnings this morning and shares are up in pre-market.  Stay tuned for a Trade Alert if we take action after the open.  


Rambus (RMBS, $14.43, down $0.69)

September 17 calls (RMBS110917C00017000, $0.40, down $0.10) 

Entry Price:  $0.65 (7/22/11)

Exit Target: $1.30+  

Return:  -38%

Stop Target:  None


August 17 calls (RMBS110820C00017000, $0.10, down $0.05)

Entry Price:  $0.60 (6/20/11)

Exit Target: $1.20+  

Return:  -83%

Stop Target:  None

Action:  The technical picture:  Rambus continues to hold $15 after breaking through this level last Friday.  This area was major 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 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, $37.04, down $1.16)

August 38 calls (BRCM110820C00038000, $0.95, down $0.40)

Entry Price:  $0.55 (7/20/11)

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

Return:  136%

Stop Target:  $1.15

Action:  Continue to hold the other half. 


Qualcomm (QCOM, $54.59, down $1.95)

October 65 calls (QCOM111022C00065000, $0.30, down $0.15)

Entry Price:  $0.85 (7/11/11)

Exit Target: $1.70

Return:  -65%

Stop Target:  None 

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


TiVo (TIVO, $9.64, down $0.19)

August 11 calls (TIVO110820C00011000, $0.15, flat)

Entry Price:  $0.55 (7/1/11)

Exit Target: $1.10

Return:  -73%

Stop Target:  None 

Action:  TiVo closed below $10 again and now faces risk of falling back to $8.50-$9.  If shares can break above resistance at $11 they have a little room to run but we need to get above $10.50, first.  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, $79.97, down $2.46)

August 86 calls (IWM110820C00086000, $0.25, down $0.30)

Entry Price:  $1.10 (7/1/11)

Exit Target: $2.20

Return:  -77%

Stop Target:  $0.55 

Action:  Continue to hold.


Freeport-McMoRan (FCX, $54.45, down $1.63)

August 57 calls (FCX110820C00057000, $1.05, down $0.55)

Entry Price:  $1.18 (7/1/11)

Exit Target: $2.40

Return:  -11%

Stop Target:  $1.40 

Action:  Shares face resistance at $57-$58 which should lead to a pop to $60 if cleared.  Support has been strong at $55.     

   

Symantec (SYMC, $18.42, down $0.65)

October 20 calls (SYMC111022C00020000, $0.60, down $0.15) 

Entry Price:  $0.93 (6/21/11)

Exit Target: $2.00  

Return:  -35%

Stop Target:  None

Action:  Symantec beat estimates and shares are over $19 in early trade.  The $19.50 area has been strong resistance over the past few months while support has been solid at $18.65.  Our price target is $22 for Symantec over the next 3-6 months.


MGM Resorts International (MGM, $15.43, down $0.44)

September 17 calls (MGM110917C00017000, $0.55, down $0.10) 

Entry Price:  $0.70 (5/13/11)

Exit Target: $1.40

Return:  -21%

Stop Target:  None

Action:  The 52-week high is $16.95 which will also be the next area of resistance if $15.75 holds.  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)

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)


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.

Visa (V, $87.75, down $1.45)

August 95 calls (V110820C00095000, $0.50, down $0.15)

Thoughts:  Visa beat expectations and shares are slightly higher in pre-market action.


Coinstar (CSTR, $50.32, down $1.36)

August 45 puts (CSTR110820P00045000, $0.90, up $0.30)

Thoughts:    Continue to watch.


Amgen (AMGN, $53.80, down $0.90)

September 55 calls (AMGN110917C00055000, $1.30, down $0.35)

Thoughts:  We are now following the September 55’s with yesterday’s 2% drop in the stock.  The company reports earnings on Friday.


Quality Systems (QSII, $86.17, down $3.18)

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

Thoughts:  The company will announces earnings today.


RealD (RLD, $17.90, up $0.08)   

August 17.50 puts (RLD110820P00017500, $1.65, flat)

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

   

Polycom (PLCM, $28.30, down $1.63) 

September 30 calls (PLCM11091700030000, $1.10, down $0.60)

Thoughts:  Shares could test $28 again which was prior support.  If so, we may have to go with these options or a September call option. 


Williams-Sonoma (WSM, $37.45, down $1.54)

August 39 calls (WSM110716C00039000, $0.95, down $0.70) 

Thoughts:  Watch for now.