8:45am (EST)

VMWare (VMW, $90.61, up $1.23)

November 105 calls (VMW111119C00105000, $1.05, up $0.30)

Entry Price:  $0.85 (10/13/11)
Exit Target: $1.70

Return:  24%
Stop Target: None

Action:  VMWare reports earnings on Monday.  There is resistance at $95 but if shares get a pop on better-than expected numbers, we could see $100+ stock price.  The 52-week high is north of $111.


Rockwell Automation (ROK, $63.46, down $0.69)

November 70 calls (ROK111119C00070000, $1.30, down $0.20)

Entry Price:  $1.10 (10/13/11)
Exit Target: $2.20

Return:  18%
Stop Target:  55 cents

Action:  We think shares can run to $70 once $65 is cleared on the close.


SanDisk (SNDK, $45.93, up $1.48)

November 50 calls (SNDK111119C00050000, $1.30, up $0.35)

Entry Price:  $1.30 (10/13/11)
Exit Target: $2.60

Return:  0%
Stop Target: 65 cents

Action:  The 52-weel high for SanDisk is $53.61 and shares traded up to $46.28 yesterday.  The company announces earnings on October 20.  We are looking for a beat-and-raise on their conference call with Wall Street.


Intuit (INTU, $51.99, down $0.01)

November 55 calls (INTU111119C00055000, $1.00, down $0.05)

Entry Price:  $0.95 (10/12/11)
Exit Target: $1.20

Return:  5%
Stop Target: None

Action:  We have a near-term price target of $55 for Intuit but there is a chance shares could push $60.  The 52-week high is $56.46 and if taken out would also represent an all-time high.  Usually this leads to a nice run afterwards as there is no overhead resistance.    


O’Reilly Automotive (ORLY, $68.71, up $0.34)

November 75 calls (ORLY111119C00075000, $0.45, flat)

Entry Price:  $0.55 (10/10/11)
Exit Target: $1.10
Return:  -18% 
Stop Target:  None

Action:  Shares traded to a high pf $69.08 yesterday and we are looking for a close above $70 today.  The 52-week high is $72 and we could see a breakout once $70 is cleared.


Potash (POT, $49.21, up $0.02)

November 52.50 calls (POT111119C00052500, $1.50, down $0.05)

Entry Price:  $1.00 (10/6/11)
Exit Target: $2.00
Return:   50% 
Stop Target:  $1.05 (HARD STOP)

Action:  We are looking for a close above $50 today.  Once cleared, we could see a quick run to $55 which would get these options to $2.50 or more depending on how fast we get there.  We have set a stop in place to protect profits and will likely raise it as shares move up. We may also adjust the stop if shares start to fade.


Seattle Genetics (SGEN, $20.89, up $0.07)

November 17.50 puts (SGEN111119P00017500, $0.75, flat)

Entry Price:  $0.60 (10/5/11)
Exit Target: $1.20

Return:  25%
Stop Target: None

Action:  Shares traded to a low of $20.05 yesterday before ending slightly higher.  We are looking for a close below $20 today.    
 

Rambus (RMBS, $16.66, up $0.98)

November 16 calls (RMBS111119C00016000, $3.85, up $0.90)

Entry Price:  $2.40 (9/26/11)
Exit Target: $5+
Return:  60% 
Stop Target:  $2.00

Action:  Rambus still has an ongoing litigation case that we have been expecting them to win.  This is the fourth week of deliberations which is why we went a little further out with the options.  The company will also announce earnings on October 20.  Now that $16 has cleared, it sets the stage for a run at $20. 


Spreadtrum Communications (SPRD, $21.25, down $0.14)

January 25 calls (SPRD120121C00025000, $1.70, down $0.20)

Entry Price:  $1.50 (9/9/11)
Exit Target: $2.80
Return:  13%
Stop Target:  75 cents

Action:  Our near-term target for the stock is $22 and on a breakout, shares could reach $25-$30.
 

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.

Symantec October 20 calls (from June 2011)
Rediff.com India October 15 calls (from June 2011)
Qualcomm October 65 calls (from July 2011)
Clean Energy October 15 calls (from August 2011)
JDSU Uniphase January 20 calls (from August 2011)
                     January 16 calls (from August 2011)
Lufkin Industries December 80 calls (from September 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.


Baidu (BIDU, $132.97, up $2.14)

October 135 (WEEKLY) calls (BIDU111014C00135000, $1.00, down $0.10)

November 160 calls (BIDU111119C00160000, $2.25, up $0.05)

Thoughts:  We were thisclose to adding the October calls but we didn’t like the risk/ reward.


First Solar (FSLR, $56.85, down $0.23)

November 70 calls (FSLR111119C00060000, $1.75, down $0.15)

November 40 puts (FSLR111119P00040000, $1.15, down $0.10)

Thoughts:  Watch for now.


Blue Nile (NILE, $41.44, down $1.04)

November 45 calls (NILE111119C00045000, $2.00, down $0.35)

Thoughts:  We said yesterday to start locking in profits.


iRobot (IRBT, $28.87, down $0.31)

November 30 calls (IRBT111119C00030000, $1.50, down $0.30)

Thoughts:  Shares could be setting up for a run past $30.


Vivus (VVUS, $8.348, up $0.11)     

March 10 calls (VVUS120317C00010000, $1.80, up $0.05)

December 10 calls (VVUS111217C00010000, $0.45, flat)

Thoughts:  There was some buying in the December 10’s yesterday as over 300 contracts traded hands.  We may take  position in them this week so stay on the lookout for a possible trade.