October 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.

12:50pm (EST)

Infosys Technologies (INFY, $51.88, down $1.96)

November 60 calls (INFY111119C00060000, $0.55, down $0.25)

Entry Price:  $0.60 (10/11/11)
Exit Target: $1.00

Return:  -8%
Stop Target: None

Action:  These options opened at 55 cents so everyone should have gotten in for 60 cents or less.  We have an aggressive target of $65 for Infosys which would make these options worth at least $5 if shares are there by mid-November.  


O’Reilly Automotive (ORLY, $69.09, down $0.48)

November 75 calls (ORLY111119C00075000, $0.65, down $0.10)

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

Action:  The 52-week high is $72 and if we can get a break above $70, odds are pretty good this level is taken out.  The November options have 38 days before they expire.


Potash (POT, $47.89, up $1.05)

November 52.50 calls (POT111119C00052500, $1.20, up $0.25)

Entry Price:  $1.00 (10/6/11)
Exit Target: $2.00
Return:   20% 
Stop Target:  None

Action:  Shares have traded to a high of $48.26 today and we are looking for a run back over $50.        


Seattle Genetics (SGEN, $21.50, up $0.20)

November 17.50 puts (SGEN111119P00017500, $0.80, down $0.05)

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

Return:  33%
Stop Target: None

 Action:  Continue to hold.


Pepsico (PEP, $61.00, down $0.87)

November 65 calls (PEP111119C00065000, $0.50, down $0.15)

Entry Price:  $0.50 (10/5/11)
Exit Target: $1.00

Return:  0%
Stop Target: None

Action:  These are cheap options and we have been on a huge winning streak so we are going to leave these options open.  We are expecting Pepsi to report a good quarter while Wall Street doesn’t seem to think they will.

 
Microsoft (MSFT, $26.98, up $0.04)

November 26 calls (MSFT111119C00026000, $1.55, flat)

Entry Price:  $0.90 (10/5/11)
Exit Target: $1.80-$2.00
Return:  72%
Stop Target:  $1.25 (HARD STOP)

Action:  Awe are looking for a close above $27 today.
 

Rambus (RMBS, $15.40, down $0.06)

November 16 calls (RMBS111119C00016000, $2.85, flat)

Entry Price:  $2.40 (9/26/11)
Exit Target: $5+
Return:  19% 
Stop Target:  $2.00

Action:  Continue to hold.


Spreadtrum Communications (SPRD, $20.45, up $1.19)

January 25 calls (SPRD120121C00025000, $1.70, up $0.30)

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

Action:  Spreadtrum is back over $20 and looking strong.  These options have 101 days before they expire and our near-term target for the stock is $22.  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.

We will update this section in the morning.