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.

1:00pm (EST)

Spreadtrum Communications (SPRD, $22.85, up $0.43)

January 25 calls (SPRD120121C00025000, $2.40, up $0.10)

Entry Price:  $1.50 (9/9/11)
Exit Target: $2.80
Return:  60%
Stop Target:  $1.05

November 24 calls (SPRD111119C00024000, $1.30, up $0.10)

Entry Price:  $1.00 (10/20/11)
Exit Target: $2.80
Return:  30%
Stop Target:  $1.05

Action:  Shares have traded to a high of $23 today and our price target is north of $25.


PowerShares QQQ (QQQ, $57.20, up $0.61)

November 58 calls (111119C00058000, $1.45, up $0.20)

Entry Price:  $1.60 (10/19/11)
Exit Target: $2.40
Return:  -9%
Stop Target:  80 cents 

Action:  We are looking for a run to $60 for the QQQ’s.


Qualcomm (QCOM, $52.25 up $0.24)

November 57.50 calls (QCOM111119C00057500, $0.55, down $0.05)

Entry Price:  $0.95 (10/18/11)
Exit Target: $1.50-1.90
Return:  -42%
Stop Target:  None

Action:  We would like to see shares close above $52.50-$53 today.  We still like the position and believe shares can trade $60 by mid-November.


Potash (POT, $49.35, up $0.90)

November 52.50 calls (POT111119C00052500, $1.20, up $0.15)

Entry Price:  $1.20 (10/18/11)
Exit Target: $1.80-$2.40
Return:  0%
Stop Target:  None

Action:  We would love to see a close above $50 today and we still expect shares to be at $55 by mid-November.


SanDisk (SNDK, $49.22, up $3.72)

November 50 calls (SNDK111119C00050000, $2.05, up $1.00)

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

Return:  58%
Stop Target: $1.05

Action:  Part of us wants to close half of the trade now but we are going to push it for the rest of the day and into next week.  More conservative traders may want to lock in profits on half.  However, if the options trade up to $2.50-$2.60, we will close half of the trade so set sell limit prices there.


O’Reilly Automotive (ORLY, $70.12, down $0.62)

November 75 calls (ORLY111119C00075000, $0.60, down $0.10) 

Entry Price:  $0.55 (10/10/11)
Exit Target: $1.10
Return:  9% 
Stop Target:  None

Action:  We are on the verge of a breakout as long as $70 holds today and the company will report earnings next Wednesday.


Seattle Genetics (SGEN, $20.54, up $0.07)

November 17.50 puts (SGEN111119P00017500, $0.60, flat)

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

Return:  0%
Stop Target: None

Action:  We are expecting a break below $20 soon.  
 

Rambus (RMBS, $16.76, up $0.57)

November 16 calls (RMBS111119C00016000, $3.25, up $0.10)

Entry Price:  $2.40 (9/26/11)
Exit Target: $5+ (closed half at $3.05 on 10/20/11)
Return:  31% 
Stop Target:  $2.45

Action:  Continue to hold and we will cover Rambus more in-depth on Monday.     


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 on Monday with more new ideas.