9:00am (EST)

Spreadtrum Communications (SPRD, $22.42, up $0.53)

January 25 calls (SPRD120121C00025000, $2.15, up $0.25)

Entry Price:  $1.50 (9/9/11)
Exit Target: $2.80
Return:  43%
Stop Target:  $1.05

November 24 calls (SPRD111119C00024000, $1.20, up $0.30)

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

Action:  We opened the November 24 calls yesterday to go with the January 25’s.  Shares traded to a high of $22.55 and were pushing $23 in after-hours trading last night. 

PowerShares QQQ (QQQ, $56.59, down $0.28)

November 58 calls (111119C00058000, $1.25, down $0.15)

Entry Price:  $1.60 (10/19/11)
Exit Target: $2.40
Return:  -22%
Stop Target:  80 cents 

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

Qualcomm (QCOM, $52.01, down $0.59)

November 57.50 calls (QCOM111119C00057500, $0.60, down $0.10)

Entry Price:  $0.95 (10/18/11)
Exit Target: $1.50-1.90
Return:  -37%
Stop Target:  None

Action:  Qualcomm traded to a high of $53.26 before slipping in the afternoon session.  We still like the position and believe shares can trade $60 by mid-November.

Potash (POT, $48.45, up $0.61)

November 52.50 calls (POT111119C00052500, $1.05, up $0.15)

Entry Price:  $1.20 (10/18/11)
Exit Target: $1.80-$2.40
Return:  -13%
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, $45.50, up $0.32)

November 50 calls (SNDK111119C00050000, $1.10, up $0.10)

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

Return:  -15%
Stop Target: $1.05

Action:   SanDisk beat expectations last night and will open near $48.


O’Reilly Automotive (ORLY, $70.74, up $0.85)

November 75 calls (ORLY111119C00075000, $0.70, up $0.10)

Entry Price:  $0.55 (10/10/11)
Exit Target: $1.10
Return:  27% 
Stop Target:  None

Action:  Shares traded to a high of $70.91 yesterday and the 52-week high is $72.  We are on the verge of a breakout and the company will report earnings next Wednesday.

Seattle Genetics (SGEN, $20.47, up $0.13)

November 17.50 puts (SGEN111119P00017500, $0.60, down $0.05)

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

Return:  0%
Stop Target: None

Action:  Shares traded to a low of $20.13 yesterday and we are expecting a break below $20.  

Rambus (RMBS, $16.19, down $0.25)

November 16 calls (RMBS111119C00016000, $3.15, down $0.35)

Entry Price:  $2.40 (9/26/11)
Exit Target: $5+ (closed half at $3.05 on 10/20/11)
Return:  29% 
Stop Target:  $2.45

Action:  Rambus reported a kick-ass quarter and shares traded above $17 in after-hours last night.     

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)


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.

New Ideas

Pepsico (PEP, $62.12, up $0.01)

November 65 calls (PEP111119C00065000, $0.30, flat)

January 65 calls (PEP120121C00065000, $1.05, flat)

Thoughts:  We normally don’t liked adding positions ahead of the weekend but the November 65’s are cheap and shares have been holding the top end of the current trading range.  These options were fairly active yesterday as nearly 800 contracts traded hands and open interest is at 8,000 contracts. 

The January calls would allow more time for the trade to play out.

Cabot Oil & Gas (COG, $68.87, up $0.63)

November 80 calls (COG111119C00080000, $1.50, down $0.40)

Thoughts:  The chart we will cover on Monday will show resistance at $70 and the 52-week high is $78-and change.  Shares are volatile and can move 4 or 5 points on any given day which is what we want to see.  If shares break $70, we may add these calls next week.  If these options come down to $1 today, we may pull the trigger early.

Caterpillar (CAT, $84.26, up $1.16)

November 90 calls (CAT111119C00090000, $1.80, up $0.30)

Thoughts:  Shares could be setting up for a run to $90.


Green Mountain Coffee Roasters (GMCR, $68.09, down $1.71)

November 100 calls (GMCR111119C00100000, $0.50, down $0.60)

November 60 puts (GMCR111119P00060000, $5.40, down $0.05)

Thoughts:  Shares fell to a low of $63.26 at the open while the puts reached a peak of $8.20 yesterday!  We profiled this strangle option trade on Wednesday and it would have cost around $5 to put it on.  The trade would have made 50% if it had been official and the put options moved from $2.85 to over $8 which was way nearly a 200% gain.

First Solar (FSLR, $52.31, up $1.24)

November 70 calls (FSLR111119C00060000, $0.80, flat)

November 40 puts (FSLR111119P00040000, $1.40, down $0.25)

Thoughts:  First Solar traded down to $50.87 on Thursday – another 52-week low.  

Intuit (INTU, $52.28, up $0.34)

November 55 calls (INTU111119C00055000, $0.95, up $0.05)

Thoughts:  We still think shares can hit new 52-week highs if the market can bounce back and these calls are right around the entry price we used to make a quick 20% last week.  Watch for now.

Blue Nile (NILE, $43.81, up $0.44)      

November 45 calls (NILE111119C00045000, $2.80, up $0.40)

Thoughts:  We profiled these options last Monday at $1.05.  If you haven’t started locking in profits, do so today.

iRobot (IRBT, $27.96, down $0.27)

November 30 calls (IRBT111119C00030000, $1.30, down $0.20)

Thoughts:  We still like these calls on a break above $30 but we may also look at the November 35’s which are at 30 cents. 

Vivus (VVUS, $8.34, down $0.10)     

March 10 calls (VVUS120317C00010000, $1.80, flat)

December 10 calls (VVUS111217C00010000, $0.40, flat)

Thoughts:  Resistance is at $9 and we would play either option on a breakout.