9:20am (EST)

PowerShares QQQ (QQQ, $56.87, down $1.12)

November 58 calls (111119C00058000, $1.40, down $0.30)

Entry Price:  $1.60 (10/19/11)
Exit Target: $2.40
Return:  -13%
Stop Target:  80 cents 

Action:  We thought we might get a little bounce into the close but Apple weighed on Tech all day long.  We still think we got a good entry price and for those of you who waited can start positions here.  The 52-week high for the QQQ’s is $59.83 and we are looking for a test up to $60 and a possible breakout.


Qualcomm (QCOM, $52.60, down $1.96)

November 57.50 calls (QCOM111119C00057500, $0.70, down $0.60)

Entry Price:  $0.95 (10/18/11)
Exit Target: $1.50-1.90
Return:  -26%
Stop Target:  None

Action:  Qualcomm traded to a low of $52.36 yesterday and we were looking for $52.50 to hold.  Our target is $60 for the stock by mid-November which would make these options worth at least $2.50.


Potash (POT, $47.84, down $1.82)

November 52.50 calls (POT111119C00052500, $0.90, down $0.50)

Entry Price:  $1.20 (10/18/11)
Exit Target: $1.80-$2.40
Return:  -25%
Stop Target:  None

Action:  Potash held $47.50 which is what we were looking for yesterday.  We still expect a close above $50 and once cleared Potash should run to $55.


SanDisk (SNDK, $45.18, down $1.73)

November 50 calls (SNDK111119C00050000, $1.00, down $0.55)

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

Return:  -23%
Stop Target: $1.05

Action:  Continue to hold.   


O’Reilly Automotive (ORLY, $69.89, up $0.15)

November 75 calls (ORLY111119C00075000, $0.60, up $0.05)

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

Action:  O”Reilly reached a high of $71.20 on Wednesday and the 52-week high is $72.  The options traded to 70 cents and we are getting close to a breakout, folks.


Seattle Genetics (SGEN, $20.34, down $0.20)

November 17.50 puts (SGEN111119P00017500, $0.65, flat)

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

Return:  8%
Stop Target: None

Action:  The low was $20.20 yesterday and we are expecting a break below $20.   


Rambus (RMBS, $16.44, down $0.38)

November 16 calls (RMBS111119C00016000, $3.50, down $0.40)

Entry Price:  $2.40 (9/26/11)
Exit Target: $5+
Return:  46% 
Stop Target:  $2.45

Action:  Continue to hold.      


Spreadtrum Communications (SPRD, $21.89, up $0.29)

 January 25 calls (SPRD120121C00025000, $1.90, flat)

Entry Price:  $1.50 (9/9/11)
Exit Target: $2.80
Return:  27%
Stop Target:  $1.05

Action:  Shares reached a high of $22.90 yesterday while the options kissed $2.25.  There was some interest in the October 22 calls and the November 22’s were active as well.  We may add the November 24 calls (SPRD111119C00024000, $0.90, flat) if we the spread comes down or if we can get good entry prices.  The current “bid” is 85 cents, the “ask” is $1.05.


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.


Green Mountain Coffee Roasters (GMCR, $69.80, down $12.31)

November 100 calls (GMCR111119C00100000, $1.10, down $0.20)

November 60 puts (GMCR111119P00060000, $5.45, up $3.45)

Thoughts:  Shares fell off a cliff after our midday update and we said the chart was pointing at a trip to $75, possibly $65, if $80 didn’t hold.  For those of you who set an alert and got in on the puts, good job!  We would have made this a “strangle” trade but the premiums were just too expensive.  The October 80 puts (GMCR111022P00080000, $10.35, up $8.80) soared 567% after opening at $1.65 and trading down to 88 cents.  Wow.


First Solar (FSLR, $51.07, down $4.84)

November 70 calls (FSLR111119C00060000, $0.80, down $0.80)

November 40 puts (FSLR111119P00040000, $1.75, up $0.55)

Thoughts:  We said First Solar was looking weak and shares fell nearly 9% yesterday.  The options mentioned outside the Members Area were the November 45 puts (FSLR111119P00045000, $3.05, up $0.90) but we don’t like paying over $2 for an option to open up new positions. 


Intuit (INTU, $51.94, down $0.56)

November 55 calls (INTU111119C00055000, $0.90, down $0.20)

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.  We may go back to the well if shares can hold $50.


Blue Nile (NILE, $43.37, down $0.11)       

November 45 calls (NILE111119C00045000, $2.40, flat)

Thoughts:  Continue to watch.


iRobot (IRBT, $28.23, down $0.93) 

November 30 calls (IRBT111119C00030000, $1.50, 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 40 cents. 


Vivus (VVUS, $8.44, down $0.21)     

March 10 calls (VVUS120317C00010000, $1.80, down $0.10)

December 10 calls (VVUS111217C00010000, $0.40, down $0.05)

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