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.

1:50pm (EST)

NEW TRADES!!!

Pepsico (PEP, $61.92, down, $0.36)

January 65 calls (PEP120121C00065000, $0.70, down $0.25)

Action:  Use limit orders up to 75 cents but do not pay more than 80-85 cents to establish positions. 


Cabot Oil & Gas (COG, $70.88, up $0.59)

November 80 calls (COG111119C00080000, $1.25, down $0.35)

Action:  Use limit prices up to $1.35-$1.40 but do not pay over $1.50 to establish positions.


CURRENT TRADES

Spreadtrum Communications (SPRD, $23.79, up $0.89)

January 25 calls (SPRD120121C00025000, $2.50, up $0.20)

Entry Price:  $1.50 (9/9/11)
Exit Target: $2.80
Return:  67%
Stop Target:  $1.55


November 24 calls (SPRD111119C00024000, $1.60, up $0.30)

Entry Price:  $1.00 (10/20/11)
Exit Target: $2.00
Return:  60%
Stop Target:  $1.05

Action:  The 52-week and all-time high is $24.20 and we are on the verge of a breakout as shares are at their high for the day.   


PowerShares QQQ (QQQ, $58.49, up $1.19)

November 58 calls (111119C00058000, $1.85, up $0.40)

Entry Price:  $1.60 (10/19/11)
Exit Target: $2.40
Return:  16%
Stop Target:  $1.00 

Action:  We would like to see a close above $58.50 today.  The 52-week high for the QQQ’s is $59.83 and we are expecting a run past $60 on continued strength.


Qualcomm (QCOM, $53.28, up $1.26)

November 57.50 calls (QCOM111119C00057500, $0.55, up $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 a close above $53.50 today.



Potash (POT, $50.02, up $0.76)

November 52.50 calls (POT111119C00052500, $1.25, up $0.05)

Entry Price:  $1.20 (10/18/11)
Exit Target: $1.80-$2.40
Return:  4%
Stop Target:  None

Action:  We would like to see a close above $50 today.


SanDisk (SNDK, $50.69, up $0.93)

November 50 calls (SNDK111119C00050000, $2.75, up $0.40)

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

Return:  112%
Stop Target: $1.50, raise to $2.00

Action:  Close HALF of the trade at current levels to lock in a triple-digit gain.  This makes the trade a risk-free investment and we still have nearly a month for shares to continue higher.  However, we have set a HARD STOP on the other half to protect profits.


O’Reilly Automotive (ORLY, $71.19, up $0.77)

November 75 calls (ORLY111119C00075000, $0.70, up $0.20)


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

Action:  Shares are right near their 52-week high of $72 and the company will report earnings this Wednesday. 


Seattle Genetics (SGEN, $20.90, down $0.04)

November 17.50 puts (SGEN111119P00017500, $0.40, flat)

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

Return:  -33%
Stop Target: None

Action:  We are still looking for a close below $20.


Rambus (RMBS, $17.41, up $0.73)

November 16 calls (RMBS111119C00016000, $3.25, flat)

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:  Shares          

Other 2011 Portfolio OPEN positions (2):  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.

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.