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.

2:00pm (EST)

Pepsico (PEP, $62.18, up $0.08)

January 65 calls (PEP120121C00065000, $0.80, up $0.05)

Entry Price:  $0.70 (10/24/11)
Exit Target: $2.40
Return:  14%
Stop Target:  None 

Action:  Shares have held up well today and we are looking for a run past $63.50 over the next week or two.      


Cabot Oil & Gas (COG, $67.04, down $3.58)

November 80 calls (COG111119C00080000, $0.80, down $0.55)

Entry Price:  $1.25 (10/24/11)
Exit Target: $2.50
Return:  -36%
Stop Target:  60 cents

Action:  Cabot announces earnings on Wednesday and this could be an “all-or-nothing” trade depending on what they say.  If they can impress Wall Street then shares have a shot at $80+.  


Spreadtrum Communications (SPRD, $23.77, down $0.13)

January 25 calls (SPRD120121C00025000, $2.50, flat)

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


November 24 calls (SPRD111119C00024000, $1.45, down $0.10)

Entry Price:  $1.00 (10/20/11)
Exit Target: $2.00
Return:  45%
Stop Target:  $1.05

Action:  Let’s close the November 24 calls at current prices.  We will still keep the January calls open.


PowerShares QQQ (QQQ, $57.72, down $0.77)

November 58 calls (111119C00058000, $1.45, down $0.35)

Entry Price:  $1.60 (10/19/11)
Exit Target: $2.40
Return:  -9%
Stop Target:  $1.00 

Action:  Continue to hold.


Qualcomm (QCOM, $52.79, down $0.82)

November 57.50 calls (QCOM111119C00057500, $0.50, down $0.10)

Entry Price:  $0.95 (10/18/11)
Exit Target: $1.50-1.90
Return:  -47%
Stop Target:  None

Action:  Continue to hold.


Potash (POT, $49.60, down $0.63)

November 52.50 calls (POT111119C00052500, $1.00, down $0.25) 

Entry Price:  $1.20 (10/18/11)
Exit Target: $1.80-$2.40
Return:  -17%
Stop Target:  None

Action:  We got our close above $50 as shares look to challenge $52-$53 next.  Support is strong at $48.


SanDisk (SNDK, $49.84, down $1.10)

November 50 calls (SNDK111119C00050000, $2.15, down $0.60)

Entry Price:  $1.30 (10/13/11)
Exit Target: $2.60 (closed half at $2.75 on 10/24/2011)

Return:  88%
Stop Target: $2.00 (HARD STOP)

Action:  Close the other half of this trade to lock in profits.


O’Reilly Automotive (ORLY, $71.15, up $0.09)

November 75 calls (ORLY111119C00075000, $0.60, flat)

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

Action:  The company will report earnings on Wednesday and we are going to leave this one open.. 


Seattle Genetics (SGEN, $20.94, down $0.05)

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 going to stick with these puts as long as shares stay under $22.


Rambus (RMBS, $17.08, down $0.35 $0.74)

November 16 calls (RMBS111119C00016000, $3.25, down $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:  Shares finally cleared $17 on the close and all that is left between here and $19 is air.  We are hopeful the company’s current litigation issues will be favorable this week or next which could easily push the stock past $20.         


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.