9:10am (EST)
Pepsico (PEP, $62.10, down, $0.18)
January 65 calls (PEP120121C00065000, $0.70, down $0.25)
Entry Price: $0.70 (10/24/11)
Exit Target: $2.40
Return: 0%
Stop Target: None
Action: There is a chance Pepsi slips to $60 but we are hoping for a big push past $63.50 over the next week or two.
Cabot Oil & Gas (COG, $70.62, up $0.33)
November 80 calls (COG111119C00080000, $1.35, down $0.25)
Entry Price: $1.25 (10/24/11)
Exit Target: $2.50
Return: 8%
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, $23.90, up $1.00)
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: Shares went out right at their high for the day as Spreadtrum gained 4% for the session. The 52-week and all-time high is $24.20 and we are expecting a move past $25 over the near-term.
PowerShares QQQ (QQQ, $58.49, up $1.19)
November 58 calls (111119C00058000, $1.80, up $0.35)
Entry Price: $1.60 (10/19/11)
Exit Target: $2.40
Return: 13%
Stop Target: $1.00
Action: We wanted to see a close above $58.50 yesterday and the high was $58.65. The 52-week high for the QQQ’s is $59.83 and we are expecting a run past $60 on continued strength.
Qualcomm (QCOM, $53.61, up $1.59)
November 57.50 calls (QCOM111119C00057500, $0.60, up $0.10)
Entry Price: $0.95 (10/18/11)
Exit Target: $1.50-1.90
Return: -37%
Stop Target: None
Action: Qualcomm closed above our $53.50 target and will now look to push $55. A break above double-nickels should be enough to get shares to $60 by mid-November.
Potash (POT, $50.23, up $0.97)
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 got our close above $50 as shares look to challenge $52-$53 next. Support is strong at $48.
SanDisk (SNDK, $50.94, up $1.18)
November 50 calls (SNDK111119C00050000, $2.75, up $0.40)
Entry Price: $1.30 (10/13/11)
Exit Target: $2.60 (closed half at $2.75 on 10/24/2011)
Return: 112%
Stop Target: $2.00 (HARD STOP)
Action: We closed half of this trade into strength yesterday and we have a hard stop of $2 on the other half.
O’Reilly Automotive (ORLY, $71.06, up $0.64)
November 75 calls (ORLY111119C00075000, $0.60, up $0.10)
Entry Price: $0.55 (10/10/11)
Exit Target: $1.10
Return: 9%
Stop Target: None
Action: Shares traded up to $71.86 yesterday and the 52-week high is $72. The options kissed a high 70 cents and the company will report earnings this Wednesday.
Seattle Genetics (SGEN, $20.99, up $0.06)
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, $17.43, up $0.74)
November 16 calls (RMBS111119C00016000, $3.35, up $0.15)
Entry Price: $2.40 (9/26/11)
Exit Target: $5+ (closed half at $3.05 on 10/20/11)
Return: 33%
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.
iRobot (IRBT, $29.73, up $0.05)
November 30 calls (IRBT111119C00030000, $1.85, down $0.10)
Thoughts: Shares made a pop to over $30 yesterday but failed to close above this level. We may add these options at some point if shares do clear resistance but we would need to close a few other trades first.
Vivus (VVUS, $8.96, up $0.30)
March 10 calls (VVUS120317C00010000, $2.15, up $0.10)
December 10 calls (VVUS111217C00010000, $0.45, flat)
Thoughts: Vivus traded to a high of $8.99 yesterday and $9 is resistance.
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