April 2012 | 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 a “Profit 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.

1:45pm (EST)

Acuity Brands (AYI, $54.36, down $0.95)

May 50 puts (AYI120519P00050000, $0.90, up $0.20)

Entry Price:  $0.60 (4/12/12)
Exit Target: $1.20
Return:  50%
Stop Target:  None

Action:  Our near-term target is for a drop below $50, possibly down to $45.  The 200-day MA is at $50.92.

 

LinkedIn (LNKD, $105.67, down $0.23)

May 82.50 puts (LNKD120519P00082500, $1.10, flat)

Entry Price:  $0.90 (4/12/12)
Exit Target: $1.80
Return:  22%
Stop Target:  None

Action:  Shares could trade down to $80 by mid-May and our first target is for a test down to $90 over the next week or so.

 

Caterpillar (CAT, $106.56, up $0.12) 

May 92.50 puts (CAT120519P00092500, $0.80, down $0.05)

Entry Price:  $0.85 (4/12/12)
Exit Target: $1.70
Return:  0-6%
Stop Target:  None

Action:  We are looking for a quick trip back under $100 and a close below $105 today would be nice.

 

PowerShares QQQ (QQQ, $66.50, down $0.70)

May 65 puts (QQQ120519P00065000, $1.10, up $0.25)

Entry Price:  $1.00 (4/11/12)
Exit Target: $2.00
Return:  10%
Stop Target:  None

Action:  A close below $66.50 would be beautiful today.

 

Deckers Outdoor (DECK, $62.40, down $0.50)

May 50 puts (DECK120519P00050000, $0.65, up $0.05)

Entry Price:  $0.50 (4/11/12)
Exit Target: $1.00
Return:  30%
Stop Target:  None

Action:  The 52-week low is $61.27 and the 2-year chart shows a test to $50 could be coming.

 

First Solar (FSLR, $21.33, down $0.67)

May 18 puts (FSLR120519P00018000, $1.20, up $0.15)  

Entry Price:  $0.90 (4/11/12)
Exit Target: $1.80
Return:  33%
Stop Target:  None

Action:  We stiare looking for a drop below $20 over the next week or two.  

 

Tiffany & Company (TIF, $66.82, down $0.55)

May 62.50 puts (TIF0519P00062500, $0.85, up $0.10)

Entry Price:  $1.05 (4/9/12)
Exit Target: $2.10
Return:  -19%
Stop Target:  80 cents

Action:  We have a near-term target of $60 for Tiffany.    

 

Lululemon Athletica (LULU, $73.98, up $0.85)

May 67.50 puts (LULU120519P00067500, $1.21, down $0.09)

Entry Price:  $1.05 (4/4/12)
Exit Target: $2.10 (closed half at $1.60 on 4/11/12)
Return:  33%
Stop Target:  $1.20, lower to $1.10 (Hard Stop)

Action:  The options haven’t hit $1.20 , yet, so lower the stop 10 cents to give the trade a little wiggle room.

 

C.H. Robinson Worldwide (CHRW, $64.28, down $0.25)

May 60 puts (CHRW120519P00060000, $0.80, up $0.10)

Entry Price:  $0.65 (4/4/12)
Exit Target: $1.30  (closed half at $0.90 on 4/11/12)
Return:  31%
Stop Target:  65 cents 

Action:  The 52-week low is $62.30 and we still expect a trip below $60 is forthcoming, possibly $55.

 

Potash (POT, $43.17, down $0.33)

April 42.50 puts (POT120421P00042500, $0.45, up $0.05)

Entry Price:  $0.55 (3/29/12)
Exit Target: $1.10 (closed half at $0.95 on 4/10/12)
Return:  27%
Stop Target:  None

Action:  Close the other half of the trade to lock-in profits.  The April options expire next week and we would hate to turn a winning trade into a loser.  The time premium will get zapped so we fell its best to close the trade and move on.  We can always come back to Potash and play the May puts.

 

Other 2012 Portfolio OPEN positions (8):  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 2012 Portfolio link in the Members Area to view ALL open/ closed trades.

magicJack VocalTec April 30 calls (from March 2012)

E*Trade Financial July 12 calls (from March 2012)

Bank of America January 12.50 calls 2013, July 12 calls (from March 2012)

Acme Packet April 40 calls (from February 2012)

Dendreon May 22 calls (from January 2012)

Silver Wheaton April 42 calls (from March 2012)

U.S. Oil Fund April 45 calls (from February 2012)

Sony April 22 calls (from February 2012)

 

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 on Monday with some fresh ideas.