April 2012 | Members

MEMBERS AREA

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.

1:30pm (EST)

Acuity Brands (AYI, $55.27, up $1.20)

May 50 puts (AYI120519P00050000, $0.80, down $0.25)

Entry Price:  $0.60 (4/12/12)
Exit Target: $1.20
Return:  33%
Stop Target:  50 cents

Action:  Our near-term target is for a drop below $50, down to $48.  The 200-day MA is at $50.79.  We have a stop target of 50 cents but it is not a Hard Stop.  A break above $56 will have us out of the trade.

 

LinkedIn (LNKD, $100.55, down $6.69)

May 82.50 puts (LNKD120519P00082500, $1.60, up $0.65)

Entry Price:  $0.90 (4/12/12)
Exit Target: $1.80
Return:  78%
Stop Target:  None

Action:  Shares have traded down to $99.69 and we are looking for a close under $100 today.  

 

Caterpillar (CAT, $107.05, up $1.16) 

May 92.50 puts (CAT120519P00092500, $0.90, up $0.05)

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

Action:  Continue to hold.

 

PowerShares QQQ (QQQ, $65.52, down $0.67)

May 65 puts (QQQ120519P00065000, $1.40, up $0.20)

Entry Price:  $1.00 (4/11/12)
Exit Target: $2.00
Return:  40%
Stop Target:  None

Action:  Our near-term target is $63 which would get these options to $2.  

 

Deckers Outdoor (DECK, $61.84, down $0.27)

May 50 puts (DECK120519P00050000, $0.65, flat)

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 we feel a move below $60 coming.  Our near-term target is $55 over the next week or two followed by a dip to $50 or worse.

 

First Solar (FSLR, $20.88, up $0.05)

May 18 puts (FSLR120519P00018000, $1.25, flat) 

Entry Price:  $0.90 (4/11/12)
Exit Target: $1.80
Return:  39%
Stop Target:  None

Action:  We are looking for a drop below $20 over the next week or two.  This level was the IPO price from late 2006 and a breach of this level should lead to the mid-teens.  

 

Tiffany & Company (TIF, $66.37, down $0.03)

May 62.50 puts (TIF0519P00062500, $0.95, flat)

Entry Price:  $1.05 (4/9/12)
Exit Target: $2.10
Return:  -10%
Stop Target:  80 cents

Action:  Shares closed below their 50-day MA on Friday and a break below $64 should get us to at least $62, possibly $60 which would get these puts to $2.50.  A move above $68 would be bullish short-term. 

 

Lululemon Athletica (LULU, $73.02, down $0.49)

May 67.50 puts (LULU120519P00067500, $1.40, up $0.10)

Entry Price:  $1.05 (4/4/12)
Exit Target: $2.10 (closed half at $1.60 on 4/11/12, closed half at $1 on 4/16/12)
Return:  24%
Stop Target:  $1.10 (Hard Stop)

Action:  The options opened at $1 which was below our Hard Stop of $1.10 so we were closed out at the open.  We tried to give the trade some wiggle room but it is now officially closed.

 

C.H. Robinson Worldwide (CHRW, $64.56, up $0.43)

May 60 puts (CHRW120519P00060000, $0.70, down $0.10)

Entry Price:  $0.65 (4/4/12)
Exit Target: $1.30  (closed half at $0.90 on 4/11/12)
Return:  23%
Stop Target:  65 cents

Action:  The 52-week low is $62.30 and we are expecting a trip below $60 this week.   The puts would then be in-the-money and would be worth $2 if shares test $58.

 

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.

 

April Options Expire this Friday.

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 in the morning.