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.

12;40pm (EST)

NEW TRADE!!!

Arena Pharmaceuticals (ARNA, $2.60, down $0.02)

Buy to OPEN July 3 calls (ARNA120723C00003000, $1.00, down $0.05)

Action:  Use limit prices up to $1.05 but do not pay more than $1.10-$1.15 to establish positions.  This will be an all-or-nothing trade so please keep this in mind.  If the company’s diet drug, Lorcaserin, gains approval, shares will easily surge past $5.  If not, the stock could fall to a buck or less and these options will expire worthless.

 

CURRENT TRADES

KLA-Tencor (KLAC, $52.26, down $0.03)

June 48 puts (KLAC120616P00048000, $0.70, flat)

Entry Price:  $0.45 (4/26/12)
Exit Target: $1.00
Return:  56%
Stop Target:  None

Action:  We would like to see a close below $51.50 today.       

 

First Solar (FSLR, $18.25, down $0.10)         

May 18 puts (FSLR120519P00018000, $1.55, up $0.05)

Entry Price:  $0.90 (4/11/12)
Exit Target: $1.80 (closed half at $1.50 on 4/27/12)
Return:  69%
Stop Target:  $1.30 (HARD STOP)

June 15 puts (FSLR120616P00015000, $1.05, flat) 

Entry Price:  $1.15 (4/25/12)
Exit Target: $2.30
Return:  -6%
Stop Target:  50 cents

Action:  Shares have traded down to $17.84 today and we have a near-term target of $15 for First Solar.  

 

iShares Russell 2000 (IWM, $81.62, down $0.80)  

June 75 puts (IWM120616P00075000, $0.90, up $0.15)

Entry Price:  $1.15 (4/25/12)
Exit Target: $2.30
Return:  -19%
Stop Target:  50 cents

Action:  There is resistance up to $83 but we are looking for a drop back below $80 this week.

 

Joy Global (JOY, $70.59, down $1.01)

May 65 puts (JOY120519P00065000, $0.70, up $0.10)

Entry Price:  $0.85 (4/25/12)
Exit Target: $1.70
Return:  -18%
Stop Target:  None

June 60 puts (JOY120616P00060000, $1.00, up $0.10)

Entry Price:  $1.15 (4/25/12)
Exit Target: $2.30
Return:  -10%
Stop Target:  50 cents

Action:  We would love to see a close below $70 today.

 

Apollo Group (APOL, $35.14, down $0.64)

May 33 puts (APOL120519P00033000, $0.35, up $0.05) 

Entry Price:  $0.62 (4/20/12)
Exit Target: $1.25
Return:  -44%
Stop Target:  None

Action:  Our near-term target is for a test down to $30.

 

Potash (POT, $41.98, down $0.70)     

May 40 puts (POT120519P00040000, $0.45, up $0.15)

Entry Price:  $0.40 (4/17/12)
Exit Target: $0.80
Return:  13%
Stop Target:  None

Action:  If we can get a break below $41.50, we think shares could test $38.   

 

Green Mountain Coffee Roasters (GMCR, $47.99, up $0.09)   

May 35 puts (GMCR120519P00035000, $0.45, flat)

Entry Price:  $0.85 (4/17/12)
Exit Target: $1.70
Return:  -47%
Stop Target:  None

Action:  The company announces earnings on Thursday and shares could be above $50 or below $30 by Friday.  Green Mountain has a lot of unanswered questions to put things mildly and we are hoping some old skeletons come out of the closet when they announce.  We saw our Deckers put options rebound from 60% down to return us a triple-digit profit last Friday and we are hoping for the same results.  However, a break above $50 would likely put this trade out of commission.  Conservative traders could add a call option but we are standing pat.  


Lululemon Athletica (LULU, $73.79, down $0.92)

May 67.50 puts (LULU120519P00067500, $0.60, flat)

Entry Price:  $0.90 (4/12/12)
Exit Target: $1.80 (closed half at $1.20 on 4/23/12)
Return:  0%
Stop Target:  $1.00 

Action:  There is risk up to $75 on a continued rebound but there is also a big gap to fill in the $50’s.   

 

Acuity Brands (AYI, $55.84, down $1.61)   

May 50 puts (AYI120519P00050000, $0.30, up $0.05)

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

Action:  A move above $60 and the 50-day MA will be bad news for this trade.  We have been looking for a drop below $52.50 but shares have held $54 for the most part since we have been in the trade.           

 

PowerShares QQQ (QQQ, $66.82, down $0.42)

May 65 puts (QQQ120519P00065000, $0.50, up $0.10)

Entry Price:  $1.00 (4/11/12)
Exit Target: $2.00 (closed half at $1.60 on 4/23/12)
Return:  5%
Stop Target:  None

Action:  Continue to hold.


Other 2012 Portfolio OPEN positions (5):  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.

 

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

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

Dendreon May 22 calls (from January 2012)

Tiffany & Company May 62.50 puts (from April 2012)

Caterpillar May 92.50 puts (from April 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 with some fresh ideas.