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.
12:15pm (EST)
NEW TRADE!!!
Freeport-McMoRan Copper & Gold (FCX, $33.81, down $1.50)
Buy to OPEN August 31 puts (FCX120818P00031000, $1.05, up $0.30)
Action: Use limit orders up to $1.10 but do not pay over $1.15 to establish positions.
CURRENT TRADES
PowerShares QQQ (QQQ, $63.54, down $0.75)
August 60 puts (QQQ120818P00060000, $0.85, up $0.10)
Entry Price: $0.75 (6/20/12)
Exit Target: $1.50
Return: 13%
Stop Target: None
Action: It looks as though the jobless claims and the Philly Fed numbers have capped the rally but its early. While we won’t rule out one last surge to $65 for the Q’s, our mid-August target is for a test to $58 or worse.
Veeco Instruments (VECO, $34.62, down $0.19)
July 30 puts (VECO120721P00030000, $0.40, flat)
Entry Price: $1.00 (6/6/12)
Exit Target: $2.00
Return: -60%
Stop Target: 50 cents
Action: We would like to see a close below $34 by the weekend.
Apollo Group (APOL, $33.82, down $0.14)
August 27 puts (APOL120818P00027000, $0.55, flat)
Entry Price: $0.90 (5/10/12)
Exit Target: $1.80
Return: -39%
Stop Target: 45 cents
Action: Continue to hold.
Arena Pharmaceuticals (ARNA, $11.28, up $0.78)
July 3 calls (ARNA120723C00003000, $8.30, up $0.80)
Entry Price: $1.00 (4/30/12)
Exit Target: $2+ (closed half on 6/5/12 at $3.40)
Return: 485%
Stop Target: $5.50, raise to $6.75 (HARD STOP a quarter of the other half)
Action: We still plan on closing a quarter of the remaining half position ahead of next week’s announcement by Friday but if shares continue to surge we may push the trade into next week. We have raised the Hard Stop to $6.75.
We had a price target of $10+ if there is no delay with their obesity drug, Lorcaserin, which could go to market by the end of the year if all goes well. We may have to raise it to $15. For those of you just joining us, the company will meet with the FDA on June 27.
