9:00am (EST)

PowerShares QQQ (QQQ, $64.29, up $0.05)

August 60 puts(QQQ120818P00060000, $0.75, flat)

Entry Price:  $0.75 (6/20/12)

Exit Target: $1.50

Return:  0%

Stop Target:  None

Action:  We wanted to get short ahead of today’s economic news and we opened small positions just in case the market makes on last surge higher.  We are hoping lousy unemployment and the Philly Fed numbers get the downslide going.    

 

Veeco Instruments (VECO, $34.81, up $0.44)

July 30 puts (VECO120721P00030000, $0.45, flat) 

Entry Price:  $1.00 (6/6/12)

Exit Target: $2.00

Return:  -55%

Stop Target:  50 cents

Action:  We said a move above $34, which has been solid as resistance, would be bullish.  This could also mean resistance is getting stretched (just like the major indexes) so let’s see how this plays out for the rest of the week.  

 

Apollo Group (APOL, $33.96, down $0.13)

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, $10.50, up $0.80)   

July 3 calls (ARNA120723C00003000, $7.50, up $0.50)

Entry Price:  $1.00 (4/30/12)

Exit Target: $2+ (closed half on 6/5/12 at $3.40)

Return:  445%

Stop Target:  $5.50 (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 tommorow.

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.

 

Other 2012 Portfolio OPEN positions (9):  These are trades that are still open in the portfolio but are down over 50%.  They have longer expiration dates and 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 if 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)

Best Buy July 16 puts (from May 2012)

First Solar July 10 puts (from May 2012)

FedEx July 77.50 puts (from June 2012)

Potash July 35 puts (from June 2012)

iShares Russell 2000 July 70 puts (from June 2012)

Illinois Tool Works July 50 puts (from June 2012)

Facebook July 24 puts (from June 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  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 but these are the trades we are watching as new candidates 

 

Freeport-McMoRan Copper & Gold (FCX, $35.31, down $0.14 

July 33 puts (FCX120721P00033000, $0.70, flat)

August 31 puts (FCX120818P00031000, $0.75, flat) 

Thoughts:  A move above $35 would be bullish but we are expecting a test to $30 over the near-term and the mid-$20’s by August.  The 52-week low is $28.85.

 

Coinstar (CSTR, $65.93, up $0.28)   

July 60 puts (CSTR120721P00060000, $0.80, down $0.30)

Thoughts:  Continue to hold.

 

KLA-Tencor (KLAC, $49.75, up $0.20)

July 47 puts (KLAC120721P00047000, $0.60, down $0.05) 

September 39 puts (KLAC120922P00037000, $0.60, flat)

Thoughts:  We would like to see a test to $50 which is where we might start half positions as we expect a drop to $44 or worse over the next few months.   

 

Schlumberger (SLB, $65.54, down $1.61)  

July 60 (SLB120721P00060000, $0.70, up $0.30)

August 55 puts (SLB120818P00055000, $0.60, up $0.10)

Thoughts:  Watch for now.