June 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.

1:15pm (EST)

Facebook (FB, $31.84, up $0.43)

July 24 puts (FB120721P00024000, $0.20, down $0.05)

Entry Price:  $0.65 (6/14/12)

Exit Target: $1.05-$1.30

Return:  -69%

Stop Target:  None

Action:  Shares are still below $32 and these options have over 31 days before they expire.  

 

FedEx (FDX, $91.72, up $3.21)

July 77.50 puts (FDX120721P00077500, $0.15, down $0.35)

Entry Price:  $0.92 (6/12/12)

Exit Target: $1.95

Return:  -84%

Stop Target:  45 cents

Action:  FedEx reversed course after the market opened and has cleared $90.  We still believe shares will eventually fall below $85 by mid July but we are putting the trade on hold until the puts come back. 

 

Potash (POT, $40.72, up $1.73)       

July 35 puts (POT120721P00035000, $0.20, down $0.20)

Entry Price:  $0.75 (6/11/12)

Exit Target: $1.50

Return:  -73%

Stop Target:  None

Action:  Shares have cleared resistance but we would like to see a close below $40 today. 

 

iShares Russell 2000 (IWM, $78.69, up $1.38) 

July 70 puts (IWM120721P00070000, $0.30, down $0.20)

Entry Price:  $1.20 (6/6/12)

Exit Target: $2.40

Return:  -75%

Stop Target:  60 cents

Action:  We have been mentioning shares could test $80 and the break above $78 was bullish.  However, these options also have 4 weeks before they expire so we don’t want to close the trade as we can use them for “protection” if we do start nibbling on some call options.

 

Veeco Instruments (VECO, $34.58, up $1.32)

July 30 puts (VECO120721P00030000, $0.45, down $0.35)

Entry Price:  $1.00 (6/6/12)

Exit Target: $2.00

Return:  -55%

Stop Target:  50 cents

Action:  We are looking for a drop below $30 over the near-term, $25 by mid-July.  A move above $34, which has been solid as resistance, would be bullish.

 

Illinois Tool Works (ITW, $55.36, up $0.93) 

July 50 puts (ITW120721P00050000, $0.30, down $0.15)

Entry Price:  $1.05 (6/4/12)

Exit Target: $2.10

Return:  -71%

Stop Target:  None

Action:  Shares have tripped double-nickels but we still like this position.

 

Apollo Group (APOL, $33.84, up $0.63)

August 27 puts (APOL120818P00027000, $0.55, down $0.05)

Entry Price:  $0.90 (5/10/12)

Exit Target: $1.80

Return:  -39%

Stop Target:  45 cents

Action:  Continue to hold.

 

Arena Pharmaceuticals (ARNA, $10.27, up $0.89)   

July 3 calls (ARNA120723C00003000, $7.40, up $0.90)

Entry Price:  $1.00
(4/30/12)

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

Return:  440%

Stop Target:  $5.50 (HARD STOP on other half)

Action:  Shares have kissed $10 and we will be looking to sell a quarter of the rest of the position by Friday.

We have 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.  For those of you just joining us, the company will meet with the FDA on June 27.

 

Other 2012 Portfolio OPEN positions (4):  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)

 

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 but these are the trades we are watching as new candidates.

 

We will update this section in the morning.