July 2012 | Members

Do not risk more than 5% of your trading account on any one trade but do try to take ALL of the trades.  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.

12:45pm (EST)

PowerShares QQQ (QQQ, $64.11, down $0.05)

August 59 puts (QQQ120818P00059000, $0.45, flat)

Entry Price:  $0.75 (6/27/12)

Exit Target:  $1.50

Return:  -40%

Stop Target:  None  

Action:  We would like to see $65 hold but there is risk to $67.  The August options have nearly 7 weeks before they expire and we are expecting a drop below $60 by then so be patient.   

 

AOL (AOL, $28.20, up $0.12)

August 24 puts (AOL120818P00024000, $0.40, down $0.05)

Entry Price:  $0.53 (6/26/12)

Exit Target:  $1.00

Return:  -25%

Stop Target:  None

Action:  We expect resistance to hold at $28 but there is risk up to $30.  We are still looking for a test to $26 over the near-term and then $24.   

Consumer Discret Select Spider (XLY, $43.71, down $0.07)

August 41 puts (XLY120818P00041000, $0.40, down $0.05)

Entry Price:  $0.80 (6/25/12)

Exit Target:  $1.60

Return:  -50%

Stop Target:  None

Action:  There is risk to $45 but we are expecting a test to $40 over the next week or two; mid-$30’s by August.   

 

Coinstar (CSTR, $68.23, down $0.43)   

July 60 puts (CSTR120721P00060000, $0.30, flat)

Entry Price:  $0.90 (6/25/12)

Exit Target:  $1.80

Return:  -67%

Stop Target:  40 cents

Action:  There is risk to $70 but the company has already warned of an earnings miss.  The July options have nearly 3 weeks before they expire and we would like to see a move back below $65 this week.

 

iShares Dow Jones US Real Estate (IYR, $64.20, up $0.27)

August 57 puts (IYR120818P00057000, $0.30, flat)

Entry Price:  $0.85 (6/25/12)

Exit Target:  $1.70

Return:  -65%

Stop Target:  40 cents

Action:  We said there could be a test to $64 which was hit on Friday.  There is further risk to $65 but we are expecting a fade below $60 by mid-August.

 

KLA-Tencor (KLAC, $48.93, down $0.32)

August 43 puts (KLAC120818P00043000, $0.55, flat)

Entry Price:  $0.90 (6/25/12)

Exit Target:  $1.80

Return:  -39%

Stop Target:  45 cents

Action:  We are expecting a close below $45 by week’s end.

 

Illinois Tool Works (ITW, $52.40, down $0.49)

July 50 puts (ITW120721P00050000, $0.35, flat)

Entry Price:  $1.05 (6/4/12)

Exit Target:  $2.10

Return:  -67%

Stop Target:  None

Action:  Shares came close to falling below $50 last week and we are still expecting a test to $48 by mid-July.