August 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.

12:20pm (EST)


Fusion-io (FIO, $28.21, down $0.02)

Buy to OPEN September 30 calls (FIO120922C00030000, $1.00, up $0.15)

Action:  Use limit orders up to $1.10 but do not pay more than $1.15-$1.20 to establish positions.  Since we are buying options on a Friday, we are suggesting HALF positions in case Monday is a down day.


MGM Resorts (MGM, $10.49, up $0.12)

Buy to OPEN September 10 calls (MGM120922C00010000, $0.70, up $0.05)

Action:  Use limit orders up to 75 cents but do not pay more than 80 cents to establish positions.  We are also suggesting HALF positions for this trade as well.



Pepsico (PEP, $73.35, down $0.23)

September 75 calls (PEP120922C0007500, $0.25, down $0.05)

Entry Price:  $0.15 (8/16/12)
Exit Target:  $0.30
Return:  67%
Stop Target:  None

October 75 calls (PEP121020C00075000, $0.65, down $0.05)

Entry Price:  $0.50 (8/16/12)
Exit Target:  $1.00
Return:  30%
Stop Target:  None

Action:  Continue to hold.


Riverbed Technology (RVBD, $20.97, up $0.27)

September 21 calls (RVBD120922C00021000, $1.25, up $0.10)

Entry Price:  $0.90 (8/16/12)
Exit Target:  $1.35-$1.80
Return:  39%
Stop Target:  90 cents

Action:  Continue to hold. 


SanDisk (SNDK, $42.76, up $0.06)

September 43 calls (SNDK120922C00043000, $1.60, flat)

Entry Price:  $0.89 (8/14/12)
Exit Target:  $1.35-$1.80 (closed half at $1.45 on 9/16/12)
Return:  71%
Stop Target:  $1.25 (HARD STOP)

Action:  Continue to hold.


Other 2012 Portfolio OPEN positions (10):  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.


AUGUST options expire TODAY!!!


iShares Dow Jones US Real Estate August 57 puts (from June 2012)  

AOL August 24 puts (from June 2012)  

Consumer Discret Select Spiders August 41 puts (from June 2012)

Freeport McMoRan Copper & Gold August 29 puts (from June 2012)

PowerShares QQQ August 59 puts (from June 2012)


Dow Jones Industrial Average Spiders September 119 puts (from July 2012)

S&P 500 Spiders September 123 puts (from July 2012)

Wynn Resorts September 80 puts (from August 2012)  

Veeco Instruments September 30 puts (from August 2012)

Apollo Group September 24 puts (from August 2012)


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



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 on Monday with some fresh ideas.