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.

1:40pm (EST)

SanDisk (SNDK, $41.90, up $1.37)

September 43 calls (SNDK120922C00043000, $1.25, up $0.55)

Entry Price:  $0.89 (8/14/12)
Exit Target:  $1.35-$1.80
Return:  40%
Stop Target:  None

Action:  Set limit orders to close HALF of the trade at $1.35 or better today.  

The calls have traded to a high of $1.30.  We would like to see a close above $42.50 today.  We are tempted to close half of the trade now because of the Cisco news after the bell but our game plan was to hold this trade open until Friday win, lose, or draw – or – until one of our Price Targets are hit.  


Wynn Resorts (WYNN, $100.23, up $0.69)

September 80 puts (WYNN120922P00080000, $0.30, flat)  

Entry Price:  $0.85 (8/2/12)
Exit Target:  $1.70
Return:  -65%
Stop Target:  None

Action:  We still have over a month to go on the puts and once $95 is cracked, the downside slide to $80 will come.    


Veeco Instruments (VECO, $35.90, up $0.67)

September 30 puts (VECO120922P00030000, $0.45, down $0.20)

Entry Price:  $0.90 (8/2/12)
Exit Target:  $1.80
Return:  -50%
Stop Target:  None

Action:  We would like to see $36 hold today into the close.


Apollo Group (APOL, $27.94, down $0.11) 

September 24 puts (APOL120922P00024000, $0.45, flat)

Entry Price:  $1.10 (7/31/12)
Exit Target:  $2.20
Return:  -59%
Stop Target:  None

Action:  We would like to see shares finish below $28 or even better, $27.50. 


Other 2012 Portfolio OPEN positions (8):  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.


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


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)



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.