SanDisk (SNDK, $40.53, down $0.37)
September 43 calls (SNDK120922C00043000, $0.71, down $0.12)
Entry Price: $0.89 (8/14/12)
Exit Target: $1.35-$1.80
Stop Target: None
Action: The first wave of resistance is at $42.75 and if cleared, we believe shares can run to $46. We will probably close the trade if the stock falls below $40 but we plan to be out of this trade by Friday’s close if we can get a profit this week.
SanDisk reported a great quarter and beat estimates across the board. Several analysts raised their price target to $50 and a close above $42.50 would be bullish. We are looking for shares to hold $40 but if they don’t, we may pull the plug quicker than we anticipated.
Wynn Resorts (WYNN, $99.54. down $0.59)
September 80 puts (WYNN120922P00080000, $0.30, down $0.05)
Entry Price: $0.85 (8/2/12)
Exit Target: $1.70
Stop Target: None
Action: Shares closed below $100 but our options slipped a bit. 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, $35.17, down $0.64)
September 30 puts (VECO120922P00030000, $0.65, up $0.05)
Entry Price: $0.90 (8/2/12)
Exit Target: $1.80
Stop Target: None
Action: We wanted to see a close below $35 yesterday and shares hit a low of $34.93 just before the close. If short-term support fails at this level, we should see a test down to $32.50 and from there $30.
Apollo Group (APOL, $28.05, down $0.29)
September 24 puts (APOL120922P00024000, $0.45, down $0.05)
Entry Price: $1.10 (7/31/12)
Exit Target: $2.20
Stop Target: None
Action: We wanted to see a close below $28 yesterday and shares came close after falling to a low of $27.94.
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)
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.
Pepsi (PEP, $72.24, up $0.25)
September 72.50 calls (PEP120922C00072500, $0.65, up $0.05)
October 75 calls (PEP121020C00075000, $0.35, up $0.05)
January (2013) 75 calls (PEP130119C00075000, $1.00, up $0.10)
Thoughts: A run to $80 could be in the cards if support at $70, which was prior resistance, holds. If you buy any of the aforementioned calls, use $67.50 as a stop. We like the January 75 calls the most and if we make an official recommendation this week we will send out a Trade Alert.
Taiwan Semiconductor Manufacturing (TSM, $14.40, up $0.09)
January 15 calls (TSM130119C00015000, $0.70, up $0.05)
Thoughts: We said we would wait for a move above $14.50 but let’s make it $14.75 to be safe if we do decide to add these call options.
Buffalo Wild Wings (BWLD, $72.41, down $0.41)
September 80 calls (BWLD120922C00075000, $0.45, down $0.10)
September 65 puts (BWLD120922P00065000, $0.80, flat)
Thoughts: In late July, the stock fell from $78.90 to $70.43 the day after the company reported earnings and traded down to $68.71 intraday. The recovery high was $75.01 which is near-term resistance. This is the level we will need to watch for a bullish breakout and buy calls. A move below $70 would suggest we use put options for a possible test down to $65-$60. If shares can clear their 50-day MA there is a chance for a quick run to $80.
Dillard’s (DDS, $74.91, up $0.07)
September 65 puts (DDS120922P00065000, $0.70, down $0.10)
Thoughts: Shares have gone ballistic and could push $80 over the near-term while a break below $70 would end the momentum.
Broadcom (BRCM, $34.41, down $0.70)
September 36 calls (BRCM120922C00036000, $0.95, down $0.30)
September 32 puts (BRCM120922P00032000, $0.50, up $0.10)
Thoughts: The 52-week high is $39.66. We would wait until shares clear $36 before going long and on a break below $34 we might look to go short.
Ingersoll-Rand (IR, $44.71, down $0.32)
September 42 puts (IR120922P00042000, $0.65, up $0.05)
September 46 calls (IR120922C00046000, $0.85, down $0.10)
Thoughts: Shares could continue higher and make a run at $50 over the near-term but a drop below $41-$40 would be bearish.
Akamai Technologies (AKAM, $35.44, down $0.30)
September 34 puts (AKAM120922P00034000, $0.80, up $0.05)
September 38 calls (AKAM120922C00038000, $0.50, down $0.05)
November 45 calls (AKAM121117C00045000, $0.45, down $0.05)
January 45 calls (AKAM130119C00045000, $0.90, down $0.05)
Action: A close above $37 could lead to a test of the 52-week high of $39.14. If shares make a move past $40 it would represent blue-sky territory and a possible push to $45-$50. A drop below $34 would be bearish and could lead to a test of $30. We have also listed the January and November 45 calls on a possible run to $50 and would give us an additional 2-4 months to play a breakout.
KLA-Tencor (KLAC, $52.29, down $0.66)
September 55 calls (KLAC120922C00055000, $0.50, down $0.15)
September 50 puts (KLAC120922P00050000, $0.85, up $0.10)
Thoughts: We said early last week it might be time to get bullish if $50 continues to hold. Shares look headed to double-nickels ($55) and a blue-sky breakout could be in the mix. A move below $51-$50 would reverse the recent uptrend.