September 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.  Closed Trades for 2012 (121-37, or 77% win rate, including Weekly Wrap which is 22-0).

12:50pm (EST)

Monster Beverage (MNST, $57.92, down $0.15)

September 52.50 puts (MNST120922P00052500, $0.30, flat)

Entry Price:  $0.80 (9/5/12)
Exit Target:  $1.60
Return:  -63%
Stop Target:  None

 

October 50 puts (MNST121020P00050000, $0.70, flat)

Entry Price:  $1.10 (9/5/12)
Exit Target:  $2.20
Return:  -36%
Stop Target:  55 cents

Action:  We figured there would be a back test to $58, possibly $60, on a rally but we aren’t too worried as long as resistance holds.  We want to keep some short positions open going into October and we feel the September options can still bounce back.   . 

 

Solazyme (SZYM, $11.53, down $0.01)

December 12.50 calls (SZYM121222C00012500, $0.90, flat)

Entry Price:  $0.70 (9/5/12)
Exit Target:  $1.40
Return:  29%
Stop Target:  None

Action:  We would like to see shares stick $12 into the close today but the high has only been $11.58 so far.  Over the next few months, we are expecting a quick trip back above $12.50 and then a possible move towards $14.  If reached, these options will easily double.

 

Silver Wheaton (SLW, $36.41, up $0.70)

October 37 calls (SLW121020C00037000, $1.55, up $0.30)

Entry Price:  $1.10 (9/4/12)
Exit Target:  $3.00
Return:  41%
Stop Target:  55 cents

Action:  It looks like we could get our close above $36 today.  We have a $40 price target by mid-October for the stock which would get the calls to $3.      

 

Knight Capital Group (KCG, $2.74, flat)

January (2013) 2.50 calls (KCG130119C00002500, $0.45, flat)

Entry Price:  $0.55 (8/21/12)
Exit Target:  $1.10
Return:  -18%
Stop Target:  None

Action:  We would like to see shares close above $3 over the next few weeks but there is still risk down to $2.  If shares trade near $4 by mid-January we will get an easy double or triple on our call options.

 

Pepsico (PEP, $72.10, down $0.05)

October 75 calls (PEP121020C00075000, $0.35, flat)

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

Action:  Continue to hold for now.   

 

Other 2012 Portfolio OPEN positions (6):  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.

 

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 October 24 puts (from August 2012)

                      September 24 puts (from July 2012)

Bank of America January 12.50 calls 2013 (from March 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 on Monday with some fresh ideas.