9:00am (EST)

Monster Beverage (MNST, $58.07, up $2.51)

September 52.50 puts (MNST120922P00052500, $0.30, down $0.45)

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

October 50 puts (MNST121020P00050000, $0.70, down $0.30)

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.  Yesterday’s high was $58.37 and the close was right at $58. 

 

Solazyme (SZYM, $11.54, down $0.17)

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:  Shares traded to a high of $12.04 before finishing the session slightly lower.  Shares did fall to $11.41 but it was a higher low and we got a higher high yesterday.  We would like to see shares stick $12 into the close today.  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, $35.71, up $0.55)

October 37 calls (SLW121020C00037000, $1.25, up $0.10)

Entry Price:  $1.10 (9/4/12)
Exit Target:  $3.00
Return:  14%
Stop Target:  55 cents

Action:  Shares peaked at $35.89 yesterday.  We would like to see a close above $36 today.  We have a $40 price target by mid-October for the stock which would get the calls to $3.  Short-term support is at $34 and where we might hit the door.   

 

Knight Capital Group (KCG, $2.74, down $0.02)

January (2013) 2.50 calls (KCG130119C00002500, $0.45, down $0.05)

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, $72.15, up $0.61)

October 75 calls (PEP121020C00075000, $0.35, up $0.10)

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.

 

magicJack VocalTech (CALL, $26.54, up $1.10)

September 25 calls (CALL120922C00025000, $1.95, up $0.90)

October 25 calls (CALL121020C00025000, $2.60, up $0.95)

Thoughts:  If you are in, nice hit yesterday.  Shares could be setting up to make a run at their 52-week high of $28.22. 

 

Amgen (AMGN, $84.81, up $0.72)      

September 85 calls (AMGN120922C00085000, $1.10, up $0.20)

October 87.50 calls (AMGN121020C00087500, $1.15, up $0.15)

Thoughts:  A close above $85 could lead to a blue-sky territory and a $100 stock.  There is risk down to $81.

 

AOL (AOL, $33.77, up $0.02)

September 33 calls (AOL120922C00033000, $1.20, flat)

September 33 puts (AOL120922P00033000, $0.50, flat)

Thoughts:  Shares could be topping following yesterday’s lackluster effort.  A close above $34.50 could lead to another surge but resistance has been a brick wall at $34.  We are waiting for a close below $32 to play possible put options on a move back under $30 once this level is taken out. 

 

Netflix (NFLX, $56.65, up $1.69)

September 55 puts (NFLS120922P00055000, $1.70, down $0.80)

September 50 puts (NFLS120922P00050000, $0.50, down $0.35)

Thoughts:  We would love to see a back test to $60.

 

Fusion-io (FIO, $28.29, up $0.64)

September 26 puts (FIO120922P00026000, $0.35, down $0.15)

September 30 calls (FIO120922C00030000, $0.50, up $0.15)

October 30 calls (FIO121020C00030000, $1.25, up $0.15)

Thoughts:  There is risk down to $26 and resistance is at $30.  A move above $30 would be super bullish.

 

Akamai Technologies (AKAM, $39.21, up $1.50)

September 38 calls (AKAM120922C00038000, $1.55, up $0.70)

November 45 calls (AKAM121117C00045000, $1.05, up $0.30)

January 45 calls (AKAM130119C00045000, $1.70, up $0.40)

Action:  We said a break above $38 could send shares into blue-sky territory and north of $40.  Yesterday’s peak was $39.37 and a fresh 52-week high.