9:00am (EST)

Monster Beverage (MNST, $55.56, down $1.69)

September 52.50 puts (MNST120922P00052500, $0.80, up $0.40)

Entry Price:  $0.80 (9/5/12)
Exit Target:  $1.60
Return:  0%
Stop Target:  None

October 50 puts (MNST121020P00050000, $1.20, up $0.45)

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

Action:  We were looking for a close below $55 after shares traded to a low of $54.86.  There is risk up to $60 on a back test but we believe shares are headed to $45.

 

Solazyme (SZYM, $11.71, up $0.10)

December 12.50 calls (SZYM121222C00012500, $0.90, up $0.10)

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

Action:  Shares made a quick trip to $11.83 after we started establishing positions as the options reached a peak of 98 cents.  There is risk down to $11 but 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, $35.16, up $0.02)

October 37 calls (SLW121020C00037000, $1.15, flat)

Entry Price:  $1.10 (9/4/12)
Exit Target:  $3.00
Return:  5%
Stop Target:  55 cents

Action:  We would like to see a close above $36 this week.  Shares traded to $35.30 yesterday.  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.   

 

Apollo Group (APOL, $28.19, up $0.66)

October 24 puts (APOL121020P00024000, $0.60, down $0.20)

Entry Price:  $1.16 (8/28/12)
Exit Target:  $2.30
Return:  -48%
Stop Target:  60 cents

September 24 puts (APOL120922P00024000, $0.10, down $0.10)

Entry Price:  $1.10 (7/31/12)
Exit Target:  $2.20
Return:  -91%
Stop Target:  None

 

Action:  We have closed 2 Apollo put options trades this year for profits of 8% and 67%.  We aren’t sure if the September puts are going to make a comeback but we want to hold the October puts open to play Apollo’s earnings.  We are keeping the trades open but we are moving them to the “hold” section.  The puts that made us 67% were down over 75% before coming back to hand us a profit in August so we are writing the Sept’s off yet.

The 52-week low of $25.77 was hit at the beginning of August.  The company will announce earnings in mid-October and we are expecting shares to drift below $25 over the next few weeks.  Our near-term target is $20 but our longer-term target remains the low teens.

 

Cymer (CYMI, $56.58, down $0.20)

September 55 puts (CYMI120922P00055000, $1.20, flat)

Entry Price:  $1.42 (8/23/12)
Exit Target:  $2.25+
Return:  -15%
Stop Target:  70 cents

 

Action:  There is risk up to $58 but we are expecting a close below $55 by week’s end.  A jump back above $58-$60 will likely force us out of the trade.

 

Knight Capital Group (KCG, $2.76, flat)

January (2013) 2.50 call (KCG130119C00002500, $0.50, flat)

Entry Price:  $0.55 (8/21/12)
Exit Target:  $1.10
Return:  -9%
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, $71.54, down $0.40)

October 75 calls (PEP121020C00075000, $0.25, down $0.05)

Entry Price:  $0.50 (8/16/12)
Exit Target:  $1.00
Return:  -50%
Stop Target:  None

Action:  Continue to hold for now. 

 

Other 2012 Portfolio OPEN positions (5):  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)

 

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, $25.44, up $0.35)

September 25 calls (CALL120922C00025000, $1.05, up $0.15)

October 25 calls (CALL121020C00025000, $1.65, up $0.30)

Thoughts:  Shares could be setting up to make a run at their 52-week high of $28.22.

 

Amgen (AMGN, $84.08, down $0.25)      

September 85 calls (AMGN120922C00085000, $0.90, down $0.10)

October 87.50 calls (AMGN121020C00087500, $1.00, down $0.10)

Thoughts:  A close above $85 could lead to a blue-sky territory and a $100 stock.  There is risk down to $81 which is where we would love to reestablish a position but we might jump on the October 87.50’s if shares close above $85 this week.  If support at $80 is broken down the road, we will play put options.

 

AOL (AOL, $33.75, up $0.27)

September 33 calls (AOL120922C00033000, $1.20, up $0.20)

September 33 puts (AOL120922P00033000, $0.50, down $0.10)

Thoughts:  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 uner $30 once this level is taken out.

 

Netflix (NFLX, $54.96, down $0.97)

September 55 puts (NFLS120922P00055000, $2.50, up $0.20)

September 50 puts (NFLS120922P00050000, $0.85, up $0.05)

Thoughts:  Continue to watch.

 

Fusion-io (FIO, $27.65, down $1.15)

September 26 puts (FIO120922P00026000, $0.50, up $0.20)

September 30 calls (FIO120922C00030000, $0.35, down $0.35)

October 30 calls (FIO121020C00030000, $1.10, down$0.40)

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

 

Akamai Technologies (AKAM, $37.71, up $0.04)

September 38 calls (AKAM120922C00038000, $0.85, flat)

November 45 calls (AKAM121117C00045000, $0.70, flat)

January 45 calls (AKAM130119C00045000, $1.30, flat)

Action:  A close below $36 would be bearish while a break above $38 could send shares into blue-sky territory and north of $40.