9:00am (EST)

American Express (AXP, $56.75, up $0.14) 

January 57.50 calls (AXP130119C00057500, $1.05, up $0.15) 

Entry Price:  $1.00 (12/10/12)
Exit Target:  $2.00
Return:  5%
Stop Target:  50 cents

Action:  We have a near-term target of $60 for the stock which will get these options to $2.50 if reached.  Support is at double-nickels ($55).

  

TiVo (TIVO, $12.12, up $0.02)  

January 12.50 calls (TIVO130119C00012500, $0.60, up $0.02)

Entry Price:  $0.60 (12/7/12)
Exit Target:  $1.20
Return:  0%
Stop Target:  None

 

May 14 calls (TIVO130518C00014000, $0.75, flat) 

Entry Price:  $0.68 (12/7/12)
Exit Target:  $1.30
Return:  10%
Stop Target:  None 

Action:  A close above $12.75 would be bullish for a possible run to $16.  Support has been super strong at $10.  We recommended the January calls to play the near-term possible breakout and we went with the May calls for the possibility of a buyout. 

 

Dunkin’ Brands Group (DNKN, $31.43, down $0.01) 

January 32.50 calls (DNKN130119C00032500, $0.60, flat) 

Entry Price:  $0.45 (12/4/12)
Exit Target:  $1.00+
Return:  33%
Stop Target:  None 

Action:  Shares reached a peak of $31.64 before trading down to $31.11 and bouncing back yesterday.  We are expecting a run to $32.50 this week with a chance of $34 coming into play by yearend.  A close below $30 will force us out of the trade.

 

Taser International (TASR, $8.20, down $0.07)

January 10 calls (TASR130119C00010000, $0.15, flat) 

Entry Price:  $0.15 (11/29/12)
Exit Target:  $0.45
Return:  0%
Stop Target:  None

 

March 10 calls (TASR130316C00010000, $0.35, flat) 

Entry Price:  $0.30 (11/29/12)
Exit Target:  $0.50
Return:  17%
Stop Target:  None 

Action:  A close over $9 would be bullish for a run to $10.  Support is at $8 followed by $7.50.

  

Vivus (VVUS, $10.94, up $0.40) 

January 15 calls (VVUS130119C00015000, $0.30, up $0.05)

Entry Price:  $0.65 (11/21/12)
Exit Target:  $1.30
Return:  -54%
Stop Target:  None 

Action:  Shares traded to a high of $11.04 yesterday and we are looking for a close back above $12 over the near-term.  Support has been strong at $10 but a close below $9.86 and the mid-November low will force us out of the trade.

 

Rosetta Stone (RST, $12.20, up $0.08) 

January 15 calls (RST130119C00015000, $0.15, flat) 

Entry Price:  $0.20 (11/19/12)
Exit Target:  $1.00
Return:  -25%
Stop Target:  None 

Action:  Shares reached a peak of $12.35 on Monday.  We will stick with the trade as long as $11.50 holds.  We would like to see a close back above $12.50 this week.

  

HealthCare REIT (HCN, $59.70, down $0.05) 

December 60 calls (HCN121222C00060000, $0.60, down $0.05) 

Entry Price:  $1.00 (11/19/12)
Exit Target:  $2.00
Return:  -40%
Stop Target:  None 

Action:  Shares couldn’t hold $60 after hitting $60.06 yesterday.  We have said a close below $58.50 would force us out but support is holding.  Our breakeven target is technically $61 as these calls are out-of the money.   

 

Knight Capital Group (KCG, $3.24, down $0.03) 

January 2.50 calls (KCG130119C00002500, $0.75, down $0.05)Entry Price:  $0.55 (8/21/12)

Exit Target:  $1.10
Return:  45%
Stop Target:  None 

Action:  The current buyout offer is $3.50 but we expect a final price north of $4 by mid-January.  This would make these options worth at least $1.50 minimum for a juicy triple-digit return.  Shares will remain in a tight range until another offer surfaces.

  

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. 

Bank of America January 12.50 calls (2013) (from March 2012) – continue to hold 

Solazyme December 12.50 calls (from September 2012)– continue to hold 

Lufkin Industries December 45 puts (from November 2012) – half position open 

LifeLock December 10 calls (from November 2012) – continue to hold 

Monster Beverage January 35 puts (from November 2012) – continue to hold 

Apollo Group December 18 puts (from October 2012) – continue to hold

 

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.

Akamai Technologies (AKAM, $39.20, up $0.38)

January 41 calls (AKAM130119C00041000, $0.85, up $0.05)

Thoughts:  We said a move past $40 could be coming.

 

LinkedIn (LNKD, $11.74, up $2.04)

January 120 calls (LNKD130119C00120000, $1.95, up $0.60)

December 115 calls (LNKD121222C00115000, $1.60, up $0.50)

Thoughts:  Shares have made a strong move above the 50-day MA and could be headed to $1325 over the near-term

 

iShares Russell 2000 Index (IWM, $82.54, up $0.36)

January 83 calls (IWM130119C00083000, $1.35, up $0.20)

January 84 calls  (IWM130119C00084000, $0.95, up $0.10) 

Thoughts:  We have talked about the small-caps leading the next leg higher and we like these calls to play the move.

 

Microsoft (MSFT, $26.94, up $0.49)

January 27 calls (MSFT130119C00027000, $0.70, up $0.10) 

January 28 calls (MSFT130119C00028000, $0.30, up $0.05) 

Thoughts:  Shares could easily make a run back to $30 if Tech can breakout.

 

MGM Resorts International (MGM, $10.91, down $0.02) 

January 10 calls (MGM130119C00010000, $1.15, down $0.05) 

March 11 calls (MGM130316C00011000, $0.80, flat) 

Thoughts:  Shares surged to $11 on the legalized online gambling hopes after Zynga said it wants to do poker games for cash.  We said last week a close above the 50-day and 100-day MA’s would be bullish.  A close above the 200-day MA, or $11.50 would signal a possible breakout.  This is one of our favorite trades at the moment as the Casino stocks have underperformed all year long.

  

Sarepta Therapeutics (SRPT, $26.25, up $0.93) 

December 30 calls (SRPT121222 

January 30 calls (SRPT130119C00030000, $2.00, up $0.30) 

January 20 puts (SRPT130119P00020000, $0.75, down $0.20) 

Thoughts:  This is a very volatile stock but we believe a run past $30 is coming.  There is risk down to $21.  These options are expensive and the bid/ask is wide making this a hard trade to pin.  We likely won’t take action because of this but we will watch the stock for clues.

  

JPMorgan Chase (JPM, $42.31, down $0.25) 

January 44 calls (JPM130119C00044000, $0.60, down $0.05) 

Thoughts:  The 52-week peak is at $46.49.  Support is at $40.

  

Apple (AAPL, $529.82, down $3.43)  

December 600 calls (AAPL121222C00600000, $0.70, down $0.75) 

January 625 calls (AAPL130119C00625000, $3.05, down $0.70) 

Thoughts:  Shares touched a low of $521.58 and support is holding at $520.

  

Nuance Communications (NUAN, $21.88, up $0.05) 

December 22 calls (NUAN121222C00022000, $0.45, flat) 

January 23 calls (NUAN130119C00023000, $0.45, flat) 

Thoughts:  There is a good chance shares trade to $25 once $22.50 and the 50-day and 100-day MA’s are cleared.  Short-term support is at $21.50 followed by $20.

 

Intel (INTC, $20.08, down $0.08) 

January 20 calls (INTC130119C00020000, $0.75, down $0.10) 

March 20 calls (INTC130316C00020000, $1.00, down $0.05) 

Thoughts:  A run to $21 could be in the mix over the near-term if $19.50 holds.

  

Cree (CREE, $33.52, up $0.78) 

December 33 calls (CREE121222C00033000, $0.90, up $0.40) 

January 34 calls (CREE130119C00034000, $1.45, up $0.30 

Thoughts:  The December options opened at 45 cents and doubled yesterday.  Shares are near 52-week highs and there could be a push to $40 if momentum sticks.  A close back below $30 would be bearish.