9:00am (EST)

Fossil (FOSL, $89.33, down $3.08)

February 70 puts (FOSL130216P00070000, $1.35, up $0.35) 

Entry Price:  $1.20 (12/26/12)
Exit Target:  $2.40
Return:  13%
Stop Target:  60 cents 

Action:  Everyone should have gotten nice fills at $1.20-$1.25 yesterday when the trade was released.  We were going to go with the March puts but these options will give us enough time to play Fossil’s upcoming earnings drop.  We have a near-term price target of $65 and if shares make it to this level we will have a monster profit.  

  

iShares Russell 2000 Index (IWM, $83.18, down $0.60) 

January 85 calls (IWM130104C00085000, $0.35, down $0.25) 

Entry Price:  $0.70 (12/21/12)
Exit Target:  $1.40
Return:  -50%
Stop Target:  None 

Action:  These are WEEKLY options sand we will be closing this trade by Friday or next Monday.  Our breakeven point if we carried over into the New Year would be $85.70 and we will keep the trade open as long as $82 holds.  At $86, we should make nearly 50% on the options. 

 

Cree (CREE, $33.55, down $0.44)   

January 36 calls (CREE130119C00036000, $0.50, down $0.15) 

Entry Price:  $0.65 (12/21/12)
Exit Target:  $1.30
Return:  -23%
Stop Target:  None 

Action:  If there is further weakness, we would like to see $33 hold but there is risk down to $32.  We are looking for a close above $36 this week and a run to new highs.

  

Nuance Communications (NUAN, $22.16, down $0.05)   

January 24 calls (NUAN130119C00024000, $0.20, flat) 

Entry Price:  $0.35 (12/18/12)
Exit Target:  $0.70
Return:  -43%
Stop Target:  None 

Action:  Near-term support is at $22 but there is a chance $20 comes into play on a break below this level.  We have a near-term price of $25 if support holds.  These are “cheap” options we don’t mind holding open.

 

Southern Copper (SCCO, $37.73, down $0.15) 

January 40 calls (SCCO130119C00040000, $0.25, down $0.05) 

Entry Price:  $0.45 (12/14/12)
Exit Target:  $1.00
Return:  -44%
Stop Target:  None 

Action:  Shares traded to a high of $38.42 yesterday but ended lower.  The options traded up to 37 cents and we still like this trade as long as $37 holds.

  

Taser International (TASR, $8.63, down $0.13)

January 10 calls (TASR130119C00010000, $0.20, flat) 

Entry Price:  $0.15 (11/29/12)
Exit Target:  $0.45
Return:  33%
Stop Target:  None

 

March 10 calls (TASR130316C00010000, $0.50, down $0.05)Entry Price:  $0.30 (11/29/12)

Exit Target:  $0.50
Return:  67%
Stop Target:  None 

Action:  The recent high is $9.26 and shares traded to a high of $8.88 yesterday.  If shares can take out their 52-week high this week, we should see $10 come into play.

  

 Vivus (VVUS, $13.18, down $0.24) 

January 15 calls (VVUS130119C00015000, $0.45, down $0.10) 

Entry Price:  $0.65 (11/21/12)
Exit Target:  $1.30
Return:  -31%
Stop Target:  None 

Action:  We would like to see Vivus close above $14 this week while holding $12 on any pullback.  We may have to roll this trade out into March or June but we are hoping we can get a run past $14 this week.

  

Rosetta Stone (RST, $12.35, down $0.04) 

January 15 calls (RST130119C00015000, $0.10, flat) 

Entry Price:  $0.20 (11/19/12)
Exit Target:  $1.00
Return:  -50%
Stop Target:  None 

Action:  We would like to see a close above $12.75 this week.  Support has been strong at $12 and we will stick with the trade as long as $11.75 holds.

 

Other 2012 Portfolio OPEN positions (2):  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) 

Monster Beverage January 35 puts (from November 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.

  

Akamai Technologies (AKAM, $41.25, down $0.14) 

January 43 calls (AKAM130119C00043000, $.60, down $0.05) 

May 55 calls (AKAM130518C00055000, $0.65, flat) 

Thoughts:  We still like the stock to push $45 over the near-term and we believe Akamai will be a takeover target in 2013 which is why we listed the May call options.

 

 

MGM Resorts International (MGM, $11.59, down $0.10) 

January 12.50 calls (MGM130119C00012500, $0.12, down $0.03) 

March 13 calls (MGM130316C00013000, $0.33, down $0.02)

June 15 calls (MGM130622C00015000, $0.29, down $0.03) 

Thoughts:  We are expecting a run past $12 to the upper mid-teens for MGM over the next few months.  Support has been strong at $11 with $10 serving backup.

  

JPMorgan Chase (JPM, $43.96, up $0.04) 

January 46 calls (JPM130119C00046000, $0.35, flat) 

Thoughts:  The 52-week high is at $46.49 and if shares make a run this level will likely trip with fluff up to $48.  If the Fiscal Cliff is averted, the Financial stocks should continue gathering momentum.  A close below $42 would indicate a trend change.

 

 

Caterpillar (CAT, $87.67, up $0.19) 

January 85 puts (CAT130119P00085000, $1.15, down $0.10) 

Thoughts:  Shares could be headed for another trip below $85 after a failed test at $91 again.   

 

Taiwan Semiconductor (TSM, $16.92, down $0.01) 

January 17.50 calls (TSM130119C00017500, $0.20, flat) 

April 17.50 calls (TSM1304C00017500, $0.70, flat)  

Thoughts:  If the bulls can hold support, shares could push $18-$19 by mid-January.  We have played this name with great results in the past and we like it at current levels.

 

 

Dunkin’ Brands Group (DNKN, $32.35, down $0.55)  

January 32.50 calls (DNKN130119C00032500, $0.70, down $0.25) 

Thoughts:  Near-term support is at $32.50 but there is risk to $31.50.  We still expect shares to make a run past $34.

 

 

TiVo (TIVO, $12.34, down $0.03)    

January 12.50 calls (TIVO130119C00012500, $0.45, flat)  

May 14 calls (TIVO130518C00014000, $0.85, flat) 

Thoughts:  We have mentioned Google could acquire TiVo down the road due to litigation issues and with the company’s new high-speed internet rolling out in Kansas, Google has new technology that everyone will crave.  We see Google eventually moving to cable and TiVo would be a perfect fit.  At this point, the May calls are the safer way to play a buyout.  There is risk down to $11.50 if $12 doesn’t hold but we are looking for new highs if support holds.