April 2013 | 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 “New Trade” 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 2013: 31-16, for a 66% win rate, including the Weekly Wrap that is 10-1).

12:45pm (EST)

New Trade!!!

Symantec (SYMC, $24.34, down $0.11)

Buy to OPEN May 25 calls (SYMC130518C00025000, $0.60, down $0.05)

Action:  We believe shares could make a run to $30 over the next few months and we only need a move past $26 to double our money on these options.

 

Current Trades

Yahoo (YHOO, $24.40, up $0.20)

May 25 calls (YHOO130518C00025000, $0.65, up $0.10)

Entry Price:  $0.65 (4/11/13)
Exit Target:  $1.30
Return:  0%
Stop Target:  None

Action:  We would like to see a close above $25 before the weekend.

 

Powershares QQQ (QQQ, $69.96, down $0.06)

April 70 calls (QQQ130420C00070000, $0.50, down $0.03)

Entry Price:  $0.33 (4/2/13)
Exit Target:  $0.60 (closed half at $0.55 on 4/10/13)
Return:  52%
Stop Target:  40 cents (Hard Stop on other half)

Action:  Our Hard Stop has been triggered as the options have traded to a low of 40 cents today.  We still made a sweet double-digit profit in a little over a week and we may be back to trade the QQQ’s.

 

Sony (SNE, $16.81, down $0.12)

April 18 calls (SNE130420C00018000, $0.10, down $0.05)

Entry Price:  $0.35 (3/27/13)
Exit Target:  $0.70
Return:  -71%
Stop Target:  None

Action:  Our breakeven point is $18.35 by next Friday.

 

Ironwood Pharmaceuticals (IRWD, $17.95, flat)

April 20 calls (IRWD130420C00020000, $0.15, flat)

Entry Price:  $0.50 (3/19/13)
Exit Target:  $1.00
Return:  -60%
Stop Target:  None

May 20 calls (IRWD130518C00020000, $0.50, flat)

Entry Price:  $0.75 (3/19/13)
Exit Target:  $1.50
Return:  -33%
Stop Target:  None

Action:  We still believe shares will make a run past $20 if we can get a close above $18 this week.

 

Keryx Biopharmaceuticals (KERX, $8.20, down $0.08)

June 10 calls (KERX130622C00010000, $0.50, flat)

Entry Price:  $0.70 (2/12/13)
Exit Target:  $1.40
Return:  -29%
Stop Target:  None

Action:  Resistance is at $9.  A close above this level could get double-digits in the mix.

 

Other 2013 Portfolio OPEN positions (7):  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 2013Portfolio link in the Members Area to view ALL open/ closed trades. 

Facebook April 29 calls (from February 2013) – Shares are over $28 and if they make a push to $30 by next Friday we could have a nice profit

Cisco Systems April 22 calls (from March 2013) – Shares could still make a run at $22 by next Friday and if it wasn’t for the downgrade a few weeks ago we would be there by now.

 

Baidu April 75 puts (from March 2013)

Cyberonics April 40 puts (from February 2013)

 

iShares Dow Jones Transportation Average April 100 puts (from February 2013)

Taiwan Semiconductor April 20 calls (from January 2013)

MGM Resorts International June 15 calls (from January 2013)

 

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 in the morning.

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11:40pm (EST)

New Trade!!!

Yahoo (YHOO, $24.40, up $0.20)

Buy to OPEN May 25 calls (YHOO130518C00025000, $0.65, up $0.10)

Action:  We like these options at current levels.  Our near-term target for Yahoo is $27-$28.

 

CURRENT TRADES

CarMax (KMX, $44.77, up $1.46)

April 45 calls (KMX130420C00045000, $0.55, up $0.20)

Entry Price:  $0.40 (4/8/13)
Exit Target:  $0.80-$1.20
Return:  38%
Stop Target:  None

Action:  While we would love to keep this trade open for further upside potential, we are going to close it and lock-in profits as $45 could serve as resistance.

***********************************

9:00am (continued…)

The Dow jumped 129 points, or 0.9%, to finish at 14,802.  The blue-chips easily cleared our extended target of 14,750 after trading up to 14,826 and we have mentioned a close above this level could get Dow 15,000 in play.  Support is now at 14,600 followed by 14,400.

The S&P 500 gained 19 points, or 1.2%, to end at 1,587.  The index reached a peak of 1,589.07 and closed above the 1,575 level and clearing the way for a test to 1,600.  If conquered, the S&P could run to 1,625 over the near-term.  Support is at 1,550 and then 1,525.

The Nasdaq advanced 59 points, or 1.8%, to settle at 3,297.  We have been calling for a run to 3,300 and Wednesday’s high was 3,299.16.  Imagine that.  There is a chance Tech can trade to 3,350-3,400 if the heavyweights like Apple (AAPL, $435.69, up $8.71) and Google (GOOG, $790.18, up $12.53) report better-than expected numbers over the next few weeks.

The Russell 2000 added 17 points, or 1.8%, to close at 946.09.  The small-caps traded to a high of 946.99 and a close above 950 would be bullish for another run at all-time highs.  The bears would like to get the action back below 940 today.  Meanwhile, the S&P 500 Volatility Index ($VIX, $12.36, down 0.48) fell nearly 4% and is nearing its 52-week low of 11.

Futures look like this as we head to press.  Dow (+7); S&P 500 (flat); Nasdaq (-7).

 

MEMBERS AREA

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 “New Trade” 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 2013: 31-16, for a 66% win rate, including the Weekly Wrap that is 10-1).

 

Powershares QQQ (QQQ, $70.01, up $1.33)

April 70 calls (QQQ130420C00070000, $0.53, up $0.42)

Entry Price:  $0.33 (4/2/13)
Exit Target:  $0.60 (closed half at $0.55 on 4/10/13)
Return:  64%
Stop Target:  40 cents (Hard Stop on other half)

Action:  We closed the April 70 calls following the 381% jump in our call options and we wished we would have timed this one a week earlier on the QQQ’s surge past $70.  We are going to set a Hard Stop on the other half of 40 cents.  If the QQQ’s fall back below $70 we will likely be out of the trade but any further upside we will continue to pad our gains.

 

CarMax (KMX, $43.31, up $1.63)

April 45 calls (KMX130420C00045000, $0.15, down $0.25)

Entry Price:  $0.40 (4/8/13)
Exit Target:  $0.80-$1.20
Return:  -12%
Stop Target:  None

Action:  Our breakeven point is $45.40 and where we need the stock to be by next Friday in order to get our 40 cents back.

 

Sony (SNE, $16.93, up $0.14)

April 18 calls (SNE130420C00018000, $0.15, flat)

Entry Price:  $0.35 (3/27/13)
Exit Target:  $0.70
Return:  -57%
Stop Target:  None

Action:  We were looking for a close above $17 and yesterday’s high was $16.99.  Our breakeven point is $18.35 by next Friday.

 

Ironwood Pharmaceuticals (IRWD, $17.95, up $0.34)

April 20 calls (IRWD130420C00020000, $0.15, down $0.05)

Entry Price:  $0.50 (3/19/13)
Exit Target:  $1.00
Return:  -60%
Stop Target:  None

May 20 calls (IRWD130518C00020000, $0.50, flat)

Entry Price:  $0.75 (3/19/13)
Exit Target:  $1.50
Return:  -33%
Stop Target:  None

Action:  We still believe shares will make a run past $20 if we can get a close above $18 this week.  Yesterday’s high was $17.97.

 

Keryx Biopharmaceuticals (KERX, $8.20, up $0.10)

June 10 calls (KERX130622C00010000, $0.50, up $0.05)

Entry Price:  $0.70 (2/12/13)
Exit Target:  $1.40
Return:  -29%
Stop Target:  None

Action:Shares traded up to $8.32 yesterday and resistance is at $9.  A close above this level could get double-digits in the mix.

 

Other 2013 Portfolio OPEN positions (7):  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 2013Portfolio link in the Members Area to view ALL open/ closed trades.

Facebook April 29 calls (from February 2013)

Cisco Systems April 22 calls (from March 2013)

Baidu April 75 puts (from March 2013)

Cyberonics April 40 puts (from February 2013)

 

iShares Dow Jones Transportation Average April 100 puts (from February 2013)

Taiwan Semiconductor April 20 calls (from January 2013)

MGM Resorts International June 15 calls (from January 2013)

 

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.

JPMorgan Chase (JPM, $49.25, up $0.57)

May 50 calls (JPM130518C00050000, $0.95, up $0.20)

Thoughts:  JP reports earnings on Friday and we believe they will report a fantastic quarter.

 

Bed Bath & Beyond (BBBY, $65.50, down $1.00)

April 67.50 calls (BBBY130420C00067500, $1.10, up $0.10)

May 57.50 puts (BBBY130518P00057500, $0.35, down $0.15)

Thoughts:  The company matched earnings and beat on revenue but their outlook was lowered.

 

Yahoo (YHOO, $24.20, up $0.37)

May 25 calls (YHOO130518C00025000, $0.55, up $0.15)

Thoughts:  We got the close above $25 and this is favorite trade to become an official recommendation.

 

Caterpillar (CAT, $86.57, up $0.67)

May 82.50 puts (CAT130518P00082500, $1.10, down $0.30)

May 85 puts (CAT130518P00085000, $1.90, down $0.40)

Thoughts:  Earnings are due out on April 22.  We would ove to see a back test to $88-$90 ahead of the event.

 

Sina (SINA, $48.52, down $0.25)

May 45 puts (SINA130518P00045000, $1.40 down $0.20)

Thoughts:  We are waiting for a drop below $46 to go short but we would like to see a back test to $50.

 

Bank of America (BAC, $12.32, up $0.07)

April 12 calls (BAC130420C00012000, $0.44, up $0.03)

June 13 calls (BAC130622C00013000, $0.32, flat)

Action:  A close back above $12.50 would be bullish.

 

Spider S&P 500 (SPY, $158.67, up $1.92)

May 153 puts (SPY130518P00153000, $0.80, down $0.40)

Thoughts:  The S&P could make a run at 1,600 which means the Spiders could reach $160.  We would wait for a break below $152.50 before possibly going short.  We are now following May puts.

 

iShares Russell 2000 (IWM, $92.22, down $0.27)

May 90 puts (IWM130518P00090000, $0.70, down $0.50)

Thoughts:  Watch for now.