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).

12:00pm (EST)

CarMax (KMX, $42.00, down $0.38)

April 45 calls (KMX130420C00045000, $0.45, down $0.05)

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

Action:  Shares hit another fresh 52-week peak at the open, reaching $42.77 before fading.  A continued high today would be a good omen going into earnings on Wednesday.

 

Sony (SNE, $16.72, down $0.30)

April 18 calls (SNE130420C00018000, $0.15, down $0.05)

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

Action:  A close back above $17.50 would be bullish for another possible push to $20.

 

Ironwood Pharmaceuticals (IRWD, $17.48, down $0.16)

April 20 calls (IRWD130420C00020000, $0.20, flat)

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

May 20 calls (IRWD130518C00020000, $0.40, flat)

Entry Price:  $0.75 (3/19/13)
Exit Target:  $1.50
Return:  -47%
Stop Target:  None

Action:  We still believe shares will make a run past $20 if we can get a close above $18 this week.  The company should beat on revenue estimates when they report earnings later this month.

 

Cyberonics (CYBX, $44.93, down $1.07)

April 40 puts (CYBX130420P00040000, $0.35, flat)

Entry Price:  $0.75 (2/26/13)
Exit Target:  $1.50
Return:  -53%
Stop Target:  None

Action:  We could get our close below $45 today.

 

Keryx Biopharmaceuticals (KERX, $8.05, up $0.71)

June 10 calls (KERX130622C00010000, $0.45, up $0.25)

Entry Price:  $0.70 (2/12/13)
Exit Target:  $1.40
Return:  -36%
Stop Target:  None

Action:  We aren’t out of the woods with this trade but we like today’s pop.

 

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.

Powershares QQQ April 70 calls (from April 2013)

April 70.50 calls (WEEKLY) (from April 2013)

Cisco Systems April 22 calls (from March 2013)

Baidu April 75 puts (from March 2013)

 

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

Facebook April 29 calls (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.