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).

1:00pm (EST)

PROFIT ALERT! 

Powershares QQQ (QQQ, $70.06, up $1.38)

April 70 calls (QQQ130420C00070000, $0.55, up $0.44)

Entry Price:  $0.33 (4/2/13)
Exit Target:  $0.60
Return:  67%
Stop Target:  None

April 70.50 calls WEEKLY (QQQ130412C00070500, $0.13, up $0.12)

Entry Price:  $0.08 (4/2/13)
Exit Target:  $0.80-$1.20
Return:  63%
Stop Target:  None

Action:  CLOSE the WEEKLY April 70.50 calls at current levels to lock-in a 63% win..

Close HALF of the regular calls at current levels for a 67% return on half.

 

CarMax (KMX, $42.46, up $0.78)

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

Entry Price:  $0.40 (4/8/13)
Exit Target:  $0.80-$1.20
Return:  -63%
Stop Target:  None

Action:  The company had a strong quarter after they matched on earnings and beat on revenues but we are disappointed shares haven’t pushed $45.  The high for the session has been $43.42 and is a 52-week peak but are options took a hit.  There is still a good chance shares can reach $45 and we would like to see it happen by Friday’s close as these options expire next week.  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, $16.95, up $0.16)

April 18 calls (SNE130420C00018000, $0.15, flat)

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

Action:  Support is at $16 but we would like to see a close back above $17 today.

 

Ironwood Pharmaceuticals (IRWD, $17.89, up $0.28)

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.  The company should beat on revenue estimates when they report earnings later this month.

 

Cyberonics (CYBX, $45.53, up $1.26)

April 40 puts (CYBX130420P00040000, $0.30, down $0.20)

Entry Price:  $0.75 (2/26/13)
Exit Target:  $1.50
Return:  -60%
Stop Target:  None

Action:  A rising tide will lift all boats but we would like to see $46 hold today.  Our near-term target is calling for a test to $40 but we will need a drop to $39 if we are going to make a decent profit.

 

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.

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.