9:00am (EST)

CarMax (KMX, $41.68, down $0.70)

April 45 calls (KMX130420C00045000, $0.40, down $0.10)

Entry Price:  $0.40 (4/8/13)
Exit Target:  $0.80-$1.20
Return:  0%
Stop Target:  None

Action:  Set limit prices to close the calls at $1 or better.

We didn’t like how shares closed yesterday but earnings are out this morning and we are looking for a run past $45.  If shares reach $46 we will have a double.  We will send out a Trade Alert if our exit target triggers.  If shares slip after the report, we will likely lose a significant amount of our premium.

 

Sony (SNE, $16.78, down $0.23)

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

 

Ironwood Pharmaceuticals (IRWD, $17.61, down $0.03)

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, $44.27, down $1.73)

April 40 puts (CYBX130420P00040000, $0.50, up $0.15)

Entry Price:  $0.75 (2/26/13)
Exit Target:  $1.50
Return:  -33%
Stop Target:  None

Action:  We got our close below $45 as shares traded to a low of $44.14 on Tuesday.  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.

 

KeryxBiopharmaceuticals(KERX, $8.10, up $0.76)

June 10 calls (KERX13062200010000, $0.45, up $0.25)

Entry Price:  $0.70 (2/12/13)
Exit Target:  $1.40
Return:  -36%
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.

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.

 

JPMorgan Chase (JPM, $48.68, up $0.10)

May 50 calls (JPM130518C00050000, $0.75, flat)

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

 

Bed Bath & Beyond (BBBY, $64.50, down $0.53)

April 67.50 calls (BBBY130420C00067500, $1.00m down $0.10)

May 57.50 puts (BBBY130518P00057500, $0.50, up $0.05)

Thoughts:  Earnings are due out this morning.

 

Yahoo (YHOO, $23.83, up $0.35)

May 24 calls (YHOO130518C00024000, $0.80, up $0.15)

Thoughts:  Near-term support is at $23 and there is back up at $22.  A drop below this level could lead to a test to $20 but if Tech can turnaround over the next few weeks we could see a push past $24.

 

Caterpillar (CAT, $85.90, up $1.71)

May 82.50 puts (CAT130518P00082500, $1.40, down $0.60)

May 85 puts (CAT130518P00085000, $2.30, down $0.95)

Thoughts:  We have missed several opportunities to trade CAT as it has been on our Watch List for weeks.  A trip to $80 is almost certain but we would love to see a back test to $88 first.

 

Sina (SINA, $48.77, up $1.21)

May 45 puts (SINA130518P00045000, $1.60 down $0.50)

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, $12.25, up $0.04)

April 12 calls (BAC130420C00012000, $0.40, flat)

June 13 calls (BAC130622C00013000, $0.30, flat)

Action:  A close back above $12.25 and then $12.50 would be bullish.

 

Spider S&P 500 (SPY, $156.75, up $0.54)

May 153 puts (SPY130518P00153000, $1.20, down $0.15)

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, $1.20, up $0.10)

Thoughts:  Watch for now.