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: 35-17, for a 68% win rate, includingthe Weekly Wrap that is 10-1).

1:15pm (EST)

Caterpillar (CAT, $80.50, up $0.04)

May 77.50 puts (CAT130518P00077500, $1.20, down $0.20)

Entry Price:  $1.25 (4/18/13)
Exit Target:  $2.50
Return:  -4%
Stop Target:  60 cents

Action:  Shares traded to a low of $80.01 this morning and we would love to see a close below $80 ahead of the weekend.  The 52-week low is $78.25 and earnings are due out Monday.  We are expecting a terrible quarter from CAT but if they pull a rabbit out of their hat, shares could trade back up to $85.

 

Sina (SINA, $46.52, down $0.02)

May 40 puts (SINA130518P00040000, $0.60, down $0.07)

Entry Price:  $0.67 (4/18/13)
Exit Target:  $1.35
Return:  -10%
Stop Target:  None

Action:  We have a near-term target of $40 once $45 cracks but there is risk to $48-$50 on a back test.

 

Spider S&P 500 (SPY, $155.02, up $0.88)

May 150 puts (SPY130518P00150000, $1.25, down $0.20)

Entry Price:  $1.35 (4/18/13)
Exit Target:  $2.70
Return:  -7%
Stop Target:  None

Action:  The S&P Spiders could trade down to $152.50 over the near-term and we would like to see $155 hold on a rebound.

 

PowersharesQQQ (QQQ, $67.98, up $0.81)

May 66 puts (QQQ130518P00066000, $0.60, down $0.30)

Entry Price:  $0.80 (4/18/13)
Exit Target:  $1.60
Return:  -25%
Stop Target:  None

Action:  The QQQ’s could trade to $65 on further weakness.  Resistance is at $68 which served as prior support.

 

FedEx (FDX, $92.49, up $0.62)

May 90 puts (FDX130518P00090000, $1.15, down $0.50)

Entry Price:  $0.95 (4/17/13)
Exit Target:  $1.90 (closed half at $2.15 on 4/18/13)
Return:  79%
Stop Target:  $1.25 (Hard Stop)

Action:  Our Hard Stop on the other half of the trade has been triggered so we are out of the position.  We still think shares could fall below $90 so we may be back to play FDX again.  The overall profit was 79% in 2 days.

 

Freeport-McMoRan Copper & Gold (FCX, $27.76, down $0.29)

May 26 puts (FCX130518P00026000, $0.55, flat)

Entry Price:  $0.75 (4/17/13)
Exit Target:  $1.50
Return:  -27%
Stop Target:  None

Action:  There is risk to $30 but we have a price target of $25 by mid-May for FCX.

 

Symantec (SYMC, $23.53, down $0.03)

May 25 calls (SYMC130518C00025000, $0.30, flat)

Entry Price:  $0.60 (4/11/13)
Exit Target:  $1.20
Return:  -50%
Stop Target:  None

Action:  We are going to look at the chart over the weekend but we want to keep a few bullish positions open in case the bulls do hold support and rebound.  We will hold for now and bring you and update on Monday.

 

Keryx Biopharmaceuticals (KERX, $7.77, up $0.16)

June 10 calls (KERX130622C00010000, $0.35, flat)

Entry Price:  $0.70 (2/12/13)
Exit Target:  $1.40
Return:  -50%
Stop Target:  None

Action:  Near-term support is at at $7.50 with $7 serving as backup.  We would like to see a close above $8 today or next week.

 

Other 2013 Portfolio OPEN positions (9):  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)

Sony April 18 calls (from March 2013)

Cisco Systems April 22 calls (from March 2013)

Ironwood Pharmaceuticals April 20 calls (from March 2013)

May 20 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 February 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 on Monday with some fresh ideas.