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: 38-25, for a 60% win rate, including the Weekly Wrap that is 12-1).

12:30pm (EST)

Caterpillar (CAT, $81.91, up $1.48)

May 77.50 puts (CAT130518P00077500, $0.90, down $0.30)

Entry Price:  $1.25 (4/18/13)
Exit Target:  $2.50
Return:  -28%
Stop Target:  60 cents

Action:  Shares traded up to $81.40 after the company’s CEO tried to spin a terrible quarter but the results of a 9 cent miss pushed the stock to a low of $79.49 shortly after the open.  We would like to see a close below $80 today but we said there is risk to $82.

 

Sina (SINA, $46.78, up $0.52)

May 40 puts (SINA130518P00040000, $0.55, down $0.10)

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

Action:  Shares traded up to $47 on the open but have dipped to $45.54.  We would like to see a close below $45 today.

 

Spider S&P 500 (SPY, $155.17, down $0.31)

May 150 puts (SPY130518P00150000, $0.85, down $0.10)

Entry Price:  $1.35 (4/18/13)
Exit Target:  $2.70
Return:  -37%
Stop Target:  None

Action:  There is risk to $157.50 and a close above this level would likely force us out of the trade.  We are looking for a close below $155 this week.

 

PowersharesQQQ (QQQ, $68.37, up $0.28)

May 66 puts (QQQ130518P00066000, $0.45, down $0.10)

Entry Price:  $0.80 (4/18/13)
Exit Target:  $1.60
Return:  -44%
Stop Target:  None

Action:  There is risk to $69 with Apple’s earnings in the mix this week and a break above this level could lead to another run past $70.  A close below $67 this week would be bearish for further declines into May.

 

Freeport-McMoRan Copper & Gold (FCX, $27.80, down $0.44)

May 26 puts (FCX130518P00026000, $0.45, up $0.05)

Entry Price:  $0.75 (4/17/13)
Exit Target:  $1.50
Return:  -40%
Stop Target:  None

Action:  There is risk to $30 on a back test but we have a price target of $25 by mid-May for FCX.  Last week’s low was $27.24 and another close below $27 should get $25 in play, quickly.

 

Symantec (SYMC, $23.68, up $0.13)

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 will stick with the trade as long as $23 holds and we would like to see a close back above $24 this week.

 

Keryx Biopharmaceuticals (KERX, $8.46, up $0.43)

June 10 calls (KERX130622C00010000, $0.55, up $0.10)

Entry Price:  $0.70 (2/12/13)
Exit Target:  $1.40
Return:  -21%
Stop Target:  None

Action:  A break above $8.50 would be a good clue a run to $10 is coming.  Today’s high has been $8.64.

 

Other 2013 Portfolio OPEN positions (2):  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. 

Ironwood Pharmaceuticals May 20 calls (from March 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 candidat

We will update this section in the morning with some fresh ideas.