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).

12:15pm (EST)

Caterpillar (CAT, $84.35, up $1.65)

May 77.50 puts (CAT130518P00077500, $0.25, down $0.15)

Entry Price:  $1.25 (4/18/13)
Exit Target:  $2.50
Return:  -80%
Stop Target:  60 cents

Action:  Here comes the test to $85 following an analyst upgrade today.  It was almost a given some suit-and-tie would “go out on a limb” to recommend a Buy on the stock.  This has been a frustrating trade as our homework was right on the earnings miss but earnings trades are tricky and shares didn’t react like IBM did when they missed their numbers.

 

Sina (SINA, $47.95, up $1.65)

May 40 puts (SINA130518P00040000, $0.40, down $0.15)

Entry Price:  $0.67 (4/18/13)
Exit Target:  $1.35
Return:  -40%
Stop Target:  None

Action:  We are looking for a close below $45 this week.  We have a near-term target of $40 for the stock on a break below this level but there is risk up to $47.50.

 

Spider S&P 500 (SPY, $157.76, up $1.60)

May 150 puts (SPY130518P00150000, $0.40, down $0.20)

Entry Price:  $1.35 (4/18/13)
Exit Target:  $2.70
Return:  -70%
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 and Apple will have a big say on if we keep this trade open or close it tomorrow.

 

PowersharesQQQ (QQQ, $69.59, up $0.80)

May 66 puts (QQQ130518P00066000, $0.25, down $0.10)

Entry Price:  $0.80 (4/18/13)
Exit Target:  $1.60
Return:  -69%
Stop Target:  None

Action:  Looks like we are getting the run to $70.

 

Freeport-McMoRan Copper & Gold (FCX, $28.59, up $0.03)

May 26 puts (FCX130518P00026000, $0.40, flat)

Entry Price:  $0.75 (4/17/13)
Exit Target:  $1.50
Return:  -47%
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.  We would like to see a close below $27.25 by Friday.

 

Symantec (SYMC, $24.22, up $0.55)

May 25 calls (SYMC130518C00025000, $0.45, up $0.15)

Entry Price:  $0.60 (4/11/13)
Exit Target:  $1.20
Return:  -25%
Stop Target:  None

Action:  Shares are up 2% and have made a strong push past $24.  We aren’t out of the woods yet, but we are getting there.

 

Keryx Biopharmaceuticals (KERX, $8.45, up $0.13)

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:  Shares have reached a peak of $8.77 today.

 

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.