9:00am (EST)

Caterpillar (CAT, $80.43, down $0.03)

May 77.50 puts (CAT130518P00077500, $0.40, down $0.80)

Entry Price:  $1.25 (4/18/13)
Exit Target:  $2.50
Return:  -68%
Stop Target:  60 cents

Action:  We had a bad feeling about this one over the weekend and the close above $82 could lead to a further test to $85.  Shares did break below $80 but our puts never made it past $1.05.  We did not have a Hard Stop in place because of earnings and we prepared for a back test so let’s see where we are at by Thursday once the action heats up over the week.  By then we should know if the rebound has legs.  Conservative traders may wish to cut their losses early but we are hanging tight as these options have 4 weeks until expiration.

 

Sina (SINA, $46.30, up $0.04)

May 40 puts (SINA130518P00040000, $0.55, down $0.07)

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

Action:  The options reached 71 cents when shares fell to a low of $45.54.  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.  Monday’s peak was $46.98.

 

Spider S&P 500 (SPY, $156.17, up $0.69)

May 150 puts (SPY130518P00150000, $0.60, down $0.30)

Entry Price:  $1.35 (4/18/13)
Exit Target:  $2.70
Return:  -56%
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 yesterday’s low was $154.75.

 

PowersharesQQQ (QQQ, $68.79, up $0.70)

May 66 puts (QQQ130518P00066000, $0.35, down $0.20)

Entry Price:  $0.80 (4/18/13)
Exit Target:  $1.60
Return:  -56%
Stop Target:  None

Action:  We said there was risk to $69 and yesterday’s high was $69.04.  A close above this levels could lead to another run past $70.  Awe would like to see the QQQ’s below $67 this week.

 

Freeport-McMoRan Copper & Gold (FCX, $28.56, up $0.32)

May 26 puts (FCX130518P00026000, $0.40, down $0.15)

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.  The puts reached 47 cents on the stock’s drop to $27.60 but we need a close below $27.25 by Friday.

 

Symantec (SYMC, $23.67, up $0.12)

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.  Yesterday’s high was $23.76.

 

Keryx Biopharmaceuticals (KERX, $8.32, up $0.29)

June 10 calls (KERX130622C00010000, $0.45, up $0.10)

Entry Price:  $0.70 (2/12/13)
Exit Target:  $1.40
Return:  -36%
Stop Target:  None

Action:  We didn’t get our close above $8.50 but shares did reach a peak of $8.64 on Monday.  A run to $10 feels close as long as $8 holds this week.

 

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

 

Apple (AAPL, $398.67, up $8.14)

April 440 calls (WEEKLY) (AAPL130426C00440000, $1.71, up $0.26)

April 360 puts (WEEKLY) (AAPL130426P00360000, $1.95, down $1.85)

Thoughts:  If Apple moves $$40 or more this option strangle trade should do well.  A move of 7% or less would crush these premiums.  We have no idea on where shares will be in after-hours or by Wednesday’s close so we will likely sit on the sidelines.

 

Solazyme (SZYM, $7.94, up $0.16)

June 10 calls (SZYM130622C00010000, $0.15, flat)

Thoughts:  Shares may have finally bottomed and could be setting up for a run to $10.  We have covered this stock numerous times in the past and have traded it for the Daily.  It is also a current Weekly Wrap trade.  Open Interest is over 6,600 contracts.

 

Clorox (CLX, $89.25, up $0.36)

May 92.50 calls (CLX130518C00092500, $0.50, up $0.05)

Thoughts:  The 52-week high is $90.10 and shares look poised to challenge $100 over the near-term.

 

FedEx (FDX, $92.50, up $0.11)

May 90 puts (FDX130518P00090000, $1.05, down $0.20)

Thoughts:  The Transports were flat and shares tested a low of $90.95 yesterday.  These puts traded to $1.65.  We made a sweet 79% profit last week in these puts and we would love to see them drop to under a buck today.  If so, we may get back into them as we still feel as though a drop below $90 is coming.  Watch for a possible New Trade Alert if we take action after the open..

 

Cyberonics (CYBX, $44.39, down $0.41)

May 40 puts (fCYBX130518P00040000, $0.45, down $0.10)

Thoughts:  We ran out of time with our April puts but we like these puts as a way to play the impending drop below $40.  Resistance is at $45 and was prior support.  The bid/ask is a little wide (35/55 cents) so we will have to use limit orders to get the best fills.

 

Spider Gold Shares (GLD, $137.90, up $2.43)

May 130 puts (GLD130518P00130000, $0.95, down $0.70)

June 124 puts (GLD130622P00124000, $0.95, down $0.40)

Thoughts:  There could be a rebound to $140 and a close above this would be bullish.  Gold is still rebounding following the recent selloff and has been up for 5-straight sessions.  It is too early to get in either of these trades as we are following the rise and adjusting which puts to use if resistance holds.

 

Bank of America (BAC, $11.72, up $0.06)

June 12 calls (BAC130622C00012000, $0.40, flat)

Action:  Wait for confirmation and a close above $12 before going long.

 

iShares Russell 2000 (IWM, $90.87, up $0.26)

May 87 puts (IWM130518P00087000, $0.75, down $0.20)

Thoughts:  The Russell is still struggling and we may add these puts on another break below $90.