9:00am (EST)

Caterpillar (CAT, $84.10, up $1.39)

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:  We should have made this a strangle option trade as the gains on a call option would have offset the beating we are getting with these puts.  If shares do trip $85 we will close the trade and the options should be at 10-15 cents.  We got this one wrong and we knew it on Friday’s close but with earnings out before Monday’s open we were trapped.  We did expect a run to $85 so if this level holds we will stay in the trade as these options still have 3+ weeks before expiration.

 

Sina (SINA, $47.92, up $1.62)

May 40 puts (SINA130518P00040000, $0.35, down $0.20)

Entry Price:  $0.67 (4/18/13)
Exit Target:  $1.35
Return:  -48%
Stop Target:  None

Action:  We will stick with the trade as long as $50 holds, otherwise we are out.  The close above $47.50 was disappointing but could be stretched so let’s see how it plays out.

 

Spider S&P 500 (SPY, $157.78, up $1.61)

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:  Let’s see where shares are at halftime as the close above $157.50 was disappointing.

 

Powershares QQQ (QQQ, $69.45, up $0.66)

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 but the QQQ’s ended off their high.

 

Freeport-McMoRan Copper & Gold (FCX, $28.52, down $0.04)

May 26 puts (FCX130518P00026000, $0.25, flat)

Entry Price:  $0.75 (4/17/13)
Exit Target:  $1.50
Return:  -67%
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, $24.16, up $0.49)

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:  We got our close back above $24 and would like to see some follow-through today.

 

Keryx Biopharmaceuticals (KERX, $8.31, down $0.01)

June 10 calls (KERX130622C00010000, $0.50, flat)

Entry Price:  $0.70 (2/12/13)
Exit Target:  $1.40
Return:  -29%
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 PharmaceuticalsMay 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, $406.13, up $7.48)

April 440 calls (WEEKLY) (AAPL130426C00440000, $3.20, up $1.50)

April 360 puts (WEEKLY) (AAPL130426P00360000, $2.00, up $0.05)

Thoughts:  We mentioned Monday it might be best to sell these options and as flat as shares were in after-hours this may have been a good idea.

 

Solazyme (SZYM, $7.91, down $0.03)

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, $89.48, up $0.23)

May 92.50 calls (CLX130518C00092500, $0.45, down $0.05)

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

 

FedEx (FDX, $93.17, up $0.67)

May 90 puts (FDX130518P00090000, $0.80, down $0.25)

Thoughts:  Let’s pull for a pop to $95 today and where we may get short.  We still feel as though a drop below $90 is coming.  Watch for a possible New Trade Alert if we take action.

 

Cyberonics(CYBX, $44.56m up $0.07)

May 40 puts (fCYBX130518P00040000, $0.45, flat)

Thoughts:  Resistance is at $45 and we are expecting a drop below $40 by mid-May.

 

Spider Gold Shares (GLD, $136.88, down $1.02)

May 130 puts (GLD130518P00130000, $1.10, up $0.15)

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

Thoughts:  There could be a rebound to $140 and a close above this level would be bullish.

 

Bank of America (BAC, $12.07, up $0.35)

June 12 calls (BAC130622C00012000, $0.55, up $0.15)

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

 

iShares Russell 2000 (IWM, $92.31, up $1.44)

May 90 puts (IWM130518P00090000, $0.90, down $0.55)

Thoughts:  Watch for now.