May 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: 41-28, including the Weekly Wrap that is 13-1).

1:15pm (EST)

Regeneron Pharmaceuticals (REGN, $265.00, up $16.37)

May 270 calls (REGN130518C00270000, $6.00, up $3.70)

Entry Price:  $1.50 (5/2/13)
Exit Target:  $4.50+ (closed half @ $8 on 5/3/2013)
Return:  367%
Stop Target:  $3

Action:  We closed half of the trade at $8 this morning as the options traded up to $8.90 on the stock’s surge to $270.

We went with these options because we felt they offered us 20-1 odds or even 30-to-1 if shares made a run to $290-$300.  We also realized we could have lost our premium if shares were flat or flew south today.

The company reported earnings that needed to come in above analysts’ forecasts for 94 cents a share.  They did by nearly doubling it and revenues were up.  We should take the other half of the trade off the table but let’s push it into next week and see how we open on Monday.  If there is a drop below $255, we will likely close the other half of the trade but we are still holding out for a run to $300.

 

Nasdaq OMX Group (NDAQ, $30.40, up $0.43)

June 30 calls (NDAQ130622C00030000, $1.30, up $0.25)

Entry Price:  $0.70 (4/29/13)
Exit Target:  $1.40
Return:  86%
Stop Target:  85 cents (Hard Stop)

Action:  Close HALF the trade at current levels.

 

Solazyme (SZYM, $9.15, up $0.08)

June 10 calls (SZYM130622C00010000, $0.40, flat)

Entry Price:  $0.35 (4/25/13)
Exit Target:  $0.70
Return:  14%
Stop Target:  None

Action:  Earnings are due out on May 8 and a close above $9.50 would be bullish heading into the event.  Short-term support is at $9.

 

SAIC (SAI, $14.88, up $0.11)

June 15 calls (SAI130622C00015000, $0.45, up $0.05)

Entry Price:  $0.25 (4/24/13)
Exit Target:  $0.75
Return:  80%
Stop Target:  None

August 15 calls (SAI130817C00015000, $0.60, up $0.05)

Entry Price:  $0.40 (4/24/13)
Exit Target:  $1.20
Return:  50%
Stop Target:  None

Action:  Shares have traded to a high of $14.93 today and we would love to see $15 into the close.

 

Symantec (SYMC, $24.92, up $0.36)

May 25 calls (SYMC130518C00025000, $0.65, up $0.05)

Entry Price:  $0.60 (4/11/13)
Exit Target:  $1.20
Return:  8%
Stop Target:  None

Action:  CLOSE the trade at current levels.

Let’s close this trade at current levels.  We may get into the June options next week but we want to start closing some May trades as they now have 2 weeks before they expire.

 

Keryx Biopharmaceuticals (KERX, $8.11, up $0.25)

June 10 calls (KERX130622C00010000, $0.35, flat)

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

Action:  If shares close below $8 there is risk back down to $7.50.  A close above $8.50 should get $9 in play and a possible push to $10.

 

MGM Resorts International (MGM, $14.68, up $0.13)

June 15 calls (MGM130622C00015000, $0.55, flat)

Entry Price:  $0.40 (1/2/13)
Exit Target:  $0.80
Return:  38%
Stop Target:  45 cents (Hard Stop)

Action:  We would like to get 80 cents or better on a move past $15.  We have a Hard Stop in place on a drop back below $14.

 

Other 2013 Portfolio OPEN positions (5):  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)

Spider S&P 500 May 150 puts (from April 2013)

PowersharesQQQ May 66 puts (from April 2013)

ADT May 46 calls (from April 2013)

Clorox May 90 calls (from April 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 candidate.

We will update this section on Monday.

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10:00am (EST)

Regeneron Pharmaceuticals (REGN, $268.01, up $19.38)

May 270 calls (REGN130518C00270000, $8.00, up $5.70)

Entry Price:  $1.50 (5/2/13)
Exit Target:  $4.50+
Return:  433%
Stop Target:  None

Action:  Close HALF of the trade at current levels.  We will update the trade in our midday update.

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9:00am (EST)

Regeneron Pharmaceuticals (REGN, $248.63, up $11.34)

May 270 calls (REGN130518C00270000, $2.30, up $1.30)

Entry Price:  $1.50 (5/2/13)
Exit Target:  $4.50+
Return:  53%
Stop Target:  None

Action:  Shares are up $10 and pushing $260 in pre-market.  We are looking for shares to continue higher into the open after a huge earnings beat.

 

Nasdaq OMX Group (NDAQ, $29.97, up $0.72)

June 30 calls (NDAQ130622C00030000, $1.05, up $0.25)

Entry Price:  $0.70 (4/29/13)
Exit Target:  $1.40
Return:  50%
Stop Target:  85 cents (Hard Stop)

Action:  Shares made a run at $30 yesterday and we said once this level cleared there could be a run to $32.  Support is at $27.50.  We have set a Hard Stop of 85 cents to protect profits and we will adjust it as shares continue to move higher.  In case there is a pullback, we will close the trade if our Hard Stop is triggered.

 

Solazyme (SZYM, $9.07, up $0.17)

June 10 calls (SZYM130622C00010000, $0.40, up $0.10)

Entry Price:  $0.35 (4/25/13)
Exit Target:  $0.70
Return:  14%
Stop Target:  None

Action:  Earnings are due out on May 8 and a close above $9.50 would be bullish heading into the event.  Short-term support is at $9.

 

SAIC (SAI, $14.77, up $0.06)

June 15 calls (SAI130622C00015000, $0.40, flat)

Entry Price:  $0.25 (4/24/13)
Exit Target:  $0.75
Return:  60%
Stop Target:  None

August 15 calls (SAI130817C00015000, $0.55, flat)

Entry Price:  $0.40 (4/24/13)
Exit Target:  $1.20
Return:  63%
Stop Target:  None

Action:  If shares fall below $14.45, close both option trades.  Yesterday’s low was $14.63.  We will send out a Trade Alert if triggered but we are hoping $15 cracks after shares reached $14.99 on Wednesday.

 

Symantec (SYMC, $24.56, up $0.21)

May 25 calls (SYMC130518C00025000, $0.50, up $0.05)

Entry Price:  $0.60 (4/11/13)
Exit Target:  $1.20
Return:  -17%
Stop Target:  None

Action:  We would like to see a close above $25 today.  If cleared, the stock could run to $27-$28.

 

Keryx Biopharmaceuticals (KERX, $7.90, up $0.09)

June 10 calls (KERX130622C00010000, $0.35, up $0.05)

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

Action:  If shares close below $8 there is risk back down to $7.50.  A close above $8.50 should get $9 in play and a possible push to $10.

 

MGM Resorts International (MGM, $14.55, up $0.75)

June 15 calls (MGM130622C00015000, $0.55, up $0.25)

Entry Price:  $0.40 (1/2/13)
Exit Target:  $0.80
Return:  38%
Stop Target:  45 cents (Hard Stop)

Action:  Shares reached a peak of $14.90 and missed our $15 target by 10 cents.  The options traded up to 68 cents and we would like to get 80 cents or better on a move past $15.  We have a Hard Stop in place on a drop back below $14.

 

Other 2013 Portfolio OPEN positions (5):  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)

Spider S&P 500 May 150 puts (from April 2013)

PowersharesQQQ May 66 puts (from April 2013)

ADT May 46 calls (from April 2013)

Clorox May 90 calls (from April 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 candidate.

 

BlackBerry (BBRY, $15.70, down $0.10)

May 16 calls (BBRY130518C00016000, $0.58, down $0.09)

June 18 calls (BBRY130622C00018000, $0.60, down $0.05)

Thoughts:  A run to $20 could be coming over the next month or so.  Support at $13-$14 has been solid since March and the momentum in shares has been strong.

 

SolarCity (SCTY, $27.09, down $0.91)

May 30 calls (SCTY130518C00030000, $0.70, down $0.40)

Thoughts:  Shares came close to triggering $30 this week but yesterday’s pullback to $24 was the reason we took our 140% profit early.  The calls traded to a low of 25 cents and we would love to see another dip and hold to $24 today.  First Solar reports earnings on Monday so shares could trade in tandem.

 

First Solar (FSLR, $46.44, up $0.66)

May 50 calls (FSLR130518C00050000, $1.70, up $0.30)

Thoughts:  If the company has another good quarter like last, shares could easily zoom past $50.  These options are a little pricey but the shorts will run for cover.

 

Zillow (Z, $60.17, down $1.77)

May 65 calls (Z130518C00065000, $1.75, down $0.70)

Thoughts:  Earnings are next week and a move past its 52-week high of $63.24.

 

Vertex Pharmaceuticals (VRTX, $77.82, up $0.89)

June 87.50 calls (VRTX130622C00087500, $1.30, up $0.10)

July 95 calls (VRTX130720C00095000, $0.85, up $0.10)

Action:  We believe shares are on their way to par which is Wall Street gibberish for $100.  Support is at $77.50 but a break below this level would be short-term bearish following the surge from $55.  We could go long on a move back above $85.

 

Littelfuse (LFUS, $68.37, up $0.07)

May 70 calls (LFUS130518C00070000, $0.55, flat)

Thoughts:  Shares are near 52-week peaks and a move past $70 could lead to a jailbreak to $75-$80 on momentum.

 

Cyberonics (CYBX, $43.92, up $0.88)

June 40 puts (CYBX130622P00040000, $1.30, down $0.40)

Thoughts:  Resistance is at $45 and we are expecting a drop below $40 over the next month, or 2.

 

Bank of America (BAC, $12.19, up $0.05)

June 12 calls (BAC130622C00012000, $0.55, flat)

Action:  Resistance is at $12.75.  Support is at $12.