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: 38-28, including the Weekly Wrap that is 12-1).

12:50pm (EST)

New Trades!!!

Nasdaq OMX Group (NDAQ, $28.98, up $0.07)

Buy to OPEN June 30 calls (NDAQ130622C00030000, $0.70, flat)

Action:  We like these options at current levels.

 

Clorox (CLX, $86.87, up $0.20)

Buy to OPEN May 90 calls (CLX130518C00090000, $0.35, flat)

Action:  We like these options for a move back up to $90.

 

SolarCity (SCTY, $25.03, up $1.69)

Buy to OPEN May 30 calls (SCTY130518C00030000, $0.25, up $0.10)

Action:  Use limit orders to get the best fills as we feel shares could trade to $30.

 

Current Trades

Solazyme (SZYM, $9.33, up $0.08)

June 10 calls (SZYM130622C00010000, $0.45, flat)

Entry Price:  $0.35 (4/25/13)
Exit Target:  $0.70
Return:  29%
Stop Target:  None

Action:  Short-term support will try to hold at $9 and there is additional help at $8 that served as prior resistance.  Earnings are due out on May 8 and a close above $9.50 would be bullish heading into the event.

 

SAIC (SAI, $14.87, up $0.22)

June 15 calls (SAI130622C00015000, $0.50, up $0.10)

Entry Price:  $0.25 (4/24/13)
Exit Target:  $0.75
Return:  100%
Stop Target:  None

August 15 calls (SAI130817C00015000, $0.65, up $0.10)

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

Action:  Shares reached a 52-week high of $14.92 last week and a break above $15 would be bullish.  Resistance is choppy up to $17 on the longer-term chart but we only need a run to $16 to double and triple our money on these 2 trades.

 

Symantec (SYMC, $24.70, up $0.28)

May 25 calls (SYMC130518C00025000, $0.65, up $0.10)

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

Action:  Resistance is at $25.  If cleared, the stock could run to $27-$28 by mid-May.  Support is at $24 and the 50-day MA followed by $23.50.

 

Keryx Biopharmaceuticals (KERX, $8.35, up $0.20)

June 10 calls (KERX130622C00010000, $0.50, up $0.10)

Entry Price:  $0.70 (2/12/13)
Exit Target:  $1.40
Return:  -29%
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, $13.67, up $0.15)

June 15 calls (MGM130622C00015000, $0.30, up $0.05)

Entry Price:  $0.40 (1/2/13)
Exit Target:  $0.80
Return:  -33%
Stop Target:  None

Action:  The 52-week high is at $13.78.  Earnings are due out this week on Thursday and while we believe they will be better-than-expected, there is risk back to $12.50 and the 100-day MA on a miss.  The 52-week high could be challenged if all goes well and we have been calling for a run to $15 since the beginning of the year.

 

Other 2013 Portfolio OPEN positions (3):  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)

 

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 in the morning.