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).

11:35am (EST)


Regeneron Pharmaceuticals (REGN, $243.91, up $6.62)

Buy to OPEN May 270 calls (REGN130518C00270000, $1.50, up $0.50)

Action:  We like these options at current levels and use limit orders to get the best fills.  We would love to see a 20% rally to $290 but a print of $272, or a 10% move should get us an easy double on these calls.  Shares are on the rise so get in now as we could see a huge move tomorrow!


Current Trades

Nasdaq OMX Group (NDAQ, $29.55, up $0.30)

June 30 calls (NDAQ130622C00030000, $0.95, up $0.15)

Entry Price:  $0.70 (4/29/13)
Exit Target:  $1.40
Return:  36%
Stop Target:  None

Action:  We have a near-term target of $32.  Support is at $27.50.


Solazyme (SZYM, $8.85, down $0.05)

June 10 calls (SZYM130622C00010000, $0.30, 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, $14.75, up $0.04)

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.  Today’s low has been $14.66.

We will send out a Trade Alert if triggered but we are hoping $15 cracks after shares reached $14.99 yesterday.  A move above $15 would be bullish but resistance is choppy up to $17 on the longer-term chart.


Symantec (SYMC, $24.60, up $0.25)

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:  Support is at $24 followed by $22and we would like for a close above $25.  If cleared, the stock could run to $27-$28 by mid-May.


Keryx Biopharmaceuticals (KERX, $7.96, up $0.15)

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, $14.75, up $0.95)

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

Entry Price:  $0.40 (1/2/13)
Exit Target:  $0.80
Return:  38%
Stop Target:  None

Action:  MGM beat estimates and shares have traded to a high of $14.81.  We are tempted to close half but we are going to hold out for a push past $15.


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)

Powershares QQQ May 66 puts (from April 2013)

ADT May 46 calls (from April 2013)

Clorox May 90 calls (from April 2013)



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.