July 2013 | Members

 MEMBERS AREA

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: 79-41, including the Weekly Wrap that is 26-3).

1:15pm (EST)

Sony (SNE, $22.05, down $0.15)

August 24 calls (SNE130817C00024000, $0.55, down $0.10)

Entry Price:  $0.50 (7/11/13)
Exit Target:  $1.00
Return:  10%
Stop Target:  None

August 26 calls (SNE130817C00026000, $0.20, flat)

Entry Price:  $0.20 (7/11/13)
Exit Target:  $0.60
Return:  0%
Stop Target:  None

October 25 calls (SNE131019C00025000, $0.90, flat)

Entry Price:  $0.80 (7/11/13)
Exit Target:  $1.60
Return:  13%
Stop Target:  None

Action:  Shares have dipped to $21.95 and we would like to see $22 hold into the close.  News that China is lifting the ban of gaming counsels could have a huge impact on this stock.

 

Riverbed Technology (RVBD, $17.12, up $0.10)

August 18 calls (RVBD130817C00018000, $0.95, up $0.05)

Entry Price:  $0.60 (7/9/13)
Exit Target:  $1.20 (closed 1/3 at 80 cents on 7/11/13)
Return:  47%
Stop Target:  60 cents

Action:  We have a near-term target of $18-$20 for the stock by mid-August.  Support is at $16.

 

JPMorgan Chase (JPM, $55.30, up $0.16)

August 57.50 calls (JPM130817C00057500, $0.45, down $0.10)

Entry Price:  $0.38 (7/8/13)
Exit Target:  $1.00+  (closed 1/2 at 50 cents on 7/11/13)
Return:  25%
Stop Target:  35 cents (Hard Stop)

Action:  We have set a Hard Stop of 35 cents on the other half of the trade.  Today’s low has been 42 cents.  We still believe shares can move higher as long as double-nickels stick.

 

Aruba Networks (ARUN, $16.92, up $0.21)

August 17 calls (ARUN130817C00017000, $0.70, up $0.10)

Entry Price:  $0.55 (7/8/13)
Exit Target:  $1.10
Return:  27%
Stop Target:  None

Action:  We are looking for shares to make a run at $18, possibly $20 by mid-August.  Support is at $15.50.

 

Apollo Group (APOL, $18.53, down $0.44)

August 16 puts (APOL130817P00016000, $0.30, up $0.05)

Entry Price:  $0.65 (6/26/13)
Exit Target:  $1.30
Return:  -54%
Stop Target:  40 cents

Action:  Shares are coming back to earth.  A close below $18.50 would be nice ahead of the weekend.

 

Rambus (RMBS, $9.72, down $0.02)

August 9 calls (RMBS130817C00009000, $1.00, flat)

Entry Price:  $0.55 (6/18/13)
Exit Target:  $1.10
Return:  82%
Stop Target:  None

Action:  Earnings are due out next week.  We are going to run their numbers over the weekend but we will likely close half of the trade ahead of the event.  For now, we will roll with a full position into next week.

 

Other 2013 Portfolio OPEN positions (4):  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.

MGM Resorts International July 17 calls (from May 2013) – HOLD

Clean Energy Fuels July 16 calls (from May 2013) – HOLD

Spiders Dow Jones July 141 puts (from June 2013) – HOLD

iShares Russell 2000 Index July 90 puts (from June 2013) – HOLD

 

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 candidates.

We will update this section with some fresh ideas.