July 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: 78-41, including the Weekly Wrap that is 26-3).

 12:10pm (EST)

NEW TRADE!!! 

Sony (SNE, $22.10, up $0.33)

Buy to OPEN August 24 calls (SNE130817C00024000, $0.50, up $0.10)

Buy to OPEN August 26 calls (SNE130817C00026000, $0.20, up $0.05)

Buy to OPEN October 25 calls (SNE131019C00025000, $0.80, up $0.10)

Action:  We like these options at current levels and we are loading up on Sony.  A close above $22 could lead to $24.  Support is at $20 with risk down to $18 on an overshoot.  News that China is lifting the ban of gaming counsels could have a huge impact on this stock.

 

Current Trades

Riverbed Technology (RVBD, $16.72, up $0.34)

August 18 calls (RVBD130817C00018000, $0.80, up $0.10)

Entry Price:  $0.60 (7/9/13)
Exit Target:  $1.20
Return:  33%
Stop Target:  None

Action:  Close a THIRD of the trade at current levels.

We have a near-term target of $18-$20 for the stock by mid-August.  Support is trying to move up from $15 to $16.

 

JPMorgan Chase (JPM, $54.88, up $0.05)

August 57.50 calls (JPM130817C00057500, $0.50, flat)

Entry Price:  $0.38 (7/8/13)
Exit Target:  $1.00+
Return:  32%
Stop Target:  None

Action:  Close HALF the trade at current levels.

We would like to see a close above $55 heading into earnings which are due out on Friday.  The 52-week high is at $55.90 and a break above this level should get shares challenging $58-$60.  Support is at $52.50.

 

Aruba Networks (ARUN, $16.34, up $0.43)

August 17 calls (ARUN130817C00017000, $0.50, up $0.10)

Entry Price:  $0.55 (7/8/13)
Exit Target:  $1.10
Return:  -9%
Stop Target:  None

Action:  We are looking for shares to make a run at $18, possibly $20 by mid-August and we would like to see a close back above $16 this week.  Support is at $15.50.

 

Apollo Group (APOL, $19.08, up $1.19)

August 16 puts (APOL130817P00016000, $0.30, down $0.25)

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

Action:  CLOSE the trade if shares break above $20.25 today. 

Resistance is holding at $18 but we could get stopped out at the open.  Shares were up over a buck in after-hours last night on news its Phoenix accreditation was renewed.  We mentioned the volatility with this stock and it has been a frustrating one to trade.  We won’t fight the trend as shares were on the verge of a breakdown but could retest $22 if $20 clears.  We would rather save some premium to open new trades than get whipsawed.

 

Rambus (RMBS, $9.74, up $0.06)

August 9 calls (RMBS130817C00009000, $1.00, up $0.05)

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

Action:  We are looking for double-digits this week.  At $10, these options will be worth at least $1-$1.10 for a 100% return.  Support is at $9.

 

Scientific Games (SGMS, $12.29, up $0.06)

July 12.50 calls (SGMS130720C00012500, $0.25, up $0.05)

Entry Price:  $0.20 (5/31/13)

Exit Target:  $0.60

Return:  25%

Stop Target:  None

Action:  We are going to close this trade as these options expire next Friday.  We may get into some August calls on a close above $12.50 but there are other trades we like better.

 

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 in the morning.