9:00am (EST) continued…

The Dow dropped 8 points, or 0.1%, to close at 15,291.  The blue-chips made a run to 15,348 and nearly triggered our 15,350 target that clears the way for a test to 15,500.  Support is at 15,200 and yesterday’s low was 15,258.

The S&P 500 added a third of a point, or 0.02%, to settle at 1652.  The index reached a peak of 1,657 after the Fed minutes were released and held 1,650 into the close.  The index tested a low of 1,647 before recovering and is still on track to test 1,675 if support at 1,650 continues to hold.

The Nasdaq advanced 16 points, or 0.5%, to end at 3,520 – and a 1-year high.  Tech held 3,500 after touching a low of 3,502 on the open and traded green for much of the session.  The index kissed a 52-week intraday high of 3,522 and is still on track to push 3,550 over the near-term, possibly 3,600.

The Russell 2000 gained 2 points, or 0.2%, to finish at 1,020.  The small-caps traded down to 1,015 just before Wall Street’s lunch break but went out near its high of 1,020.99.  We have been calling for a run to 1,025 and a close above this level could trigger 1,050.  Support is at 1,000.

The S&P 500 Volatility Index ($VIX, 14.21, down $0.14) slipped another 1% and traded to a low of 14.06 while holding down 15.  The bears pushed a high of 14.62 and will need to get back above resistance before they start to scare traders.  Our near-term target is calling for the VIX to drop below 13.50.

Futures are showing a nice open:  Dow (+139); S&P 500 (+16); Nasdaq 100 (+28).

Subscribers, check the Members Area for the updates and stay on the lookout for a possible New Trade between 10am-11pm (EST) this morning.

We want to see how shares open and trade for 30 minutes before getting into a possible huge triple-digit winning option trade.  We have been talking about this company all year and have recommended several sweet trades on the name.  A potential breakout could be on the horizon.

 

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

 

Riverbed Technology (RVBD, $16.38, up $0.29)

August 18 calls (RVBD130817C00018000, $0.70, up $0.10)

Entry Price:  $0.60 (7/9/13)
Exit Target:  $1.20
Return:  17%
Stop Target:  None

Action:  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, $54.83, down $0.06)

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:  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, $15.91, up $0.01)

August 17 calls (ARUN130817C00017000, $0.40, flat)

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 and we would like to see a close back above $16 this week.  Support is at $15.50.

 

Apollo Group (APOL, $17.89, up $0.34)

August 16 puts (APOL130817P00016000, $0.55, down $0.05)

Entry Price:  $0.65 (6/26/13)
Exit Target:  $1.30
Return:  -15%
Stop Target:  40 cents

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

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, $9.68, up $0.07)

August 9 calls (RMBS130817C00009000, $0.95, up $0.10)

Entry Price:  $0.55 (6/18/13)
Exit Target:  $1.10
Return:  73%
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, $12.23, up $0.04)

July 12.50 calls (SGMS130720C00012500, $0.20, down $0.05)

Entry Price:  $0.20 (5/31/13)

Exit Target:  $0.60

Return:  0%

Stop Target:  None

Action:  We have been in this trade since late May and we would like to be out by this Friday.  However, if shares fall below $12 at any point in today’s trading we will close the trade for a scratch.  We can also “roll” the trade into August if support holds as we want to be out of the position by Friday’s close.

 

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.

 

Salesforce.com (CRM, $39.74, up $1.02)

August 42.50 calls (CRM130817C00042500, $0.65, up $0.20)

Thoughts:  Today could be the day.  We are waiting for $40 to clear before possibly getting into a trade.  If resistance is taken out, we could see shares make a quick run to $42-$43 with a shot at $45.

 

Yahoo (YHOO, $26.56, down $0.11)

August 26 calls (YHOO130817C00026000, $1.50, flat)

August 28 calls (YHOO130817C00028000, $0.56, flat)

Thoughts:  Support is at $25 and a close below this level would get $24 in play.  A close back above $27 would be bullish for a run to $30.

 

Applied Materials (AMAT, $16.30, up $0.64)

August 15 calls (AMAT130817C00015000, $1.45, up $0.50)

September 16 calls (AMAT130921C00016000, $0.90, up $0.35)

Thoughts:  Applied Materials made another sweet pop yesterday.  We think shares can test $17 over the next month.  Support is at $15.

 

Domino’s Pizza (DPZ, $62.24, up $0.10)

July 60 calls (DPZ130720C00060000, $2.40, flat)

August 60 calls (DPZ130817C00060000, $3.85, flat)

Thoughts:  We mentioned a surge past $60 was coming and if you are in these trades, sweet, and protect profits on a drop back below $60.