July 2013 |

 

 

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).

12:45pm (EST)

NEW TRADE!!! 

Riverbed Technology (RVBD, $16.21, up $0.40)

Buy to OPEN August 18 calls (RVBD130817C00018000, $0.60, up $0.08)

Action:  There is risk down to $15 but if this level can hold, shares could challenge $18-$20 over the next 3-6 months.  The company is also a takeover target.

 

Current Trades

JPMorgan Chase (JPM, $54.99, up $0.29)

August 57.50 calls (JPM130817C00057500, $0.53, up $0.05)

Entry Price:  $0.38 (7/8/13)
Exit Target:  $10.75
Return:  39%
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, $16.01, down $0.11)

August 17 calls (ARUN130817C00017000, $0.40, down $0.05)

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 if $16 fails to hold.

 

Apollo Group (APOL, $17.65, up $0.12)

August 16 puts (APOL130817P00016000, $0.65, flat)

Entry Price:  $0.65 (6/26/13)
Exit Target:  $1.30
Return:  0%
Stop Target:  None

Action:  Resistance is holding at $18 but there is risk up to $20 given the current volatility.  We will stick with the trade as long as this level holds.  A close below $17.25 this week should get this trade back on track and these are August puts so we have plenty of time to wait for the breakdown.

 

Rambus (RMBS, $9.61, up $0.19)

August 9 calls (RMBS130817C00009000, $0.90, up $0.10)

Entry Price:  $0.55 (6/18/13)
Exit Target:  $1.10
Return:  64%
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, $12.19, 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:  Shares have hit a 52-week high of $12.40 today and we would love to see $12.50 trigger before the close.  We have to be careful too as these are July options that expire in less than 2 weeks.  If shares slip back below $12, we will likely close the trade for a scratch.

 

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.