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 tradesor “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: 81-41, including the Weekly Wrap that is 26-3).

1:25pm (EST)

Finisar (FNSR, $18.21, up $0.04)

August 19 calls (FNSR130817C00019000, $0.50, flat)

Entry Price:  $0.50 (7/18/13)
Exit Target:  $1.00
Return:  0%
Stop Target:  None

Action:  Shares should challenge $20 over the near-term, possibly $25 by yearend.  Support at $17.  The company has some sweet, new products that could add some extra pennies to their earnings for the current quarter.

 

Skyworks Solutions (SWKS, $24.10, up $1.65)

August 25 calls (SWKS130817C00025000, $0.65, up $0.20)

Entry Price:  $0.55 (7/17/13)
Exit Target:  $1.10
Return:  18%
Stop Target:  None

Action:  We didn’t get our $1.50 limit price for the options like we were hoping to as shares came to a dead stop just below resistance at $25.  The options have reached a peak of $1 and we likely would have closed half at $1.10.  We wanted to see a run past $25 and we could next week so we are leaving the trade open.

 

MGM Resorts International (MGM, $16.22, flat)

August 16 calls (MGM130817C00016000, $0.75, flat)

Entry Price:  $0.50 (7/17/13)
Exit Target:  $1.00
Return:  50%
Stop Target:  None

 

September 17 calls (MGM130921C00017000, $0.61, flat)

Entry Price:  $0.42 (7/17/13)
Exit Target:  $1.00
Return:  45%
Stop Target:  None

Action:  We would like to see a push towards $16.50-$17 today and if there is a dip, we would like to see $16 hold.

 

Aruba Networks (ARUN, $17.68, up $0.04)

August 17 calls (ARUN130817C00017000, $1.25, flat)

Entry Price:  $0.55 (7/8/13)
Exit Target:  $1.10  (closed half @ $1.15 on 7/18/13)
Return:  118%
Stop Target:  75 cents (Hard Stop)

 

August 18 calls (ARUN130817C00018000, $0.75, up $0.15)

Entry Price:  $0.55 (7/15/13)
Exit Target:  $1.10
Return:  36%
Stop Target:  None

 

October 22 calls (ARUN131019C00022000, $0.55, up $0.05)

Entry Price:  $0.50 (7/15/13)
Exit Target:  $1.00
Return:  10%
Stop Target:  None

Action:  We would like to see $18 clear and hold into the close today and on a pullback we would like to see $17.50 stick.

 

Sony (SNE, $22.07, down $0.07)

August 24 calls (SNE130817C00024000, $0.40, flat)

Entry Price:  $0.50 (7/11/13)
Exit Target:  $1.00
Return:  -20%
Stop Target:  None

 

August 26 calls (SNE130817C00026000, $0.15, flat)

Entry Price:  $0.20 (7/11/13)
Exit Target:  $0.60
Return:  -25%
Stop Target:  None

 

October 25 calls (SNE131019C00025000, $0.85, flat)

Entry Price:  $0.80 (7/11/13)
Exit Target:  $1.60
Return:  6%
Stop Target:  None

Action:  Resistance is at $23-$24 and a close above $22.50 should get 52-week highs in play.  News that China is lifting the ban of gaming counsels could have a huge impact on this stock.  Support is at $21 and the 50-day MA and we like these trades going forward as long as $20 holds.

 

Apollo Group (APOL, $18.40, down $0.44)

August 16 puts (APOL130817P00016000, $0.20, flat)

Entry Price:  $0.65 (6/26/13)
Exit Target:  $1.30
Return:  -69%
Stop Target:  None

Action:  We will stick with the trade as long as $20.25 holds and we would like to see a trip below $18 today.

 

Rambus (RMBS, $10.13, up $0.24)

August 9 calls (RMBS130817C00009000, $1.20, up $0.10)

Entry Price:  $0.55 (6/18/13)
Exit Target:  $1.10 (closed half @ $1.05 on 7/16/13, quarter @ $1.05 on 7/17/13)
Return:  80%
Stop Target:  80 cents (Hard Stop)

Action:  These options traded down to 77 cents as shares struggled at the open and fell to a low of $9.59.    Our Hard Stop on the remaining quarter of the trade was triggered so we are out.  We will keep Rambus on our Watch List as shares could push the mid-teens over the next 3-6 months.

 

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 2013 Portfolio link in the Members Area to view ALL open/ closed trades.

MGM Resorts International July 17 calls (from May 2013) – Expire today!

Clean Energy Fuels July 16 calls (from May 2013) – Expire today!

Spiders Dow Jones July 141 puts (from June 2013) – Expire today!

iShares Russell 2000 Index July 90 puts (from June 2013) – Expire today!

 

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 on Monday with some fresh ideas.