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 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).

Special Notice:  Folks, I have jury duty again today (and next Monday 7/29) and if I’m not picked to review a case, we should have a midday update this afternoon.  I will do my best to update the trades if I am chosen and we get out before the market closes but if not, I have updated the trades with my current thoughts.

 

Skyworks Solutions (SWKS, $22.82, up $0.08)

August 25 calls (SWKS130817C00025000, $0.55, up $0.05)

Entry Price:  $0.55 (7/17/13)
Exit Target:  $1.10
Return:  0%
Stop Target:  None

Action:  Earnings are due out today.  We are expecting a 10% move to $25 or $20 depending on the company’s results.  If shares trigger $25 and the options trade above $1.00-$1.10 at any point in today’s session, close HALF the trade.  If shares fall below $20 at any point, close the entire trade.

 

MGM Resorts International (MGM, $15.69, down $0.01)

August 16 calls (MGM130817C00016000, $0.50, down $0.03)

Entry Price:  $0.50 (7/17/13)
Exit Target:  $1.00
Return:  0%
Stop Target:  None

September 17 calls (MGM130921C00017000, $0.43, down $0.01)

Entry Price:  $0.42 (7/17/13)
Exit Target:  $1.00
Return:  2%
Stop Target:  None

Action:  Shares are on the verge of fresh 52-week peaks.  A close above $16 would be supper bullish for a push towards $18-$20.  A vote to approve the company’s proposal to build a casino in Springfield, Massachusetts was approved Tuesday night and we believe the company will beat earnings estimates when they report in early August.

 

Aruba Networks (ARUN, $17.37, up $0.10)

August 17 calls (ARUN130817C00017000, $1.05, up $0.10)

Entry Price:  $0.55 (7/8/13)
Exit Target:  $1.10
Return:  91%
Stop Target:  75 cents (Hard Stop)

August 18 calls (ARUN130817C00018000, $0.60, up $0.10)

Entry Price:  $0.55 (7/15/13)
Exit Target:  $1.10
Return:  9%
Stop Target:  None

October 22 calls (ARUN131019C00022000, $0.50, flat)

Entry Price:  $0.50 (7/15/13)
Exit Target:  $1.00
Return:  0%
Stop Target:  None

Action:  Shares reached a peak of $17.66 on Wednesday but couldn’t hold $17.50.  A close above $17.75 should get $18-$20 in play over the next few weeks.

 

Sony (SNE, $22.10, up $0.14)

August 24 calls (SNE130817C00024000, $0.45, flat)

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, $0.85, 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, $18.77, down $0.19)

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 this week.

 

Rambus (RMBS, $9.80, down $0.05)

August 9 calls (RMBS130817C00009000, $1.05, flat) 

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:  91%
Stop Target:  80 cents (Hard Stop)

Action:  We closed another quarter of the trade yesterday and have a Hard Stop of 80 cents in place to protect profits.  Close the remaining quarter of the position if shares trade past $10.50 this morning.  If there is a pullback at the open to $9.50 or worse, close the rest of the trade.

 

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.

 

Spider Gold Shares (GLD, $123.32, down $1.57)

August 115 puts (GLD130817P00115000, $0.83, up $0.18)

Thoughts:  Gold is having trouble clearing $1,300 and the Gold Spiders could take another tumble below $120 to $115.

 

Nvidia (NVDA, $14.61, down $0.08)

August 15 call (NVDA130817C00015000, $0.35, flat)

Thoughts:  Shares cleared resistance at $14.25 and a close above $14.75 should get $15-$15.50 in play.  Support is at $13.75, if $14.25 fails.  We have a 6-12 month price target of $20 for the stock.

 

Finisar (FNSR, $18.27, up $0.03)

August 19 calls (FNSR130817C00019000, $0.45, down $0.05)

Thoughts:  Shares should challenge $20 over the near-term with support moving up from $16 to $17.

 

Applied Materials (AMAT, $16.69, up $0.12)  

August 17 calls (AMAT130817C00017000, $0.40, flat)

September 17 calls (AMAT130921C00017000, $0.55, up $0.05)

Thoughts:  We think shares can test $17 over the next month.  Support is at $15.75.

 

Scientific Games (SGMS, $12.85, up$0.12)

August 12.50 calls (SGMS130817C00012500, $0.85, flat)

Thoughts:  We may get into this trade on a close above $12.50.

 

Salesforce.com (CRM, $42.71, up $0.87)

August 45 calls (CRM130817C00045000, $0.65, up $0.15)

November 50 calls (CRM131116C00050000, $1.05, up $0.10)

Thoughts:  Shares could make a run at $45 as long as $40 holds.

 

Yahoo (YHOO, $29.66, up $2.78)

August 28 calls (YHOO130817C00028000, $2.05, up $1.40)

Thoughts:  Shares traded to a high of $29.73 and we mentioned a run to $30 was coming.  These options zoomed 220% yesterday and congrats to all that took the trade.  Lock-in half profits ahead of the weekend if you are in and set a stop of $1.50 on the other half.