July 2013 | Members

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MEMBERS AREA

1:45pm (EST)

Skyworks Solutions (SWKS, $24.63, up $0.38)

August 25 calls (SWKS130817C00025000, $0.70, up $0.15)

Entry Price:  $0.55 (7/17/13)
Exit Target:  $1.10
Return:  27%
Stop Target:  40 cents

Action:  While we like this trade, the pullback on the Nasdaq is worth noting and we want to take some risk off the table.  Let’s lock-in profits at current levels and if shares clear $25, we can get back in.

 

MGM Resorts International (MGM, $16.11, down $0.01)

August 16 calls (MGM130817C00016000, $0.65, flat)

Entry Price:  $0.50 (7/17/13)
Exit Target:  $1.00
Return:  40%
Stop Target:  50 cents, raise to 55 cents (Hard Stop)

September 17 calls (MGM130921C00017000, $0.50, flat)

Entry Price:  $0.42 (7/17/13)
Exit Target:  $1.00
Return:  19%
Stop Target:  42 cents (Hard Stop)

Action: Close HALF of both call options at current levels.

 

Aruba Networks (ARUN, $17.48, down $0.43)

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

Entry Price:  $0.55 (7/15/13)
Exit Target:  $1.10
Return:  9%
Stop Target:  55 cents

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

Entry Price:  $0.50 (7/15/13)
Exit Target:  $1.00
Return:  10%
Stop Target:  40 cents

Action:  We are closing this trade for slight profits as we don’t like the dip below $17.50.

 

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: 84-45, including the Weekly Wrap that is 27-3).

12:15pm (EST)

Special Note:  We are watching the 3,575 level on the Nasdaq because if it falls, we will likely close our bullish positions as it could be a good clue a pullback is coming.  Today’s low has been 3,581.  The VIX is also up over 5% to 13.35 and a close above 13.50 could also be another warning sign.

 

Royal Bank of Scotland (RBS, $10.49, up $0.15)

August 10 calls (RBS130817C00010000, $0.70, up $0.10)

Entry Price:  $0.55 (7/23/13)
Exit Target:  $1.10
Return:  27%
Stop Target:  None

 

November 12.50 calls (RBS131116C00012500, $0.25, up $0.05)

Entry Price:  $0.20 (7/23/13)
Exit Target:  $0.60
Return:  25%
Stop Target:  None

Action:  The 52-week high is at $11.84 and we believe shares can trade up to $13 over the next few months.  We will stick with the trade as long as $10 holds.

 

Finisar (FNSR, $18.75, up $0.30)

August 19 calls (FNSR130817C00019000, $0.60, up $0.10)

Entry Price:  $0.50 (7/18/13)
Exit Target:  $1.00
Return:  20%
Stop Target:  25 cents

Action:  Shares should challenge $20 over the near-term, possibly $25 by yearend.  Support is 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, $24.74, up $0.49)

August 25 calls (SWKS130817C00025000, $0.65, up $0.10)

Entry Price:  $0.55 (7/17/13)
Exit Target:  $1.10
Return:  18%
Stop Target:  40 cents

Action:  A move above $25 would be bullish for a run to $30.  The potential for a big return is there with this trade as long as $23.50 holds.

 

MGM Resorts International (MGM, $16.20, up $0.08)

August 16 calls (MGM130817C00016000, $0.65, flat)

Entry Price:  $0.50 (7/17/13)
Exit Target:  $1.00
Return:  40%
Stop Target:  50 cents, raise to 55 cents (Hard Stop)

 

September 17 calls (MGM130921C00017000, $0.50, flat)

Entry Price:  $0.42 (7/17/13)
Exit Target:  $1.00
Return:  19%
Stop Target:  42 cents (Hard Stop)

Action: A close above $16.50 should trigger $17-$18 on a multiyear breakout and today’s high has been $16.50.  We like this trade as long as $15.75 holds but we have raised our Stop Targets and have made them Hard Stops.  If shares fall below $16, close the trade as our Hard Stops will likely come into play.

 

Aruba Networks (ARUN, $17.71, down $0.20)

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

Entry Price:  $0.55 (7/15/13)
Exit Target:  $1.10
Return:  9%
Stop Target:  55 cents

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

Entry Price:  $0.50 (7/15/13)
Exit Target:  $1.00
Return:  10%
Stop Target:  40 cents

Action:  Aruba has traded up to $18.09 and we mentioned $18.10 this morning would be the trigger for higher prices.  Shares have since slipped but $17.25 is holding.  We believe shares can make a run to $20-$22 over the next few months.  Support is at $17.25 and we will likely close the trade if shares fall below $17.

 

Sony (SNE, $22.95, down $0.07)

August 24 calls (SNE130817C00024000, $0.55, flat)

Entry Price:  $0.50 (7/11/13)
Exit Target:  $1.00
Return:  10%
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, $1.00, flat)

Entry Price:  $0.80 (7/11/13)
Exit Target:  $1.60
Return:  25%
Stop Target:  None

Action:  The 52-week high is $23.38.  The next level of resistance is at $24.  News that China is lifting the ban of gaming counsels could have a huge impact on this stock that could push shares to $30 over the next 6-12 months.  Support is at $22 and then the 50-day MA.

 

Other 2013 Portfolio OPEN positions (1):  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.

Apollo Group August 16 puts (from June 2013) – HOLD – We still like this trade and will bring back coverage once shares fall below $18.  We will close the trade if the stock clears $20, and if we do, we will send out a Trade Alert.

 

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.