August 2013 | Members

 

 

 

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: 90-46, including the Weekly Wrap that is 27-3).

12:30pm (EST)

Xilinx (XLNX, $47.45, down $0.70)

September 50 calls (XLNX130921C00050000, $0.25, down $0.13)

Entry Price:  $0.35 (8/1/13)
Exit Target:  $0.70-$1.05
Return:  -29%
Stop Target:  None

Action:  Shares are testing support at $46 and we will stick with the trade as long as $45 holds.  Our near-term target is for a run past $50.  If the stock can trade up to $51.05 by mid-September, these options will return us at least 200%.

 

MGM Resorts International (MGM, $16.55, down $0.30)

August 17 calls (MGM130817C00017000, $0.35, down $0.15)

Entry Price:  $0.27 (7/30/13)
Exit Target:  $0.60 (closed HALF at $0.52 on 8/1/13)
Return:  61%
Stop Target:  None

 

September 17 calls (MGM130921C00017000, $0.65, down $0.17)

Entry Price:  $0.52 (7/30/13)
Exit Target:  $1.05
Return:  25%
Stop Target:  None 

Action:  We wanted to see $16.75 hold into the weekend but we would be happy with $16.50 if there is no rebound.  Earnings are next week.

 

Walter Energy (WLT, $10.33, down $0.46)

August 9 puts (WLT130817P00009000, $0.19, up $0.04)

Entry Price:  $0.30 (7/25/13)
Exit Target:  $0.60
Return:  -37%
Stop Target:  None

 

September 9 puts (WLT130921P00009000, $0.65, up $0.05)

Entry Price:  $0.70 (7/25/13)
Exit Target:  $1.40
Return:  -7%
Stop Target:  None

Action:  Shares have traded to a low of $10.20 today and $9 is just around the corner.

 

Royal Bank of Scotland (RBS, $9.91, down $0.26)

August 10 calls (RBS130817C00010000, $0.45, up $0.25)

Entry Price:  $0.55 (7/23/13)
Exit Target:  $1.10
Return:  -18%
Stop Target:  None

 

November 12.50 calls (RBS131116C00012500, $0.20, up $0.05)

Entry Price:  $0.20 (7/23/13)
Exit Target:  $0.60
Return:  0%
Stop Target:  None

Action:  We would like to see $10 hold into the close and shares still have a little work to do following the dip to $9.70 at the open.

 

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.

Sony August 24 calls, August 26 calls, October 25 calls (from July 2013) –HOLD- Shares also made a strong rebound off the 50-day MA at $21.13 and the weakness was due to some confusion on the company spinning off its entertainment division.  A report said the board rejected the idea while they say they are still considering it.  The company also reported earnings last night and turned a profit for the quarter.  These are positive developments and a run to $23 could come 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.