1:15pm (EST)

Futures were slightly lower throughout the night and ahead of the overseas markets opening as the world awaited the ECB’s decision to cut rates.  I mentioned yesterday Draghi would have to wow the zombies from central banks from around the world to keep the market(s) happy.

Ahead of Wall Street’s open, futures had improved after he did just enough to please everyone.  His words had to be dissected so the bears tried to make some noise at the open but when the bulls learned “there was more to come”, they hit rally mode.

Heading into the second half of trading, the Dow is surging 96 points to 16,833 while the S&P 500 is zooming 12 points to 1,940.  The Nasdaq is jumping 23 points to 4,295 and the Russell 2000 is rocketing 51 points to 1,151.

I could have a New Trade later this afternoon so stay locked and loaded into the close.

Closed Trades for 2014: 50-28 – the Weekly Wrap is 15-3 (83%) for 2014 (100-10, or 91% win rate, since 2011) and is designed for traders that want to use options with less risk.  All trades are dated and time stamped so new subscribers can look at our past history to see how the trades have played out.

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 12pm-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.

Limelight Networks (LLNW, $2.63, up $0.13)

September 3 calls (LLNW140920C00003000, $0.20, up $0.05)

Entry Price:  $0.15 (6/4/2014)
Exit Target:  $0.45
Return:  33%
Stop Target:  None

December 3 calls (LLNW141220C00003000, $0.30, up $0.04)

Entry Price:  $0.20 (6/4/2014)
Exit Target:  $0.60
Return:  50%
Stop Target:  None

Action:  I’m expecting a near-term run to $3.

If shares make a run to $3.50, the return should be 200% for each trade.  A close above $4 would make both calls worth $1 and an even bigger payday.  I love this story and I’ve invested a nice penny with the hopes shares reach $5 by mid-December.

Fortinet (FTNT, $22.88, up $0.03)

July 25 calls (FTNT140719C00025000, $0.30, up $0.05)

Entry Price:  $0.25 (6/4/2014)
Exit Target:  $0.50
Return:  20%
Stop Target:  None

July 24 calls (FTNT140719C00024000, $0.55, up $0.05)

Entry Price:  $0.45 (5/30/2014)
Exit Target:  $0.90
Return:  22%
Stop Target:  None

Action:  The 52-week high of $23.93.  Support is at $22.

Apollo Group (APOL, $27.55, up $0.43)

June 25 puts (APOL140621P00025000, $0.15, down $0.05)

Entry Price:  $0.55 (4/28/2014)
Exit Target:  $1.10 (limit order to close half)
Return:  -73%
Stop Target:  None

August 23 puts (APOL140816P00023000, $0.60, flat)

Entry Price:  $0.70 (4/28/2014)
Exit Target:  $1.40 (limit order to close half)
Return:  -14%
Stop Target:  None

Action:  A break below $26 should lead to the low $20’s.  Strong resistance is at $28.  The June puts continue to get drained as the time premium starts to erode so shares need to close below $26 this week to keep the bulls of the stock uneasy.

The company will report earnings in a couple of week.  The June options expire in 2 weeks from Friday.  The first half of the trade could come down to the wire.

Bed, Bath & Beyond (BBBY, $61.06, down $0.06)

June 60 puts (BBBY140621P00060000, $0.45, flat)

Entry Price:  $0.60 (5/14/2014)
Exit Target:  $1.20
Return:  -25%
Stop Target:  None

August 55 puts (BBBY140816P00055000, $0.50, flat)

Entry Price:  $0.63 (5/14/2014)
Exit Target:  $1.25
Return:  -21%
Stop Target:  None

Action:  Support is at $60 and a break below this level will likely lead to $57.50-$55.  An analyst downgrade would be nice this week.  Resistance is at $61.50-$62.50.  BBBY also reports the same week APOL does.  I am expecting both companies to miss Wall Street’s expectations and they could/ should pre-announce if this is the case.

Twitter (TWTR, $34.40, up $1.50)

January 50 calls 2015 (TWTR150117C00050000, $1.45, up $0.15) LEAP option

Entry Price:  $1.75 (5/8/2014)
Exit Target:  $3.50-$5
Return:  -17%
Stop Target:  None

Action:  Support has moved up to $32.50.  Resistance is at $35.

Other 2014 Portfolio OPEN positions (3):  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 2014 Portfolio link in the Members Area to view ALL open/ closed trades.

iShares Russell 2000 June 103 puts (from May 2014)
Kirkland’s June 15 puts (from May 2014)
McDonald’s July 95 puts (from May 2014)