1:40pm (EST)

Futures were positive throughout the night and were a good indication this morning’s Nonfarm Payroll would please Wall Street.  Expectations were for 215,000 jobs added but futures started climbing after a print of 217,000 hit the tape.

The estimate range was all over the map with a low of 100,000 jobs being added to a high of 240,000.

Either way, the signs for a breakout were already in place earlier in the week the indexes were on the verge of breaking out.

The Dow is advancing 72 points to 16,908 while the S&P 500 is gaining 8 points to 1,948.  The Nasdaq up 19 points to 4,315 and the Russell 2000 is popping a 12-pack to 1,166.

The closed trades track record is now 14-3 (82% success rate) since late March and given the incredibly tight trading range in May, it’s worth a golf clap.  However, there is still work to do as the bulls ride the near-term wave higher.

I have a few current trades that are coming down to the wire and while I want to open new ones, I usually refrain from opening new positions ahead of the weekend.  The playlist is exploding with new ideas, both long and short, as I predicted in late May there could be a breakout rally through mid-June.  However, the following week is June option expiration so volatility could pick up.

I have talked about the S&P 500 Volatility Index (VIX, 10.95, down 0.73) testing single-digits this year and with my December fluff targets finally starting to trigger, I am growing a little cautious.

This weekend’s homework will be fun as I break down the next batch of trades to play into July and August.  I have some last minutes updates for the current trades with some showing some nice pops.  There are 2 trades that have hit 100% returns but I mentioned I’m looking for 200%-500% returns with the two latest additions.

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.

Imax (IMAX, $25.96, up $0.08)

September 28 calls (IMAX140920C00028000, $0.70, flat)

Entry Price:  $0.60 (6/5/2014)
Exit Target:  $1.20
Return:  17%
Stop Target:  None

Action:  Resistance is at $26.25 and the 50-day MA.  A close above this level should get $28-$30 in play.  A big box-office weekend could provide a nice pop next week.  Support is at $25.50 and I will stick with the trade as long as $25-$24 holds.

Limelight Networks (LLNW, $2.79, up $0.10)

September 3 calls (LLNW140920C00003000, $0.30, up $0.05)

Entry Price:  $0.15 (6/4/2014)
Exit Target:  $0.45
Return:  100%
Stop Target:  None

December 3 calls (LLNW141220C00003000, $0.40, up $0.05)

Entry Price:  $0.20 (6/4/2014)
Exit Target:  $0.60
Return:  100%
Stop Target:  None

Action:  I’m expecting a near-term run to $3.  Shares have traded to a high of $2.82 today.

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.

Fortinet (FTNT, $23.04, up $0.24)

July 25 calls (FTNT140719C00025000, $0.35, up $0.05)

Entry Price:  $0.25 (6/4/2014)
Exit Target:  $0.50
Return:  40%
Stop Target:  None

July 24 calls (FTNT140719C00024000, $0.60, up $0.05)

Entry Price:  $0.45 (5/30/2014)
Exit Target:  $0.90
Return:  33%
Stop Target:  None

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

Apollo Group (APOL, $27.61, up $0.06)

June 25 puts (APOL140621P00025000, $0.15, flat)

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, $0.55, flat)

Entry Price:  $0.70 (4/28/2014)
Exit Target:  $1.40 (limit order to close half)
Return:  -21%
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 to keep the bulls of the stock uneasy.

The company will report earnings in a couple of weeks.  The June options expire in 2 weeks.  The first half of the trade could come down to the wire.  I will place the trade on hold as I expect one of the hedge-fund guys to announce their major short position in the company.

I mentioned I may have blew it with the June puts as the were profitable for a brief hour the week before last but I’m expecting shares to tank once earnings come out.

Bed, Bath & Beyond (BBBY, $61.88, up $0.55)

June 60 puts (BBBY140621P00060000, $0.30, down $0.05)

Entry Price:  $0.60 (5/14/2014)
Exit Target:  $1.20
Return:  -42%
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.  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, $33.69, down $0.20)

January 50 calls 2015 (TWTR150117C00050000, $1.45, flat) 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.  Shares traded to a high of $34.89 on Thursday.

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) – continue to hold
Kirkland’s June 15 puts (from May 2014) – continue to hold
McDonald’s July 95 puts (from May 2014) – continue to hold

 

I will be back with the Weekly Wrap on Sunday night and on Monday morning with the Daily.  Until then, have a great weekend everyone!