1:20pm (EST)

The bulls like round numbers and the next target on their list is Dow 17,000.  They have come within 30 points of triggering another magical milestone but the bears have defended the fort, for now.

It was nice to see Apple (AAPL, $93.70, up $1.48) under $100 for the first time in years.  Shares opened at $92.69 and have traded down to $91.75 and up to $93.65.  Volume is at 43 million and is running just below the average daily volume of 70 million as we head into the second half of trading.

While there will likely be a run to $100 at some point this year, Apple shares have slipped 4%-6% post-split in the past.  In any event, the 7-for-1 split was great news for us option traders as the premiums are much cheaper.  However, with more shares outstanding, the “beta” in the stock was dramatically reduced, meaning, shares won’t be moving $10, or $20 in a day.

The Dow is currently up 23 points to 16,947 while the S&P 500 is higher by 3 points to 1,953.  The Nasdaq is gaining 22 points to 4,343 and the Russell 2000 is advancing 12 points to 1,177.

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, $26.23, up $0.31)

September 28 calls (IMAX140920C00028000, $0.80, up $0.10)

Entry Price:  $0.60 (6/5/2014)
Exit Target:  $1.20
Return:  33%
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.  Support is at $25.50.

Limelight Networks (LLNW, $3.00, up $0.12)

September 3 calls (LLNW140920C00003000, $0.35, up $0.05)

Entry Price:  $0.15 (6/4/2014)
Exit Target:  $0.45
Return:  133%
Stop Target:  None

December 3 calls (LLNW141220C00003000, $0.45, up $0.05)

Entry Price:  $0.20 (6/4/2014)
Exit Target:  $0.60
Return:  125%
Stop Target:  None

Action:  Shares have traded to a high of $3.19 shortly after the open.  Volume in the September 3 calls is exploding 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, $23.30, up $0.27)

July 25 calls (FTNT140719C00025000, $0.40, up $0.05)

Entry Price:  $0.25 (6/4/2014)
Exit Target:  $0.50
Return:  60%
Stop Target:  None

July 24 calls (FTNT140719C00024000, $0.65, up $0.05)

Entry Price:  $0.45 (5/30/2014)
Exit Target:  $0.90
Return:  44%
Stop Target:  None

Action:  The 52-week high os $23.93 and shares reached $23.12 on Friday.  Support is at $22.

Twitter (TWTR, $34.23, up $0.90)

January 50 calls 2015 (TWTR150117C00050000, $1.35, up $0.10) LEAP option

Entry Price:  $1.75 (5/8/2014)
Exit Target:  $3.50-$5
Return:  -23%
Stop Target:  None

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

Other 2014 Portfolio OPEN positions (5):  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) – close the trade at current levels.  The ask is 15 cents.
McDonald’s July 95 puts (from May 2014) – continue to hold
Bed, Bath & Beyond
June 60 puts (from May 2014)
August 55 puts (from May 2014
Apollo Group
June 25 puts (from April 2014)
August 23 puts (from April 2014)