12:25pm (EST)

The bears haven’t done much of anything in June and even though they are making another Tuesday’s stand, the losses have been kept in check by the bulls.

With another half of trading, things could get worse, or better, but the VIX is staying below 11.50.  The S&P 500 Volatility Index is up 0.02 to 11.17.

The Dow is down 16 points to 16,926 while the S&P 500 is slipping 3 points to 1,947.  The Nasdaq is lower by 7 points to 4,328 and the Russell 2000 is declining 7 points to 1,168.

I could have a New Trade by the close but I’m still doing chart work and research to find the best options to play.  Stay locked-and-loaded into the close and if not today, there will likely be new action tomorrow.

 

Closed Trades for 2014: 50-29 – 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, $26.39, up $0.08)

September 28 calls (IMAX140920C00028000, $0.80, flat)

Entry Price:  $0.60 (6/5/2014)
Exit Target:  $1.20
Return:  33%
Stop Target:  None

Action:  The 50-day MA is at $26.40.  A close above this level should get $28-$30 in play.  Support is at $25.50.

Limelight Networks (LLNW, $3.00, up $0.04)

September 3 calls (LLNW140920C00003000, $0.35, flat)

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

December 3 calls (LLNW141220C00003000, $0.45, flat)

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

Action:  I’d like to see a close above $3 today.  Support is at $2.75.

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, $23.26, up $0.08)

July 25 calls (FTNT140719C00025000, $0.40, flat)

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

July 24 calls (FTNT140719C00024000, $0.65, flat)

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

Action:  The 52-week high is $23.93 and shares reached $23.34 on Monday.  Support is at $22.

Twitter (TWTR, $35.15, up $0.68)

January 50 calls 2015 (TWTR150117C00050000, $1.50, up $0.15) LEAP option

Entry Price:  $1.75 (5/8/2014)
Exit Target:  $3.50-$5
Return:  -14%
Stop Target:  None

Action:  Support has moved up to $32.50.  Resistance is at $35.  Monday’s high reached $34.55.

Other 2014 Portfolio OPEN positions (4):  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
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)