12:50pm (EST)

Futures were weak throughout the night and leading up to Wall Street’s open but the bulls got off to a good start after a better-than-expected Empire State number.  However, the bears have gotten into the mix after the IMF lowered its growth forecast for the US and urged a hike in the minimum wage.

The indexes have come off their lows heading into the second half of trading so the close should be interesting.

I’ve mentioned all year this is becoming a “stock picker’s market” and despite the pullback, there are a number of trades in the portfolio soaring today.  One of the recent additions, is zooming after getting a takeover bid and a number of other call option trades are approaching triple-digit returns.

I’m suggesting, subscribers take half profits to lock-in some sweet gains today.

The Dow is down 20 points to 16,755 while the S&P 500 is lower by a point to 1,955.  The Nasdaq is up a point to 4,311 and the Russell 2000 is advancing a point to 1,163.

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.

Rambus (RMBS, $14.07, up $0.43)

August 15 calls (RMBS140816C00015000, $0.60, up $0.15)

Entry Price:  $0.40 (6/13/2014)
Exit Target:  $0.80
Return:  50%
Stop Target:  None

Action:  Shares are pushing fresh 52-week highs and the option pits have been exploding.  Short-term support is at $13 and I like the trade as long as $12 holds.

Kodiak Oil & Gas (KOG, $13.61, down $0.18)

July 14 calls (KOG140721C00014000, $0.50, down $0.05)

Entry Price:  $0.35 (6/11/2014)
Exit Target:  $0.70
Return:  43%
Stop Target:  40 cents (Stop Limit)

Action:  Support is at $13.50-$13.  I have set a stop limit of 40 cents to protect profits.  A close above $14 would be bullish and get 52-week highs in play.

Hercules Offshore (HERO, $4.96, up $0.13

October 5 calls (HERO141018C00005000, $0.50, up $0.05)

Entry Price:  $0.35 (6/11/2014)
Exit Target:  $0.70
Return:  43%
Stop Target:  None

Action:  A run to $5-$6 could be in the works over the summer.  Support is at $4.60 and the 100-day MA followed by $4.40.

Imax (IMAX, $27.82, up $0.84)

September 28 calls (IMAX140920C00028000, $1.30, up $0.35)

Entry Price:  $0.60 (6/5/2014)
Exit Target:  $1.20
Return:  117%
Stop Target:  70 cents (Stop Limit)

Action:  Close HALF the trade at current levels.

Limelight Networks (LLNW, $3.02, up 0.19)

September 3 calls (LLNW140920C00003000, $0.40, up $0.10)

Entry Price:  $0.15 (6/4/2014)
Exit Target:  $0.45
Return:  167%
Stop Target:  None

December 3 calls (LLNW141220C00003000, $0.50, up $0.10)

Entry Price:  $0.20 (6/4/2014)
Exit Target:  $0.60
Return:  150%
Stop Target:  None

Action:  A bid north of $6 could be coming as Tuition Build, has offered $6.55 a share that Limelight has supposedly rejected.

Shares have traded to $3.25 and the suit-and-ties haven’t covered this amazing story today.  They will and that should get shares on the march towards $4.

Fortinet (FTNT, $24.09, up $0.47)

July 25 calls (FTNT140719C00025000, $0.50, up $0.05)

Entry Price:  $0.25 (6/4/2014)
Exit Target:  $0.50 (closed half @ $0.45 on 6/11/14)
Return:  90%
Stop Target:  30 cents (Stop Limit)

July 24 calls (FTNT140719C00024000, $0.90, up $0.15)

Entry Price:  $0.45 (5/30/2014)
Exit Target:  $0.90 (closed half @ $0.80 on 6/11/14)
Return:  89%
Stop Target:  60 cents (Stop Limit)

Action:  Shares are in breakout mode and are at fresh 52-week peaks.  Continue to ride the wave but I will be raising stops again.

Twitter (TWTR, $37.16, up $0.26)

January 50 calls 2015 (TWTR150117C00050000, $2.00, flat) LEAP option

Entry Price:  $1.75 (5/8/2014)
Exit Target:  $3.50 (closed half @ $2.10 on 6/12/14)
Return:  17%
Stop Target:  $1.70 (Stop Limit)

Action:  Shares are testing the 50-day MA and a close above $37.50 would be bullish for a run to $38-$40.  Support is at $35.

Bed, Bath & Beyond (BBBY, $60.30, up $0.07)

June 60 puts (BBBY140621P00060000, $0.45, flat)

Entry Price:  $0.60 (5/14/14
Exit Target:  $0.90 (Limit Order)
Return:  -25%
Stop Target:  None

August 55 puts (BBBY140816P00055000, $0.60, flat)

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

Action:  Shares traded to a low of $59.98 on Friday.  The June puts made a tremendous comeback last week and why I say to always trust your chart work.  Of course, the premium in the June calls will evaporate quickly this week so I’d like to see a close below $60 today.

The break even point on the June puts is at $59.40, technically, by Friday’s close as the entry price was 60 cents.  I do not want to carry the trade into Friday but might have too.  I have set Limit Orders to exit the trade at 90 cents.

The August puts still have plenty of time to wait for a continued breakdown.  Earnings are due out next week.

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
McDonald’s July 95 puts (from May 2014) – continue to hold
Apollo Group – continue to hold
June 25 puts (from April 2014)
August 23 puts (from April 2014)