2:00pm (EST)

The market has traded in a tight, choppy range today ahead of the Fed’s 2-day meeting kicking off today.  Most economists expect no changes to the Fed’s current taper policy but are expecting some possible insight into when interest rates may start to rise.

Housing Starts were a little weaker-than-expected and has caused some of the softness along with word the US is sending troops to protect the American embassy in Iraq.

Despite the tension and lackluster action, the bulls are pushing higher as they try to clear resistance.

The Dow is up 17 points to 16,798 while the S&P 500 is advancing 4 points to 1,941.  The Nasdaq is jumping 19 points to 4,340 and the Russell 2000 is adding 11 points to 1,178, both bullish signs.

I have 2 more Profit Alerts for today so let’s go check the tape.

Closed Trades for 2014: 50-30 – the Weekly Wrap is 15-4 (79%) for 2014 (100-11, or 90% 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, $14.55, up $0.17)

August 15 calls (RMBS140816C00015000, $0.80, up $0.10)

Entry Price:  $0.40 (6/13/2014)
Exit Target:  $0.80-$0.90 (Limit Order on HALF)
Return:  100%
Stop Target:  40 cents, raise to 50 cents (Stop Limit)

Action:  Close HALF the trade at current levels.

The options have traded to a high of 85 cents and have fallen short of the 90-cent Limit Order I set before the open.  Shares have traded to $14.70 but have pulled back off the highs.  I have raised the Stop Target from 40 cents to 50 Cents and have made it a Stop Limit order on the other half of the trade.

Kodiak Oil & Gas (KOG, $13.58, down $0.01)

July 14 calls (KOG140721C00014000, $0.45, down $0.05)

Entry Price:  $0.35 (6/11/2014)
Exit Target:  $0.70
Return:  14%
Stop Target:  40 cents (Stop Limit)

Action:  The Stop Limit of 40 cents triggered when shares fell to a low of $13.40 today and the options traded down to 35 cents.  I am a little disappointed on the dip below $13.50 but I will keep the stock on my Watch List to play a possible breakout past $14.

Hercules Offshore (HERO, $4.95, down $0.04)

October 5 calls (HERO141018C00005000, $0.55, flat)

Entry Price:  $0.35 (6/11/2014)
Exit Target:  $0.70
Return:  50%
Stop Target:  None

Action:  I would like to see a close above $5 today.  Next up is a trip to $6 if Hercules can hold fresh support.  Backup is at $4.60 and the 100-day MA.

Imax (IMAX, $27.78, down $0.07)

September 28 calls (IMAX140920C00028000, $1.30, flat)

Entry Price:  $0.60 (6/5/2014)
Exit Target:  $1.20 (closed half @ $1.30 on 6/16/14)
Return:  117%
Stop Target:  70 cents, raise to $1 (Stop Limit)

Action:  Continue to hold.

Limelight Networks (LLNW, $3.00, up 0.02)

September 3 calls (LLNW140920C00003000, $0.40, flat)

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

December 3 calls (LLNW141220C00003000, $0.50, flat)

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

Action:  I would like to see a close above $3 today.

Fortinet (FTNT, $24.40, up $0.23)

July 25 calls (FTNT140719C00025000, $0.65, up $0.10)

Entry Price:  $0.25 (6/4/2014)
Exit Target:  $0.50 (closed half @ $0.45 on 6/11/14)
Return:  120%
Stop Target:  40 cents (Stop Limit)

July 24 calls (FTNT140719C00024000, $1.10, up $0.10)

Entry Price:  $0.45 (5/30/2014)
Exit Target:  $0.90 (closed half @ $0.80 on 6/11/14)
Return:  111%
Stop Target:  80 cents (Stop Limit)

Action:  Continue to hold.

Twitter (TWTR, $38.14, up $1.12)

January 50 calls 2015 (TWTR150117C00050000, $2.30, flat) LEAP option

Entry Price:  $1.75 (5/8/2014)
Exit Target:  $3.50 (closed half @ $2.10 on 6/12/14)
Return:  26%
Stop Target:  $1.80 (Stop Limit)

Action:  A run to $40 is still in the works.  Support is at $35 and is moving up.

Bed, Bath & Beyond (BBBY, $60.60, up $0.23)

June 60 puts (BBBY140621P00060000, $0.35, flat)

Entry Price:  $0.60 (5/14/14
Exit Target:  $0.90 (Limit Order)
Return:  -42%
Stop Target:  None

August 55 puts (BBBY140816P00055000, $0.50, flat)

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

Action:  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)