12:15pm (EST)

I mentioned yesterday I had an earnings trade that could post a triple-digit return in less than 24 hours and it’s time to ring the register.

Shares of BlackBerry (BBRY, $9.30, up $1.01) are surging 12% after posting better-than-expected earnings ahead of the open.  The company is still losing money but the CEO said they are close to break-even on hardware.

BlackBerry lost $0.11 a share on revenue of $966 million.  The suit-and-ties were looking for a loss of $0.26 a share on sales of $963 million.

I often mention a 5%-10% move in a stock often means a triple-digit return for near-term options and with expectations so low on Wall Street for BlackBerry, shares are zooming as the shorts cover.

The bulls pushed higher highs at the open but have taken a breather heading into the second half of trading.

The Dow is down 36 points to 16,870 while the S&P is lower by 2 points to 1,955.  The Nasdaq is declining 12 points to 4,351 and the Russell 2000 is off 2 points to 1,181.

Closed Trades for 2014: 51-30 – 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 the 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.

CVS Caremark (CVS, $77.45, up $0.09)

August 80 calls (CVS140816C00080000, $0.80, flat)

Entry Price:  $0.60 (6/18/2014)
Exit Target:  $1.20
Return:  33%
Stop Target:  None

Action:  Shares held the 50-day MA after a recent back test and should resume their march towards $80.  Support is at $76-$75.

BlackBerry (BBRY, $9.30, up $1.01)

August 9 calls (BBRY140816C00009000, $0.85, up $0.40)

Entry Price:  $0.45 (6/18/2014)
Exit Target:  $0.90
Return:  89%
Stop Target:  None

Action:  Close HALF the trade at current levels to lock-in profits.  Shares have traded to $9.52 with the options reaching 94 cents.

Rambus (RMBS, $14.54, down $0.12)

August 15 calls (RMBS140816C00015000, $0.80, flat)

Entry Price:  $0.40 (6/13/2014)
Exit Target:  $1.20 Limit Order (Closed half @ 80 cents on 6/17/14)
Return:  100%
Stop Target:  60 cents (Stop Limit)

Action:  A close above $14.70 keeps $15 in play.

Hercules Offshore (HERO, $4.91, up $0.04)

October 5 calls (HERO141018C00005000, $0.50, flat)

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

Action:  A trip to $6 is in store if Hercules can hold $5.  Support is at $4.80.

Imax (IMAX, $28.20, up $0.14)

September 28 calls (IMAX140920C00028000, $1.45, flat)

Entry Price:  $0.60 (6/5/2014)
Exit Target:  $1.20 (closed half @ $1.30 on 6/16/14)
Return:  129%
Stop Target:  $1.10, raise to $1.20 (Stop Limit)

Action:  A run to $30 is in the works as long as $28 can hold.

Limelight Networks (LLNW, $2.98, flat)

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 $3.25 this week.  Support is at $2.75.

Fortinet (FTNT, $24.53, up $0.07)

July 25 calls (FTNT140719C00025000, $0.65, flat)

Entry Price:  $0.25 (6/4/2014)
Exit Target:  $0.50 (closed half @ $0.45 on 6/11/14)
Return:  120%
Stop Target:  50 cents (Stop Limit)

July 24 calls (FTNT140719C00024000, $1.10, flat)

Entry Price:  $0.45 (5/30/2014)
Exit Target:  $0.90 (closed half @ $0.80 on 6/11/14)
Return:  111%
Stop Target:  90 cents (Stop Limit)

Action:  A run past $25 could be coming as long as $24 holds.

Twitter (TWTR, $38.81, up $0.07)

January 50 calls 2015 (TWTR150117C00050000, $2.60, up $0.30) LEAP option

Entry Price:  $1.75 (5/8/2014)
Exit Target:  $3.50 (closed half @ $2.10 on 6/12/14)
Return:  34%
Stop Target:  $1.80, raise to $2.10 (Stop Limit)

Action:  A run to $40 is still in the works.  Support is at $35 and is moving up.  I have raised the Stop Limit on the other half to $2.10.

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
Apollo Group – continue to hold
June 25 puts (from April 2014)
August 23 puts
Bed, Bath & Beyond
June 60 puts (from May 2014)
August 55 puts