1:15pm (EST)

The talking heads are doing their best cheerleading Dow 17,000 and with another half of trading to go, they might start doing backflips if reached.

Of course, it doesn’t mean anything if you haven’t participated on the run to new highs.  Most of the suit-and-ties are still dramatically underperforming the market by staying on the sidelines and warning of a pullback.

There was another famous Wall Street vet that once again discounted the S&P 500 Volatility Index ($VIX, 10.66, up 0.04) and said it has been a useless indicator for 2 years.  Are you kidding me?  To me, the VIX has been one of the BEST indicators for calling breakouts and pullbacks and why I am so glad everyone is ignoring it.  The bulls have pushed another 52-week low of 10.34 today.

The Dow is up 33 points to 16,954 while the S&P 500 is higher by 2 points to 1,961.  The Nasdaq is advancing a point to 4,360 and the Russell 2000 is gaining a half-point to 1,184.

I have a lot to cover with the current trades as there a 3 more Profit Alerts that have triggered.  I mentioned the portfolio will be light and ready for new trades starting next week.  June has been an incredible month for the portfolios (including the Weekly Wrap) and I expect the momentum to continue into the summer and for the rest of the year.

I have said this could be one of the BEST years ever to trade the upcoming volatility and the portfolios are proof in the pudding.

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, $77.30, down $0.15)

August 80 calls (CVS140816C00080000, $0.75, down $0.05)

Entry Price:  $0.60 (6/18/2014)
Exit Target:  $1.20
Return:  25%
Stop Target:  60 cents

Action:  A close above $78 would be bullish.  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, $9.61, up $0.52)

August 9 calls (BBRY140816C00009000, $1.05, up $0.35)

Entry Price:  $0.45 (6/18/2014)
Exit Target:  $0.90 (closed half @ 85 cents on 6/19/14)
Return:  111%
Stop Target:  60 cents (Stop Limit)

Action:  The shorts tried to make a move at the open as shares made a dip to $8.98 but were once again slammed.  The stop limit held as the calls only fell to 68 cents.  I will adjust over the weekend but a run to $10 is looking good.

Rambus (RMBS, $14.62, down $0.03)

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:  70 cents (Stop Limit)

Action:  A close above $14.70 keeps $15 in play. Support is at $14.50.

Hercules Offshore (HERO, $4.40, down $0.54)

October 5 calls (HERO141018C00005000, $0.35, down $0.15)

Entry Price:  $0.35 (6/11/2014)
Exit Target:  $0.70
Return:  0%
Stop Target:  None

Action:  Close the trade at current levels.  Shares are tumbling today after a contract dispute.  The options opened at 45 cents and the 40% profit has vanished.  I would rather break even and look for better prospects as shares could be dead money for a few weeks or months.

Imax (IMAX, $27.86, down $0.39)

September 28 calls (IMAX140920C00028000, $1.40, down $0.20)

Entry Price:  $0.60 (6/5/2014)
Exit Target:  $1.20 (closed half @ $1.30 on 6/16/14)
Return:  125%
Stop Target:  $1.20 (Stop Limit)

Action:  The close back below $28 is discouraging but the stop limit has held, so far.

Limelight Networks (LLNW, $2.97, down $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 $3.25 today but will settle for $3.  Support is at $2.75.

Fortinet (FTNT, $24.20, down $0.44)

July 25 calls (FTNT140719C00025000, $0.50, down $0.20)

Entry Price:  $0.25 (6/4/2014)
Exit Target:  $0.50 (closed half @ $0.45 on 6/11/14)
Return:  90%
Stop Target:  50 cents (Stop Limit)

July 24 calls (FTNT140719C00024000, $0.90, down $0.30)

Entry Price:  $0.45 (5/30/2014)
Exit Target:  $0.90 (closed half @ $0.80 on 6/11/14)
Return:  89%
Stop Target:  90 cents (Stop Limit)

Action:  Both Stop Limits have triggered on these call options.  If $24 holds, I may look to get back into FTNT with August calls next week but for now I’m out.

Twitter (TWTR, $38.24, down $0.66)

January 50 calls 2015 (TWTR150117C00050000, $2.30, down $0.20) 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:  $2.10 (Stop Limit)

Action:  Close the trade at current levels.  The puts have traded down to $2.20.

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) – these options expire today.  Although the puts were used as “protection”, it still doesn’t feel good to have a losing trade.

McDonald’s July 95 puts (from May 2014) – continue to hold

Apollo Group
June 25 puts (from April 2014) – these options expire today and while the trade didn’t work out, I’m hoping the August puts do with the company announcing earnings next week.
August 23 puts – continue to hold

Bed, Bath & Beyond
June 60 puts (from May 2014) current ask 16 cents, if shares fall below $60 these options are in-the-money.  This trade can be closed now for 10 cents and make sure you close the position before the bell.
August 55 puts – continue to hold

 

I will be back Sunday night with the Weekly Wrap and on Monday morning with the Daily.  Until then, have a great weekend everyone!