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 an “Alert” or “Trade Update” 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 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 but it is rare that we do.
12:20pm (EST)
Spiders S&P 500 (SPY, $132.39, up $0.44)
May 133 calls (SPY110527C00133000, $0.40, down $0.05)
Entry Price: $0.60 (5/24/11)
Exit Target: $1.00
Return: -33%
Stop Target: None
Action: We got a little bounce today and if the S&P can close above 1,325 today, we have a shot at some decent profits.
Vivus (VVUS, $8.80, up $0.41)
September 10 calls (VVUS110917C00010000, $0.70, up $0.15)
Entry Price: $0.65 (5/20/11)
Exit Target: $1.30
Return: 8%
Stop Target: None
Action: Continue to hold.
Alpha Natural Resources (ANR, $51.89, up $2.00)
June 44 puts (ANR110618P00044000, $0.25, down $0.20)
Entry Price: $0.80 (5/13/11)
Exit Target: $1.60
Return: -69%
Stop Target: None
Action: Continue to hold.
MGM Resorts International (MGM, $15.21, up $0.27)
September 17 calls (MGM110917C00017000, $0.95, up $0.10)
Entry Price: $0.70 (5/13/11)
Exit Target: $1.40
Return: 36%
Stop Target: 75 cents
Action: These options have 4 months before expiration and our target is $20 for MGM by mid-September. This would get these options to at least $3.
Research In Motion (RIMM, $43.20, up $0.09)
June 40 puts (RIMM110618P00040000, $0.95, down $0.05)
Entry Price: $1.00 (5/10/11)
Exit Target: $2.00
Return: -5%
Stop Target: 75 cents
Action: RIMM came within spitting distance of hitting 52-weeks lows yesterday and we have a near-term price target of $38 for the stock.
Seattle Genetics (SGEN, $19.00, up $0.34)
September 20 calls (SGEN110917C00020000, $2.20, up $0.30)
Entry Price: $1.50 (5/9/11)
Exit Target: $3.00
Return: 47%
Stop Target: $1.25
Action: Continue to hold.
Starbucks (SBUX, $36.17, down $0.12)
June 38 calls (SBUX110618C00038000, $0.30, flat)
Entry Price: $0.60 (5/9/11)
Exit Target: $1.20
Return: -50%
Stop Target: None
Action: The 52-week high is $38.21 and we are expecting a run to $40 for the stock which gets these options to $2. However, today’s action could push our premiums even lower.
Dendreon (DNDN, $40.68, up $0.96)
August 50 calls (DNDN110820C00050000, $0.75, up $0.05)
Entry Price: $1.85 (4/14/11)
Exit Target: $3.70
Return: -59%
Stop Target: None
Action: Continue to hold.
Other 2011 Portfolio OPEN positions (4): These are trades that are still open in the portfolio that have longer expiration dates or 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 the options expire. Click on the 2011 Portfolio link in the Members Area to view ALL open/ closed trades.
Vivus June 14 calls (from January 2011)
eBay July 40 calls (from February 2011)
RF MicroDevices August 10 calls (from February 2011)
KLA-Tencor June 48 calls (from May 2011)
WATCH LIST SECTION
These trades are NOT recommendations. They are trades that we like but have not added to the portfolio as an official recommendation because of market conditions or because we are waiting for better entry prices. We try not to have more than 12-15 open trades at one time which is why we created a Watch List. We will not list entry prices because these stocks are on the verge of breaking out or they could sell-off.
Kraft Foods (KFT, $34.48, down $0.39)
September 35 calls (KFT110917C00035000, $0.85, down $0.20)
Thoughts: These calls are getting attractive again.
Illumina (ILMN, $72.00, up $0.80)
June 75 calls (ILMN110618C00075000, $0.85, up $0.10)
Thoughts: We want to make sure the $70 level holds before starting positions.
Caterpillar (CAT, $103.31, up $1.76)
June 95 puts (CAT110618P00095000, $0.55,flat)
Thoughts: Watch for now.
Freeport-McMoRan (FCX, $49.94, up $1.12)
June 50 calls (FCX110618C00050000, $1.80, up $0.45)
June 45 puts (FCX110618P00045000, $0.40, down $0.30)
Thoughts: Watch this straddle trade for a break back above $50 or a breakdown below $45.
Peet’s Coffee and Tea (PEET, $50.46, up $1.01)
June 55 calls (PEET110618C00055000, $0.85, up $0.25)
Thoughts: Continue to watch.
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