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.
1:15pm (EST)
Spiders S&P 500 (SPY, $132.68, up $0.29)
May 133 calls (SPY110527C00133000, $0.35, flat)
Entry Price: $0.60 (5/24/11)
Exit Target: $1.00
Return: -42%
Stop Target: None
Action: We were looking for a close above 1,325 for the S&P today and a pop to 1,335 on Friday.
Vivus (VVUS, $8.85, down $0.04)
September 10 calls (VVUS110917C00010000, $0.65, flat)
Entry Price: $0.65 (5/20/11)
Exit Target: $1.30
Return: 0%
Stop Target: None
Action: Shares are having a little trouble clearing $9 as they have traded up to $8.94 twice – yesterday and Friday. Once this level is taken out, an easy run to $10 should follow with a longer-term target of $15-$20.
MGM Resorts International (MGM, $15.49, down $0.04)
September 17 calls (MGM110917C00017000, $1.00, down $0.05)
Entry Price: $0.70 (5/13/11)
Exit Target: $1.40
Return: 43%
Stop Target: 75 cents
Action: Let’s see where we are at on Friday before closing half of this trade. 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. However, we also have to realize this market is volatile so we have to take quicker profits and protect our gains.
Research In Motion (RIMM, $43.35, up $0.21)
June 40 puts (RIMM110618P00040000, $0.85, down $0.10)
Entry Price: $1.00 (5/10/11)
Exit Target: $2.00
Return: -15%
Stop Target: 75 cents
Action: RIMM’s 52-week low is $42.53 and shares traded down to $42.75 yesterday. Our near-term price target is $38 for the stock which gets these options to $2.
Seattle Genetics (SGEN, $19.26, up $0.32)
September 20 calls (SGEN110917C00020000, $2.35, up $0.20)
Entry Price: $1.50 (5/9/11)
Exit Target: $3.00
Return: 57%
Stop Target: $1.25, raise to $1.60
Action: Seattle Genetics has hit another new high today. We have raised the stop to lock in a profit should shares stumble from here but the momentum is there for a push past $20.
Starbucks (SBUX, $36.40, up $0.29)
June 38 calls (SBUX110618C00038000, $0.30, up $0.05)
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.
Dendreon (DNDN, $40.92, up $0.05)
August 50 calls (DNDN110820C00050000, $0.75, flat)
Entry Price: $1.85 (4/14/11)
Exit Target: $3.70
Return: -59%
Stop Target: None
Action: Dendreon made a nice run past $40 and have looked good this week after an analyst came out with a “Buy” rating on Monday. Of course, we have been telling you to buy the stock since it was under $5 and we are hoping these options pay off with a run past $50 this summer.
Other 2011 Portfolio OPEN positions (5): 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)
Alpha Natural Resources June 44 puts (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.
We will update this section in the morning.
]]>