MEMBERS AREA
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 “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.
1:10pm (EST)
Aflac (AFL, $47.73, down $0.18)
February 48 calls (AFL120218C00048000, $1.35, down $0.15)
Entry Price: $0.75 (1/19/12)
Exit Target: $1.50 (closed half at $1.35 on 1/20/2012)
Return: 80%
Stop Target: $0.50, raise to $1.25 (HARD STOP)
Action: We have raised the stop target to $1.25 and have made it a Hard Stop to protect profits. We believe shares will run past $50, but if not, our stop will take us out of the trade automatically.
Scientific Games (SGMS, $10.77, down $0.94)
February 12.50 calls (SGMS120218C00012500, $0.15, down $0.15)
Entry Price: $0.20 (1/18/12)
Exit Target: $0.40
Return: -25%
Stop Target: None
July 15 calls (SGMS120721C00015000, $0.35, down $0.15)
Entry Price: $0.35 (1/18/12)
Exit Target: $0.70
Return: 0%
Stop Target: None
Action: Continue to hold.
Carrizo Oil & Gas (CRZO, $24.32, up $1.23)
April 30 calls (CRZO120421C00030000, $0.90, up $0.25)
Entry Price: $1.20 (1/17/12)
Exit Target: $2.40
Return: -25%
Stop Target: None
Action: Continue to hold.
Vivus (VVUS, $11.90, down $0.14)
February 14 calls (VVUS120218C00014000, $0.50, down $0.10)
Entry Price: $0.70 (1/12/12)
Exit Target: $1.40
Return: -29%
Stop Target: None
Action: Continue to hold.
Westport Innovations (WPRT, $35.01, down $0.08)
April 40 calls (WPRT120421C00040000, $1.45, down $0.05)
Entry Price: $1.30 (1/12/12)
Exit Target: $2.60
Return: 12%
Stop Target: $1.00
Action: Close HALF of the trade at current levels.
Coach (COH, $63.98, down $0.87)
February 55 puts (COH120218P00055000, $0.50, flat)
Entry Price: $0.95 (1/11/12)
Exit Target: $1.50-$1.90
Return: -47%
Stop Target: None
Action: Coach will report earnings on Tuesday. They have beaten Wall Street’s estimates for the last 4 quarters by an average of 3 cents each quarter. We think they come in a little short this time or lower guidance going forward.
Solazyme (SZYM, $11.55, up $0.36)
March 15 calls (SZYM120317C00015000, $0.40, flat)
Entry Price: $0.45 (1/10/12)
Exit Target: $1.00
Return: -11%
Stop Target: None
Action: Continue to hold.
OCZ Technology Group (OCZ, $7.43, down $0.20)
February 9 calls (OCZ120218C00009000, $0.25, flat)
Entry Price: $0.60 (1/9/12)
Exit Target: $1.20
Return: -58%
Stop Target: None
Action: We may have to move this trade to the “HOLD” section. We don’t carry stops on options under $1 and we still like the trade.
The $7.50 level has been a battle ground and the bears and short-sellers are pushing for $6. The short-interest is over 22 million shares and it would take over 22 days to cover. Any positive news could send the shorts covering. The company is a leader in the switch to SSD’s (solid-state drives) from HHD’s (hard-disk drives) which are gaining market share. We still have a month for this trade to play out so we are going to roll with it as we look for a run to $10.
Microsoft (MSFT, $29.49, down $0.23)
July 30 calls (MSFT120721C00030000, $1.35, down $0.10)
Entry Price: $0.75 (1/6/12)
Exit Target: $1.50+
Return: 80%
Stop Target: 75 cents, raise to $1 (HARD STOP)
Action: Close HALF of the trade at current levels. Shares tested $30 but couldn’t crack this level.
MGM Resorts (MGM, $12.92, up $0.28)
June 14 calls (MGM120616C00014000, $1.05, up $0.05)
Entry Price: $0.48 (1/6/12)
Exit Target: $1.00 (closed half at $1.00 on 1/18/2012)
Return: 114%
Stop Target: 80 cents (HARD STOP)
Action: Shares have traded above $13 today. Continue to hold the other half.
Newpark Resources (NR, $9.25, down $0.11)
March 10 calls (NR120317C00010000, $0.60, flat)
Entry Price: $0.95 (1/3/12)
Exit Target: $1.90 (closed half at $1.20 on 1/10/2012)
Return: -5%
Stop Target: 50 cents
Action: Continue to hold.
Chesapeake Energy (CHK, $22.11, up $1.15)
April 25 calls (CHK120421C00025000, $0.70, up $0.15)
Entry Price: $1.25 (12/21/11)
Exit Target: $2.50
Return: -44%
Stop Target: 60 cents
Action: Continue to hold.
Other 2012 Portfolio OPEN positions (0): 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 2012 Portfolio link in the Members Area to view ALL open/ closed trades.
None
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 any 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 with some news ideas.