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.
12:45pm (EST)
MGM Resorts (MGM, $13.09, down $0.02)
June 15 calls (MGM120616C00015000, $0.75, down $0.07)
Entry Price: $0.80 (1/26/12)
Exit Target: $1.60
Return: -6%
Stop Target: None
Action: The calls opened at 86 cents and traded down to 73 cents so our limit order of 80 cents got filled. These options have 141 days before they expire and shares will be north of $15 come June.
Dendreon (DNDN, $14.31, down $0.41)
May 22 calls (DNDN120519C00022000, $0.80, down $0.08)
Entry Price: $0.92 (1/26/12)
Exit Target: $1.85
Return: -13%
Stop Target: None
Action: The calls opened at 92 cents so we are in the Flynn.
Scientific Games (SGMS, $11.42, flat)
February 12.50 calls (SGMS120218C00012500, $0.20, flat)
Entry Price: $0.20 (1/18/12)
Exit Target: $0.40
Return: 0%
Stop Target: None
July 15 calls (SGMS120721C00015000, $0.45, flat)
Entry Price: $0.35 (1/18/12)
Exit Target: $0.70 (closed half at $0.45 on 1/25/2012)
Return: 29%
Stop Target: None
Action: Continue to hold.
Carrizo Oil & Gas (CRZO, $25.17, down $0.96)
April 30 calls (CRZO120421C00030000, $1.05, down $0.20)
Entry Price: $1.20 (1/17/12)
Exit Target: $2.40
Return: -13%
Stop Target: None
Action: Continue to hold.
Vivus (VVUS, $11.98, down $0.24)
February 14 calls (VVUS120218C00014000, $0.40, down $0.05)
Entry Price: $0.70 (1/12/12)
Exit Target: $1.40
Return: -43%
Stop Target: None
Action: Vivus expects to hear word from an advisory panel on Qnexa in mid-February which could give us clues on if the FDA’s will approve the obesity drug or not. A decision is expected by mid-April but we are hoping to hear good news before then.
Westport Innovations (WPRT, $38.38, down $0.53)
April 40 calls (WPRT120421C00040000, $2.65, down $0.20)
Entry Price: $1.30 (1/12/12)
Exit Target: $2.60 (closed half at $1.45 on 1/24/2012)
Return: 58%
Stop Target: $2.05 (HARD STOP)
Action: Close the other half of the trade at current levels. Shares surged above $40 at the open and we thought they would hold this level as the options reached $3.60. Westport failed to hold $40 which could mean a top.
Solazyme (SZYM, $11.60, down $0.07)
March 15 calls (SZYM120317C00015000, $0.30, 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, $8.73, up $0.33)
February 9 calls (OCZ120218C00009000, $0.35, up $0.05)
Entry Price: $0.60 (1/9/12)
Exit Target: $1.20
Return: -42%
Stop Target: None
Action: We are bringing back coverage of OCZ although the trade is still down 42%. Shares have made a solid move this week after starting Monday at $7.63. We have talked about the huge short-interest in the stock and these options still have 3 weeks before they expire. If shares can reach $9 we should be back to even, at $10 the trade will be a double.
Microsoft (MSFT, $29.54, down $0.02)
July 30 calls (MSFT120721C00030000, $1.35, flat)
Entry Price: $0.75 (1/6/12)
Exit Target: $1.50+ (closed half at $1.35 on 1/24/2012)
Return: 80%
Stop Target: $1.10, raise to $1.20 (HARD STOP)
Action: Continue to hold the other half but we have raised the Hard Stop.
Newpark Resources (NR, $9.51, down $0.20)
March 10 calls (NR120317C00010000, $0.70, flat)
Entry Price: $0.95 (1/3/12)
Exit Target: $1.90 (closed half at $1.20 on 1/10/2012)
Return: 0%
Stop Target: 50 cents
Action: Continue to hold.
Chesapeake Energy (CHK, $22.30, down $1.08)
April 25 calls (CHK120421C00025000, $0.80, down $0.25)
Entry Price: $1.25 (12/21/11)
Exit Target: $2.50
Return: -36%
Stop Target: 60 cents
Action: Continue to hold
Other 2012 Portfolio OPEN positions (1): 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.
Coach February 55 puts (from January 2012) HOLD
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.