8:45am (EST)
Pepsico (PEP, $62.95, up $0.33)
July 65 calls (PEP120721C00065000, $1.10, up $0.10)
Entry Price: $0.95 (3/6/12)
Exit Target: $1.50-$2.00
Return: 16%
Stop Target: 50 cents
Action: Shares traded to a high of $63.12 and our near-term target is $67.
Clean Energy Fuels (CLNE, $20.71, up $0.35)
June 25 calls (CLNE120616C00025000, $0.80, up $0.10)
Entry Price: $0.50 (3/6/12)
Exit Target: $1.00 (closed half position at $1.00 on 3/8/12)
Return: 80%
Stop Target: 50 cents
Action: Shares reached another 52-week high of $21.39 and we decided to close half of the trade into strength. The company announces earnings on Monday.
Silver Wheaton (SLW, $35.97, up $0.60)
April 42 calls (SLW120421C00042000, $0.40, up $0.05)
Entry Price: $1.00 (3/1/12)
Exit Target: $1.50-$2.00
Return: -60%
Stop Target: 50 cents
Action: Continue to hold.
Adobe Systems (ADBE, $33.05, up $0.64)
April 35 calls (ADBE120421C00035000, $0.70, up $0.15)
Entry Price: $0.75 (2/28/12)
Exit Target: $1.50
Return: -7%
Stop Target: None
July 38 calls (ADBE120721C00038000, $0.75, up $0.10)
Entry Price: $0.70 (2/28/12)
Exit Target: $1.40
Return: 7%
Stop Target: None
Action: Continue to hold.
Sony (SNE, $20.42, flat)
April 22 calls (SNE120421C00022000, $0.35, flat)
Entry Price: $0.90 (2/27/12)
Exit Target: $1.60
Return: -61%
Stop Target: None
Action: Continue to hold.
U.S. Oil Fund (USO, $40.82, up $0.21)
April 45 calls (USO120421C00045000, $0.45, flat)
Entry Price: $0.80 (2/24/12)
Exit Target: $1.60
Return: -44%
Stop Target: None
Action: Continue to hold.
magicJack VocalTec (CALL, $22.28, down $1.36)
June 22.50 calls (CALL120616C00022500, $2.65, down $0.85)
Entry Price: $1.10 (2/15/12)
Exit Target: $2.20 (closed quarter position at $2.10 on 3/1/12, closed quarter position at $3.40 on 3/2/12)
Return: 145%
Stop Target: $2.00 (HARD STOP on other half)
Action: Shares kissed a high of $24 again before sinking 6% by the close. Continue to hold the other half for now and our Hard Stop will take us out if shares continue to pullback. We may also close another QUARTER of the trade in our afternoon update as the company reports earnings on Monday. As of now, we are on the fence unless our $2.00 Hard Stop takes us out.
Our average closing price on the two quarters we closed is $2.75 ($3.40 + $2.10/ 2). The current price on our other half is $2.65 which gives us our total return.
ValueClick (VCLK, $20.55, down $0.20)
June 23 calls (VCLK120616C00023000, $0.50, down $0.05)
Entry Price: $0.40 (2/15/12)
Exit Target: $0.80 (closed half position at $0.70 on 2/29/12)
Return: 50%
Stop Target: Close the other HALF if shares fall below $20
Action: Continue to hold but we will be out of the trade if $20 doesn’t hold.
Other 2012 Portfolio OPEN positions (8): 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.
PowerShares QQQ Trust March 60 puts (from February 2012) HOLD
Abercrombie & Fitch March 39 puts (from February 2012) HOLD
Newpark Resources March 10 calls (from January 2012) HOLD
Dendreon May 22 calls (from January 2012) HOLD
OCZ Technology Group March 10 calls (from February 2012) HOLD
Acme Packet March 37.50 calls, April 40 calls (from February 2012) HOLD
Freeport McMoRan March 45 calls (from February 2012) HOLD
Solazyme April 15 calls, March 15 calls (from January and February 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.
Potash (POT, $43.72, up $0.69)
April 47.50 calls (POT120421C00047500, $0.55, up $0.10)
June 50 calls (POT120616C00050000, $0.90, up $0.15)
Thoughts: Watch for now.
First Solar (FSLR, $26.15, up $0.13)
April 25 puts (FSLR120421P00025000, $2.20, down $0.25)
September 18 puts (FSLR120922P00018000, $2.20, down $0.15)
Thoughts: Shares set a 52-week low of $25.29 yesterday. The April 25 put options opened at $1.15 on Monday while the September 18 puts opened at $1.59. If you are in these options start taking quarter or half profits.
Rosetta Resources (ROSE, $50.22, down $0.34)
April 55 calls (ROSE120421C00055000, $1.00, down $0.20)
Thoughts: Watch for now.
Market Vectors Gold Miners ETF (GDX, $53.32, up $0.65)
April 58 calls (GDX120421C00058000, $0.60, up $0.05)
Thoughts: Watch for now.
American Express (AXP, $52.95, up $0.68)
April 52.50 calls (AXP120421C00052500, $1.75, up $0.30)
July 57.50 calls (AXP120721C00057500, $1.00, up $0.10)
Thoughts: Watch for now.
MGM Resorts (MGM, $13.80, up $0.39)
April 13 calls (MGM120421C00013000, $1.25, up $0.25)
January 20 calls 2013 (MGM130119C00020000, $0.50, up $0.05)
January 17.50 calls 2013 (MGM130119C00017500, $1.05, up $0.15)
Thoughts: Watch for now.
Zynga (ZNGA, $13.67, down $0.10)
September 19 call (ZNGA120922C00019000, $0.90, flat)
Thoughts: Watch for now.
Scientific Games (SGMS, $10.41, up $0.21)
July 12.50 calls (SGMS120721C00012500, $0.40, up $0.05)
April 10 calls (SGMS120421C00012500, $0.80, up $0.10)
Thoughts: This could be our next Weekly Wrap covered call trade.