MEMBERS AREA
1:30pm (EST)
Do not risk more than 5% of your trading account on any one trade but do try to take ALL of the trades. Please remember, ALL “Exit Targets” and “Stop Targets” are targets. You should not have any “Hard Stops” entered to close any tradesor “Exit Orders” in your brokerage account unless we list one. We will send out a “Profit Alert” or “New Trade” 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. Closed Trades for 2014: 4-0- the Weekly Wrap is 1-0 for 2014 (86-7 since 2011) and is designed for traders that want to use options with less risk.
Pulte Group (PHM, $19.80, down $0.24)
February 22 calls (PHM140222C00022000, $0.30, down $0.10)
Entry Price: $0.40 (1/3/14)
Exit Target: $0.80
Return: -25%
Stop Target: None
Action: Shares have traded up to $20.25 but are being dragged lower by the overall market. We are expecting a push past push past $22 by mid-February. Support at $20-$19.75 and we will stick with the trade as long as $19 holds.
H&R Block (HRB, $28.63, down $0.65)
February 30 calls (HRB140222C00030000, $0.55, down $0.15)
Entry Price: $0.65 (1/3/14)
Exit Target: $1.30
Return: -15%
Stop Target: None
Action: We are expecting a run past $31 that should get us 100% return as long as $28.50 holds on any back test.
Ariad Pharmaceuticals (ARIA, $6.71, down $0.44)
January 7 calls (ARIA140118C00007000, $0.45, down $0.20)
Entry Price: $0.45 (12/3/13)
Exit Target: $0.90-$1.35 (closed a quarter @ $0.90 on 12/20/13, quarter @ $1 on 1/2/14)
Return: 56%
Stop Target: 45 cents (Stop Limit)
Action: Profit Alert! Trade CLOSED!!!
Our Stop Limit of 45 cents has been triggered on the remaining half of the trade so everyone should be out of the position. Volume is heavy so we can still keep the stock on our Watch List to play the February or March options.
Galena Biopharma (GALE, $5.23, up $0.14)
January 2.50 calls (GALE140118C00002500, $2.70, up $0.10)
Entry Price: $0.30 (11/11/13)
Exit Target: $0.90 (closed a quarter @ $1 on 11/21/13, closed a quarter @ $1.50 on 12/10/13)
Return: 558%
Stop Target: $1.75 on remaining half position, raise to $2 (Stop Limit)
Action: We mentioned Oppenheimer recently initiated coverage of the stock with a Price Target of $6 and we believe a run to $7 could come as we will re-raise Opperheimer a buck to sweeten the pot.
We will continue to adjust our Stop Limit if shares move higher. If there is a back test to $4.50 we will likely be stopped out. We need to be out of the remaining half of the trade by NEXT Friday as we want to close the position instead of exercising the call options as they will be in-the-money.
There is little analyst coverage on the Street but the company is starting to get noticed.
Other 2014 Portfolio OPEN positions (0): These are trades that are still open in the portfolio but are down over 50%. They have longer expiration dates and 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 if the options expire. Click on the 2013Portfolio link in the Members Area to view ALL open/ closed trades.
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 but these are the trades we are watching as new candidates.
We will update this section in the morning.