1:15pm (EST)
Walt Disney (DIS, $29.61, down $0.23)
February 30 calls (DIS100220C000300000, $0.32, down $0.29)
Entry Price: $0.60 (2/9/10)
Exit Target: $1.00+
Return: -47%
Stop Target: 20 cents
Action: We set a limit price to sell the options at 60 cents but that was a reach. Since we could not sell the options, we are going to hold them through Friday unless our stop target is hit. If the stop target is hit today or by Friday we will close the trade, period. If shares of Disney can continue to claw back and the calls go up will try to exit with minimal damage.
Berkshire Hathaway Class B (BRK/B, $74.48, down $0.05)
June 100 calls (BPYFT, $0.40, flat) (BPY100619C00100000)
Entry Price: $0.50 (2/1/10)
Exit Target: $1.00+
Return: -20%
Stop Target: None
September 100 calls (BPYIT, $0.60, flat) (BPY100918C00100000)
Entry Price: $0.95 (2/1/10)
Exit Target: $2.00
Return: -37%
Stop Target: None
Action: If the mutual fund managers are waiting until Friday then we could have a sharper move the longer they wait. Folks, they HAVE to add this stock and once they start to buy shares we should see a pop.
EMC (EMC, $16.85, down $0.10)
April 19 calls (EMCDS, $0.15, down $0.01) (EMC100417C00019000)
Entry Price: $0.55 (1/19/10)
Exit Target: $1.00+
Return: -73%
Stop Target: None
Action: Continue to hold.
Shuffle Master (SHFL, $8.85, down $0.02)
May 10 calls (SFQEB, $0.55, down $0.05) (SFQ100522C00010000)
Entry Price: $0.85 (1/19/10)
Exit Target: $1.70+
Return: -35%
Stop Target: 40 cents
Action: Continue to hold.
WATCH LIST SECTION
These trades are NOT recommendations until we send out an alert or the limit prices are hit. These are trades that we like but have not added to the portfolio as an official recommendation because of market conditions or because the portfolio is full.
Nasdaq PowerShares ETF (QQQQ, $43.09, down $0.02)
March 42 puts (QQQOP, $0.89, down $0.02) (QQQ100320P00042000)
Action: Because of a “possible” bounce, we cannot add these options because of the risk. However, if they are at these levels next week then we may pull the trigger.
]]>