1:00pm (EST)
Qualcomm (QCOM, $38.73, up $0.80)
March 39 calls (AAO100320C00039000, $0.75, up $0.22)
Entry Price: $0.70 (3/3/10)
Exit Target: $1.05
Return: 7%
Stop Target: None
Action: The options opened at 72 cents and traded down to 70 cents so many of you should have gotten filled at our limit price. The calls have traded to a high of 97 cents and we are looking for a 50% gain. Here again, we are getting within pennies of our exit target. Let’s see if Qualcomm can rally by the closing bell but we want to be out by Friday.
FedEx (FDX, $87.00, up $1.59)
April 90 calls (FDX100417C00090000, $2.00, up $0.60)
Entry Price: $1.35 (3/1/10)
Exit Target: $2.70
Return: 48%
Stop Target: $1.00, raise to $1.35
Action: Morgan Stanley raised the earnings estimates for FedEx from 75 cents to 82 cents for the quarter based on strong freight trends. The options have traded as high as $2.16 but we may take profits a little early. Watch for an update if we decide to close the trade.
Cree (CREE, $69.20, up $0.19)
April 75 call (CQR100417C00075000, $1.60, up $0.10)
Entry Price: $1.25 (2/26/10)
Exit Target: $2.00
Return: 28%
Stop Target: $1.30, lower to $1.00
Action: Shares have traded to $69.99 which could be telling us something. We were hoping for a push to over $70 today and since we didn’t get it we are going to close NOW. We would rather take profits and look for better trades. Again, close the trade NOW.
F5 Networks (FFIV, $61.26, up $1.57)
April 60 calls (FLK100417C00060000, $3.60, up $0.95)
Entry Price: $1.20 (2/22/10)
Exit Target: $4.00 (closed half on 3/2 @ $2.50)
Return: 154%
Stop Target: $3.00
Action: Let’s close the other half of this trade NOW as well. The April 65 (FLK100417C00065000, $1.30, up $0.35) calls are getting a ton of attention so we may roll some profits over into these options. Just not right now…
Berkshire Hathaway Class B (BRK/B, $81.81, up $1.04)
June 100 calls (BPY100619C00100000, $0.20, flat)
Entry Price: $0.50 (2/1/10)
Exit Target: $1.00+
Return: -60%
Stop Target: None
September 100 calls (BPY100918C00100000, $0.60, flat)
Entry Price: $0.95 (2/1/10)
Exit Target: $2.00
Return: -37%
Stop Target: None
Action: The ask prices are still holding and could go higher. Continue to hold.
Other 2010 Portfolio OPEN positions (2): These are trades that are still open in the portfolio that have longer expiration dates but are not worth mentioning until they turn around. This way you know we are still tracking them and we will record the results, accordingly. Click on the 2010 Portfolio link in the Members Area to view ALL open/ closed trades.
EMC (EMC, $17.65, flat)
Shuffle Master (SHFL, $8.47, up $0.09)
Action: EMC is an April call option trade while Shuffle Master is a May option trade that we profiled in January 2010.
WATCH LIST SECTION
These trades are NOT recommendations until we send out an alert. These are trades that we like but have not added to the portfolio as an official recommendation because of market conditions. We will not list entry prices because these stocks are on the verge of breaking out or they could sell-off.
Sandisk (SNDK, $31.99, down $0.49)
March 33 calls (SWF100320C00030000, $0.73, down $0.23)
Action: These options looked tempting…
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9:50pm (EST)
F5 Networks (FFIV, $61.05, up $1.36)
April 60 calls (FLK100417C00060000, $3.40, up $0.75)
Entry Price: $1.20 (2/22/10)
Exit Target: $3.00, raise to $4.00 (closed half on 3/2 @ $2.50)
Return: 148%
Stop Target: $2.00, raise to $3.00
Action: Continue to HOLD the other half of the position but raise the stop to $3. It looks like we could run to $62-$63 today. Keep the position open and let’s go for $4 for an exit. However, if we fade from here, let the $3 stop take you out.
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9:05am (EST)
NEW TRADE!!!
Qualcomm (QCOM, $37.93, up $2.37)
Buy to OPEN March 39 calls (AAO100320C00039000, $0.53, up $0.38)
Action: This will be a short trade because we are using March options and they expire in a few weeks. Use limit prices of 65-70 cents for these options but you may have to pay a little more at the open. Don’t worry about a nickel or two if these options open higher, go ahead and get them.
We are looking for the stock to make a run to $40 which could be where resistance comes into play but would get us a double.
Current Trades
FedEx (FDX, $85.41, down $0.40)
April 90 calls (FDX100417C00090000, $1.40, down $0.15)
Entry Price: $1.35 (3/1/10)
Exit Target: $2.70
Return: 4%
Stop Target: $1.35, lower to $1.00
Action: We are a little disappointed on how FedEx closed yesterday but the stock is higher in pre-market trading this morning. Continue to hold.
Cree (CREE, $69.01, down $0.70)
April 75 call (CQR100417C00075000, $1.50, down $0.30)
Entry Price: $1.25 (2/26/10)
Exit Target: $2.00
Return: 20%
Stop Target: $1.30, lower to $1.00
Action: We were up over 50% at one point yesterday and we mentioned taking profits but we got greedy. We still think Cree has a shot to trade over $70 again but we are keeping a close eye on it.
F5 Networks (FFIV, $59.69, up $1.44)
April 60 calls (FLK100417C00060000, $2.65, up $0.90)
Entry Price: $1.20 (2/22/10)
Exit Target: $2.50, raise to $3.00 (closed half on 3/2 @ $2.50)
Return: 115%
Stop Target: $2.00
Action: The calls trade to a high of $2.89 and we just missed getting our exit on the other half of the trade. We have a HARD stop on the other half of the position should the stock fade from here, meaning, CLOSE the other half of the position if the $2 stop is triggered.
Berkshire Hathaway Class B (BRK/B, $80.77, down $1.44)
June 100 calls (BPY100619C00100000, $0.20, flat)
Entry Price: $0.50 (2/1/10)
Exit Target: $1.00+
Return: -60%
Stop Target: None
September 100 calls (BPY100918C00100000, $0.60, flat)
Entry Price: $0.95 (2/1/10)
Exit Target: $2.00
Return: -37%
Stop Target: None
Action: The bid prices held despite the stock losing ground yesterday. Continue to hold.
Other 2010 Portfolio OPEN positions (2): These are trades that are still open in the portfolio that have longer expiration dates but are not worth mentioning until they turn around. This way you know we are still tracking them and we will record the results, accordingly. Click on the 2010 Portfolio link in the Members Area to view ALL open/ closed trades.
EMC (EMC, $17.65, down $0.10)
Shuffle Master (SHFL, $8.38, up $0.06)
Action: EMC is an April call option trade while Shuffle Master is a May option trade that we profiled in January 2010.
WATCH LIST SECTION
These trades are NOT recommendations until we send out an alert. These are trades that we like but have not added to the portfolio as an official recommendation because of market conditions. We will not list entry prices because these stocks are on the verge of breaking out or they could sell-off.
Diamond Foods (DMND, $37.31, up $0.78)
March 35 calls (DQF100320C00035000, $2.40, up $0.55)
Action: Volume is still light and we had the chance to get into these options for $1.15 on Monday morning but we didn’t think everyone would get good fill prices on their orders. These options only traded 26 contracts yesterday but they have doubled since the start of the week. We only wish there was more volume.
Sandisk (SNDK, $32.48, down $0.15)
March 33 calls (SWF100320C00030000, $0.96, down $0.11)
Action: These options looked tempting…
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