9:00am (EST)
PowerShares QQQ (QQQQ, $46.25, up $1.07)
July 45 puts (QQQQ100717P00045000, $1.35, down $0.60)
Entry Price: $1.50 (6/2/10)
Exit Target: $3.00+
Return: -10%
Stop Target: 75 cents
Action: We went over the top end targets for the indexes so keep this in mind if we rally up to them today. The key here is to keep your emotions in check and realize the majority of our trades are planned for July expiration.
F5 Networks (FFIV, $69.28, up $1.52)
July 60 puts (FFIV100717P00060000, $1.80, up $0.05)
Entry Price: $1.85 (6/2/10)
Exit Target: $2.20+
Return: -3%
Stop Target: 90 cents
Action: We have profiled a couple of put trades on some high-flying stocks and F5 is the latest. It’s hard to root against a stock after a call option trade we recommended in February returned 150% but we have been following the chart for months now since that trade. If we are right, this one could trade down to double nickels ($55).
Moody’s (MCO, $19.90, up $0.60)
July 18 puts (MCO100717P00018000, $0.95, down $0.45)
Entry Price: $1.10 (6/1/10)
Exit Target: $2.20+
Return: -14%
Stop Target: 55 cents
Action: Moody’s stayed below $20 which was nice to see. This is now resistance although we may bounce a little as the ceiling is being built. We have a price target of $16 for this overrated rating agency.
Qualcomm (QCOM, $36.02, up $0.95)
July 34 puts (QCOM100717P00034000, $0.90, down $0.40)
Entry Price: $1.08 (6/1/10)
Exit Target: $2.00+
Return: -17%
Stop Target: 50 cents
Action: Resistance is forming here in the $35-$36 area. Our target for the stock is $30 which would make these options worth at least $4+ if shares trade to our target by July 17.
Wells Fargo (WFC, $29.18, up $0.95)
June 25 puts (WFC100619P00025000, $0.15, down $0.15)
Entry Price: $0.73 (5/25/10)
Exit Target: $1.50
Return: -79%
Stop Target: None
Action: We said we might run out of time with the June options but we still think Wells is headed to the mid-to-lower $20’s. We will move the trade to hold status but we will need a 15% correction in the stock over the next two weeks.
SanDisk (SNDK, $46.43, up $1.43)
July 34 puts (SNDK100717P00034000, $0.90, down $0.10)
Entry Price: $1.50 (5/10/10)
Exit Target: $3.00
Return: -40%
Stop Target: None
Action: We still think SanDisk falls back to the mid $30’s but we might be forced to close the trade if shares break $50.
Other 2010 Portfolio OPEN positions (3): 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. Many of these trades are months old so new subscribers should not be in them. We are still keeping track of the trade and we will record the results, accordingly, when we close them or they expire. Click on the 2010 Portfolio link in the Members Area to view ALL open/ closed trades.
A123 Systems, Berkshire Hathaway Class B and Vale.
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 or because we are waiting for better entry prices. We will not list entry prices because these stocks are on the verge of breaking out or they could selloff.
Apollo Group (APOL, $51.47, up $0.07)
July 45 puts (APOL100717P00045000, $1.85, down $0.10)
Action: Continue to watch.
]]>