Please remember, ALL “Exit Targets” and “Stop Targets” are targets. You should not have any “Hard Stops” entered to close any trades or “Exit Orders” in your brokerage account unless we list one. We will send out an “Alert” or “Trade Update” 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 but it is rare that we do.
1:50pm (EST)
Special Note: We made an error earlier this afternoon and sent our Daily subscribers 3 WEEKLY WRAP trades. The publication is for covered calls and although we think the trades will return some nice, steady profits, we realize this publication isn’t for some of you. We apologize for the confusion. To our current trades for the Daily:
Potash (POT, $54.84, up $0.40)
September 60 calls (POT110917C00060000, $1.05, down $0.10)
Entry Price: $1.00 (8/11/11)
Exit Target: $1.25-$1.30 (closed at $1.20 on 8/12/11)
Return: 20%
Stop Target: None
Action: We may play this name again next week but we just wanted to make some quick profits by doubling-up to finance some of our longer-term trades.
Pepsi (PEP, $63.38, up $0.51)
October 67.50 calls (PEP111022C00067500, $0.80, up $0.05)
Entry Price: $0.45 (8/11/11)
Exit Target: $0.90+ (closed at $0.80 on 8/12/11)
Return: 78%
Stop Target: None
Action: We booked nearly 80% in a day and we wanted to get out ahead of the weekend. We are hoping shares dip to $60 again next week and hold which is where we might go long again. However, if $60 breaks in convincing fashion, we will stay away.
Rambus (RMBS, $11.22, up $0.14)
September 9 puts (RMBS110917P00009000, $0.40, down $0.05)
Entry Price: $0.55 (8/10/11)
Exit Target: $1.10+
Return: -27%
Stop Target: None
Action: We would like to see a close below $10 today. These puts do not expire for over another 35 days so try not to let the volatility get to you on both the calls and puts.
United Airlines (UAL, $18.06, up $0.24)
September 16 puts (UAL110917P00016000, $0.80, down $0.10)
Entry Price: $1.00 (8/10/11)
Exit Target: $2.00+
Return: -20%
Stop Target: None
Action: These options have 35 days before expiration and out price target is $15 for UAL.
Staples (SPLS, $13.50, up $0.40)
August 12 puts (SPLS110820P00012000, $0.20, down $0.10)
Entry Price: $0.50 (8/10/11)
Exit Target: $1.00+
Return: -60%
Stop Target: None
Action: Staples will announce earnings next Tuesday and we believe they are going to report a terrible quarter. We have penciled in a drop below $10 following the news. This is an all-or-nothing trade so be aware of this as the August options expire next Friday and any good news will keep shares in double-digits more than likely. Our breakeven point is $11.50.
PowerShares QQQ (QQQ, $53.76, up $0.66)
September 50 puts (QQQ110917P00050000, $1.00, down $0.30)
Entry Price: $1.55 (8/8/11)
Exit Target: $3.10
Return: -36%
Stop Target: $1.55
Action: These are also September options and we believe a dip below $50 is coming before the bottom is in. Continue to hold.
Other 2011 Portfolio OPEN positions (14): 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 2011 Portfolio link in the Members Area to view ALL open/ closed trades.
RF MicroDevices August 10 calls (from February 2011)
Dendreon August 50 calls (from April 2011)
MGM Resorts International September 17 calls (from May)
Vivus September 10 calls (from May 2011)
Symantec October 20 calls (from June 2011)
Rediff.com India October 15 calls (from June 2011)
Seattle Genetics August 22.50 calls (from June 2011)
September 20 calls (from May 2011)
Global Payments August 55 calls (from July 2011)
TiVo August 11 calls (from July 2011)
iShares Russell 2000 August 86 calls (from July 2011)
Spider S&P 500 August 135 calls (from July 2011)
Spider Dow Jones Industrial Average August 126 calls (from July 2011)
Freeport-McMoRan August 57 calls (from July 2011)
Qualcomm October 65 calls (from July 2011)
Rambus September 17 calls, August 17 calls (from July 2011)
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.
We will update this section on Monday with some fresh ideas.
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10:05am (EST)
Potash (POT, $55.09, up $0.65)
September 60 calls (POT110917C00060000, $1.20, up $0.05)
Entry Price: $1.00 (8/11/11)
Exit Target: $1.25-$1.30
Return: 20%
Stop Target: None
Action: This trade was used to finance some of our cheaper option trades we currently have and new ones so let’s take profits and see where we are at on Monday. Close the trade at current prices.
Pepsi (PEP, $63.11, up $0.24)
October 67.50 calls (PEP111022C00067500, $0.80, up $0.05)
Entry Price: $0.45 (8/11/11)
Exit Target: $0.90+
Return: 78%
Stop Target: None
Action: Let’s take our 78% before the weekend by closing this trade out as well.
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9:00am (EST)
Potash (POT, $54.44, up $3.36)
September 60 calls (POT110917C00060000, $1.15, up $0.45)
Entry Price: $1.00 (8/11/11)
Exit Target: $1.25-$1.30
Return: 15%
Stop Target: None
Action: We are just trying to make 20%-30% on the calls to finance some of our “cheaper” option plays and we should have maybe pulled the trigger at $1.27 which was the high yesterday. However, we believe can still trade $60+ by mid-September and we are trying to use the volatility to our advantage. Yesterday, we mentioned we were looking at LEAPs and we still have a rack of call options open in the portfolio so if there is a test to back to the top of the range we are covered. If there is a breakdown, we still have puts to take advantage a selloff.
Pepsi (PEP, $62.87, up $2.55)
October 67.50 calls (PEP111022C00067500, $0.75, up $0.35)
Entry Price: $0.45 (8/11/11)
Exit Target: $0.90+
Return: 67%
Stop Target: None
Action: The calls traded up to 85 cents yesterday and we were trying to close half at 90 cents. In pre-market action it looks as though share will open higher so let’s see where we are at.
Rambus (RMBS, $11.08, up $1.23)
September 9 puts (RMBS110917P00009000, $0.45, down $0.25)
Entry Price: $0.55 (8/10/11)
Exit Target: $1.10+
Return: -18%
Stop Target: None
Action: The technical chart for Rambus is saying a drop below $8 is in the cards but we weren’t pleased with the break back above $10. We still have call options open and the company’s litigation cases still are ongoing and there could be a surge higher on any good news. These puts do not expire for over a month so try not to let the volatility get to you on both the calls and puts.
United Airlines (UAL, $17.82, up $0.82)
September 16 puts (UAL110917P00016000, $0.90, down $0.35)
Entry Price: $1.00 (8/10/11)
Exit Target: $2.00+
Return: -10%
Stop Target: None
Action: These options have 35 days before expiration and out price target is $15 for UAL.
Staples (SPLS, $13.10, up $0.61)
August 12 puts (SPLS110820P00012000, $0.30, down $0.25)
Entry Price: $0.50 (8/10/11)
Exit Target: $1.00+
Return: -40%
Stop Target: None
Action: Staples will announce earnings next Tuesday and we believe they are going to report a terrible quarter. We have penciled in a drop below $10 following the news. This is an all-or-nothing trade so be aware of this as the August options expire next Friday and any good news will keep shares in double-digits more than likely. Our breakeven point is $11.50.
PowerShares QQQ (QQQ, $53.10, up $2.24)
September 50 puts (QQQ110917P00050000, $1.30, down $0.70)
Entry Price: $1.55 (8/8/11)
Exit Target: $3.10
Return: -16%
Stop Target: $1.55
Action: These are also September options and we believe a dip below $50 is coming before the bottom is in. Continue to hold.
Other 2011 Portfolio OPEN positions (14): 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 2011 Portfolio link in the Members Area to view ALL open/ closed trades.
RF MicroDevices August 10 calls (from February 2011)
Dendreon August 50 calls (from April 2011)
MGM Resorts International September 17 calls (from May)
Vivus September 10 calls (from May 2011)
Symantec October 20 calls (from June 2011)
Rediff.com India October 15 calls (from June 2011)
Seattle Genetics August 22.50 calls (from June 2011)
September 20 calls (from May 2011)
Global Payments August 55 calls (from July 2011)
TiVo August 11 calls (from July 2011)
iShares Russell 2000 August 86 calls (from July 2011)
Spider S&P 500 August 135 calls (from July 2011)
Spider Dow Jones Industrial Average August 126 calls (from July 2011)
Freeport-McMoRan August 57 calls (from July 2011)
Qualcomm October 65 calls (from July 2011)
Rambus September 17 calls, August 17 calls (from July 2011)
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.
Sony (SNE, $21.79, up $0.47)
September 22 puts (SNE110917P00022000, $1.30, down $0.30)
Thoughts: We are trying to get into these options for $1.00 or under. The 52-week low is $21.59 for Sony but shares appear like they are heading below $20. If so, these options would double but the stock could touch $18 which gets these options to at least $4.
Bank of America (BAC, $7.25, up $0.48)
September 7 puts (BAC110917P00007000, $0.85, down $0.30)
May (2012) 15 calls (BAC120519C00015000, $0.15, flat)
Thoughts: Watch for now but we like the put options on another pullback if shares hit $8 and stall. BAC could dip to a low of $5 if they don’t right the ship soon.
General Electric (GE, $15.68, up $0.59)
September 16 calls (GE110917C00016000, $0.65, up $0.10)
January (2012) 17.50 calls (GE120121C00017500, $0.60, up $0.05)
March 18 calls (GE120317C00018000, $0.60, up $0.05)
Thoughts: We may add GE to our Weekly Wrap Portfolio if there is another dip below $15 again. The stock pays a dividend of 4% and is a steal in the mid-teens.
Rediff.com India (REDF, $8.50, up $0.69)
January (2012) 12.50 calls (REDF120121C00012500, $0.75, up $0.20)
Thoughts: Speculative.
PNC Financial Services (PNC, $47.65, up $2.37)
September 55 calls (PNC110917C00055000, $0.60, up $0.20)
Thoughts: We aren’t sure if we will take a Financial trade or not but if we do PNC is one of the stronger names.
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