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 a “Profit 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.
12:20pm (EST)
Special Note: Some of our December plays are making a strong comeback and we will cover them on Monday along with charts for all of our positions. The selloff during the holiday knocked December options back a little but we are still expecting to take profits on a number of trades that are on ‘hold”.
NEW TRADES!!!
Autodesk (ADSK, $34.15, down $0.12)
Buy to OPEN January 38 calls (ADSK120121C00038000, $0.70, down $0.10)
Action: Use limit prices up to 75-80 cents to establish positions but do not pay more than 85-90 cents.
Vivus (VVUS, $10.53, up $0.03)
Buy to OPEN January 12.50 calls (VVUS120121C00012500, $0.95, down $0.05)
Action: Use limit prices up to $1.00-$1.05 to establish positions but do not pay over $1.10-$1.15 for the call options.
CURRENT TRADES
Taiwan Semiconductor Manufacturing (TSM, $13.18, down $0.04)
January 12.50 calls (TSM120121C00012500, $1.00, flat)
Entry Price: $0.80 (11/30/11)
Exit Target: $1.60+
Return: 25%
Stop Target: None
Action: The open interest in these call options is over 14,000 which means we aren’t the only ones expecting shares to hit new highs over the next month or two. The 52-week high is $14.05 which, if busted, gets these options to at least $1.50-$1.60 for a double.
Microsoft (MSFT, $25.24, down $0.04)
January 25 calls (MSFT120121C00025000, $1.10, flat)
Entry Price: $0.95 (11/29/11)
Exit Target: $1.90+
Return: 16%
Stop Target: None
Action: Our near-term target is $27 which would make these options worth at least $2. Support is strong at $24.
Spreadtrum Communications (SPRD, $26.30, up $0.81)
January 29 calls (SPRD120121C00029000, $1.65, up $0.30)
Entry Price: $1.00 (11/29/11)
Exit Target: $2.00
Return: 65%
Stop Target: None
Action: Shares have traded to a high of $26.72 today and we thought about closing half of the position but we are going to roll the dice. We only need Spreadtrum to be at $30 in January to breakeven but there could be much higher returns if shares continue to roll afterwards.
Symantec (SYMC, $16.18, down $0.06)
January 16 calls (SYMC120121C00016000, $1.00, flat)
Entry Price: $0.70 (11/25/11)
Exit Target: $1.40
Return: 43%
Stop Target: None
Action: Shares are currently forming a bottom and we are looking for a run back to $17.50 by January.
Tesla Motors (TSLA, $33.15, up $0.55)
January 35 calls 2012 (TSLA120121C00035000, $1.25, up $0.15)
Entry Price: $1.10 (11/25/11)
Exit Target: $2.20
Return: 23%
Stop Target: None
Action: We have an aggressive target of $40 for Tesla which would get these call options to $5 if reached. We will stick with the trade as long as the $30 level holds.
Juniper Networks (JNPR, $22.61, up $0.36)
January 25 calls (JNPR120121C00025000, $0.70, up $0.05)
Entry Price: $0.65 (11/21/11)
Exit Target: $1.30
Return: 8%
Stop Target: None
Action: Our breakeven point is $25.65, technically, and we will stick with the trade as long as $20 holds.
Other 2011 Portfolio OPEN positions (10): 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.12:20pm (EST)
Lufkin Industries December 80 calls (from September 2011)
JDSU Uniphase January 20 calls (from August 2011)
January 16 calls (from August 2011)
Alcoa December 13 calls (from October 2011)
Skyworks Solutions January 25 calls 2012 (from October 2011)
Rambus December 20 calls (from November 2011)
Las Vegas Sands December 52.50 calls (from November 2011)
JPMorgan January 36 calls (2012) (from November 2011)
iShares Russell 2000 December 79 calls (from November 2011)
PowerShares QQQ December 50 puts (from November 2011)
Newpark Resources December 10 calls (from November 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 be back on Monday with a fresh list of ideas.
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11:00am (EST)
Clean Energy Fuels (CLNE, $13.30, up $0.36)
January 12.50 calls (CLNE120121C00012500, $1.50, up $0.20)
Entry Price: $0.70 (11/25/11)
Exit Target: $1.50 (closed HALF at $1.30 on 12/1/2011)
Return: 100%
Stop Target: $1.00 (HARD STOP on other half)
Action: Close the other half of the trade at current levels. We may “roll” this position in a higher strike price or play them again on a pullback but for now let’s take the money and run.
Eaton (ETN, $45.26, up $0.67)
January 47.50 calls (ETN120121C00047500, $1.40, up $0.20)
Entry Price: $0.55 (11/25/11)
Exit Target: $1.10 (closed half @ $1.40 on 11/30/2011)
Return: 155%
Stop Target: $1.00 (HARD STOP on other half)
Action: With the weekend here, let’s take the other half of this trade off the table and lock in profits.
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9:00am (EST)
Taiwan Semiconductor Manufacturing (TSM, $13.21, up $0.29)
January 12.50 calls (TSM120121C00012500, $1.00, up $0.15)
Entry Price: $0.80 (11/30/11)
Exit Target: $1.60+
Return: 25%
Stop Target: None
Action: The open interest in these call options is over 14,000 which means we aren’t the only ones expecting shares to hit new highs over the next month or two. The 52-week high is $14.05 which, if busted, gets these options to at least $1.50-$1.60 for a double.
Microsoft (MSFT, $25.28, down $0.30)
January 25 calls (MSFT120121C00025000, $1.10, down $0.15)
Entry Price: $0.95 (11/29/11)
Exit Target: $1.90+
Return: 16%
Stop Target: None
Action: Our near-term target is $27 which would make these options worth at least $2. Support is strong at $24.
Spreadtrum Communications (SPRD, $25.49, up $0.74)
January 29 calls (SPRD120121C00029000, $1.35, up $0.15)
Entry Price: $1.00 (11/29/11)
Exit Target: $2.00
Return: 35%
Stop Target: None
Action: Shares traded to a high of $25.89 and we were looking for a push past $26 yesterday. The 3% gain was still good to see and our longer-term target for this stock is $40. We only need shares to be at $30 in January to breakeven but there could be much higher returns if shares continue to roll afterwards.
Clean Energy Fuels (CLNE, $12.94, down $0.16)
January 12.50 calls (CLNE120121C00012500, $1.30, down $0.05)
Entry Price: $0.70 (11/25/11)
Exit Target: $1.50 (closed HALF at $1.30 on 12/1/2011)
Return: 86%
Stop Target: $1.00 (HARD STOP on other half)
Action: We closed half of the trade yesterday to take some risk off the table and have set a hard stop of $1 on the other half in case shares retreat from here.
Symantec (SYMC, $16.24, down $0.11)
January 16 calls (SYMC120121C00016000, $1.00, down $0.05)
Entry Price: $0.70 (11/25/11)
Exit Target: $1.40
Return: 43%
Stop Target: None
Action: Shares are currently forming a bottom and we are looking for a run back to $17.50 by January.
Eaton (ETN, $44.59, down $0.32)
January 47.50 calls (ETN120121C00047500, $1.20, down $0.10)
Entry Price: $0.55 (11/25/11)
Exit Target: $1.10 (closed half @ $1.40 on 11/30/2011)
Return: 136%
Stop Target: $1.00 (HARD STOP on other half)
Action: Our near-term price target is $50 but we have a hard stop of $1.00 on the other half of the trade. The stops will lock in a gain of 118% if triggered but we are hopeful shares run to $50 over the next month.
Tesla Motors (TSLA, $32.60, down $0.14)
January 35 calls 2012 (TSLA120121C00035000, $1.10, down $0.10)
Entry Price: $1.10 (11/25/11)
Exit Target: $2.20
Return: 0%
Stop Target: None
Action: Shares of Tesla traded to a high of $ xwhile the options peaked at $1.60 before ending slightly lower. We have an aggressive target of $40 for Tesla which would get these call options to $5 if reached. We will stick with the trade as long as the $30 level holds.
Juniper Networks (JNPR, $22.25, down $0.46)
January 25 calls (JNPR120121C00025000, $0.65, down $0.10)
Entry Price: $0.65 (11/21/11)
Exit Target: $1.30
Return: 0%
Stop Target: None
Action: Shares held $22 which is short-term support and prior resistance. Our breakeven point is $25.65, technically, and we will stick with the trade as long as $20 holds.
Other 2011 Portfolio OPEN positions (10): 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.
Lufkin Industries December 80 calls (from September 2011)
JDSU Uniphase January 20 calls (from August 2011)
January 16 calls (from August 2011)
Alcoa December 13 calls (from October 2011)
Skyworks Solutions January 25 calls 2012 (from October 2011)
Rambus December 20 calls (from November 2011)
Las Vegas Sands December 52.50 calls (from November 2011)
JPMorgan January 36 calls (2012) (from November 2011)
iShares Russell 2000 December 79 calls (from November 2011)
PowerShares QQQ December 50 puts (from November 2011)
Newpark Resources December 10 calls (from November 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.
Freeport McMoran (FCX, $39.28, down $0.32)
January 44 calls (FCX120121C00044000, $0.95, down $0.10)
Thoughts: Watch for now.
Autodesk (ADSK, $34.27, up $0.20)
January 38 calls (ADSK120121C00038000, $0.85, up $0.05)
April 40 calls (ADSK120421C00040000, $1.65, up $0.05)
Thoughts: Watch for now. Chart on Monday.
SanDisk (SNDK, $49.86, up $0.55)
December 50 calls (SNDK111217C00050000, $1.75, up $0.20)
January 52.50 calls 2012 (SNDK120121C00052500, $2.20, up $0.25)
Thoughts: We may add the January 52.50’s on a breakout above $50.
Polaris Industries (PII, $60.87, up $0.77)
December 62.50 calls (PPI111217C00062500, $1.40, up $0.15)
December 50 puts (PPI111217P00050000, $0.20, down $0.10)
Thoughts: This strangle trade has done well this week.
Vivus (VVUS, $10.50, up $0.37)
December 10 calls (VVUS111217C00010000, $1.55, up $0.45)
January 12.50 calls (VVUS120121C00012500, $1.00, up $0.20)
March 14 calls 2012 (VVUS120317C00014000, $2.15, up $0.15
Thoughts: We may try to get into the January call options today. The company is meeting with some heavy hitter next week. The January 14 calls are trading at 65 cents and we like them as well.