1:05pm (EST)
Berkshire Hathaway Class B (BRK/B, $75.49, down $1.20)
June 100 calls (BPY100619C00100000, $0.30, down $0.10)
Entry Price: $0.50 (2/1/10)
Exit Target: $1.00+
Return: -40%
Stop Target: None
September 100 calls (BPYIT, $0.55, down $0.05) (BPY100918C00100000)
Entry Price: $0.95 (2/1/10)
Exit Target: $2.00
Return: -37%
Stop Target: None
Action: There is a huge cat-and-mouse being played right now and we had a feeling we shares might have a down day. Berk will be added to the S&P 500 TODAY and it remains to be seen how much buying comes on today or does it wait for next week?
The influx of money that will be needed is $8.5 billion for the fund managers that need to add the stock to their portfolios. We will have more details on Tuesday morning and we will have a more detailed write-up but the bottom line is be patient. These calls have PLENTY of time before they expire and we are seeing the forest though the trees.
We really feel like this stock could explode over the next 3 to 6 months.
EMC (EMC, $17.16, up $0.03)
April 19 calls (EMC100417C00019000, $0.17, flat)
Entry Price: $0.55 (1/19/10)
Exit Target: $1.00+
Return: -69%
Stop Target: None
Action: If Tech breaks out then this stock could move real quick. The calls have 63 days before they expire. Continue to hold.
Shuffle Master (SHFL, $9.21, up $0.11)
May 10 calls (SFQ100522C00010000, $0.70, flat)
Entry Price: $0.85 (1/19/10)
Exit Target: $1.70+
Return: -18%
top Target: 40 cents
Action: Continue to hold.
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.
We will be back with a fresh list on TUESDAY morning. Folks, next week could be explosive with a possible Greece resolution, options expiration week, and more pending news out of China and Washington expected.
We should also get a clear signal on which way the market is headed. A lot of money is being bet on the short-side but we aren’t taking sides just yet. There are some interesting gyrations developing and there is a chance the market bounces off these current lows.
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