Do not risk more than 5% of your trading account on any one trade but do try to take ALL of the trades. Please remember, ALL “Exit Targets” and “Stop Targets” are targets. You should not have any “Hard Stops” entered to close any tradesor “Exit Orders” in your brokerage account unless we list one. We will send out a “Profit Alert” or “New Trade” 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. Closed Trades for 2014: 5-0- the Weekly Wrap is 2-0 for 2014 (87-7 since 2011) and is designed for traders that want to use options with less risk.
1:15pm (EST)
Sony (SNE, $17.68, down $0.40)
February 19 calls (SNE140222C00019000, $0.35, down $0.15)
Entry Price: $0.45 (1/8/2014)
Exit Target: $0.90
Return: -22%
Stop Target: None
April 20 calls (SNE140419C00020000, $0.45, down $0.15)
Entry Price: $0.55 (1/8/2014)
Exit Target: $1.10
Return: -18%
Stop Target: None
Action: Short-term resistance is at $18.50 and then $19.40 (200-day MA). Support is at $17.50 and will like the position as long at $17 holds up.
Galena Biopharma (GALE, $6.21, up $0.17)
January 2.50 calls (GALE140118C00002500, $3.60, up $0.10)
Entry Price: $0.30 (11/11/13)
Exit Target: $0.90 (closed a quarter @ $1 on 11/21/13, closed a quarter @ $1.50 on 12/10/13, closed a quarter @ $3.50 on 1/8/14)
Return: 700%
Stop Target: $3 on remaining quarter position (Stop Limit)
February 6 calls (GALE140222C00006000, $0.90, up $0.15)
Entry Price: $0.40 (1/7/2014)
Exit Target: $0.80, raise to $1.20
Return: 125%
Stop Target: 30 cents
Action: Close a THIRD of the February 6 calls at current levels.
Shares have kissed $6.48 and resistance is at $6.50. Support is at $6. We will get stopped out of the January 2.50 calls on a drop below $5.50 but we are looking for $6 to hold with another possible push past $7 next week. We will be out of the January 2.50’s by next Friday, regardless of the price action and we need to manage the February 6’s to ensure we walk away with a profit in case there is a pullback. The April 7 calls (GALE140419C00007000, $0.90, up $0.15) are active today and we are watching them for an additional piggyback trade on a move past $7.
General Electric (GE, $26.95, down $0.27)
March 28 calls (GE140322C00028000, $0.30, down $0.10)
Entry Price: $0.45 (1/7/2014)
Exit Target: $0.90
Return: -33%
Stop Target: None
Action: There is risk to $26.80 and the 50-day MA on continued weakness. Resistance is at $27.50-$28. The company will report earnings next Friday.
PulteGroup (PHM, $20.22, up $0.43)
February 22 calls (PHM140222C00022000, $0.35, up $0.10)
Entry Price: $0.40 (1/3/14)
Exit Target: $0.80
Return: -13%
Stop Target: None
Action: Shares traded to a low of $19.48 and we said we would stick with the trade as long as $19 holds. The 20-day MA is at $19.08. PulteGroup announces their numbers on January 30.
H&R Block (HRB, $30.12, up $0.09)
February 30 calls (HRB140222C00030000, $1.05, up $0.05)
Entry Price: $0.65 (1/3/14)
Exit Target: $1.30 (closed a quarter @ $1.00 on 1/9/14)
Return: 59%
Stop Target: None
Action: The 52-week is at $32.09 and the close above $30 should get new highs in play.
Other 2014 Portfolio OPEN positions (0): These are trades that are still open in the portfolio but are down over 50%. They have longer expiration dates and 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 if the options expire. Click on the 2013Portfolio link in the Members Area to view ALL open/ closed trades.
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 but these are the trades we are watching as new candidates.
We will update this section on Monday with some fresh ideas.