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.
12:55pm (EST)
NEW TRADE!!!
magicJack VocalTec (CALL, $23.54, up $1.26)
Buy to OPEN March 25 calls (CALL120317C00025000, $0.50, up $0.15)
Action: Use limit orders up to 55-60 cents but do not pay over 65-70 cents to establish positions.
We are using the proceeds from another quarter sale (see below) to open small positions in these options. There is tremendous risk with this trade as it will be all-or-nothing as the company announces earnings on Monday.
CURRENT TRADES
Pepsico (PEP, $63.20, up $0.25)
July 65 calls (PEP120721C00065000, $1.15, up $0.05)
Entry Price: $0.95 (3/6/12)
Exit Target: $1.50-$2.00
Return: 21%
Stop Target: 50 cents
Action: Shares are at session highs and our near-term target is $67.
Clean Energy Fuels (CLNE, $21.28, up $0.57)
June 25 calls (CLNE120616C00025000, $0.95, up $0.15)
Entry Price: $0.50 (3/6/12)
Exit Target: $1.00 (closed half position at $1.00 on 3/8/12)
Return: 95%
Stop Target: 50 cents
Action: These are June options and they have 98 days before they expire. The company announces earnings on Monday so while there is risk of a disappointment, we are going to leave this one open. The momentum has been too strong to ignore and we would still breakeven if the options expired worthless. We don’t think this will be the case but the company could record a loss which might spook some investors.
Silver Wheaton (SLW, $35.80, down $0.15)
April 42 calls (SLW120421C00042000, $0.30, down $0.10)
Entry Price: $1.00 (3/1/12)
Exit Target: $1.50-$2.00
Return: -70%
Stop Target: 50 cents
Action: Continue to hold.
Adobe Systems (ADBE, $33.39, up $0.34)
April 35 calls (ADBE120421C00035000, $0.80, up $0.10)
Entry Price: $0.75 (2/28/12)
Exit Target: $1.50
Return: 7%
Stop Target: None
July 38 calls (ADBE120721C00038000, $0.80, up $0.05)
Entry Price: $0.70 (2/28/12)
Exit Target: $1.40
Return: 7%
Stop Target: None
Action: Continue to hold.
Sony (SNE, $21.36, up $0.94)
April 22 calls (SNE120421C00022000, $0.60, up $0.25)
Entry Price: $0.90 (2/27/12)
Exit Target: $1.60
Return: -33%
Stop Target: None
Action: Sweet rebound by Sony today and we said their camera could be in the new iPad.
U.S. Oil Fund (USO, $41.12, up $0.30)
April 45 calls (USO120421C00045000, $0.45, flat)
Entry Price: $0.80 (2/24/12)
Exit Target: $1.60
Return: -44%
Stop Target: None
Action: Continue to hold.
magicJack VocalTec (CALL, $23.54, up $1.26)
June 22.50 calls (CALL120616C00022500, $3.30, up $0.65)
Entry Price: $1.10 (2/15/12)
Exit Target: $2.20 (closed quarter position at $2.10 on 3/1/12, closed quarter position at $3.40 on 3/2/12)
Return: 175%
Stop Target: $2.00 (HARD STOP on other half)
Action: Close another QUARTER of the trade at current levels. We will use the proceeds to buy the March 25 calls but only buy half of the number of contracts you would normally buy.
ValueClick (VCLK, $20.90, up $0.34)
June 23 calls (VCLK120616C00023000, $0.60, up $0.10)
Entry Price: $0.40 (2/15/12)
Exit Target: $0.80 (closed half position at $0.70 on 2/29/12)
Return: 63%
Stop Target: Close the other HALF if shares fall below $20
Action: Continue to hold.
Other 2012 Portfolio OPEN positions (8): 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 2012 Portfolio link in the Members Area to view ALL open/ closed trades.
PowerShares QQQ Trust March 60 puts (from February 2012) HOLD
Abercrombie & Fitch March 39 puts (from February 2012) HOLD
Newpark Resources March 10 calls (from January 2012) HOLD
Dendreon May 22 calls (from January 2012) HOLD
OCZ Technology Group March 10 calls (from February 2012) HOLD
Acme Packet March 37.50 calls, April 40 calls (from February 2012) HOLD
Freeport McMoRan March 45 calls (from February 2012) HOLD
Solazyme April 15 calls, March 15 calls (from January and February 2012) HOLD
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.