1:00pm (EST)
NEW TRADE!!!
DreamWorks Animation (DWA, $42.97, up $0.31)
Buy to OPEN May 45 calls (DWA100522C00045000, $0.90, up $0.05)
Action: The company reports earnings tomorrow. There was a little disappointment with one of the recent movie releases but DreamWorks has a strong pipeline of hits that are due out. There is a slight chance they disappoint Wall Street with their numbers because of this but overall we have a feeling these calls could do well. This is a high risk/ high reward trade and if they miss shares will fall below $40.
CURRENT TRADES
Dendreon (DNDN, $41.52, up $1.42)
May 55 calls (DNDN100522C00055000, $1.40, up $0.43)
Entry Price: $1.50 (4/26/10)
Exit Target: $2.00+
Return: -7%
Stop Target: None
Action: Yes, these options are expensive. Yes, these options are $10+ out-of-the-money. Yes, it could be a “gamble”.
Folks, we got a slew of emails on this trade and we know all of this. We aren’t sure how long we will hold these options but all we are looking for is a profit. If shares can run to $50 before Friday then we may exit the trade ahead of the news by the FDA concerning Provenge. If we can make 30%, fine. If we make 10%, okay. If we lose 20%, we might cut the trade.
We could get a “sell the news reaction” as well. However, this drug could be a “Billion Dollar Baby” and if so, Dendreon’s stock price will trade at a premium.
Akamai Technologies (AKAM, $34.50, up $0.38)
May 36 calls (AKAM100522C00036000, $1.00, up $0.10)
Entry Price: $0.92 (4/14/10)
Exit Target: $2.00+
Return: 9%
Stop Target: 50 cents
Action: The 52-week high is $34.79 and is being challenged today. Continue to hold.
JDS Uniphase (JDSU, $13.83, up $0.13)
May 14 calls (UQD100522C00014000, $0.70, up $0.05)
Entry Price: $0.75 (4/12/10)
Exit Target: $1.50+
Return: -7%
Stop Target: None
Action: The 52-week high is $13.95 and shares have traded to $13.85. The company will announce earnings on May 5.
Corning (GLW, $20.94, up $0.10)
August 22 calls (GLW100821C00022000, $1.05, up $0.05)
Entry Price: $0.60 (4/12/10)
Exit Target: $1.20+
Return: 75%
Stop Target: None
Action: Corning announces earnings on Wednesday and we will have to see where we are. If we can get to a 100% return before the announcement we may take a little off the table but for now we will continue to push the gains.
Garmin (GRMN, $38.10, up $0.58)
May 32 puts (QGR100522P00032000, $0.35, down $0.05)
Entry Price: $1.00 (4/5/10)
Exit Target: $2.00+
Return: -65%
Stop Target: None
Action: Garmin announces earnings on next week and we are hoping for an earning miss. If so, we could get a 10%-15% correction in the stock. However, Tom-Tom reported better-than-expected so we will have to see.
American Tower (AMT, $42.05, down $0.32)
May 45 calls (AMT100522C00045000, $0.25, down $0.05)
Entry Price: $0.60 (3/29/10)
Exit Target: $1.30+
Return: -58%
Stop Target: None
Action: We have been in this trade for nearly a month and shares have stayed flat. The company will announce earnings next week as well and if we can get a 10% move from current levels these options will be worth at least $1. This may be asking a lot but American Tower is a strong company.
TiVo (TIVO, $18.60, up $0.11)
May 20 calls (TUK100522C00020000, $0.85, flat)
Entry Price: $0.85 (3/5/10)
Exit Target: $1.70
Return: 0%
Stop Target: None
Action: Continue to hold.
Other 2010 Portfolio OPEN positions (3): These are trades that are still open in the portfolio that have longer expiration dates but are not worth mentioning until they turn around. This way you know we are still tracking them and we will record the results, accordingly. Click on the 2010 Portfolio link in the Members Area to view ALL open/ closed trades.
Berkshire Hathaway Class B (BRK/B, $79.36, up $0.41), Canadian Solar (CSIQ, $18.62, up$0.30) and Shuffle Master (SHFL, $9.00, up $0.08).
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 selloff.
A123 Systems (AONE, $13.14, up $0.31)
September 15 calls (AONE100918C00015000, $1.00, up $0.15)
Action: Once we clear some trades off the board we will probably add these call options. A123 is due for a rebound and we want to catch it on its way back over $15.
Apollo Group (APOL, $62.13, down $1.40)
May 60 puts (APOL100522P00060000, $1.30, up $0.35)
Action: This trade has taken off since last week so we may have missed the move if shares are indeed headed below $60. These options were at 65 cents a week ago when we profiled the trade so some of you may want to set stops and start protecting profits as they have now doubled.
Toyota Motor (TM, $78.78, up $1.14)
May 75 puts (TM100522P00075000, $0.75, down $0.30)
Action: We would like to see a rally towards $80 one last time before Toyota dips below $75.
Massey Energy (MEE, $44.71, up $0.26)
May 40 put (MQO100522P00040000, $0.70, down $0.05)
Action: Continue to watch.
*******************
10:15am (EST)
NEW TRADE!!!
Dendreon (DNDN, $42.18, up $2.08)
Buy to OPEN May 55 calls (DNDN100522C00055000, $1.50, up $0.53)
Action: We missed the May 50 calls as they opened higher than our limit prices. We really don’t like to chase but this one kind of feels like taking Tim Tebow in the draft. We would not be able to live with ourselves if we missed out on this one. Please realize the risks with this trade are extreme because anything can happen. Use limit prices up to $1.75 but try to get them at current levels.
*************
9:10am (EST)
NEW TRADE!!!
Dendreon (DNDN, $40.10, up $0.78)
May 50 calls (DNDN100522C00050000, $1.77, up $0.19)
Action: Set limit prices at $1.80 but we may have to pay a little more for these options as shares are up in pre-market. We like these options up to $2.00-$2.20 at the open but if the calls open higher than $2.20, VOID the trade.
CURRENT TRADES
Akamai Technologies (AKAM, $34.22, down $0.13)
May 36 calls (AKAM100522C00036000, $0.90, down $0.05)
Entry Price: $0.92 (4/14/10)
Exit Target: $2.00+
Return: -2%
Stop Target: 50 cents
Action: The company announces earnings Wednesday.
JDS Uniphase (JDSU, $13.70, down $0.01)
May 14 calls (UQD100522C00014000, $0.65, down $0.05)
Entry Price: $0.75 (4/12/10)
Exit Target: $1.50+
Return: -13%
Stop Target: None
Action: Shares are up slightly in pre-market action. Continue to hold.
Corning (GLW, $20.84, up $0.15)
August 22 calls (GLW100821C00022000, $1.00, up $0.05)
Entry Price: $0.60 (4/12/10)
Exit Target: $1.20+
Return: 67%
Stop Target: None
Action: Corning could break $21 today after setting new 52-week highs on Friday.
Garmin (GRMN, $37.52, down $0.01)
May 32 puts (QGR100522P00032000, $0.40, flat)
Entry Price: $1.00 (4/5/10)
Exit Target: $2.00+
Return: -60%
Stop Target: None
Action: Continue to hold.
American Tower (AMT, $42.37, up $0.20)
May 45 calls (AMT100522C00045000, $0.30, flat)
Entry Price: $0.60 (3/29/10)
Exit Target: $1.30+
Return: -50%
Stop Target: None
Action: Continue to hold.
TiVo (TIVO, $18.49, down $0.10)
May 20 calls (TUK100522C00020000, $0.85, down $0.05)
Entry Price: $0.85 (3/5/10)
Exit Target: $1.70
Return: 0%
Stop Target: None
Action: We are expecting TiVo to make a push to over $20 this week.
Other 2010 Portfolio OPEN positions (3): These are trades that are still open in the portfolio that have longer expiration dates but are not worth mentioning until they turn around. This way you know we are still tracking them and we will record the results, accordingly. Click on the 2010 Portfolio link in the Members Area to view ALL open/ closed trades.
Berkshire Hathaway Class B (BRK/B, $78.95, up $0.27), Canadian Solar (CSIQ, $18.32, down $0.13) and Shuffle Master (SHFL, $8.92, up $0.13).
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 selloff.
A123 Systems (AONE, $12.83, up $0.10)
September 15 calls (AONE100918C00015000, $0.85, flat)
Action: Long-term play that looks good.
PowerShares QQQ (QQQQ, $50.52, up $0.21)
May 50 puts (QQQ100522P00050000, $0.70, down $0.10)
June 49 puts (QQQ10061900049000, $0.60, down $0.20)
Action: Not ready to short this market yet.
Spider Standard & Poor’s 500 (SPY, $121.81, up $0.79)
May 115 puts (SPY100522P00115000, $0.40, down $0.17)
June 112 puts (100619P00112000, $0.77, down $0.13)
Action: Continue to watch.
Apollo Group (APOL, $63.53, down $1.35)
May 60 puts (APOL100522P00060000, $0.95, up $0.35)
Action: We think Apollo could be headed back below $60 over the next month or two.
Toyota Motor (TM, $77.64, up $0.44)
May 75 puts (TM100522P00075000, $1.05, down $0.10)
Action: We would like to see a rally towards $80 one last time before Toyota dips below $75.
Massey Energy (MEE, $44.45, up $1.52)
May 40 put (MQO100522P00040000, $0.75, down $0.35)
Action: Continue to watch.
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