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.
1:15pm (EST)
iShares Russell 2000 (IWM, $73.09, down $1.29)
December 79 calls (IWM111217C00079000, $0.85, down $0.35)
Entry Price: $1.10 (11/11/11)
Exit Target: $2.20
Return: -23%
Stop Target: None
Action: We are looking for the Russell 2000 to make a run to 800 which would get the iShares to $80. Resistance is at $77.50 but we are looking for a run to $82.50 if cleared. Support is at $72.50-$72. The December options have 32 days before they expire.
JPMorgan (JPM, $32.32, down $0.96)
January 36 calls (2012) (JPM120121C00036000, $0.95, down $0.30)
Entry Price: $1.15 (11/10/11)
Exit Target: $2.30
Return: -17%
Stop Target: None
Action: The 200-day MA is at $40 but we are targeting a run to $38 which gets the calls to at least $2. The January options have 67 days before they expire.
Solazyme (SZYM, $11.13, down $0.20)
December 12.50 calls (SZYM111217C00012500, $0.60, down $0.05)
Entry Price: $0.55 (11/9/11)
Exit Target: $1.10
Return: 9%
Stop Target: None
March 15 (2012) calls (SZYM120317C00015000, $0.90, down $0.20)
Entry Price: $0.80 (11/9/11)
Exit Target: $1.60
Return: 13%
Stop Target: None
Action: Shares have traded up to $11.70 today and we have a near-term target of $15 for the stock which would get the December options to $2.50. Resistance is at $14 while support at $10 appears to be strong.
Spreadtrum Communications (SPRD, $28.63, down $0.08)
November 31 calls (SPRD111119C0003000, $0.10, down $0.10)
Entry Price: $0.80 (11/7/11)
Exit Target: $1.60
Return: -88%
Stop Target: None
Action: Spreadtrum has traded to a high of $29.70 but the options won’t move until shares make a run past $30. This trade could come down to the wire but we expect it to be profitable.
Newpark Resources (NR, $8.91, down $0.22)
December 10 calls (NR111217C00010000, $0.60, down $0.10)
Entry Price: $0.60 (11/4/11)
Exit Target: $1.20
Return: 0%
Stop Target: None
Action: We would like to see a close above $9.50 this week.
Rambus (RMBS, $17.75, down $0.10)
December 20 calls (RMBS111217C00020000, $1.45, up $0.25)
Entry Price: $1.70 (11/2/11)
Exit Target: $3.40
Return: -15%
Stop Target: 85 cents
Action: The company could hear a verdict this week but we have been saying that for a month now. The options pits are pretty active even though shares are flat for the session so maybe it is a sign. In any event, a run to $20 appears likely either way.
Las Vegas Sands (LVS, $47.26, up $0.89)
December 52.50 calls (LVS111217C00052500, $0.75, up $0.15)
Entry Price: $1.25 (11/1/11)
Exit Target: $2.50
Return: -40%
Stop Target: None
Action: We are looking for a run back to $48 which could set shares up for new 52-week highs.
Skyworks Solutions (SWKS, $19.50, down $0.26)
January 25 calls 2012 (SWKS120121C00025000, $0.50, down $0.05)
Entry Price: $0.80 (10/31/11)
Exit Target: $1.60
Return: -38%
Stop Target: None
Action: We would like to see $19 hold this week and a run back to $21. We went with the January options because we feel shares can make a run to $25 if resistance is cleared.
Vivus (VVUS, $10.17, up $0.25)
December 10 calls (VVUS111217C00010000, $0.90, up $0.10)
Entry Price: $0.50 (10/28/11)
Exit Target: $1.00 (closed half at 90 cents on 11/7/11)
Return: 80%
Stop Target: None
March 12 calls 2012 (VVUS120317C00012000, $2.50, up $0.10)
Entry Price: $1.55 (10/28/11)
Exit Target: $3.10
Return: 61%
Stop Target: 75 cents
Action: Vivus is looking good and we would like to see a run to $11 this week.
Taiwan Semiconductor Manufacturing (TSM, $13.06, up $0.11)
December 12.50 calls (TSM111217C00012500, $0.85, up $0.10)
Entry Price: $0.50 (10/26/11)
Exit Target: $1.00
Return: 70%
Stop Target: 50 cents
Action: The 52-week high is $14.05. If we can get a run past $13 shares could challenge $15 by mid-December. Support is solid at $11.
Qualcomm (QCOM, $56.97, up $0.35)
November 57.50 calls (QCOM111119C00057500, $0.60, up $0.10)
Entry Price: $0.95 (10/18/11)
Exit Target: $1.50-1.90
Return: -37%
Stop Target: None
Action: Qualcomm has traded up to $57.48 while the options have reached 83 cents. Set limit order to close the trade at $1.25 or better but we may close it earlier if we can squeeze a small profit out.
Other 2011 Portfolio OPEN positions (4): 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.
JDSU Uniphase January 20 calls (from August 2011)
January 16 calls (from August 2011)
Lufkin Industries December 80 calls (from September 2011)
Potash November 52.50 calls (from October 2011)
Alcoa December 13 calls (from October 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 update this section in the morning.