MEMBERS AREA
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 2013: 124-63 – the Weekly Wrap is 40-4 for 2013 (84-6 since 2011) and is designed for traders that want to use options with less risk.
1:45pm (EST)
New Trade!!!
Kodiak Oil & Gas (KOG, $12.81, up $0.43)
Buy to OPEN December 13 calls (KOG131221C00013000, $0.65, up $0.10)
Action: Shares are at their highs and could trip $13 by the close. We may be early but we like these calls at current levels.
Current Trades
Cliff’s Natural Resources (CLF, $28.83, up $1.49)
November 25 calls (CLF131116C00025000, $3.90, up $1.45)
Entry Price: $0.95 (10/21/13)
Exit Target: $1.90, raise to $5 (closed half @ $1.25 on 10/31/13)
Return: 171%
Stop Target: $1.75, raise to $2.50 (Stop Limit)
December 30 calls (CLF131221C00030000, $1.40, up $0.55)
Entry Price: $0.70 (11/1/13)
Exit Target: $1.40
Return: 100%
Stop Target: 50 cents
Action: A run to $30 could come quick and a break above $28 should do the trick. Support is at $25. We have raised the Stop Limit on the November calls to $2.50. They opened at $2.75 this morning.
H&R Block (HRB, $29.41, up $0.51)
December 30 calls (HRB131221C00030000, $0.90, up $0.20)
Entry Price: $0.60 (10/29/13)
Exit Target: $1.20
Return: 50%
Stop Target: None
Action: Resistance at $29 is next up and a close above this level should get the low $30’s in play. Support is at $28.
Millennial Media (MM, $7.02, down $0.02)
December 7.50 calls (MM131221C00007500, $0.75, flat)
Entry Price: $0.65 (10/25/13)
Exit Target: $1.30
Return: 15%
Stop Target: None
Action: Shares are hovering around the 50-day MA with resistance at $7.25. A close above this level could lead to a run to $8 and we have a longer-term target of 10+. Support is at $6.75-$6.50.
DuPont (DD, $59.78, down $1.31)
December 62.50 calls (DD131221C00062500, $0.40. down $0.30)
Entry Price: $0.60 (10/24/13)
Exit Target: $1.20
Return: -33%
Stop Target: 60 cents
Action: We had a feeling shares would dip below $60 and we said we might close the trade if this level tripped. We would like to see how shares react into the close and if they don’t hold $60 we can close the trade on Tuesday.
Other 2013 Portfolio OPEN positions (3): 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.
Boston Scientific November 12 calls (from October 2013) – HOLD
Aruba Networks November 20 calls (from October 2013) – HOLD
Catamaran November 52.50 calls (from October 2013) – 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 but these are the trades we are watching as new candidates.
We will update this section in the morning.