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 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. Closed Trades for 2012 (126-37, or 77% win rate, including Weekly Wrap which is 24-0).
1:15pm (EST)
Coinstar (CSTR, $46.23, down $0.29)
October 42.50 puts (CSTR121020P00042500, $0.80, flat)
Entry Price: $0.80 (9/21/12)
Exit Target: $1.50
Return: 0%
Stop Target: None
Action: We would like to see a close below $45 this week. Our near-term target is for a move below $40 and down to $37.50. Resistance is at $47.50.
KLA-Tencor (KLAC, $47.03, down $0.63)
October 45 puts (KLAC121020P00045000, $0.70, up $0.10)
Entry Price: $0.55 (9/20/12)
Exit Target: $1.10
Return: 27%
Stop Target: None
Action: We have a near-term target of $45 for the stock and a break below this level could trigger a trip to the low $40’s. Resistance is at $49.
eBay (EBAY, $49.32, down $0.15)
October 52.50 calls (EBAY121020C00052500, $0.60, down $0.05)
Entry Price: $1.00 (9/17/12)
Exit Target: $2.00
Return: -40%
Stop Target: None
Action: Near-term support is at $49. A break below this level could lead to a back test to $46 but we are still expecting new highs by mid-October on a close above $50 this week.
Akamai Technologies (AKAM, $38.36, down $0.45)
October 40 calls (AKAM121020C00040000, $0.60, down $0.15)
Entry Price: $0.90 (9/17/12)
Exit Target: $1.80
Return: -33%
Stop Target: None
Action: Resistance is at $40. A move above this level could easily get shares to $43-$45. Support has been steady at $38.
JC Penney (JCP, $25.04, down $0.85)
October 26 puts (JCP121020P00026000, $1.80, up $0.40)
Entry Price: $0.80 (9/13/12)
Exit Target: $1.60 (closed half at $1.10 on 9/20/12)
Return: 81%
Stop Target: $1.10 (Hard Stop)
Action: Shares are at their lows for the session. Raise the Hard Stop to $1.30.
Taiwan Semiconductor Manufacturing (TSM, $14.77, down $0.03)
October 15 calls (TSM121020C00015000, $0.30, flat)
Entry Price: $0.45 (9/11/12)
Exit Target: $0.90
Return: -33%
Stop Target: None
January 15 calls (TSM130119C00015000, $0.80, flat)
Entry Price: $0.90 (9/11/12)
Exit Target: $1.80
Return: -11%
Stop Target: None
Action: We have an $18-20 price target for the stock over the next 6 months and a break above $15.75 should get us there. The 52-week high is at $16.15. Near-term support is at $14.75-$14.50.
Solazyme (SZYM, $11.91, up $0.10)
December 12.50 calls (SZYM121222C00012500, $0.90, flat)
Entry Price: $0.70 (9/5/12)
Exit Target: $1.40
Return: 29%
Stop Target: None
Action: Resistance has been strong at $12 and the 100-day MA. A close above this level would get $12.50-$13 back in the mix. Support has been holding at $11.00.
Other 2012 Portfolio OPEN positions (4): 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 2012 Portfolio link in the Members Area to view ALL open/ closed trades.
Apollo Group October 24 puts (from August 2012)
Pepsico October 75 calls (from August 2012)
Bank of America January 12.50 calls (2013) (from March 2012)
Knight Capital Group January 2.50 calls (2013) (from August 2012)
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.