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 “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: 60-33, including the Weekly Wrap that is 17-1).
1:05pm (EST)
NEW TRADE!!!
Spiders Gold Shares (GLD, $134.20, up $2.26)
Buy to OPEN June 125 puts (GLD130622P00125000, $1.05, down $0.45)
Action: We said we wanted to see a back test to $135 and here we are. We like these options at current levels. We are suggesting smaller positions with this trade due to the volatility.
Current Trades
Clean Energy Fuels (CLNE, $13.33, up $0.01)
July 16 calls (CLNE130720C00016000, $0.20, flat)
Entry Price: $0.25 (5/22/13)
Exit Target: $0.50
Return: -20%
Stop Target: None
Action: We would like to see $13 hold on further weakness and there is further support at $12.50. These are “cheap” July call options we picked up for a quarter and we have a mid-summer target of $17-$18
Solazyme (SZYM, $10.54, down $0.27)
June 12.50 calls (SZYM130622C00012500, $0.20, flat)
Entry Price: $0.30 (5/20/13)
Exit Target: $0.75
Return: -33%
Stop Target: None
Action: We still believe shares can make a run to $15 but we need $10 to hold on further weakness.
Petrobras (PBR, $18.18, down $0.18)
June 20 calls (PBR130622C00020000, $0.15, flat)
Entry Price: $0.25 (5/17/13)
Exit Target: $0.50+
Return: -40%
Stop Target: None
July 20 calls (PBR130720C00020000, $0.30, flat)
Entry Price: $0.45 (5/17/13)
Exit Target: $1.00+
Return: -33%
Stop Target: None
Action: Support is at $18 and there is further risk down to $17 if this level fails to hold. A close above $19 keeps $20 in the mix and a possible run to $22-$24.
Beam (BEAM, $67.17, down $0.47)
June 72.50 calls (BEAM130622C00072500, $0.30, flat)
Entry Price: $0.60 (5/16/13)
Exit Target: $1.20
Return: -33%
Stop Target: None
Action: If shares close below $66 today, we cut the cord.
MGM Resorts International (MGM, $14.92, down $0.17)
July 17 calls (MGM130720C00017000, $0.20, flat)
Entry Price: $0.40 (5/10/13)
Exit Target: $0.80
Return: -50%
Stop Target: None
Action: Short-term support is at $14.50 and a close below this level will force us out. Today’s low has been $14.49 and we would like to make it into next week because we still like this trade.
Yahoo (YHOO, $26.02, down $0.52)
January (2014) 31 calls (YHOO140118C00031000, $1.00, down $0.05)
Entry Price: $1.05 (5/8/13)
Exit Target: $2.10
Return: -5%
Stop Target: 80 cents (Hard Stop)
Action: The options have traded to a low of 86 cents and we should be good as long as shares hold $26.
Other 2013 Portfolio OPEN positions (1): 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.
Keryx Biopharmaceuticals June 10 calls (from February 2013)
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.