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: 115-55 – the Weekly Wrap is 38-3 for 2013 (82-5 since 2011) and is designed for traders that want to use options with less risk.
11:50am (EST)
New Trade!!!
General Electric (GE, $24.29, down $0.07)
Buy to OPEN November 24 calls (GE131116C00024000, $0.70, down $0.05)
Action: GE has beaten earnings estimates for the past 3 quarters and we are looking for them to make it 4 in-a-row. We like these calls for a possible move past $25.
Current Trades
H&R Block (HRB, $28.55, down $0.31)
November 29 calls (HRB131116C00029000, $0.75, down $0.15)
Entry Price: $0.45 (10/15/13)
Exit Target: $0.90
Return: 67%
Stop Target: 45 cents
Action: We would like to see $28.50 hold today as we are expecting a run past $30 over the next week or 2. Support is at $26.
Opko Health (OPK, $12.35, up $0.08)
November 11 calls (OPK131116C00011000, $1.75, flat)
Entry Price: $0.45 (10/14/13)
Exit Target: $1.00 (closed half at $1.05 on 10/15/2013)
Return: 211%
Stop Target: $1.40 (Stop Limit)
December 12 calls (OPK131221C00012000, $1.50, flat)
Entry Price: $0.40 (10/14/13)
Exit Target: $0.90 (closed half at $0.90 on 10/15/2013)
Return: 200%
Stop Target: $1.10 (Stop Limit)
Action: Shares reached another 52-week high of $12.95 before slipping by a penny into the close. We have raised our Stop Targets and set limit stops in case $13 holds as resistance and shares slip. Support is at $12-$11.75.
Aruba Networks (ARUN, $19.04, up $0.36)
November 20 calls (ARUN131116C00020000, $0.50, up $0.05)
Entry Price: $0.80 (10/11/13)
Exit Target: $1.60
Return: -38%
Stop Target: None
Action: A move past $20 should get $22 in play and we believe shares could make a run at $25 over the next month. Support is at $18.
MGM Resorts International (MGM, $20.74, up $0.05)
November 21 calls (MGM131116C00021000, $0.80, flat)
Entry Price: $0.80 (10/7/13)
Exit Target: $1.60
Return: 0%
Stop Target: None
Action: We believe shares can make a run past $22-$23 by mid-November. Support is at $20 with risk down to $19.50. Earnings are due out on October 28.
Safeway (SWY, $33.09, up $0.01)
November 34 calls (SWY131116C00034000, $0.70, flat)
Entry Price: $0.80 (10/2/13)
Exit Target: $1.60 (closed a quarter at $1.10 on 10/11/2013)
Return: 0%
Stop Target: None
Action: We are expected a run to $35 as long as support holds at $32.
Kodiak Oil & Gas (KOG, $12.82, down $0.05)
November 13 calls (KOG131116C00013000, $0.75, flat)
Entry Price: $0.50 (10/1/13)
Exit Target: $1.00
Return: 50%
Stop Target: 50 cents
Action: Today’s high has been $13.11. We have said shares could trade to $15 if momentum returns and $13 is cleared. We like this trade as long as $11 holds.
Other 2013 Portfolio OPEN positions (6): 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.
Sony October 25 calls (from July 2013) – HOLD
Jos. A. Bank Clothiers October 35 puts (from August 2013) – HOLD
eBay October 45 puts (from September 2013)Earnings 10/16 – HOLD
Microsoft October 30 puts (from September 2013)Earnings 10/24 – HOLD
Jabil Circuit October 25 calls (from September 2013) – HOLD
Skyworks Solutions October 26 calls (from September 2013) – Bid/ Ask 5/15 cents
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.