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 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 (131-43, or 75% win rate, including Weekly Wrap which is 24-0).
Tiffany & Co. (TIF, $61.18, down $0.41)
October 60 puts (TIF121020P00060000, $1.25, down $0.10)
Entry Price: $1.25 (9/26/12)
Exit Target: $2.50
Return: 0%
Stop Target: None
Action: Shares traded down to $60.77 and have rebounded with the overall market. Resistance is at $62.50.
Buffalo Wild Wings (BWLD, $82.74, down $0.23)
November 70 puts (BWLD121117P00070000, $1.20, down $0.10)
Entry Price: $1.25 (9/26/12)
Exit Target: $2.20
Return: -4%
Stop Target: None
Action: There was risk for a back test to $85 which we would like to see hold. If not, $87.50 could come into play. These are November options so we have plenty of time for this trade to play out and the puts have only slipped a dime.
TiVo (TIVO, $10.37, up $0.36)
November 10 calls (TIVO121117C00010000, $0.80, up $0.20)
Entry Price: $0.70 (9/25/12)
Exit Target: $1.40
Return: 14%
Stop Target: None
Action: There is risk down to $9 but we believe shares will trip $12 by mid-November.
KLA-Tencor (KLAC, $47.63, up $0.79)
October 45 puts (KLAC121020P00045000, $0.45, down $0.20)
Entry Price: $0.55 (9/20/12)
Exit Target: $1.10
Return: -18%
Stop Target: None
Action: Resistance is at $49.
Akamai Technologies (AKAM, $38.80, up $0.88)
October 40 calls (AKAM121020C00040000, $0.65, up $0.20)
Entry Price: $0.90 (9/17/12)
Exit Target: $1.80
Return: -28%
Stop Target: None
Action: Shares have traded up to $38.95 and we would like to see a close above $39 today.
JC Penney (JCP, $24.64, up $0.09)
October 26 puts (JCP121020P00026000, $2.00, flat)
Entry Price: $0.80 (9/13/12)
Exit Target: $1.60 (closed half at $1.10 on 9/20/12)
Return: 94%
Stop Target: $1.65, raise to $1.80 (Hard Stop)
Action: We have raised the Hard Stop to $1.80. The option have traded to a low of $1.82 today so if triggered, we will be out of the trade. We would like to roll this trade into November but we want to close this one out first which is why we are moving the stop up.
Taiwan Semiconductor Manufacturing (TSM, $15.44, up $0.45)
October 15 calls (TSM121020C00015000, $0.55, up $0.15)
Entry Price: $0.45 (9/11/12)
Exit Target: $0.90
Return: 22%
Stop Target: None
January 15 calls (TSM130119C00015000, $1.15, up $0.20)
Entry Price: $0.90 (9/11/12)
Exit Target: $1.80
Return: 28%
Stop Target: None
Action: Shares hit $15.64 earlier this month and we have said a close above $15.75 could propel them to new 52-week highs.
Solazyme (SZYM, $11.86, up $0.34)
December 12.50 calls (SZYM121222C00012500, $0.80, up $0.10)
Entry Price: $0.70 (9/5/12)
Exit Target: $1.40
Return: 14%
Stop Target: 50 cents
Action: Shares reached a peak of $15.75 yesterday and we would love to see a close above $12 this week.
Knight Capital Group (KCG, $2.68, up $0.07)
January 2.50 calls (2013) (KCG130119C00002500, $0.35, flat)
Entry Price: $0.70 (8/21/12)
Exit Target: $1.40
Return: -36%
Stop Target: 50 cents
Action: Shares were near $2.80 when we entered this trade back in August after tumbling from $10 to $2.50 in late July on the company’s trading fiasco. We think a buyout offer north of $5 could be in the cards by yearend. These are “cheap” options so for this of you not in this trade, we still like it at current levels.
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)
eBay October 52.50 calls (from September 2012)
Bank of America January 12.50 calls (2013) (from March 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. No new trades today.