Momentum Trades

Trade Updates – Friday, January 8, 2010 (PM)

January 2010 | Members

 

1:15pm (EST)

Vivus (VVUS, $10.06, down $0.17)

March 10 calls (QJSCB, $1.35, down $0.10)

Entry Price:  $1.35 (1/7/10)
Exit Target:  $2.70
Return: 0%
Stop Target:  65 cents

Action:  There is a lot of buzz surrounding Vivus right now.  Although shares are slightly lower today we like to see the stock at least hold $10.  Our near-term target for Vivus is $12.50 which would make these calls worth $2.50-$2.70.  These options have 70 days until they expire.

 

Research In Motion (RIMM, $65.32, up $0.02)

Feb 60 puts (RFYNL, $1.15, down $0.15)

Entry Price:  $1.50 (1/6/10)
Exit Target:  $3.00   
Return: -23%
Stop Target:  75 cents

Action:  Shares have dipped below $65 but can seem to stay under that level. We can see the weakness in the shares and we still think the stock trades to $62 then $60 over the next few weeks.  If not then, we still have 42 days before these options expire.


Las Vegas Sands (LVS, $18.16, down $0.34)

February 18 calls (LJJBR, $1.42, down $0.278)

Entry Price:  $0.95 (1/5/10)
Exit Target:  $2.00   
Return: 49%
Stop Target: $1.10

Action:   LVS looks like it wants to go higher.  Our near-term target is $20.


Green Mountain Coffee Roasters (GMCR, $80.63, down $0.95)

February 95 calls (QGMBS, $1.15, down $0.20)

Entry Price:  $1.15 (1/4/10)
Exit Target:  $2.30   
Return: 0%
Stop Target:  $1.25, lower to 60 cents 

Action:  We have given up our gains as shares touched $85 earlier this week but have come back down to “fill in the gaps”.  As long as we stay above $80 we think this trade will do okay but we are keeping a close watch on this one.

  
 
Exxon Mobil (XOM, $69.50, down $0.30)
 
April 75 calls (XOMDO, $0.86, down $0.06)
 
Entry Price:  $1.45 (12/15/09)
Exit Target:  $2.90  
Return: -41%
Stop Target: $0.50 
 
Action:   These call do not expire until April or another 98 days so we will have to be patient with this one…   

 
TiVo (TIVO, $10.80, down $0.06)
 
February 12.50 calls (TUKBV, $0.95, down $0.10)
 
Entry Price:  $0.75 (11/30/09)
Exit Target: $1.50
Return:  27%
Stop Target: 50 cents 
 
Action:   Continue to hold.

 

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