9:10am (EST)
Vivus (VVUS, $10.23, up $1.00)
March 10 calls (QJSCB, $1.45, up $0.38)
Entry Price: $1.35 (1/7/10)
Exit Target: $2.70
Return: 7%
Stop Target: 65 cents
Action: The stock closed near its high for the day and the next level of resistance comes in at $10.55 which was the high set back in October, twice. If we can get past this level, it opens the door to possible new highs. Our near-term target for Vivus is $12.50 which would make these calls worth $2.50-$2.70.
Research In Motion (RIMM, $65.30, down $0.10)
Feb 60 puts (RFYNL, $1.30, down $0.05)
Entry Price: $1.50 (1/6/10)
Exit Target: $3.00
Return: -13%
Stop Target: 75 cents
Action: Continue to hold.
Las Vegas Sands (LVS, $18.50, up $0.40)
February 18 calls (LJJBR, $1.73, up $0.27)
Entry Price: $0.95 (1/5/10)
Exit Target: $2.00
Return: 82%
Stop Target: $1.10
Action: Shares of LVS hit a low of $17.66 and the calls dropped to a low of $1.30. There was also active buying in the February 19 calls (LJJBJ, $1.20, up $0.21) and the February 20 calls (LJJBS, $0.83, up $0.17) as each option traded nearly 1,500 contracts.
The 52-week high for the stock is $20.73 and if that is broken we could be looking at a $3 price tag for these options. That would get our return to well over 200% so we are going to hold on to this one. However, if the options do hit our target of $2, we may close half the trade to take all of the risk out of holding them over the weekend.
Green Mountain Coffee Roasters (GMCR, $81.58, down $1.36)
February 95 calls (QGMBS, $1.40, down $0.20)
Entry Price: $1.15 (1/4/10)
Exit Target: $2.30
Return: 22%
Stop Target: $1.25
Action: If shares fall below $80 today we may have to exit the trade with the weekend coming up. Let’s see how things go today and if we make any changes we will let you know.
Exxon Mobil (XOM, $69.80, down $0.22)
April 75 calls (XOMDO, $0.92, down $0.02)
Entry Price: $1.45 (12/15/09)
Exit Target: $2.90
Return: -37%
Stop Target: $0.50
Action: Continue to hold.
TiVo (TIVO, $10.86, down $0.14)
February 12.50 calls (TUKBV, $1.05, down $0.05)
Entry Price: $0.75 (11/30/09)
Exit Target: $1.50
Return: 40%
Stop Target: 50 cents
Action: TiVo popped past $11 yesterday and its 52-week high is $12.78. We are hoping for a run to $14 which gives us at least a double from our entry price for the calls.