Momentum Trades

Trade Updates – Monday, December 7, 2009 (PM)

December 2009 | Members

 

1:05pm (EST)

Gilead Sciences (GILD, $46.77, up $0.18)

January 50 calls (GDQAJ, $0.50, flat)

Entry Price:  $0.55 (12/04/09)
Exit Target: 80 cents
Return: -9%
Stop Limit: 25 cents

Action:  We think the Drug stocks are going to have a good week as there will be a lot of buzz in the sector this week.


A123 Systems (AONE, $17.67, up $0.49)

January 21 calls (ZKQAU, $0.50, up $0.10)

Entry Price:  $0.80 (12/04/09)
Exit Target:  $1.60 
Return: -38%
Stop Limit: NONE

Action:  We LISTED the January 15 puts (ZKQMC, $0.75, up $0.10) for protection for those of you who wanted some.  This would make the trade a strangle option trade and while the puts will protect you on a move back to $14, they will limit the upside potential should AONE rally back above $20.


TiVo (TIVO, $10.01, down $0.05)

February 12.50 calls (TUKBV, $0.75, flat)

Entry Price:  $0.75 (11/30/09)
Exit Target: $1.50

Return: 0%
Stop Limit: None 

Action:  TiVo jumped out to some nice gains this morning as the stock hit a high of $10.30.  There isn’t much action in the current month’s option chains but these call options have traded over 5,000 contracts today and have hit a high of 80 cents today.  The February 10 calls (TUKBB, $1.50, flat) have traded over 4,000 contracts.   

 

]]>

Scroll to Top