1:15pm (EST)
Imax (IMAX, $11.94, down $0.62)
March 12.50 calls (IMQCV, $0.80, down $0.30) (IMQ100320C000125000)
Entry Price: $1.25 (2/4/10)
Exit Target: $1.75-$1.85
Return: -36%
Stop Target: 60 cents
Action: Imax is getting pounded today but there is support here at these levels. The current market is not rewarding companies with solid fundamentals so we could get caught with this one. Our stop is 60 cents and will be triggered if shares fall below $11.50.
Berkshire Hathaway Class B (BRK/B, $74.08, up $0.51)
June 100 calls (BPYFT, $0.30, flat) (BPY100619C00100000)
Entry Price: $0.50 (2/1/10)
Exit Target: $1.00+
Return: -40%
Stop Target: None
September 100 calls (BPYIT, $0.45, flat) (BPY100918C00100000)
Entry Price: $0.95 (2/1/10)
Exit Target: $2.00
Return: -53%
Stop Target: None
Action: The current “ask” is higher than our quotes which means interest is picking up again in this stock. We are already hearing price targets of $85 and the mid-$90’s. The options won’t start making big moves until shares get back near the high of $78 but we are looking longer-term and are can afford to be patient.
EMC (EMC, $17.01, up $0.19)
April 19 calls (EMCDS, $0.20, up $0.04) (EMC100417C00019000)
Entry Price: $0.55 (1/19/10)
Exit Target: $1.00+
Return: -64%
Stop Target: None
Action: If EMC can reach $20 by April we will have a double from our entry price. Continue to hold.
Shuffle Master (SHFL, $8.84, down $0.08)
May 10 calls (SFQEB, $0.50, down $0.05) (SFQ100522C00010000)
Entry Price: $0.85 (1/19/10)
Exit Target: $1.70+
Return: -41%
Stop Target: 40 cents
Action: Continue to hold.
WATCH LIST SECTION
These trades are NOT recommendations until we send out an alert or the limit prices are hit. These are trades that we like but have not added to the portfolio as an official recommendation because of market conditions or because the portfolio is full.
Apollo Group (APOL, $59.85, down $0.08)
February 55 puts (OAQ100220P00055000, $0.45, down $0.10)
March 55 puts (OAQ100320P00055000, $1.50, down $0.10)
Action: We no longer like the February puts because they expire in less than two weeks. We will continue to list the March puts and will wait for better entry prices.
CBOE Volatility Index (VIX, 25.60, down 0.51)
February 27.50 calls (VIXBY, $0.80, down $0.40)
March 30 calls (VIXCF, $1.60, down $0.10)
Action: We did not get the bounce at the open we were hoping for so we will continue to watch these options.
Nasdaq PowerShares ETF (QQQQ, $43.12, up $0.14)
February 43 puts (QQQNQ, $0.65, down $0.14) (QQQ100220P00043000)
March 42 puts (QQQOP, $0.95, down $0.08) (QQQ100320P00042000)
Action: Continue to WATCH.
]]>