12:35pm (EST)
Berkshire Hathaway Class B (BRK/B, $69.91, down $0.19)
February 74 calls (BVQBX, $0.75, flat)
Entry Price: $1.50 (1/21/10)
Exit Target: $3.00
Return: -50%
Stop Target: None
Action: The calls traded to a high of $1.15 before fading but we think this stock will roar if we do get the bounce we are expecting.
EMC (EMC, $16.90, up $0.40)
April 19 calls (EMCDS, $0.23, flat)
Entry Price: $0.55 (1/19/10)
Exit Target: $1.00+
Return: -58%
Stop Target: None
Action: Continue to hold.
Shuffle Master (SHFL, $8.66, down $0.37)
May 10 calls (SFQEB, $0.50, down $0.20)
Entry Price: $0.85 (1/19/10)
Exit Target: $1.70+
Return: -41%
Stop Target: 40 cents
Action: We didn’t expect Shuffle Master to fall near our stop today but it has. This position has 4 months before expiration so we may have to give this one some wiggle room.
Applied Materials (AMAT, $12.63, flat)
February 15 calls (ANQBC, $0.05, flat)
Entry Price: $0.50 (1/1/10)
Exit Target: $1.00+
Return: -90%
Stop Target: None
Action: We are going to drop coverage of this trade until there is a rebound, if there is one. The trade will still appear in our portfolio and will go down as a loss on February 19th. There is no need to close the trade as there is no bid anyway and if the calls expire worthless you save commission costs. Again, the stock will still be open in our portfolio when you check the 2010 updates.
OSI Systems (OSIS, $27.67, down $0.10)
February 35 calls (UOJBG, $0.20, flat)
Entry Price: $1.40 (1/11/10)
Exit Target: $2.80
Return: -86%
Stop Target: None
Action: Shares reached a high of $28.30 earlier today but we need the stock to make a run to over $30 again before we feel a pulse on this one.
Vivus (VVUS, $8.83, down $0.08)
March 10 calls (QJSCB, $0.55, down $0.10)
Entry Price: $1.35 (1/7/10)
Exit Target: $2.70
Return: -59%
Stop Target: 65 cents
Action: There is more downside risk towards $8 for shares of Vivus and we are trying to be patient with this one. Although we have time, if shares fall below $8.75 we may have to close this one.
Research In Motion (RIMM, $61.56, down $0.12)
Feb 60 puts (RFYNL, $1.70, down $0.15)
Entry Price: $1.50 (1/6/10)
Exit Target: $2.25
Return: 13%
Stop Target: 75 cents
Action: RIMM has traded to a high of $62.66 but the stock broke its 50-day moving average of $63.50 on Friday which is why we are still sticking around. This should now serve as a major resistance level and we think the downtrend is still intact.
We believe there is a good chance shares slip below $60 to possibly $58 which is where major support comes in.
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