NEW TRADE!!!
Vivus (VVUS, $10.09, up $0.86)
Buy to OPEN VVUS March 10 calls (QJSCB, $1.30, up $0.38)
Action: The stock was at $9.69 this morning at 10:15am and the calls had only traded 55 contracts and were at $1.20. We had a feeling we might reach $10 but we wanted to confirm the move to double-digits.
The current “ask” is $1.35 so set limit prices at $1.30. If you aren’t filled in a few minutes, bump it up to $1.40.
There is a chance we slip from here but are we are looking for is the stock making a run to $12.50. If shares hit this level these options will be worth $2.50-$2.80 minimum, or a double from current levels.
CURRENT TRADES
Research In Motion (RIMM, $65.25, down $0.15)
Feb 60 puts (RFYNL, $1.36, up $0.01)
Entry Price: $1.50 (1/6/10)
Exit Target: $3.00
Return: -9%
Stop Target: 75 cents
Action: RIMM tried to rally back to $67 as the stock hit a high of $66.26. The calls dipped to a low of $1.18 which is why we did this morning’s piece on price swings. It’s part of the game but we think shares break down from here.
Las Vegas Sands (LVS, $18.50, up $0.40)
February 18 calls (LJJBR, $1.78, up $0.32)
Entry Price: $0.95 (1/5/10)
Exit Target: $2.00
Return: 87%
Stop Target: $1.10
Action: These calls hit a low of $1.30 this morning as shares dipped below $18 but we have been mentioning the cards are showing us $20.
Green Mountain Coffee Roasters (GMCR, $81.51, down $1.43)
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: Our stop target was tested but we are going to hold the position open. However, if the stock happens to fall below $80 this week or next the uptrend will be broken and we may have to move to the sidelines.
Imax (IMAX, $14.42, up $0.11)
January 12.50 calls (IMQAV, $1.90, up $0.15)
Entry Price: $1.05 (12/15/09)
Exit Target: Closed at $2.00 (1/7/10)
Return: 90%
Stop Target: $1.45
Action: These options have hit a high of $2.05 today and we said to use good ‘til cancel (GTC) orders at $2. If you were filled, great, if not, keep trying to get $1.95-$2.00 for them. We may have left some profits on the table but if the uptrend continues we call roll the position out to the latter months.
Exxon Mobil (XOM, $69.75, down $0.27)
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, $10.79, down $0.21)
February 12.50 calls (TUKBV, $1.05, down $0.05) (UPDATED at 1:15pm)
Entry Price: $0.75 (11/30/09)
Exit Target: $1.50
Return: 40%
Stop Target: 50 cents
Action: Continue to hold.
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