1:15pm (EST)
Berkshire Hathaway Class B (BRK/B, $68.71, down $0.13)
February 74 calls (BVQBX, $0.50, down $0.05)
Entry Price: $1.50 (1/21/10)
Exit Target: $3.00
Return: -67%
Stop Target: None
Action: Continue to hold.
EMC (EMC, $17.74, up $0.18)
April 19 calls (EMCDS, $0.39, up $0.14)
Entry Price: $0.55 (1/19/10)
Exit Target: $1.00+
Return: -29%
Stop Target: None
Action: We didn’t quite get the pop we were hoping for but nonetheless EMC looks strong today. We entered this trade last Tuesday (before Obama spoke) when the stock was at $18 and if we continue to rally we could see 52-week highs again.
Shuffle Master (SHFL, $8.84, up $0.08)
May 10 calls (SFQEB, $0.65, up $0.20)
Entry Price: $0.85 (1/19/10)
Exit Target: $1.70+
Return: -24%
Stop Target: 40 cents
Action: The quote is a little misleading because the “bid” is 45 cents while the “ask” is 65 cents according to our brokerage account. There has been some nibbling on these call options this morning which means some option traders got in at 65 cents. Continue to hold.
OSI Systems (OSIS, $28.54, up $0.65)
February 35 calls (UOJBG, $0.20, flat)
Entry Price: $1.40 (1/11/10)
Exit Target: $2.80
Return: -86%
Stop Target: None
Action: Continue to hold.
Vivus (VVUS, $8.75, up $0.07)
March 10 calls (QJSCB, $0.50, flat)
Entry Price: $1.35 (1/7/10)
Exit Target: $2.70
Return: -63%
Stop Target: 65 cents
Action: Hold for now.
Research In Motion (RIMM, $62.15, up $0.74)
Feb 60 puts (RFYNL, $1.40, down $0.25)
Entry Price: $1.50 (1/6/10)
Exit Target: $2.25
Return: -7%
Stop Target: 75 cents
Action: Shares of RIMM touched a low of $60.40 and the puts traded to a high of $2.13. From our entry price that is a profit of 47% so the price swings can get emotional as we are back down 7%.
We can feel the magnet below $60 pulling at the stock and serious resistance is at $63.50. It’s tough holding this position today and even if we rally this week we think shares could still trade below $60 by the end of next week.
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