9:05am (EST)
NEW TRADE!!!
Las Vegas Sands (LVS, $16.62, up $1.68)
Buy to OPEN February 18 calls (LJJBR, $0.77, up $0.46)
Action: We mentioned how the casino business was picking up and we are going to TRY and get these call options at 85-90 cents this morning. LVS has been a solid past performer in our portfolio and has a shot at $20 if the casino stocks can rally over the next month or so.
Use limit prices of 85 cents this morning and if the calls open higher you can go up to 90-95 cents for the options. However, DO NOT buy them if they open over $1. If they open higher than $1 the trade will be VOIDED.
CURRENT TRADES
Green Mountain Coffee Roasters (GMCR, $81.30, down $0.17)
February 95 calls (QGMBS, $1.35, unchanged)
Entry Price: $1.15 (1/4/10, 10:40am)
Exit Target: $2.30
Return: 17%
Stop Target: 55 cents
Action: Continue to hold.
Imax (IMAX, $13.27, down $0.04)
January 12.50 calls (IMQAV, $0.95, down $0.10)
Entry Price: $1.05 (12/15/09)
Exit Target: $2.00+
Return: -10%
Stop Target: 60 cents
Action: Merriman raised their Q4 earnings estimate for IMAX to 8 cents a share from 4 cents on the strength of strong Avatar sales. Duh. However, the analyst kept a “Neutral” rating on the stock.
Exxon Mobil (XOM, $69.15, up $0.96)
April 75 calls (XOMDO, $0.80, up $0.07)
Entry Price: $1.45 (12/15/09)
Exit Target: $2.90
Return: -45%
Stop Target: $0.50
Action: We are hoping for a pop over $70 today.
A123 Systems (AONE, $22.80, up $0.36)
January 21 calls (ZKQAU, $2.10, up $0.15)
Entry Price: $0.80 (12/04/09)
Exit Target: $2.50-$3.00 (sold half on 12/30/09 @ $2.00)
Return: 175%
Stop Target: $1.75
Action: Continue to hold. The stock is showing strength and we think there is a chance we push $24-$25 this week. We may still “roll-over” this position but for now we will play our current hand.
TiVo (TIVO, $10.63, up $0.45)
February 12.50 calls (TUKBV, $0.80, up $0.10)
Entry Price: $0.75 (11/30/09)
Exit Target: $1.50
Return: 7%
Stop Target: None
Action: There were nearly 3,000 contracts that traded yesterday in these options and nearly 4,000 contracts traded for the February 15 calls (TUKBC, $0.30, up $0.10). There wasn’t nearly as much action in the front-month options (January calls) so traders could be building positions in anticipation of some major news event.
Of course, we have been in this trade for well over a month and have been patiently waiting BEFORE the crowd showed up. Continue to hold.
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