Please remember, ALL “Exit Targets” and “Stop Targets” are targets. You should not have any “Hard Stops” entered to close any trades or “Exit Orders” in your brokerage account unless we list one. We will send out a “Profit Alert” or “Trade Update” if we want you to close a position OR if a new trade comes out. Otherwise, follow instructions at all times in the 9am and 1pm updates. Also, we will usually give you a heads-up if we think we are going to send an email outside of these time frames but it is rare that we do.
1:00pm (EST)
Aflac (AFL, $48.52, up $047)
February 48 calls (AFL120218C00048000, $1.75, up $0.25)
Entry Price: $0.75 (1/19/12)
Exit Target: $1.50 (closed half at $1.35 on 1/20/2012)
Return: 107%
Stop Target: $1.25 (HARD STOP)
Action: We continue to think shares will break $50 but we are raising our Hard Stop to $1.40 as we want to lock-in this triple-digit gain.
Scientific Games (SGMS, $11.38, up $0.48)
February 12.50 calls (SGMS120218C00012500, $0.15, flat)
Entry Price: $0.20 (1/18/12)
Exit Target: $0.40
Return: -25%
Stop Target: None
July 15 calls (SGMS120721C00015000, $0.45, up $0.10)
Entry Price: $0.35 (1/18/12)
Exit Target: $0.70
Return: 29%
Stop Target: None
Action: Continue to hold.
Carrizo Oil & Gas (CRZO, $24.75, up $0.17)
April 30 calls (CRZO120421C00030000, $0.95, flat)
Entry Price: $1.20 (1/17/12)
Exit Target: $2.40
Return: -21%
Stop Target: None
Action: Continue to hold.
Vivus (VVUS, $11.81, down $0.10)
February 14 calls (VVUS120218C00014000, $0.40, flat)
Entry Price: $0.70 (1/12/12)
Exit Target: $1.40
Return: -43%
Stop Target: None
Action: Continue to hold.
Westport Innovations (WPRT, $37.07, up $1.47)
April 40 calls (WPRT120421C00040000, $2.00, up $0.50)
Entry Price: $1.30 (1/12/12)
Exit Target: $2.60 (closed half at $1.45 on 1/24/2012)
Return: 33%
Stop Target: $1.00
Action: Cramer was all over this stock last night and shares are getting a pop.
Coach (COH, $68.65, up $4.41)
February 55 puts (COH120218P00055000, $0.05, down $0.40)
Entry Price: $0.95 (1/11/12)
Exit Target: $1.50-$1.90
Return: -95%
Stop Target: None
Action: It’s no use in sellin these options for the nickel as they have nearly a month before they expire.
Coach beat the Street by 3 cents and we should have done our homework earlier on their earnings. We recommended the trade on the break below $60 as it appeared shares would dip to $55 but we got trapped. The slim bit of good news is that these are February options and we still have nearly a month to see if these put options come back. We have seen trades lose 80%-90% of their value only to come back to hand you a profit but we got this one wrong and underestimated Coach’s reversal on the chart. We will move this trade to the “Hold” section and hope for a breakdown in Coach which may not happen.
Solazyme (SZYM, $11.87, up $0.10)
March 15 calls (SZYM120317C00015000, $0.40, flat)
Entry Price: $0.45 (1/10/12)
Exit Target: $1.00
Return: -11%
Stop Target: None
Action: Continue to hold.
Microsoft (MSFT, $29.46, down $0.46)
July 30 calls (MSFT120721C00030000, $1.25, down $0.20)
Entry Price: $0.75 (1/6/12)
Exit Target: $1.50+ (closed half at $1.35 on 1/24/2012)
Return: 73%
Stop Target: $1.00, raise to $1.10 (HARD STOP)
Action: We closed half of this trade yesterday after shares stalled at $29.95 and we are raising the Hard Stop to $1.10.
MGM Resorts (MGM, $13.12, down $0.02)
June 14 calls (MGM120616C00014000, $1.15, flat)
Entry Price: $0.48 (1/6/12)
Exit Target: $1.00 (closed half at $1.00 on 1/18/2012)
Return: 124%
Stop Target: 80 cents, raise to $1.05 (HARD STOP)
Action: We have raised the Hard Stop to $1.05.
Newpark Resources (NR, $9.25, down $0.05)
March 10 calls (NR120317C00010000, $0.70, flat)
Entry Price: $0.95 (1/3/12)
Exit Target: $1.90 (closed half at $1.20 on 1/10/2012)
Return: 0%
Stop Target: 50 cents
Action: Continue to hold.
Chesapeake Energy (CHK, $22.05, down $0.23)
April 25 calls (CHK120421C00025000, $0.65, down $0.05)
Entry Price: $1.25 (12/21/11)
Exit Target: $2.50
Return: -48%
Stop Target: 60 cents
Action: Continue to hold.
Other 2012 Portfolio OPEN positions (1): These are trades that are still open in the portfolio that have longer expiration dates or are on “hold” but are not worth mentioning until they turn around. This means we would not open any new positions. We are still keeping track of the trades and we will record the results, accordingly, when we close them or the options expire. Click on the 2012 Portfolio link in the Members Area to view ALL open/ closed trades.
OCZ Technology Group February 9 calls (from January 2012) HOLD
WATCH LIST SECTION
These trades are NOT recommendations. They are trades that we like but have not added to the portfolio as an official recommendation because of market conditions or because we are waiting for better entry prices. We try not to have more than 12-15 open trades at any one time which is why we created a Watch List. We will not list entry prices because these stocks are on the verge of breaking out or they could sell off.
We will update this section in the morning.