12:45pm (EST)
NEW TRADE!!!
General Mills (GIS, $73.45, up $0.47)
Buy to OPEN April 75 calls (GIS100417C00075000, $0.60, up $0.15)
Action: Use limit prices of 60 cents as the “bid” is 55 cents while the “ask” is 65 cents. This will likely be an all-or-nothing trade and if the stock trades lower the trade could lose up to 75% or more. However, if the company says something special, shares could hit a 52-week high.
CURRENT TRADES
Best Buy (BBY, $41.30, up $0.10)
April 41 calls (BYY100417C00041000, $1.62, down $0.02)
Entry Price: $1.10 (3/18/10)
Exit Target: $2.20
Return: 47%
Stop Target: $1.00, raise to $1.25
Action: We raised the stop yesterday to $1.00 and there was an error in this morning’s update as it listed the stop at 55 cents. The momentum is there to get us to $45 but we have raised the stop again to lock in profits should Best Buy slip from here. Reminder, the company announces earning Thursday before the bell.
Akamai Technologies (AKAM, $31.46, up $0.20)
April 32 calls (UMU100417C00032000, $0.80, up $0.05)
Entry Price: $1.22 (3/17/10)
Exit Target: $2.45
Return: -34%
Stop Target: 60 cents
Action: Akamai continues to trudge higher and we think shares can move to $34-$35.
SanDisk (SNDK, $34.83, up $1.01)
April 36 calls (SWF100417C00036000, $1.00, up $0.33)
Entry Price: $1.17 (3/11/10)
Exit Target: $2.00
Return: -18%
Stop Target: 50 cents
Action: We called it. Shares have hit a new intra-day high of $35.38 and the options have made a nice comeback. For those of you who got in yesterday, start protecting profits. We still think shares can run higher but we are just hoping we can get back to even first.
Bucyrus International (BUCY, $67.95, up $2.77)
April 70 calls (HIK100417C00070000, $1.80, up $0.90)
Entry Price: $1.60 (3/11/10)
Exit Target: $2.40
Return: 13%
Stop Target: 80 cents
Action: Bucyrus has made a sweet comeback and we have told you this stock is also capable of making explosive moves. If the options trade to $2.40 today, CLOSE half the position.
TiVo (TIVO, $16.14, down $0.52)
May 20 calls (TUK100522C00020000, $0.35, down $0.10)
Entry Price: $0.85 (3/5/10)
Exit Target: $1.70
Return: -59%
Stop Target: None
Action: As soon as we take TiVo out of the doghouse, it trades lower. The volatility is picking up so maybe some litigation news is on the horizon…
Berkshire Hathaway Class B (BRK/B, $81.85, down $0.52)
June 100 calls (BPY100619C00100000, $0.10, flat)
Entry Price: $0.50 (2/1/10)
Exit Target: $1.00+
Return: -80%
Stop Target: None
September 100 calls (BPY100918C00100000, $0.35, flat)
Entry Price: $0.95 (2/1/10)
Exit Target: $2.00
Return: -63%
Stop Target: None
Action: We have been in this position for 6 weeks and they are roll-over trades from the first Berkshire trade we profiled that returned 100%. We are going to drop coverage of these calls but the trades will remain OPEN and you will see them in the 2010 portfolio as open. Shares of Berkshire have not rallied with this market but these trades have plenty of time before expiration.
EMC (EMC, $18.65, down $0.18)
April 19 calls (EMC100417C00019000, $0.27, down $0.08)
Entry Price: $0.55 (1/19/10)
Exit Target: $1.00
Return: -51%
Stop Target: $0.25
Action: EMC is having a hard time breaking through its 52-week high of $18.94. However, once it does, we should see $20, quickly.
Other 2010 Portfolio OPEN positions (1): These are trades that are still open in the portfolio that have longer expiration dates but are not worth mentioning until they turn around. This way you know we are still tracking them and we will record the results, accordingly. Click on the 2010 Portfolio link in the Members Area to view ALL open/ closed trades.
Shuffle Master (SHFL, $8.04, down $0.12).
WATCH LIST SECTION
These trades are NOT recommendations until we send out an alert. These are trades that we like but have not added to the portfolio as an official recommendation because of market conditions. We will not list entry prices because these stocks are on the verge of breaking out or they could selloff.
We will be back in the Morning with a fresh list.
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