9:05am (EST)
Best Buy (BBY, $41.20, up $0.21)
April 41 calls (BYY100417C00041000, $1.64, up $0.09)
Entry Price: $1.10 (3/18/10)
Exit Target: $2.20
Return: 49%
Stop Target: 55 cents
Action: Best Buy continued higher on the heels of the Goldman Sachs upgrade last week from to “Buy” from “Neutral”. Goldman slapped a $47 price target on the stock but we are just looking for a run to $43-$44. We would like to get out of at least half of the trade with earnings due on Thursday for a double but that depends on the market. Shares are up 20 cents in pre-market trading.
Akamai Technologies (AKAM, $31.26, down $0.13)
April 32 calls (UMU100417C00032000, $0.75, down $0.20)
Entry Price: $1.22 (3/17/10)
Exit Target: $2.45
Return: -39%
Stop Target: 60 cents
Action: Some of the analysts on Wall Street want Akamai to fall back below $30 because they have missed the rally from the mid-$20’s. However, the stock held up well despite a downgrade out of Citigroup from “Buy” to “Hold”. Continue to hold unless shares fall below $30. The stock is slightly higher in early trading.
SanDisk (SNDK, $33.82, up $1.57)
April 36 calls (SWF100417C00036000, $0.67, up $0.30)
Entry Price: $1.17 (3/11/10)
Exit Target: $2.00
Return: -43%
Stop Target: 50 cents
Action: SanDisk rallied 5% yesterday and could be setting up for another explosive move. The 52-week high is $34.77 and shares touched $34 yesterday. Shares are bumping up near $34 in early action.
Bucyrus International (BUCY, $65.18, up $0.13)
April 70 calls (HIK100417C00070000, $1.00, down $0.15)
Entry Price: $1.60 (3/11/10)
Exit Target: $2.40
Return: -38%
Stop Target: 80 cents
Action: Continue to hold.
TiVo (TIVO, $16.67, up $0.70)
May 20 calls (TUK100522C00020000, $0.50, up $0.26)
Entry Price: $0.85 (3/5/10)
Exit Target: $1.70
Return: -41%
Stop Target: None
Action: TiVo popped 4% yesterday but the options jumped 50%. The trade is still down significantly but these are May options and we have plenty of time for TiVo to make another big move.
Berkshire Hathaway Class B (BRK/B, $82.37, up $0.31)
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, $0.45, flat)
Entry Price: $0.95 (2/1/10)
Exit Target: $2.00
Return: -53%
Stop Target: None
Action: Continue to hold.
EMC (EMC, $18.83, up $0.22)
April 19 calls (EMC100417C00019000, $0.35, up $0.05)
Entry Price: $0.55 (1/19/10)
Exit Target: $1.00
Return: -35%
Stop Target: $0.25
Action: EMC got back on track Monday and made a run and its 52-week high of $18.94. We are looking for aa pop to $20.
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, $8.16, up $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.
Walgreen (WAG, $35.33, up $0.80)
April 35 calls (WAG100417C00035000, $1.25, up $0.60)
Action: These options opened at 75 cents yesterday and Walgreen is only slightly higher this morning after reporting mixed earnings. The option price should still hold up but we missed this one. There may be another opportunity to trade this one and Walgreen’s is growing. We wouldn’t be surprised if shares are over $40 in 6-12 months.
KB Home (KBH, $17.44, up $0.11)
April 17.50 calls (KBH100417C00017500, $0.80, up $0.05)
April 17.50 puts (WAG100417P00017500, $0.80, down $0.05)
Action: KB narrowed its loss in their latest quarterly report and expects to be profitable by the end of the year. Shares are slightly higher but we knew this stock wasn’t going to move 10% which is why we stayed on the sidelines.
General Mills (GIS, $72.98, down $0.36)
April 75 calls (GIS10041700075000, $0.45, down $0.20)
Action: This is a lot like our Nike trade last week in that the options are right at a 50 cent bid and the share price is in the low $70’s. We may pull the trigger today but wait for an alert if we do.
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