9:00am (EST)
Silver Wheaton (SLW, $36.21, down $1.38)
April 42 calls (SLW120421C00042000, $0.45, down $0.20)
Entry Price: $1.00 (3/1/12)
Exit Target: $1.50-$2.00
Return: -55%
Stop Target: 50 cents
Action: Shares traded down to $35.64 yesterday but reclaimed the $36 level into the close. The April options have 45 days before they expire and we feel shares will make a run past $40 by then.
Adobe Systems (ADBE, $33.22, down $0.51)
April 35 calls (ADBE120421C00035000, $0.80, down $0.20)
Entry Price: $0.75 (2/28/12)
Exit Target: $1.50
Return: 7%
Stop Target: None
July 38 calls (ADBE120721C00038000, $0.80, down $0.15)
Entry Price: $0.70 (2/28/12)
Exit Target: $1.40
Return: 14%
Stop Target: None
Action: Adobe trended lower to start the week and there is a chance $32 comes into play but longer-term we expect new 52-weeh highs once shares clear $35. The current 1-year peak is $35.99 and we are looking for a run past $40 by July.
Solazyme (SZYM, $12.44, down $0.61)
April 15 calls (SZYM120421C00015000, $0.25, down $0.10)
Entry Price: $0.55 (2/28/12)
Exit Target: $1.10
Return: -64%
Stop Target: None
March 15 calls (SZYM120317C00015000, $0.10, down $0.05)
Entry Price: $0.45 (1/10/12)
Exit Target: $1.00
Return: -78%
Stop Target: None
Action: Shares traded down to $12.01 yesterday before bouncing off the lows. We said there was risk down to $12 and shares have been volatile lately but we are still looking for a run to $15.
Sony (SNE, $20.73, down $0.64)
April 22 calls (SNE120421C00022000, $0.45, down $0.20)
Entry Price: $0.90 (2/27/12)
Exit Target: $1.60
Return: -50%
Stop Target: None
Action: There is a chance shares test $20 but we are expecting a pop to $25 if $22 is cleared.
U.S. Oil Fund (USO, $40.97, up $0.20)
April 45 calls (USO120421C00045000, $0.55, flat)
Entry Price: $0.80 (2/24/12)
Exit Target: $1.60
Return: -31%
Stop Target: None
Action: We said there would be risk down to $40 and shares dropped to a low of $40.57 before finishing the day with a gain. We expect shares to make a run past $45 by mid-April and the high last week was $42.30.
magicJack VocalTec (CALL, $23.47, up $1.49)
June 22.50 calls (CALL120616C00022500, $3.25, up $0.75)
Entry Price: $1.10 (2/15/12)
Exit Target: $2.20 (closed quarter position at $2.10 on 3/1/12, closed quarter position at $3.40 on 3/2/12)
Return: 173%
Stop Target: $1.10, raise to $2.00 (HARD STOP on other half)
Action: Shares traded to a high of $23.74 yesterday and we are looking for a run past $25 this week. The company announces earnings next Monday and they have already said earnings will come in above guidance. The March 25 calls (CALL120317C00025000, $0.50, up $0.30) could do well on a continued move higher and we may add these calls if we close another quarter of the trade into strength. We have also raised the Stop Target and have made it a Hard Stop.
Our average closing price on the two quarters we closed is $2.75 ($3.40 + $2.10/ 2). The current price on our other half is $3.25 which gives us our total return as the average is at $3.00 from an entry price of $1.10.
ValueClick (VCLK, $20.88, down $0.07)
June 23 calls (VCLK120616C00023000, $0.65, flat)
Entry Price: $0.40 (2/15/12)
Exit Target: $0.80 (closed half position at $0.70 on 2/29/12)
Return: 69%
Stop Target: 40 cents
Action: Our near-term target is $22.50 then $25 for ValueClick but there is a chance shares hit $30 by June. Support is at $20 and we will close the other half of the trade if this level fails to hold.
Other 2012 Portfolio OPEN positions (9): 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.
Newpark Resources March 10 calls (from January 2012) HOLD
iRobot March 40 calls (from February 2012) HOLD
Polypore International March 60 calls (from January 2012) HOLD
Abercrombie & Fitch March 39 puts (from February 2012) HOLD
PowerShares QQQ Trust March 60 puts (from February 2012) HOLD
Dendreon May 22 calls (from January 2012) HOLD
OCZ Technology Group March 10 calls (from February 2012) HOLD
Acme Packet March 37.50 calls, April 40 calls (from February 2012) HOLD
Freeport McMoRan March 45 calls (from February 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.
Clean Energy Fuels (CLNE, $19.46, up $0.76)
June 25 calls (CLNE120616C00025000, $0.55, up $0.10)
September 25 calls (CLNE120922C00025000, $1.00, up $0.20)
Thoughts: We really like the June calls for double-nickels and shares could double over the next 12 months.
Pepsico (PEP, $62.79, up $0.27)
April 65 calls (PEP120421C00065000, $0.30, up $0.05)
July 65 calls (PEP120721C00065000, $1.10, up $0.05)
Thoughts: Pepsi appears to have bottomed after pushing $67 in early February. The April calls look tasty and we could start small positions soon.
Potash (POT, $45.06, down $1.60)
April 47.50 calls (POT120421C00047500, $0.95, down $0.50)
Thoughts: Look who is back. We like these calls for a quick trade as Potash is at the bottom of its current trading range. A move towards $50 or down to $40 is likely coming if support doesn’t hold.
First Solar (FSLR, $28.08, down $1.94)
April 25 puts (FSLR120421P00025000, $1.65, up $0.55)
September 18 puts (FSLR120922P00018000, $1.85, up $0.45)
Thoughts: The April 25 put options opened at $1.15 and reached $1.82 while the September 18 puts opened at $1.59.
Rosetta Resources (ROSE, $49.45, down $2.02)
April 55 calls (ROSE120421C00055000, $1.05, down $0.60)
Thoughts: This stock can be volatile but shares are at the bottom of their current range following yesterday’s 4% dip. They may test $48 before bouncing back over $50 so let’s see how shares act over the next few days.
Market Vectors Gold Miners ETF (GDX, $53.62, down $1.17)
April 58 calls (GDX120421C00058000, $0.70, down $0.30)
Thoughts: Short-term support is at $54 but a drop below $52 would be bearish.
American Express (AXP, $52.97, down $0.02)
April 55 calls (AXP120421C00055000, $0.60, down $0.10)
July 57.50 calls (AXP120721C00057500, $0.95, down $0.15)
Thoughts: We are seriously thinking of starting a quarter or half position in American Express because we do feel shares will push $60 over the next 6 months.
We have been bullish on Mastercard and Visa for years and we have played option on them in the past. However, we think we can get more bank for our buck with American Express. Support is at $52 but a break below would be bearish over the short-term. If shares can get back above $54, look for a possible multi-year breakout up to $60.
MGM Resorts (MGM, $13.44, down $0.40)
April 15 calls (MGM120421C00015000, $0.25, down $0.15)
January 20 calls 2013 (MGM130119C00020000, $0.45, down $0.10)
January 17.50 calls (MGM130119C00017500, $0.90, down $0.15)
Thoughts: The Casino stocks have suddenly become bearish to Wall Street and maybe it’s because they have missed the rally all year in these names. There is further risk down to $12 but our 2012 target is $17. A break above this level would be super bullish and could likely lead to $25. The 52-week high is $16.05. MGM is announcing big news in May that could get shares going again in the right direction
Zynga (ZNGA, $13.97, down $0.72)
September 19 call (ZNGA120922C00019000, $0.90, down $0.65)
Thoughts: Zynga continues to be volatile and we would like to see shares come down to $12.50 and hold.
Scientific Games (SGMS, $10.15, down $0.15)
July 12.50 calls (SGMS120721C00012500, $0.35, down $0.05)
April 10 calls (SGMS120421C00012500, $0.70, down $0.15)
Thoughts: Support is at $10. If this level fails to hold then $9 is up next.