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.
1:15pm (EST)
iShares Russell 2000 (IWM, $73.74, up $0.43)
December 79 calls (IWM111217C00079000, $1.00, up $0.10)
Entry Price: $1.10 (11/11/11)
Exit Target: $2.20
Return: -9%
Stop Target: None
Action: Support is at $72.50 then $70 but we are looking for a rebound today. Resistance is at $77.50 but we are looking for a run to $82.50 if cleared. The December options have 31 days before they expire.
JPMorgan (JPM, $32.61, up $0.05)
January 36 calls (2012) (JPM120121C00036000, $0.95, flat)
Entry Price: $1.15 (11/10/11)
Exit Target: $2.30
Return: -17%
Stop Target: None
Action: The 200-day MA is at $40 but we are targeting a run to $38 which gets the calls to at least $2. The January options have 66 days before they expire and we should be in good shape as long as $30 holds.
Solazyme (SZYM, $11.34, up $0.10)
December 12.50 calls (SZYM111217C00012500, $0.65, up $0.05)
Entry Price: $0.55 (11/9/11)
Exit Target: $1.10
Return: 18%
Stop Target: None
March 15 (2012) calls (SZYM120317C00015000, $1.00, up $0.10)
Entry Price: $0.80 (11/9/11)
Exit Target: $1.60
Return: 25%
Stop Target: None
Action: The high today has been $11.52. We have a near-term target of $15 for the stock which would get the December options to $2.50. Resistance is at $14 while support at $10 appears to be strong.
Spreadtrum Communications (SPRD, $28.49, up $0.96)
November 31 calls (SPRD111119C0003000, $0.20, up $0.10)
Entry Price: $0.80 (11/7/11)
Exit Target: $1.60
Return: -75%
Stop Target: None
Action: Spreadtrum has traded to a high of $29.53 today but we need a move past $30 in a hurry. This trade could come down to the wire but we expect it to be profitable.
Newpark Resources (NR, $9.15, up $0.21)
December 10 calls (NR111217C00010000, $0.70, up $0.10)
Entry Price: $0.60 (11/4/11)
Exit Target: $1.20
Return: 17%
Stop Target: None
Action: We would like to see a close above $9.50 this week.
Rambus (RMBS, $17.95, up $0.22)
December 20 calls (RMBS111217C00020000, $1.35, flat)
Entry Price: $1.70 (11/2/11)
Exit Target: $3.40
Return: -21%
Stop Target: 85 cents
Action: As we enter the 7th week of deliberations, we have hoped for a quick resolution in the patent case involving Rambus against Micron and Hynix that could be worth billions in damages. The judge is set to rule on the case by the first week of January so deliberations could continue past Thanksgiving.
Las Vegas Sands (LVS, $47.80, down $0.10)
December 52.50 calls (LVS111217C00052500, $0.85, flat)
Entry Price: $1.25 (11/1/11)
Exit Target: $2.50
Return: -32%
Stop Target: None
Action: The 52-week high is $52 and if $50 is cleared we should get to $55 on momentum.
Skyworks Solutions (SWKS, $19.45, down $0.04)
January 25 calls 2012 (SWKS120121C00025000, $0.50, flat)
Entry Price: $0.80 (10/31/11)
Exit Target: $1.60
Return: -38%
Stop Target: None
Action: We would like to see $19 hold this week and a run back to $21. We went with the January options because we feel shares can make a push to $25 if resistance is cleared.
Taiwan Semiconductor Manufacturing (TSM, $12.98, flat)
December 12.50 calls (TSM111217C00012500, $0.80, flat)
Entry Price: $0.50 (10/26/11)
Exit Target: $1.00
Return: 60%
Stop Target: 50 cents
Action: The 52-week high is $14.05. If we can get a run past $13 shares could challenge $15 by mid-December. Support is solid at $11.
Qualcomm (QCOM, $57.28, up $0.18)
November 57.50 calls (QCOM111119C00057500, $0.60, flat)
Entry Price: $0.95 (10/18/11)
Exit Target: $1.25+
Return: -37%
Stop Target: None
Action: Qualcomm has traded up to $57.48 today. We have set limit orders to close the trade at $1.25 or better.
Other 2011 Portfolio OPEN positions (4): 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 2011 Portfolio link in the Members Area to view ALL open/ closed trades.
JDSU Uniphase January 20 calls (from August 2011)
January 16 calls (from August 2011)
Lufkin Industries December 80 calls (from September 2011)
Potash November 52.50 calls (from October 2011)
Alcoa December 13 calls (from October 2011)
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.
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10:25am (EST)
Vivus (VVUS, $10.06, down $0.10)
December 10 calls (VVUS111217C00010000, $0.80, down $0.10)
Entry Price: $0.50 (10/28/11)
Exit Target: $1.00 (closed half at 90 cents on 11/7/11)
Return: 70%
Stop Target: None
March 12 calls 2012 (VVUS120317C00012000, $2.40, down $0.10)
Entry Price: $1.55 (10/28/11)
Exit Target: $3.10
Return: 55%
Stop Target: 75 cents
Action: Vivus has traded to a low of $10.01 this morning and while we feel shares will trade past $11, soon, we want to close the position now. We have a lot of open positions and we want to protect some profits and close some trades because there are other ones we like as well. We will be back to play VVUS but for now, let’s lock-in these juicy profits.
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9:00am (EST)
The Dow fell 75 points, or 0.6%, to finish at 12,078. The blue-chips touched a low of 12,027 while the high was 12,170. We mentioned yesterday near-term support was at 12,000 while near-term resistance is at 12,200. As you can see from the chart below, the bears hold a slight edge in reaching their target first but the trend still favors the bulls. Notice the “bullish symmetrical triangle” (black lines) we have drawn. This chart shows you exactly why Dow 11,800 held last week, why it could get tested, and why the Dow is headed past 12,600.
The S&P 500 slipped a dozen points, or 1%, to end at 1,251. The index held the 1,250 level on the close but dipped to a low of 1,246 intraday. We are still looking for a push past 1,275 this week and 1,300 by the end of November but the bears could push 1,225, first.
The Nasdaq fell a double-deuce, or 0.8%, to settle at 2,657. The index dipped below 2,650, briefly, after hitting a low of 2,647 during Monday’s action but managed to close above this level. Tech did see some green as it peaked to a high of 2,682 but it was shortly lived.
There has been a bevy of economic news before this morning’s opening bell and much of it has been so-so. We will cover the details in our afternoon update but futures are pointing towards another lower start.
Dow futures are lower by 60 points to 12,000. The S&P 500 futures are down 7 points to 1,245. The Nasdaq 100 futures are off by 10 points to 2,333. (Subscribers, please go to the Members Area this morning to see the charts)
MEMBERS AREA
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.
iShares Russell 2000 (IWM, $73.31, down $1.07)
December 79 calls (IWM111217C00079000, $0.90, down $0.30)
Entry Price: $1.10 (11/11/11)
Exit Target: $2.20
Return: -18%
Stop Target: None
Action: Support is at $72.50 then $70 but we are looking for a rebound today. Resistance is at $77.50 but we are looking for a run to $82.50 if cleared. The December options have 31 days before they expire.
JPMorgan (JPM, $32.55, down $0.73)
January 36 calls (2012) (JPM120121C00036000, $0.95, down $0.30)
Entry Price: $1.15 (11/10/11)
Exit Target: $2.30
Return: -17%
Stop Target: None
Action: The 200-day MA is at $40 but we are targeting a run to $38 which gets the calls to at least $2. The January options have 66 days before they expire and we should be in good shape as long as $30 holds.
Solazyme (SZYM, $11.24, down $0.09)
December 12.50 calls (SZYM111217C00012500, $0.60, down $0.05)
Entry Price: $0.55 (11/9/11)
Exit Target: $1.10
Return: 9%
Stop Target: None
March 15 (2012) calls (SZYM120317C00015000, $0.90, down $0.20)
Entry Price: $0.80 (11/9/11)
Exit Target: $1.60
Return: 13%
Stop Target: None
Action: Shares made a high of $11.70 yesterday before ending the session slightly lower. We have a near-term target of $15 for the stock which would get the December options to $2.50. Resistance is at $14 while support at $10 appears to be strong.
Spreadtrum Communications (SPRD, $28.53, down $0.18)
November 31 calls (SPRD111119C0003000, $0.10, down $0.10)
Entry Price: $0.80 (11/7/11)
Exit Target: $1.60
Return: -88%
Stop Target: None
Action: Spreadtrum reached a peak of $29.70 on Monday but we need a move past $30 in a hurry. This trade could come down to the wire but we expect it to be profitable.
Newpark Resources (NR, $8.94, down $0.19)
December 10 calls (NR111217C00010000, $0.60, down $0.10)
Entry Price: $0.60 (11/4/11)
Exit Target: $1.20
Return: 0%
Stop Target: None
Action: We would like to see a close above $9.50 this week.
Rambus (RMBS, $17.73, down $0.12)
December 20 calls (RMBS111217C00020000, $1.35, up $0.15)
Entry Price: $1.70 (11/2/11)
Exit Target: $3.40
Return: -21%
Stop Target: 85 cents
Action: As we enter the 7th week of deliberations, we have hoped for a quick resolution in the patent case involving Rambus against Micron and Hynix that could be worth billions in damages. The judge is set to rule on the case by the first week of January so deliberations could continue past Thanksgiving.
Las Vegas Sands (LVS, $47.90, up $1.53)
December 52.50 calls (LVS111217C00052500, $0.85, up $0.25)
Entry Price: $1.25 (11/1/11)
Exit Target: $2.50
Return: -32%
Stop Target: None
Action: Shares traded to a high of $48.10 on Monday and we were looking for a run back to $48. The 52-week high is $52 and if $50 is cleared we should get to $55 on momentum.
Skyworks Solutions (SWKS, $19.49, down $0.28)
January 25 calls 2012 (SWKS120121C00025000, $0.50, down $0.05)
Entry Price: $0.80 (10/31/11)
Exit Target: $1.60
Return: -38%
Stop Target: None
Action: We would like to see $19 hold this week and a run back to $21. We went with the January options because we feel shares can make a push to $25 if resistance is cleared.
Vivus (VVUS, $10.16, up $0.24)
December 10 calls (VVUS111217C00010000, $0.90, up $0.10)
Entry Price: $0.50 (10/28/11)
Exit Target: $1.00 (closed half at 90 cents on 11/7/11)
Return: 80%
Stop Target: None
March 12 calls 2012 (VVUS120317C00012000, $2.50, up $0.10)
Entry Price: $1.55 (10/28/11)
Exit Target: $3.10
Return: 61%
Stop Target: 75 cents
Action: Vivus is looking good and we would like to see a pop past $11 this week.
Taiwan Semiconductor Manufacturing (TSM, $12.98, up $0.03)
December 12.50 calls (TSM111217C00012500, $0.80, up $0.05)
Entry Price: $0.50 (10/26/11)
Exit Target: $1.00
Return: 60%
Stop Target: 50 cents
Action: The 52-week high is $14.05. If we can get a run past $13 shares could challenge $15 by mid-December. Support is solid at $11.
Qualcomm (QCOM, $57.10, up $0.48)
November 57.50 calls (QCOM111119C00057500, $0.60, up $0.10)
Entry Price: $0.95 (10/18/11)
Exit Target: $1.25+
Return: -37%
Stop Target: None
Action: Qualcomm traded up to $57.50 yesterday while the options reached a high of 84 cents. We have set limit orders to close the trade at $1.25 or better.
Other 2011 Portfolio OPEN positions (4): 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 2011 Portfolio link in the Members Area to view ALL open/ closed trades.
JDSU Uniphase January 20 calls (from August 2011)
January 16 calls (from August 2011)
Lufkin Industries December 80 calls (from September 2011)
Potash November 52.50 calls (from October 2011)
Alcoa December 13 calls (from October 2011)
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.
Tesla Motors (TSLA, $33.22, down $0.42)
December 35 calls (TSLA111217C00035000, $1.10, down $0.20)
January 37 calls 2012 (TSLA120121C00037000, $1.00, down $0.10)
Thoughts: The break above $30 and the 52-week high is $36.42. We are looking for a pop past $40 on continued short-covering and momentum.
Noble Energy (NBL, $94.84, up $0.09)
December 105 calls (NBL111217C00105000, $0.90, down $0.05)
November 97.50 calls (NBL111119C00097500, $0.75, down $0.10)
Thoughts: We have too many open recommendations to have made this an official trade but we like it a lot. The company reports earnings today.
Best Buy (BBY, $27.64, down $0.45)
December 30 calls (BBY111217C00030000, $0.6855, down $0.13)
Thoughts: We like the risk/ reward these call options offer as long as $26 holds. If shares can close above $28.50 we should get a run to $31-$32.
Caterpillar (CAT, $96.53, up $0.40)
December 105 calls (CAT111217C00105000, $1.35, up $0.10)
Thoughts: Goldman ruined a good entry point as shares probably would have fallen if not for the upgrade. We were hoping CAT would come down to $90 and test support before it breaks $100 but the upgrade may be enough to push shares past triple-digits this week.
SanDisk (SNDK, $51.08, down $0.58)
December 55 calls (SNDK111217C00055000, $1.25, down $0.25)
January 60 calls 2012 (SNDK120121C00060000, $1.05, down $0.15)
Thoughts: We still feel a run past $52 is coming which could get shares rolling to new 52-week highs and blue-sky territory.