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.
12:20pm (EST)
NEW TRADES!!!
Microsoft (MSFT, $24.98, up $0.11)
Buy to OPEN January 25 calls (MSFT120121C00025000, $0.95, up $0.05)
Action: These calls are almost in the money and would double if shares trade up to $27 by mid-January. Use limit orders up to $1.00-$1.05 to establish positions.
Spreadtrum Communications (SPRD, $24.09, up $1.58
Buy to OPEN January 29 calls (SPRD120121C00029000, $1.00, down $0.20)
Action: Use limit prices up to $1.15 to establish positions but do not pay more than $1.20-$1.25.
CURRENT TRADES
Clean Energy Fuels (CLNE, $12.03, up $0.03)
January 12.50 calls (CLNE120121C00012500, $0.95, up $0.05)
Entry Price: $0.70 (11/25/11)
Exit Target: $1.40
Return: 36%
Stop Target: None
Action: We are expecting a run to $14 by mid-January for shares of Clean Energy which would make these options worth at least $1.50, or a double from our entry price. Support is strong at $11.
Symantec (SYMC, $15.69, down $0.38)
January 16 calls (SYMC120121C00016000, $0.75, down $0.15)
Entry Price: $0.70 (11/25/11)
Exit Target: $1.40
Return: 7%
Stop Target: None
Action: We are looking for shares to reach $17.50 by January which gets us a 100% return on the options.
Eaton (ETN, $42.67, up $0.34)
January 47.50 calls (ETN120121C00047500, $0.80, flat)
Entry Price: $0.55 (11/25/11)
Exit Target: $1.10
Return: 45%
Stop Target: None
Action: We are expecting shares to push $50 which would make these options worth $2.50.
Tesla Motors (TSLA, $32.27, down $0.29)
January 35 calls 2012 (TSLA120121C00035000, $1.20, down $0.10)
Entry Price: $1.10 (11/25/11)
Exit Target: $2.20
Return: 9%
Stop Target: None
Action: We have an aggressive target of $40 for Tesla which would get these call options to $5 if reached. We will stick with the trade as long as the $30 level holds.
PowerShares QQQ (QQQ, $54.53, down $0.19)
December 50 puts (QQQ111217P00050000, $0.30, flat)
Entry Price: $0.70 (11/21/11)
Exit Target: $1.05-$1.40
Return: -57%
Stop Target: None
Action: We may drop coverage of this trade if the market continues to move higher but we will leave it open for protection. It may or may not end up being a winning trade but it makes us sleep better at night.
Juniper Networks (JNPR, $20.91, down $0.28)
January 25 calls (JNPR120121C00025000, $0.40, down $0.05)
Entry Price: $0.65 (11/21/11)
Exit Target: $1.30
Return: -38%
Stop Target: None
Action: We are looking for a break back above $22 with a shot at $25+ by mid-January. Support is at $20.
Solazyme (SZYM, $12.91, down $0.09)
March 15 (2012) calls (SZYM120317C00015000, $1.10, flat)
Entry Price: $0.80 (11/9/11)
Exit Target: $1.60
Return: 38%
Stop Target: None
Action: Continue to hold for now.
Newpark Resources (NR, $8.25, down $0.12)
December 10 calls (NR111217C00010000, $0.20, flat)
Entry Price: $0.60 (11/4/11)
Exit Target: $1.20
Return: -67%
Stop Target: None
Action: This trade will likely come down to the wire as a lot of damage was done last week on the dip below $8.
Taiwan Semiconductor Manufacturing (TSM, $12.48, down $0.07)
December 12.50 calls (TSM111217C00012500, $0.40, flat)
Entry Price: $0.50 (10/26/11)
Exit Target: $1.00
Return: -10%
Stop Target: None
Action: Our breakeven point is a close above $13 by mid-December, technically. The 52-week high is $14 and support is strong at $12.
Other 2011 Portfolio OPEN positions (8): 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.
Lufkin Industries December 80 calls (from September 2011)
JDSU Uniphase January 20 calls (from August 2011)
January 16 calls (from August 2011)
Alcoa December 13 calls (from October 2011)
Skyworks Solutions January 25 calls 2012 (from October 2011)
Rambus December 20 calls (from November 2011)
Las Vegas Sands December 52.50 calls (from November 2011)
JPMorgan January 36 calls (2012) (from November 2011)
iShares Russell 2000 December 79 calls (from November 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 be back in the morning with a full update.