9:00am (EST)
Intel (INTC, $19.56, up $0.04) (STRANGLE TRADE)
November 20 calls (INTC101120C00020000, $0.48, up $0.03)
Entry Price: $0.36 (10/6/10)
Exit Target: $1.00+
Return: 33%
Stop Target: None
November 18 puts (INTC101120P00018000, $0.25, down $0.01)
Entry Price: $0.35 (10/6/10)
Exit Target: $1.00+
Return: -29%
Stop Target: None
Action: We will preview Intel upcoming earnings announcement in our 1pm update.
McDonald’s (MCD, $75.59, down $0.51)
December 80 calls (MCD101218C00080000, $0.43, down $0.08)
Entry Price: $0.53 (9/20/10)
Exit Target: $1.10+
Return: -19%
Stop Target: None
Action: Continue to hold.
Bank of America (BAC, $13.15, down $0.03
2011 February 15 calls (BAC110219C00015000, $0.55, flat)
Entry Price: $0.90 (9/13/10)
Exit Target: $1.80
Return: -39%
Stop Target: Close the trade if shares fall below $13.
Action: These options have 129 days before they expire but our patience is running thin.
Dendreon (DNDN, $39.75, up $0.52) (COVERED CALL)
October 45 call (DNDN101016C00045000, $0.05, flat)
Entry Price: $41.96 (9/13/10) sold call @ $1.30
Exit Target: $45
Return: -2%
Stop Target: None
Action: Dendreon opened at $41.96 and you could have sold the option for $1.30 on 9/13/10. This lowered the cost basis to $40.66.
TiVo (TIVO, $10.22, down $0.07)
November 12 calls (TIVO101120C00012000, $0.35, down $0.05)
Entry Price: $0.50 (8/17/10)
Exit Target: $1.00+
Return: -30%
Stop Target: None
Action: Continue to hold TiVo.
Other 2010 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. We are still keeping track of the trade and we will record the results, accordingly, when we close them or the options expire. Click on the 2010 Portfolio link in the Members Area to view ALL open/ closed trades.
Skechers USA (October 20 puts from September)
Deckers Outdoor (October 40 puts from September)
Aetna (October 25 puts from July)
F5 Networks (October 80 puts from September)
FedEx (October 75 puts from September)
Garmin (October 25 puts from September)
Power Shares QQQ (October 43 puts from August)
Best Buy STRANGLE (October 32 puts from September)
Research In Motion STRANGLE (October 40 puts from September)
Adobe Systems STRANGLE (October 34 calls from September)
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 or because we are waiting for better entry prices. We will not list entry prices because these stocks are on the verge of breaking out or they could selloff.
Barrick Gold (ABX, $48.71, up $0.14)
November 44 puts (ABX101120P00044000, $0.60, flat)
Action: Continue to watch.
M&T Bank (MTB, $77.22, up $0.38)
November 75 puts (MTB101120P00075000, $2.80, up $0.30)
Action: Continue to watch. Our near-term target for the stock is $72.50 and maybe a test to $67.
Pan American Silver (PAAS, $29.76, down $0.12)
November 32 calls (PAAS101120C00032000, $0.70, down $0.05)
Action: Watch for now. Shares could test $32 but will need a strong push back over $30.
Imax (IMAX, $17.20, down $0.04)
November 18 calls (IMAX101120C00018000, $0.70, down $0.05)
Action: Watch for now.
Regal Entertainment Group (RGC, $14.00, up $0.21)
November 12.5 calls (RGC101120C00012500, $1.50, up $0.10)
Action: Watch for now.
Juniper Networks (JNPR, $31.68, up $0.21)
November 35 calls (JNPR101120C00035000, $0.405, up $0.05)
January (2011) 35 calls (JNPR110122C00035000, $1.00, up $0.05)
Action: JNPR will trade in tandem with Tech. Continue to watch.
Brocade Communications Systems (BRCD, $5.66, up $0.09)
January (2011) 6 calls (BRCD110122C00006000, $0.39, up $0.05)
April (2011) 6 calls (BRCD110416C00006000, $0.55, up $0.05)
Action: As we prepare for the market’s next move we have found a couple of call options we really like regardless of what the market does over the next 3-6 months. BRCD has been the subject of takeover talk and as its share price languishes in the single digits. IBM and Hewlett-Packard (which just announced a new CEO) have been the front-runners as potential suitors but on a stand-alone basis this stock is cheap.
Amylin Pharmaceuticals (AMLN, $21.41, up $0.06)
November 24 calls (AMLN101120C00024000, $0.90, flat)
Action: We are expecting a favorable ruling on the company’s diabetes drug this month.
Savient Pharmaceuticals (SVNT, $22.81,down $0.12)
November 25 calls (SVNT101120C00025000, $1.00, flat)
December 25 calls (SVNT101218C00025000, $1.25, down $0.05)
Action: Watch for now.
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