9:05am (EST)
General Mills (GIS, $73.57, up $0.59)
April 75 calls (GIS100417C00075000, $0.70, up $0.25)
Entry Price: $0.60 (3/23/10)
Exit Target: $1.20
Return: 17%
Stop Target: None
Action: General Mills had a great quarter and raised guidance going forward but shares are lower in pre-market trading. Our call options will open lower but they do not expire for another three weeks which gives us time. The market is overreacting because volume was flat but we think the stock will recover.
Best Buy (BBY, $41.51, up $0.31)
April 41 calls (BYY100417C00041000, $1.72, up $0.12)
Entry Price: $1.10 (3/18/10)
Exit Target: $2.20
Return: 56%
Stop Target: $1.25
Action: Best Buy will report earnings before the bell on Thursday so we will have a decision to make at 1pm on if we leave it open or let it ride.
Akamai Technologies (AKAM, $31.52, up $0.26)
April 32 calls (UMU100417C00032000, $0.82, up $0.12)
Entry Price: $1.22 (3/17/10)
Exit Target: $2.45
Return: -33%
Stop Target: 60 cents
Action: Continue to hold.
SanDisk (SNDK, $34.83, up $1.01)
April 36 calls (SWF100417C00036000, $1.00, up $0.33)
Entry Price: $1.17 (3/11/10)
Exit Target: $2.00
Return: -15%
Stop Target: 50 cents
Action: SanDisk closed at 52-high and reached $35.38 at one point. The options traded up to $1.25. Continue to hold.
Bucyrus International (BUCY, $69.12, up $3.94)
April 70 calls (HIK100417C00070000, $2.40, up $1.50)
Entry Price: $1.60 (3/11/10)
Exit Target: $2.40, raise to $3.20 (closed half at $2.40 on 3/23/10)
Return: 50%
Stop Target: 80 cents, raise to $1.25
Action: We told you to close half of the trade at $2.40 if we got there and sure enough, we did. We have also raised the stop. Continue to hold the other half.
EMC (EMC, $18.94, up $0.11)
April 19 calls (EMC100417C00019000, $0.40, up $0.05)
Entry Price: $0.55 (1/19/10)
Exit Target: $1.00
Return: -27%
Stop Target: $0.25
Action: Like a tide that lifts all boats, EMC was negative but finished the day higher along with the market. Continue to hold.
Other 2010 Portfolio OPEN positions (3): 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.
Berkshire Hathaway Class B (BRK/B, $82.33, down $0.03), TiVo (TIVO, $16.17, down $0.52), Shuffle Master (SHFL, $8.04, down $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.
Oracle (ORCL, $25.99, up $0.43)
April 26 calls (ORQ100417C00026000, $0.64, up $0.14)
Action: Oracle reports earnings on Thursday and the stock closed at a 52-week high yesterday. The company rarely misses an earnings estimate so we expect them to easily beat earnings. In fact, the stock is at multi-year highs and is trading at levels not seen since early 2001.
Red Hat (RHT, $30.17, up $0.17)
April 32.50 calls (RHT10041700032500, $0.60, up $0.10)
Action: There has been a lot of option speculation in this name recently.
Garmin (GRMN, $37.24, up $1.01)
May 34 puts (QGR100417P00033000, $1.50, down $0.46)
Action: We are waiting for Garmin to “top out” near $40 which is where resistance should come into play. The 52-week high is $39.65 and if shares get there and fail then it will be time to go short. However, Garmin could also breakout and run higher which would be awesome.
Somewhere down the road Wall Street will see the company has lost its “niche” as people are getting cheaper (and better) GPS applications on their smartphones.
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