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.
1:05pm (EST)
NEW TRADE!!!
Taiwan Semiconductor Manufacturing (TSM, $12.92, up $0.52)
Buy to OPEN January 12.50 calls (TSM120121C00012500, $0.80, up $0.20)
Action: Use limit orders up to 85-90 cents to establish positions.
CURRENT TRADES
Microsoft (MSFT, $25.47, up $0.63)
January 25 calls (MSFT120121C00025000, $1.20, up $0.30)
Entry Price: $0.95 (11/29/11)
Exit Target: $1.90+
Return: 32%
Stop Target: None
Action: Our near-term target is $27 which gets us a double.
Spreadtrum Communications (SPRD, $24.25, up $0.89)
January 29 calls (SPRD120121C00029000, $1.20, up $0.30)
Entry Price: $1.00 (11/29/11)
Exit Target: $2.00
Return: 20%
Stop Target: None
Action: The move above $24 represents a break of resistance. Short-term support is strong at $22 but we are expecting a push past $30 by yearend. The chart still looks amazing.
Clean Energy Fuels (CLNE, $12.87, up $0.71)
January 12.50 calls (CLNE120121C00012500, $1.30, up $0.35)
Entry Price: $0.70 (11/25/11)
Exit Target: $1.40, raise to $1.50
Return: 86%
Stop Target: None
Action: Set limit orders to close half of the trade at $1.50.
Symantec (SYMC, $16.30, up $0.70)
January 16 calls (SYMC120121C00016000, $1.05, up $0.25)
Entry Price: $0.70 (11/25/11)
Exit Target: $1.40
Return: 50%
Stop Target: None
Action: Symantec’s VeriSign Trust seal is everywhere and cyber security is only going to grow in the coming years. Shares are currently forming a bottom and we are looking for a run back to $17.50 by January.
Eaton (ETN, $44.89, up $2.52)
January 47.50 calls (ETN120121C00047500, $1.30, up $0.55)
Entry Price: $0.55 (11/25/11)
Exit Target: $1.10 (closed half @ $1.40 on 11/30/2011)
Return: 145%
Stop Target: None
Action: We closed half of the trade at $1.40 earlier this morning. Continue to hold the other half.
Tesla Motors (TSLA, $32.48, up $0.78)
January 35 calls 2012 (TSLA120121C00035000, $1.20, up $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.
Juniper Networks (JNPR, $22.28, up $1.43)
January 25 calls (JNPR120121C00025000, $0.70, up $0.30)
Entry Price: $0.65 (11/21/11)
Exit Target: $1.30
Return: 8%
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.
Other 2011 Portfolio OPEN positions (10): 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)
PowerShares QQQ December 50 puts (from November 2011)
Newpark Resources December 10 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 update this section in the morning.
****************************
11:30am (EST)
Eaton (ETN, $45.10, up $2.73)
January 47.50 calls (ETN120121C00047500, $1.40, up $0.65)
Entry Price: $0.55 (11/25/11)
Exit Target: $1.10
Return: 155%
Stop Target: None
Action: Close HALF of the trade at current levels and let the rest ride.
Solazyme (SZYM, $11.93, down $0.03)
March 15 (2012) calls (SZYM120317C00015000, $1.05, flat)
Entry Price: $0.80 (11/9/11)
Exit Target: $1.60
Return: 31%
Stop Target: None
Action: We have been in this trade for 3 weeks and we were hoping for a big push today. With shares only down slightly but the market up big time, let’s close this trade for a nice double-digit profit and move on to some higher beta plays.
Taiwan Semiconductor Manufacturing (TSM, $12.79, up $0.39)
December 12.50 calls (TSM111217C00012500, $0.55, up $0.20)
Entry Price: $0.50 (10/26/11)
Exit Target: $1.00
Return: 10%
Stop Target: None
Action: We are going to close this trade at current levels and we may move into some January calls. We have been in this trade since October so we don’t want to risk giving up a profit after being down 40% just yesterday.
****************************
9:00am (EST)
Microsoft (MSFT, $24.84, down $0.03)
January 25 calls (MSFT120121C00025000, $0.90, flat)
Entry Price: $0.95 (11/29/11)
Exit Target: $1.90+
Return: -5%
Stop Target: None
Action: There is risk down to $24 but we feel shares will test $27 by mid-January which has been long-term resistance all year. This would make the options worth $2 if our price target is reached over the next couple of months. Rumor has it Microsoft is working on its popular Office software for the iPad and sales of its xBox have been hot with the release of Call of Duty, MW3.
Spreadtrum Communications (SPRD, $23.36, down $0.73)
January 29 calls (SPRD120121C00029000, $0.90, down $0.30)
Entry Price: $1.00 (11/29/11)
Exit Target: $2.00
Return: -10%
Stop Target: None
Action: Short-term support is strong at $22 but we are expecting a push past $30 by yearend. The chart still looks amazing.
Clean Energy Fuels (CLNE, $12.16, up $0.16)
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 get these options to at least $1.50, or a double, from our recommended entry price. Support is strong at $11.
Symantec (SYMC, $15.60, down $0.47)
January 16 calls (SYMC120121C00016000, $0.70, down $0.20)
Entry Price: $0.70 (11/25/11)
Exit Target: $1.40
Return: 0%
Stop Target: None
Action: Symantec’s VeriSign Trust seal is everywhere and cyber security is only going to grow in the coming years. Shares are currently forming a bottom and we are looking for a run back to $17.50 by January.
Eaton (ETN, $42.37, up $0.04)
January 47.50 calls (ETN120121C00047500, $0.75, down $0.05)
Entry Price: $0.55 (11/25/11)
Exit Target: $1.10
Return: 45%
Stop Target: None
Action: Shares traded to a high of $43.10 yesterday while the options peaked at 85 cents. We are expecting shares to push $50 which would make these options worth $2.50. Our breakeven point is $48 but if shares start to fade we may close the trade early.
Tesla Motors (TSLA, $31.75, down $0.81)
January 35 calls 2012 (TSLA120121C00035000, $1.10, down $0.20)
Entry Price: $1.10 (11/25/11)
Exit Target: $2.20
Return: 0%
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, $54.38, down $0.34)
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: Continue to hold.
Juniper Networks (JNPR, $20.85, down $0.34)
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, $11.96, down $0.04)
March 15 (2012) calls (SZYM120317C00015000, $1.05, down $0.05)
Entry Price: $0.80 (11/9/11)
Exit Target: $1.60
Return: 31%
Stop Target: None
Action: Continue to hold for now.
Newpark Resources (NR, $8.16, down $0.21)
December 10 calls (NR111217C00010000, $0.10, down $0.10)
Entry Price: $0.60 (11/4/11)
Exit Target: $1.20
Return: -83%
Stop Target: None
Action: Support at $8 held but we will need shares to top $9 this week if we going to get a push past $10 by expiration.
Taiwan Semiconductor Manufacturing (TSM, $12.40, down $0.15)
December 12.50 calls (TSM111217C00012500, $0.35, down $0.05)
Entry Price: $0.50 (10/26/11)
Exit Target: $1.00
Return: -40%
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.
Precision Cast Parts (PCP, $159.11, up $60.18)
December 170 calls (PCP111217C00170000, $1.00, down $0.10)
December 130 puts (PCP111217C00130000, $0.30, down $0.10)
Thoughts: We may need to use a strangle trade or two to play this volatility. This stock is a great candidate and could fall below $150 or push $160 on a rebound.
SanDisk (SNDK, $46.15, down $1.59)
December 50 calls (SNDK111217C00050000, $0.55, down $0.45)
January 52.50 calls 2012 (SNDK120121C00052500, $1.10, down $0.45)
Thoughts: There is further risk down to $44 which is where we may start to nibble. A close back above $46 would be bullish.
Polaris Industries (PII, $58.58, up $0.18)
December 62.50 calls (PPI111217C00062500, $1.00, flat)
December 50 puts (PPI111217P00050000, $0.40, down $0.05)
Thoughts: Support is strong at $52 while resistance is at $60. This is another strangle option trade we are watching but we are more bullish than bearish on the stock.
Vivus (VVUS, $9.75, down $0.09)
December 10 calls (VVUS111217C00010000, $0.90, down $0.05)
March 14 calls 2012 (VVUS120317C00014000, $1.80, flat)
Thoughts: Vivus looked strong yesterday but faces a test at $10.