EOT Position Update – December 16, 2009
December 16, 2009
Market Snapshot
Option Symbology is set to change by February 12, 2010. That means a new method for identifying options is currently being put in place. Some of you will see it before others, but February 12 is the cut off for all firms to be in compliance.
What does this mean for you? The current five character option ticker will be a thing of the past. It’s being replaced by a new option ticker format.
Here’s what it breaks down to.
The new option ticker will be expressed as Root + Expiration + Strike + Type.
Root = the ticker symbol of the underlying stock.
Expiration = the expiration date of the option.
Strike = the strike price of the option.
Type = Call or Put.
The good news is we already give you all of the information for the new ticker in the trade alert. The bad news is the new ticker is going to be longer. And to top it off, individual brokerage firms may generate their own tickers for use only on their platform. So make sure to check with your broker.
I know it sounds confusing, but it’s really not that bad!
We’ll begin phasing out the old tickers over the next few months. We’ll also be updating our websites and special reports. I’ll be sure to drop you a note when we have them completed.
Now for the updates…
Position Updates
Just a quick note: Remember, we won’t update every open position every week. I try to focus on the positions that have some significant news or price movement.
NVDA Mar 2010 $15 CALLS (UVACC)
Shares of NVDA are jumping today. The FTC has filed antitrust charges against Intel(INTC). The big news for NVDA is the case charges Intel with manipulating the GPU market. As you know, NVDA is a major player in the GPU market. Investors sent shares of NVDA up almost 8%. And our option’s up a solid 69%! Hold tight, this one has plenty of room to run. Resistance is at $18 and $20. Support is at $13 and $12.
SBUX Apr 2010 $22 CALLS (SSUDV)
SBUX is moving higher on stronger than expected retail sales. The consumer’s on the comeback trail. Our option’s up 50%! Hold tight for bigger gains ahead. Resistance is at $23.50 and $26. Support is at $18.50 and $17.
VIT Feb 2010 $17.50 CALLS (VITBW)
I see reports about US companies outsourcing R&D work to China come across my screen every day. As a leader in this space, VIT is going to be a huge beneficiary of this trend. But it may take until the next quarterly earnings announcement for investors to get the message. Hold tight for now. Resistance is at $21 and $22.50. Support is at $14.50 and $12.65.
MCRS Mar 2010 $30 CALLS (MFKCF)
MCRS was upgraded by analyst Wedbush Morgan on Friday. The upgrade sparked a major rally. It sent MCRS through our first resistance level. The option continues to set new highs today. Our option’s now up 63%! Aggressive traders should hold on for the next move higher. The next resistance is at $33. Support is at $25 and $22.50.
TMO Dec 2010 $45 CALLS (TMOLI)
TMO made another push higher. Our options are up 85% from where we recommended them. Only aggressive traders should still be holding these options. The next resistance is at $50. Support is at $41.50 and $38.50.
MMM Jan 2010 $75 CALLS (MMMAO)
3M finally broke through the resistance around $79. It’s setting new highs on heavy volume almost daily. The most recent leg higher sent MMM through our second resistance level. Our option’s up a massive 168%! Everyone but the most aggressive traders should have locked in a solid profit. Congratulations on a successful trade!
Category: EOT Update
