NextOptions.com

Nextoptions.com Weekly Wrap for 3/9/2014

11:30pm (EST)

 

1.  Market Summary

2.  EMC Corporation (EMC) is Intriguing at Current Levels

3.  Earnings

4.  Weekly Wrap Portfolio Update 

5.  Week Ahead

 

(To view the charts, please log into the Members Area and go to the Weekly Wrap Premium section.)

 

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1.  Market Summary  

“The bulls bounced back in February as the market finished 4%-5% higher and is now green for the year across the board.

The Dow finished 623 points higher, or 4%, for the month while the S&P 500 added 77 points, or 4%.  The Nasdaq jumped 205 points, or 5%, in February and the Russell 2000 advanced 53 points, or 5%.  Impressive.

We talked about the possibility of a trading range forming last week until Thursday and for the most part one did.  We also mentioned midweek the bulls were showing signs of a jailbreak on higher highs and higher lows along with the VIX holding 15.  Friday’s run to new highs was picture perfect and we warned we still needed to watch the bears despite the breakout.  As we saw on Friday, they came knocking, quickly.

We gave our 10-year Price Targets for the major indexes last week and we wanted to expand on some of the factors that weighed on how we got to our “educated guesses”.

The S&P 500 has traded above its 200-day MA for well over a year after breaking below this level and recovering in November-December 2012.  Looking back over the past 10 years, this has happened a couple of times as the index has had similar runs in mid-2006 to late-2007 and in mid-2009 to late-2010.  The current bull run is the the third longest active streak and could be considered both bullish and bearish.  The odds get greater each day that passes the law of averages will catch up but new record highs could be set first.

The current 200-day MA for the S&P 500 is at 1,727 and represents a decline of 7% from current levels.  If the current rally were to last into March/ April and the index reaches 1,909 – a 10% pullback would push the index down to 1,727.  At 1,909 – a 5% pullback would equate to 1,818.

Our fluff target of 1,900 could get “stretched” to or past 1,909 but this is when we would become extremely cautious.

We mentioned there was a good chance our December fluff targets would come into play so the current rally could easily last into March as Wall Street and more and more traders expect a pullback.  Although there was a scare back at the start of February, the bulls held support for the most part as the prior trading range was simply stretched.

The VIX continues to be an excellent indicator for us despite the idiotic quotes some of the slick talking pros have said this year.  One well-known talking head says they pay no attention to the VIX until it gets over 20.

We have talked about the VIX on a Daily basis for a few years now because it really does help with market direction.  For our new subscribers, historically when the VIX is below 15, the market is bullish.  A VIX over 20 usually indicates down markets and nervouness.  We have talked about the VIX testing 11 and 52-week lows, and even the single-digits, so we still believe the bulls will ring that bell before there is a major pullback.

A lower VIX near 11-10 would likely get the indexes to our fluff targets with a stretch to the upside.  The roadmap for the bulls could be a test to 11 by mid-March with a continued rally into April and where we could expect a market top.

Of course, this is our most bullish outlook over the near-term and while we have penciled-in downward geopolitical events for 2014, no one saw Russia’s sudden move into Ukraine coming.

This is important so please pay close attention.  

Besides the snow storm set to hit the East Coast, futures are showing a possible bear attack on Monday and a nasty open (and why we kept a few put positions open in our Daily).  We aren’t worried about our Weekly Wrap positions because we like all of the companies we own stock in but options are a different beast.

At 8pm Sunday night, Dow futures were down 145 points to 16,162.  The S&P 500 futures were lower by 19 points to 1,838.  The Nasdaq 100 futures were declining 37 points to 3,658.

This means the Dow will likely open below 16,200 and the S&P 500 below 1,840.  The Nasdaq will likely see an open below 4,275.

We have talked about expecting a possible 10%-20% pullback at some point in 2014 – providing major support levels fail.  We covered those last week and the 10-year uptrend lines are at:  Dow (15,500); S&P 500 (1,750); Nasdaq (4,000); and Russell 2000 (1,100).  If these downside levels trigger, then our lower end Price Targets for 2014 would become our focus.

This means there will be a GREAT chance to make a wheelbarrow of money if there is a major pullback by using put options.  And that could happen soon if support doesn’t hold.

We weren’t too happy our Head Zombie rushed at making some hasty comments towards Putin and Russia on Friday an hour after Wall Street closed.  The United States and other countries can’t do much about the pending invasion and our President’s threats have fallen on deaf ears in the past.  Thank goodness, there was no red line mentioned but hopefully cooler heads prevail.

With the geopolitical outlook uncertain, and major economic news due out this week, volatility could become insane.  Friday’s Nonfarm Payroll report and unemployment numbers will also play a major role in helping the bulls or bears take control of support.”  (from 3/2/2014 Weekly Wrap…)

Futures were showing a nasty open for Wall Street on Monday following Russian’s “invasion” into Ukraine but quickly rebounded on Tuesday after softer words were spoken.  The market still had to worry about the unemployment numbers and traded in a tight range until Friday’s surprisingly strong Nonfarm Payrolls report.  The surge at the open to prior resistance and fresh all-time highs ended on a sour note as the indexes ended mixed and showed signs of weakness heading into the weekend. (continued…)

The Dow gained 31 points, or 0.2%, to close at 16,452 on Friday.  The blue-chips tested prior support levels at 16,200-16,000 on Monday after trading down to 16,071 and closing at 16,168.  The 153-point drubbing and test to the 50-day MA was erased by Tuesday’s rebound to 16,419 and close at 16,395.  We mentioned a close above 16,350 would be bullish for a run to 16,500-16,600.  Wednesday’s back test to 16,360 held support and Thursday’s run to 16,450 were good clues Friday might be bullish.  The Dow came within 71 points of its break even point for the year after kissing 16,505 but the fade into the close didn’t look good.  The first wave of support is at 16,350 followed by 16,200.  A close above 16,500-16,600 would be bullish for a run to 16,800-17,000.  For the week, the Dow advanced 131 points, or 0.8%, after starting at 16,321 but is still down 124 points, or 0.75 %, for 2014.

The S&P 500 added a point, or 0.05%, to finish at 1,878.  The index dropped below its first wave of support at 1,850 after testing a low of 1,834 and ending at 1,845 on Monday but easily held the 50-day MA at 1,827.  Tuesday’s surge to 1,876 cleared the next wave of resistance at 1,875 but the close at 1,873 suggested we would have to wait until the Nonfarm Payrolls report before a breakout.  Wednesday’s session was a tight 5-point trading range with a slight dip by the close but there was strength on Thursday as the index closed at all-time highs.  The close at 1,877 set the stage for a run to 1,900 and Friday’s high reached 1,883.57.  As long as 1,875 holds the bulls have a shot at our 1,909 target.  A close below this level would suggest 1,850 could come into play.  The S&P 500 came into the week at 1,859 and was up 19 points, or 1%, by Friday’s close.  For the year, the index is higher by 30 points, or 1.6%.

The Nasdaq fell 16 points, or 0.4%, to end at 4,336.  Tech opened under 4,275 and tested 4,250 after trading down to 4,239 on Monday but we mentioned the close above 4,275 was mildly bullish.  There was further risk to 4,225-4,200 on continued weakness but Tuesday’s bounce to 4,357 and close above 4,350 kept our near-term target of 4,400-4,500 in play.  There was a dip to 4,344 on Wednesday before a run to 4,362 and a 6-pack win to 4,357.  Thursday’s high reached 4,371.71 before a test to 4,341 and a negative finish to 4,352.  Friday’s peak reached 4,371.39 but the lower high AND lower low of 4,319 suggests further weakness.  Support at 4,300 will need to hold and if it doesn’t a test to 4,250-4,200 could come quick.  A close above 4,375 would be bullish for a continued run higher.  The Nasdaq was at 4,308 coming into the week and added 28 points, or 0.7%.  Tech is up 160 points, or 3.8%, year-to-date.

The Russell 2000 slipped 1 point, or 0.1%, to finish at 1,203 on Friday.  The small-caps traded down to 1,164 after falling below the 1,175 level on Monday but was able to hold support after closing at 1,176.  We mentioned there was further risk to 1,150 but Tuesday’s snap-back rally reached 1,212.82 with a close at 1,208.  We have been expecting a trip back above 1,200 following the December 23 print that we will talk about later and said there is fluff to 1,225 on a close above this level.  However, this would be the high for the week as the index made lower highs the rest of the week.  More troubling was the fact 1,199 was the low as it reopened the door for a back test to 1,175.  A move above 1,213 could lead to 1,225 but a close below 1,200 would be bearish.  The Russell came into Monday’s open at 1,183 and jumped 20 points, or 1.7%, for the week.  YTD, the small-caps are showing a 40 point gain, or 3.4%.

The S&P 500 Volatility Index ($VIX, 14.11, down 0.10) came into the week at 14 and cleared 15 after testing 16.78 on Monday’s pullback.  We have mentioned not to flinch until 17.50 is triggered and Tuesday’s drop back below “support” was bullish as the VIX ended at 14.10. The bulls spent the rest of the week trying to get below 13.50 as 15 held and Friday’s low checked in at…you guessed it, 13.51.  A close below 13.50 could lead to a test to 11 and 52-week lows that would likely push the S&P past 1,900.  If there is weakness, 15 could come into play again but we aren’t thinking about put options until 17.50 clears.

Last week, we talked about the impressive gains the indexes made in February and we wanted to expand our thoughts on how it could effect March.

The month of March has been bullish over the past 30 years with the S&P 500 trading higher in 20 of them with an average gain of 1.4%.  There is usually strength mid-month followed by weakness near month end.

This past February was super bullish following the strong rebound off the beginning of the month lows as the S&P 500 jumped 4%.

Usually when there is a stellar gain in February, the better the return for March can be.  When the S&P 500 has finished with a gain of more than 2% in February, over the past 40 years, the March gains have averaged 2.5%.

Even better, over that same time period, even when February was negative, the March pops have averaged 1% and the S&P has been finished in positive territory 65% of the time.  When the index has gained 2+% in February the index has been positive for March 80% of the time.

However, we have mentioned in recent years volatility has been off the charts and the last week of March can be brutal as fund managers lock-in any 1Q profits to make the books look pretty.

The same scenario could be playing out this year like it did last as most fund managers are behind the market’s gains for the year.  This means they could keep chasing the market higher into the end of March but being long over the weekend has its risks given the current geopolitical tensions and saber rattling.

The Monday/ Friday closes have been mixed of late and we wanted to cover the action in February (and last week) following the 4% gain on the Dow.  To review, the January Monday/ Friday closes produced 717 points of the Dow’s 878 point loss for the month.

In February, there were 3 trading Monday’s and 4 Friday sessions.  The Monday’s in February lost 215 points on the Dow while the Friday’s produced a gain of 312 points for an overall gain of 92 points.  We mentioned last week the Dow gained 623 points in February, or 4%, and this was only a 15% contribution.

For March, last Monday the Dow fell 153 points and was up must 31 points on Friday.

For our new subscribers, we watch the Monday/ Friday closes as one of our market indicators on price action as weak M/F endings are usually bearish and indicates money may be moving out of the market.  Up Monday/ Friday closes are usually bullish and can indicate money is moving into the market.

The current M/F closes feel bearish and if this Monday and Friday are negative, it could be a good clue a short-term top is in.  A bullish Monday/ Friday close this week would likely signal a breakout on the Dow.

As a side note, the losses for the Dow on the first trading day of the month for 2014 have been brutal with the bears accounting for 614 negative points.  This could also be an important market clue if there is window-dressing at the end of this month as somebody could be made an April fool.

This past weekend was the 5-year anniversary of a 5-year bull run that has seen the S&P 500 gain 182% since bottoming at 666 intraday on March 6, 2009.

The number itself represented a devilish view of the market at the time and something we vividly remember as most stocks were crushed when the market went to hell in a hand basket.  Most seasoned pros and investors panic during selloffs and corrections because they don’t know how to play pullbacks but not us.  We were busy recommending PUT options to our subscribers as we loved every minute of it.

The Dow touched a low of 6,469 in March 2009 and lost HALF its value after peaking at 13,136 on May 19, 2008.  The 51% drop took just 10 months.  Even scarier, the blue-chips were at 10,850 to start October 2008 and fell 40% in just 5 months before bottoming at 6,469.  The Dow has rebounded 154% since then.

The rise since the aforementioned 2009 lows has been staggering to say the least but we wanted to cover the selloff that preceded the lows because it is important to always respect the bears.  We often say the bulls like to take the stairs higher while the bears like to use the elevator.  We could care less where the market is really headed because we play the trend but it is important to know how each side like to roll.

As a side note, the Nasdaq is up 245% and the Russell 2000 is up 253% since the March 2009 lows.

Needless to say, looking at the gains, it is easy to say the market is frothy and why the talking heads keep questioning the rally.  Of course, they worry over pullbacks as well and are just cheerleaders of the market.  We rely more on chart work than emotion and as many of you know, we have been lights out in calling this incredible rally for a few years now.

We said last week we expect 1,909 to trigger before a possible pullback but we have also said the S&P 500 could trade to a high of 2,100 by yearend.  For new subscribers, here is the 10-year chart we drew up in February and our yearend prediction on the index.  (S&P 10-year chart)

We also wanted to show the Russell 2000 with the mysterious print of 1,213 on December 23, 2013 that has been erased from the history books.  We saved the chart from the beginning of the year for this particular reason and at current levels, the index would be at a double-top.  These types of technical patterns can be bullish or bearish.

The month of March can feel ominous as it represents additional market bottoms (and tops).  In addition to the 5-year celebration off the 2009 lows, this month also represents the 11-year anniversary bounce from the 2003 market bottoms as well as the 14-year mark of the 2000 market peak.

As the indexes test their upper channels, our fluff targets from December are still in play and we recently made a strong case for S&P 1,909 before a possible pullback.  This level could be challenged this month if the geopolitical events do not escalate but the tensions could lead to some choppy action for the remainder of the month.

If support holds on a pullback from here, we might have to wait until April before our fluff targets are triggered.  However, if the 10-year uptrend lines are penetrated by the bears then there could be a correction coming that Wall Street isn’t prepared for.

We hate talking politics and we have no way of knowing what will or won’t happen between Russia/ Ukraine and all other sides involved over the next several weeks.  We would love to say the saber-rattling ends peacefully but we don’t expect that to be the case.  When zombies are in charge anything can happen so we have to watch the rear-view mirror.

There have been major market turns in March but not really any major pullbacks in March since the 2009 lows.  March is usually a bullish month for the market, overall, with weakness in the back half.  April is also bullish, historically, before the “sell in May and go away” possibility comes into play.

If the bulls can get off to a good start on Monday and hold any significant gains there could be a continued rally this week.  If not, we will be watching key support levels for clues of a further slide or a possible trading range developing.

As we head from desk to press, futures are showing a lower ahead of Monday’s open:  Dow futures are down 34 points to 16,420 while the S&P 500 futures are lower by 5 points to 1,875.  The Nasdaq 100 futures are declining 6 points to 3,702.

 

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2.  EMC Corporation (EMC) is Intriguing at Current Levels 

By Michael Bryant

 

Key of Technicals Used In Following Article

 EMC Corporation (EMC, $27.04, up $0.11), also known as EMC², is having a hard time to break resistance but could become a good covered call candidate at some point this year.

The “E” in EMC², co-founder Richard Egan served as helicopter pilot in the U.S. Marine Corps during the end of the Korean War.  He then received a degree in electrical engineering from Northeastern, a private university located in Boston, in 1962.  A year later, he got a graduate degree from MIT.  That year, he was a member of a team at the Draper Laboratory that helped develop Project Apollo memory systems for NASA.  He subsequently worked for Lockheed Martin (LMT), Honeywell (HON), and Intel (INTC).  Seeing that minicomputers were a growing business and that there was an opening for supplying cheaper memory expansion cards to those minicomputers, he teamed up with former college roommate and electrical engineer Roger Marino (the “M” in EMC²), in 1979 to form EMC.  The mystery of the other two founders were narrowed down to Michael Connolly (the “C” in EMC²), and James Curley (the “2” in EMC²), but the official juridical act of the foundation of EMC Corporation states that Egan and Marino were the only founders.

 

In 1985, the company introduced additional memory and data storage products to boost the performance and capacity of minicomputers and expanded into selling hard drives.  It planned to sell external storage arrays, built from hard drives, to mainframe and server computer customers.  Until then, the server manufacturers only sold the storage for their products.  The company sold better arrays that were less costly than the server manufacturers’ products and won storage sales.  By 1986, ithad sold over 25,000 memory units to over 5000 customers.

On April 4, 1986, the company went public with listing on NASDAQ stock exchange but soon moved to the New York Stock Exchange on March 22, 1988.  It offered 2.5 million shares at $16.50 a share, raising $41.25 million.  The next day, shares opened for trading at $21.50.  At the time of its IPO, the company had revenues of $66 million and profits of $18.6 million.  Four days later, the price slumped to $16.

In 1987, the company revolutionized the minicomputer industry with the introduction of Solid State Disk storage controller boosting the performance 20 times over magnetic disk drives.  In 1990, it introduced the company’s flagship Symmetrix product line.  Symmetrix became the world’s first integrated cached storage subsystem with 24GB of storage capacity in 1/5^th the amount of space previously required.  Symmetrix was the main reason for EMC’s rapid growth in the 1990s.  Sales hit $1 billion in 1994.

By the 1990s, minicomputers became almost dead as PCs gained popularity.  This allowed EMC to purchase struggling minicomputer supplier Data General in 1999, giving it access to Data General’s Clariion array technology, which used commodity hard drives and RAID protection. This provided EMC with its highly-successful mid-range storage products.

In August 2007, the company spun off 15% of VMware (VMW), which has become the leader in virtualization software.  VMware priced its shares for it IPO at the top of the expected range at $29 per share, but the stock opened for trading at $52 per share.  The stock is currently at $101 per share, with a market capitalization of $43.25 billion.  EMC still owns about 80% of VMware.  Thus, the stake can be estimated to be worth $34.6 billion.

On April 1, 2013, the company and VMware formed GoPivotal, or Pivotal, which will focus on building a platform that will accommodate cloud computing and Big and Fast Data Applications.  The company is designed to give corporations access to data storage and analysis tools to help analyze Big Data instead of outsourcing it.  On May 8, General Electric (GE) purchased 10% of Pivotal for approximately $105 million.  On September 30, EMC held approximately 84% interest in Pivotal.  Thus, the stake in Pivotal can be estimated to be worth $892.5 million.

The core of the new company is Pivotal Labs, which has developed software for Groupon (GRPN), Google (GOOG), and Twitter (TWTR) and is known for its use of Agile development, a development process that breaks large projects into smaller pieces and moves through them very quickly.  The company had about $300 million in revenue for 2013.

On January 29^th, EMC reported 4^th quarter results.

• Revenue      was $6.682 billion, up 11% from $6.029 billion for the same quarter of      2012.
• Net      income was $1.02 billion, up 23% from a year ago.
• Non-GAAP      earning was $0.60 per share, up 11% from $0.54 per share.
• Operating      cash flow was $6.9 billion and free cash flow was $5.5 billion, an      increase of 11% and 10% year over year respectively.
• The      Information Storage business increased revenue growth by 10% year over      year.
• The      Emerging Storage business increased revenue by 73% year over year.
• The      Unified and Backup Recovery business increased revenue by 11% year over      year.
• Revenue      from its High-end Storage business returned to growth in the 4^th      quarter.
• Revenue      growth from the RSA Information Security business and the Information      Intelligence business increased 17% and 3% year over year, respectively.

It expects:

• Revenues      to be $24.5 billion for 2014, up from $23.2 billion in 2013
• Revenues      for the three months ending March 31 to be $5.39 billion, the same as that      of a year ago
• Non-GAAP      earnings per share to be $0.35 per share for the three months ending March      31, down from $0.39 per share a year ago
• To      raise the outstanding shares to 2.06 billion in 2014 from 2.03 billion in      2013
• To      repurchase $2.0 billion of the company’s common stock (or about 4% of the      outstanding shares) in 2014

On April 23^rd before the bell, the company will report 1^st quarter results for the three months ending March 31^st.  Analysts estimate the company will earn $0.35 per share on $5.43 billion.

 

 It seems that revenue and earnings always fall in the 1^st quarter.  So it should be no surprise that analysts expect revenue and earnings to fall.  Even the company expects revenue and earnings to fall.  But the magnitude of the fall seems a little too bearish.  Thus, we expect the company to either meet or beat 1^st quarter revenue and earnings.  Currently, the revenue from Pivotal is so small, and it is not seen on the revenue components graph, but Pivotal is growing.  In the 4^th quarter, it made $159 million in revenue.

The Information Storage segment provides traditional, virtual, and cloud storage and includes the VMAX Family, VNX Family, Isilon, Atmos, Xtrem Family, and VSPEX product lines.  The Information Intelligence Group product portfolio includes enterprise content and process management, content capture, collaboration, customer communication, and pervasive governance offerings.  The RSA Information Security segment provides solutions for authentication, data loss prevention, fraud prevention, identity and access management, and security analytics.

EMC is considered the world’s largest provider of data storage systems.  Its biggest competitors are NetApp (NTAP), IBM (IBM), Hewlett-Packard (HPQ), and Hitachi Data Systems.  We will compare its numbers to the first three.

 

 

At $27.04, the stock is between its low target of $17.00 and its median target of $30.00 made by the 36 analysts recorded by Thomson/First Call.  Mean target is $29.24, and high target is $36.00.  Using a scale of 1.0 as a strong buy and 5.0 as a sell, the average rating of the stock was 1.9, unchanged from a week ago.

	Current Month	Last Month	Two Months Ago	Three Months Ago
Strong Buy	13	14	14	14
Buy	19	21	22	22
Hold	10	9	7	7
Underperform	0	0	0	0
Sell	0	0	0	0

 

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3.  Earnings  

The companies in BOLD, we are looking at as possible trades and we may list call or put options on them in our Daily Newsletter.  If they become official recommendations, we sent out Trade Alerts or include them in our 9am and 1pm updates that come out during the week (Quotes are from 3/7/14 close)

By Catherine Tierney

 

Monday

Casey’s General Stores (CASY)

Urban Outfitters (URBN)

SIGA Technologies (SIGA)

 

Tuesday

American Eagle Outfitters (AEO)

Dick’s Sporting Goods (DKS)

Caesars Entertainment (CZR

Diamond Foods (DMND)

Keryx Biopharmaceuticals (KERX)

Scientific Games (SGMS)

VeriFone Holdings (PAY)

 

Wednesday

Raven Industries (RAVN)

Krispy Kreme Doughnuts (KKD)

magicJack VocalTec (CALL)

Vail Resorts (MTN)

Thursday

Dollar General (DG)

Gogo (GOGO)

Kirkland (KIRK)

Cooper Tire & Rubber (CTB)

Mitel Networks Corp (MITL)

SeaWorld Entertainment (SEAS)

 

Full List:

 

Monday

 

Before the open:

Elecsys Corporation (ESYS)           -        -        -        -

Ferrellgas Partners, L.P. (FGP)     Q2 2014       7:00 AM ET   10:00 AM ET $0.89

Full House Resorts, Inc. (FLL)      Q4 2013         -      1:00 PM ET   ($0.04)

Layne Christensen Company (LAYN)       Q4 2014       7:00 AM ET     -      ($0.14)

Lentuo International Inc. (LAS)    Q4 2013         -        -        -

Omega Protein Corp. (OME)        Q4 2013         -      8:30 AM ET     -

Ossen Innovation Co., Ltd. (OSN)   -        -        -        -

Resolute Energy Partners LP (REN)        Q4 2013         -        -      $0.06

Revett Minerals Inc (RVM)   -        -        -        -

Sasol Ltd (SSL)         -        -        -        -

TICC Capital Corp. (TICC) Q4 2013       8:50 AM ET   10:00 AM ET $0.28

 

After the close:

American Midstream Partners LP (AMID) Q4 2013         -      10:00 AM ET ($0.41)

Casey’s General Stores (CASY)     Q3 2014       4:00 PM ET   10:30 AM ET $0.50

CNinsure Inc. (CISG)         Q4 2013       4:00 PM ET   9:00 PM ET   $0.10

Coachmen Industries Inc. (COA)  Q1 2014       5:20 PM ET     -      ($0.09)

Dot Hill Systems, Inc. (HIL)         Q4 2013       4:30 PM ET     -      $0.01

Douglas Dynamics, Inc. (PLOW)   Q4 2013         -      11:00 AM ET $0.25

DTS Inc (DTSI)       Q4 2013       4:15 PM ET     -      $0.40

Endeavour Silver Corp (EXK)        Q4 2013         -      11:00 AM ET $0.10

Fuel Tech Inc. (FTEK)        Q4 2013       5:00 PM ET   9:00 AM ET     -

FuelCell Energy, Inc. (FCEL)         Q1 2014       7:50 PM ET   10:00 AM ET ($0.04)

Globalstar Inc (GSAT)       Q4 2013       4:00 PM ET   5:00 PM ET   ($0.05)

Heska Corp. (HSKA) Q4 2013         -        -      $0.01

Inuvo, Inc. (INUV)    -      4:30 PM ET   4:30 PM ET     -

Jinpan International Ltd (JST)     Q4 2013         -      4:30 PM ET     -

LipoScience, Inc. (LPDX)    Q4 2013         -      4:30 PM ET   ($0.22)

Medifast, Inc. (MED)         Q4 2013         -      4:30 PM ET   $0.37

Novavax, Inc. (NVAX)        Q4 2013         -        -      ($0.08)

Nuverra Environmental (NES)      Q4 2013         -      4:30 PM ET   ($0.47)

OilDri Corp. of America (ODC)       -      8:50 PM ET     -        -

Perfect World Co Ltd (PWRD)      Q4 2013         -      9:00 PM ET   $0.44

PowerSecure International Inc (POWR)   Q4 2013       4:15 PM ET   5:30 PM ET   $0.09

SIGA Technologies, Inc. (SIGA)   Q4 2013         -      4:30 PM ET   $0.62

Summer Infant Inc. (SUMR)         Q4 2013       4:00 PM ET     -      ($0.09)

Triangle Petroleumoration (TPLM) Q4 2014         -        -      $0.12

United Natural Foods, Inc. (UNFI)          Q2 2014         -        -      $0.56

Urban Outfitters, Inc (URBN)       Q4 2014         -        -      $0.55

USA Mobility Inc. (USMO)    -      4:30 PM ET     -        -

 

Tuesday

 

Before the open:

AEP Industries Inc. (AEPI)   -      7:45 AM ET     -        -

American DG Energy Inc (ADGE)    -      7:10 AM ET     -        -

American Eagle Outfitters (AEO)   Q4 2014       8:00 AM ET   9:00 AM ET   $0.26

Arcos Dorados Holdings Inc. (ARCO)      Q4 2013         -      10:00 AM ET $0.16

Bon-Ton Stores Inc. (BONT)        Q4 2014       7:30 AM ET   10:00 AM ET $2.69

Bridgepoint Education Inc (BPI)   Q4 2013       7:00 AM ET   11:30 AM ET $0.03

Cache Inc. (CACH)  Q4 2013       7:00 AM ET     -      ($0.13)

Cantel Medical Corp. (CMN)         Q2 2014       8:00 AM ET   11:00 AM ET   -

Chipmos Technologies [Bermuda] (IMOS)         Q4 2013         -        -      $0.28

Cleveland BioLabs Inc. (CBLI)      Q4 2013         -      10:00 AM ET ($0.12)

Dick’s Sporting Goods Inc (DKS)  Q4 2014       7:30 AM ET   10:00 AM ET $1.11

E-House Holdings Ltd. (EJ) Q4 2013       8:25 AM ET   7:30 AM ET   $0.15

Gray Television Inc. (GTN) Q4 2013       6:00 AM ET     -      $0.09

HiTech Pharmacal Co. Inc. (HITK) Q3 2014       8:00 AM ET     -        -

Idera Pharmaceuticals Inc (IDRA) Q4 2013       7:10 AM ET     -      ($0.08)

INFU TECH INC (INFU)     Q4 2013         -      9:00 AM ET     -

John Wiley & Sons Inc. (JW.B)       -      7:05 AM ET   10:00 AM ET   -

John Wiley & Sons, Inc. (JW.A)    Q3 2014       8:00 AM ET   10:00 AM ET $0.84

LMI Aerospace Inc. (LMIA) Q4 2013       7:30 AM ET     -      $0.00

NN Inc. (NNBR)      Q4 2013       6:50 AM ET   11:00 AM ET $0.26

Springleaf Holdings Inc (LEAF)     Q4 2013         -      10:00 AM ET $0.46

Synta Pharmaceuticals Inc. (SNTA)         Q4 2013       8:20 AM ET   10:00 AM ET ($0.31)

Sypris Solutions Inc. (SYPR)          -      7:45 AM ET     -        -

TransMontaigne Partners L.P. (TLP)       Q4 2013       7:55 AM ET     -      $0.37

 

After the close:

Ambient Corp (AMBT)         -        -        -        -

BANK WEST EL PASO (BKEP)       Q4 2013       6:00 PM ET     -      $0.15

Caesars Entertainment, Inc. (CZR)         Q4 2013         -      5:00 PM ET   ($1.45)

China Lodging Group, Limited (HTHT)    Q4 2013         -        -      $0.10

ClearSign Combustion Corp. (CLIR)         -        -      4:30 PM ET     -

Codexis Inc (CDXS) Q4 2013         -      4:30 PM ET     -

Compass Diversified Holdings (CODI)     Q4 2013         -        -      $0.27

Crossroads Systems Inc. (CRDS)    -        -        -        -

Cytori Therapeutics Inc (CYTX)    Q4 2013         -      5:00 PM ET   ($0.12)

Diamond Foods Inc (DMND)        Q2 2014       4:00 PM ET   4:30 PM ET   $0.08

DresserRand Group Inc. (DRC)     Q4 2013       11:15 PM ET 9:00 AM ET   $1.29

eMagin Corp. (EMAN)        Q4 2013       4:00 PM ET   4:45 PM ET   $0.00

Enzo Biochem Inc. (ENZ)   Q2 2014       4:25 PM ET     -      ($0.09)

Evolving Systems Inc. (EVOL)      Q4 2013         -      4:30 PM ET   $0.03

Fox Factory Holding Corp. (FOXF) Q4 2013         -      4:30 PM ET   $0.13

Furiex Pharmaceuticals, Inc. (FURX)       Q4 2013         -      9:00 AM ET   ($1.05)

GenMark Diagnostics, Inc. (GNMK)         Q4 2013         -      4:30 PM ET   ($0.23)

Global Cash Access Holdings (GCA)        Q4 2013       4:25 PM ET   5:00 PM ET   $0.20

GSE Systems Inc (GVP)     Q4 2013       4:00 PM ET     -      ($0.04)

GSI Group Inc. (GSIG)      Q4 2013         -        -      $0.13

Horizon Technology Finance (HRZN)      Q4 2013         -      9:00 AM ET   $0.36

Inter Parfums Inc. (IPAR)  Q4 2013       4:05 PM ET   11:00 AM ET ($0.14)

JTH Holding, Inc. (TAX)     Q3 2014         -        -      $0.08

Keryx Biopharmaceuticals, Inc. (KERX)    Q4 2013       5:05 PM ET     -      ($0.19)

Kopin Corp. (KOPN) Q4 2013         -      5:00 PM ET   ($0.19)

Kratos Defense & Security (KTOS) Q4 2013       4:00 PM ET     -      $0.06

Majesco Entertainment Company (COOL)         Q1 2014         -        -      ($0.08)

MGP Ingredients Inc. (MGPI)         -        -        -        -

Midstates Petroleum Company (MPO)     Q4 2013         -      10:00 AM ET $0.18

Motorola Mobility Holdings (MMI) Q3 2014         -      5:00 PM ET   $0.50

MTR Gaming Group, Inc. (MNTG)   -      4:00 PM ET   4:30 PM ET     -

NCI Building Systems Inc. (NCS)  Q1 2014       7:45 PM ET   9:00 AM ET   $0.00

Nortek (NTK) Q4 2013         -      10:00 AM ET $0.07

OncoGenex Pharmaceuticals Inc (OGXI)  Q4 2013         -      4:30 PM ET   ($0.62)

ParkOhio Holdings Corp. (PKOH)  Q4 2013       6:30 PM ET   10:00 AM ET $1.12

Primo Water Corporation (PRMW)            -        -      4:30 PM ET     -

Pulse Electronics Corp. (PULS)       -        -        -        -

Regional Management Corp (RM) Q4 2013         -      5:00 PM ET   $0.66

Rentech Nitrogen Partners, (RNF) Q4 2013         -      4:30 PM ET   $0.00

Safety 1st, Inc. (SAFT)        -      4:30 PM ET     -        -

Scientific Games Corp. (SGMS)     Q4 2013         -        -      $0.05

VeriFone Holdings Inc (PAY)        Q1 2014       4:00 PM ET   4:30 PM ET   $0.27

Webco Industries Inc (WEBC)        -        -        -        -

 

Wednesday

Before the open:

3PAR Inc (PAR)         -        -        -        -

Abraxas Petroleum Corporation (AXAS)  Q4 2013         -      11:00 AM ET $0.04

Amedisys, Inc. (AMED)      Q4 2013       7:00 AM ET   10:00 AM ET ($0.03)

Broadwind Energy, Inc. (BWEN)   Q4 2013       8:00 AM ET   11:00 AM ET ($0.16)

China TechFaith Wireless Communication Technology Limited (CNTF)          -        -      8:00 AM ET   -

Durata Therapeutics Inc (DRTX)   Q4 2013         -        -      ($0.66)

Express, Inc. (EXPR)         Q4 2014         -      9:00 AM ET   $0.59

Intertape Polymer Group Inc (ITPOF)       -      8:00 AM ET   10:00 AM ET   -

MagneTek, Inc. (MAG)         -      8:45 AM ET   11:00 AM ET   -

Midway Gold Corp. (MDW) Q4 2013         -        -        -

Polydex Pharmaceuticals Ltd. (POLXF)      -      1:15 AM ET     -        -

Raptor Pharmaceutical Corp (RPTP)       Q4 2013         -        -      ($0.17)

Raven Industries Inc. (RAVN)      Q4 2014       8:15 AM ET   10:00 AM ET $0.32

SciClone Pharmaceuticals Inc. (SCLN)     Q4 2013         -      8:30 AM ET     -

 

After the close:

Achillion Pharmaceuticals Inc. (ACHN)       Q4 2013         -        -      ($0.16)

Addus HomeCare Corp. (ADUS)   Q4 2013       4:00 PM ET   5:00 PM ET   $0.25

AFFILIATED RESOURCES CP (ARCX)      Q4 2013         -      8:00 AM ET   $0.28

Alliance HealthCare Services (AIQ)           -      4:00 PM ET   8:30 AM ET     -

Allied Motion Technologies Inc (AMOT)    -      6:00 PM ET   10:00 AM ET   -

Callon Petroleum Company (CPE) Q4 2013       5:40 PM ET   2:00 PM ET   $0.00

China Biologic Products, Inc. (CBPO)        -      10:15 PM ET 8:00 AM ET     -

Chindex International Inc. (CHDX)           -        -        -        -

Coldwater Creek, Inc. (CWTR)     Q4 2014       4:05 PM ET     -      ($0.77)

Communications Systems Inc (JCS)          -        -        -        -

CTPartners Executive Search (CTP)        Q4 2013         -      9:00 AM ET   $0.08

Delcath Systems, Inc. (DCTH)      Q4 2013         -      4:30 PM ET   ($0.05)

Double Eagle Petroleum Company (DBLE)           -        -        -        -

Emerald Oil, Inc (EOX)       Q4 2013         -      10:00 AM ET ($0.03)

Essex Rental Corp. (ESSX) Q4 2013         -      9:00 AM ET   ($0.09)

Genco Shipping & Trading (GNK) Q4 2013         -        -      ($0.39)

Geron Corp. (GERN)         Q4 2013       4:30 PM ET   4:30 PM ET   ($0.06)

Hallmark Financial Services In (HALL)     Q4 2013       5:00 PM ET     -      $0.13

Hampton Roads Bankshares, Inc. (HMPR)           -      5:20 PM ET     -        -

Heli Electronics Corp (HELI)        Q3 2014         -      5:00 PM ET   ($0.43)

Home Inns & Hotels Management (HMIN)        Q4 2013       5:00 PM ET   9:00 PM ET          $0.18

Investors Real Estate Trust (IRET)         Q3 2014       5:20 PM ET   10:00 AM ET $0.16

Jones Energy Inc. (JONE)  Q4 2013         -      10:00 AM ET $0.27

Krispy Kreme Doughnuts Inc. (KKD)       Q4 2014       6:15 PM ET     -      $0.13

Limoneira Company (LMNR)        Q1 2014         -        -      ($0.16)

magicJack VocalTec, Ltd. (CALL)  Q4 2013         -      5:00 PM ET   $0.50

Matador Resources Company (MTDR)     Q4 2013         -      9:00 AM ET   $0.28

Men’s Wearhouse, Inc. (MW)        Q4 2014       4:00 PM ET     -      ($0.11)

Metabolix Inc. (MBLX)       Q4 2013       4:05 PM ET     -      ($0.21)

Nevada Gold & Casinos Inc (UWN)           -      4:00 PM ET     -        -

Odyssey Marine Exploration (OMEX)       Q4 2013       5:45 PM ET     -      $0.12

Orexigen Therapeutics (OREX)     Q4 2013         -      5:00 PM ET   ($0.19)

Providence Service Corp (PRSC)   Q4 2013       4:05 PM ET     -      $0.31

Sigma Designs Inc. (SIGM) Q4 2014       4:00 PM ET     -      $0.01

Supernus Pharmaceuticals Inc (SUPN)     Q4 2013         -      9:00 AM ET   ($0.54)

TransAtlantic Petroleum Ltd (TAT)         Q4 2013         -        -      $0.01

UMH Properties Inc (UMH) Q4 2013         -      10:00 AM ET $0.11

Vail Resorts, Inc. (MTN)    Q2 2014         -      4:30 PM ET   $1.91

Valhi Inc. (VHI)       Q4 2013       6:10 PM ET     -      ($0.02)

Williams-Sonoma, Inc. (WSM)      Q4 2014         -        -      $1.35

Zion Oil & Gas Inc (ZN)       -      6:40 PM ET     -        -

 

Thursday

Before the open:

AAON Inc. (AAON)     Q4 2013       7:00 AM ET     -      $0.21

Affymax Inc (AFFY)  Q4 2013       8:00 AM ET     -      ($0.33)

Altiris, Inc. (ATRS)  Q4 2013         -      8:30 AM ET   ($0.05)

Ameresco, Inc. (AMRC)      Q4 2013         -      8:30 AM ET   $0.22

AVEO Pharmaceuticals Inc (AVEO)         Q4 2013       6:30 AM ET   4:30 PM ET   ($0.40)

Baytex Energy Trust (BTE) Q4 2013       8:15 AM ET     -      $0.39

Bellatrix Exploration Ltd (BXE)     Q4 2013         -        -        -

BG Medicine, Inc. (BGMD)  Q4 2013         -        -        -

CAMAC Energy Inc. (CAK)    -        -        -        -

Cardiome Pharma Corp. (CRME)   Q4 2013         -        -      ($0.31)

Carnival Corp. (CCL)         Q1 2014       9:15 AM ET     -      ($0.08)

Carnival PLC (CUK)  Q1 2014       9:30 AM ET     -        -

Christopher & Banks Corp. (CBK) Q4 2014         -      8:30 AM ET   ($0.03)

Clean Diesel Technologies (CDTI) Q4 2013         -        -      ($0.04)

Comstock Mining Inc. (LODE)        -        -        -        -

Coronado Biosciences Inc (CNDO)          Q4 2013         -        -      ($0.23)

Dollar General Corporation (DG)  Q4 2014       7:00 AM ET   10:00 AM ET $1.01

Etablissements Delhaize Freres (DEG)     Q4 2013       7:00 AM ET     -        -

Five Star Quality Care, Inc. (FVE) Q4 2013         -        -      $0.05

Flamel Technologies S.A. (FLML)  Q4 2013         -        -      ($0.26)

Genie Energy Ltd. (GNE)   Q4 2013         -        -      ($0.05)

Global Partners LP (GLP)   Q4 2013       8:00 AM ET     -      $0.64

Global Sources Ltd. (GSOL)         Q4 2013       2:00 AM ET   8:00 AM ET   $0.16

Gogo Inc. (GOGO)   Q4 2013         -        -      ($0.27)

GreenPoint Financial Corp (GPT)  Q4 2013         -      2:00 PM ET     -

Hanwha SolarOne Co. Ltd. (HSOL)           -        -      8:00 AM ET     -

HOMECOM COMMUNICATIONS INC (HCOM)     Q4 2013         -      2:00 PM ET   $0.37

Horizon Pharma Inc (HZNP)         Q4 2013         -      8:00 AM ET   ($0.06)

Internet Gold Golden Lines Ltd (IGLD)     -      4:15 AM ET     -        -

KiOR, Inc. (KIOR)    Q4 2013         -        -      ($0.40)

Kirklands Inc. (KIRK)         Q4 2014       7:00 AM ET   11:00 AM ET $0.67

Kohlberg Capital Corp (KCAP)      Q4 2013         -        -      $0.25

Ku6 Media Co., Ltd. (KUTV)           -        -        -        -

Ladenburg Thalmann Financial (LTS)      Q4 2013         -        -      ($0.01)

Lakes Entertainment Inc. (LACO)   -      7:30 AM ET   2:00 PM ET     -

Lifetime Brands Inc (LCUT)   -      8:05 AM ET   11:00 AM ET   -

Methode Electronics, Inc. (MEI)   Q3 2014       7:00 AM ET     -      $0.39

Natural Gas Services Group Inc (NGS)    Q4 2013       7:00 AM ET   11:00 AM ET $0.30

NBC Capital Corporation (NBY)      -      6:30 AM ET     -        -

Oncolytics Biotech Inc. (ONCY)    Q4 2013       7:30 AM ET     -      ($0.07)

Optical Cable Corp. (OCC)   -        -        -        -

ORBCOMM Inc. (ORBC)      Q4 2013       8:30 AM ET     -      $0.04

PhotoMedex Inc. (PHMD)   Q4 2013         -      11:00 AM ET $0.38

Plug Power, Inc. (PLUG)    Q4 2013       6:10 AM ET   10:00 AM ET ($0.08)

Preformed Line Products Compan (PLPC)           -        -        -        -

Progenics Pharmaceuticals Inc. (PGNX)   Q4 2013       9:00 AM ET   8:30 AM ET   ($0.19)

Pure Bioscience (PURE)      Q2 2014         -        -      ($0.05)

ReneSola Ltd (SOL) Q4 2013       7:20 AM ET     -      ($0.11)

Senomyx, Inc. (SNMX)       Q4 2013       9:00 AM ET   11:00 AM ET ($0.06)

Stein Mart, Inc. (SMRT)       -      7:30 AM ET     -        -

STR Holdings, Inc. (STRI)  Q4 2013         -        -      ($0.07)

Taomee Holdings Limited (TAOM) Q4 2013         -        -      ($0.02)

TearLab Corporation (TEAR)        Q4 2013         -        -      ($0.13)

 

After the close:

A V Homes, Inc. (AVHI)       Q4 2013         -      8:30 AM ET   ($0.18)

Adams Resources & Energy Inc (AE)         -        -        -        -

Advanced Emissions Solutions (ADES)    Q4 2013         -        -      $0.05

Aeropostale, Inc. (ARO)     Q4 2014       4:00 PM ET   4:15 PM ET   ($0.30)

AmerUs Group Co. (AMH)  Q4 2013         -      12:00 PM ET $0.12

AMREP Corp. (AXR)   -      6:00 PM ET     -        -

Anacor Pharmaceuticals (ANAC)   Q4 2013         -        -      $1.34

Artesian Resources Corp. (ARTNA)         Q4 2013         -        -      $0.24

Ascent Solar Technologies Inc (ASTI)     Q1 2014         -        -      ($0.09)

Athersys Inc (ATHX)          Q4 2013         -      4:30 PM ET   ($0.12)

Bright Horizons Family Solutions (BFAM) Q4 2013       4:00 PM ET     -      $0.30

Cbeyond Inc (CBEY) Q4 2013       4:00 PM ET   5:00 PM ET   ($0.14)

ChemoCentryx, Inc. (CCXI)         Q4 2013         -      5:00 PM ET   ($0.24)

Cooper Tire & Rubber Company (CTB)    Q4 2013         -        -      $0.21

Dominion Resources Black Warri (DOM)    -        -        -        -

Dundee Corp. (DDEJF)        -        -        -        -

Engility Holdings, Inc (EGL)         Q4 2013         -      5:00 PM ET   $0.73

Erickson Air-Craneorporated (EAC)        Q4 2013       10:05 PM ET   -      $0.07

FX Energy Inc. (FXEN)       Q4 2013       4:00 PM ET     -      ($0.03)

Gastar Exploration Ltd. (GST)      Q4 2013         -      10:00 AM ET $0.08

ImmunoCellular Therapeutics (IMUC)      Q4 2013         -      5:00 PM ET   ($0.10)

Kronos Worldwide Inc. (KRO)      Q4 2013       7:00 PM ET     -      $0.01

Mattress Firm Holding Corp (MFRM)       Q4 2014         -      5:00 PM ET   $0.29

Mitel Networks Corp (MITL)         Q3 2014         -        -      $0.22

NL Industries Inc. (NL)      Q4 2013       7:15 PM ET     -      $0.01

Northwest Pipe Company (NWPX)          Q4 2013         -        -      $0.13

One Liberty Properties Inc. (OLP)   -        -        -        -

PharmAthene Inc (PIP)      Q4 2013         -        -      ($0.03)

PMC Commercial Trust (PCC)         -        -        -        -

Primus Telecommunications (PTGI)        Q4 2013         -        -        -

QAD Inc. (QADB)      -        -      5:00 PM ET     -

Rexford Industrial Realty (REXR)  Q4 2013         -      5:00 PM ET   $0.16

SeaWorld Entertainment, Inc. (SEAS)     Q4 2013         -      5:00 PM ET   ($0.16)

Star Scientific Inc. (STSI)     -        -        -        -

Tahoe Resources Inc (TAHO)       Q4 2013         -      11:00 AM ET ($0.09)

Ulta Beauty (ULTA)  Q4 2014       4:00 PM ET     -      $1.07

Ultrapetrol Ltd. (ULTR)     Q4 2013       5:25 PM ET     -      $0.00

Vaalco Energy, Inc. (EGY)    -        -      11:00 AM ET   -

XO Group, Inc. (XOXO)      Q4 2013         -        -      $0.11

 

Friday:

Before the open:

ANN INC. (ANN)     Q4 2014       7:45 AM ET   8:30 AM ET   $0.07

Ballantyne of Omaha Inc (BTN)    Q4 2013       7:35 AM ET   12:00 PM ET   -

Brown Shoe Company Inc. (BWS) Q4 2014       8:30 AM ET   9:00 AM ET   $0.08

Citi Trends Inc. (CTRN)     Q4 2014       6:45 AM ET   9:00 AM ET   $0.10

Derma Sciences, Inc. (DSCI)        Q4 2013       6:25 AM ET     -      ($0.36)

Destination XL Group, Inc. (DXLG)         Q4 2014         -      9:00 AM ET   ($0.03)

Diversified Restaurant (BAGR)      Q4 2013         -      10:00 AM ET $0.01

Ebix Inc (EBIX)       Q4 2013       8:30 AM ET   11:00 AM ET $0.31

Fuel Systems Solutions Inc. (FSYS)         Q4 2013       7:05 AM ET   11:00 AM ET $0.03

Hibbett Sports Inc. (HIBB) Q4 2014       7:00 AM ET     -      $0.69

Leap Wireless International (LEAP)        Q4 2013         -        -      ($1.58)

MeetMe, Inc. (MEET)         Q4 2013         -      10:30 AM ET   -

Metalico Inc (MEA)  Q4 2013       10:15 AM ET   -      $0.00

Ocean Power Technologies Inc (OPTT)     -      2:00 AM ET     -        -

Ply Gem Holdings (PGEM)  Q4 2013         -        -      ($0.24)

Repros Therapeutics Inc (RPRX)   Q4 2013       6:00 AM ET     -      ($0.38)

Stonemor Partners LP (STON)      Q4 2013       6:20 AM ET   10:00 AM ET ($0.12)

The Buckle Inc. (BKE)        Q4 2014       7:00 AM ET   10:00 AM ET $1.21

 

After the close:

ATLANTIC TECHNOLOGY VENTURES I (ATLC)    -        -        -        -

Hemispherx BioPharma, Inc. (HEB)          -        -        -        -

Urstadt Biddle Properties (UBA)   Q1 2014         -        -      $0.29

Urstadt Biddle Properties (UBP)  

 

= = = = = = = = = = = = =

 

4.  Weekly Wrap Covered Call Portfolio Update (Closing prices as of 3/7/14)

Our Weekly Wrap Closed Trade Track Record for 2014 is 10-2 (95-9, or 91% win rate, overall since the start of 2011).

Special Notice:  The H&R Block (HRB, $30.39, down $0.57) April 32 calls (HRB140419C00032000, $0.45, down $0.45) were closed for a gain of 13% last Wednesday and a day ahead of earnings as our Hard Stop of 95 cents triggered on the other half of our trade.  We had closed the other half at $1.20 on 2/21/14. 

 

Alexza Pharmaceuticals (ALXA, $5.47, down $0.03) Covered Call Trade

Sold June 6 calls (ALXA140621C00006000, $0.35, flat)

Original Entry Price:  $5.53 (3/4/14)

Lowered Price from Selling Options:  $5.03

Exit Target:  $6+

Return:  9%

Stop Target:  $3

Action:  Shares traded to a high of $5.68 at the beginning and end of last week before closing below $5.50.  Support is at $5.25 and the 50-day MA.  A close above $5.70 would be bullish for a run to $6.

 

On 3/4/2014 we recommended buying shares at $5.53 and selling the June 6 calls for 50 cents to lower our cost basis to $5.03.  If we are called away in mid-June at $6 the trade will make 20%.

 

Zynga (ZNGA, $5.58, up $0.07) Covered Call Trade

Sold April 6 calls (ZNGA140419C00006000, $0.25, flat)

Original Entry Price:  $5.63 (3/4/14)

Lowered Price from Selling Options:  $5.33

Exit Target:  $6+

Return:  5%

Stop Target:  $3

Action:  Near-term support is at $5.40 followed by $5.20-$5.  A close above $5.80 would be bullish for a run past $6.

The company has some new games coming out over the next few months including a slick new version of Zynga Poker.  We believe the company is a takeover target based on the potential revenue poker could bring to the company although Zynga doesn’t plan to monetize anytime soon.

On 3/4/2014 we recommended buying shares at $5.63 and selling the April 6 calls for 30 cents to lower our cost basis to $5.33.  If we are called away in mid-April at $6 the trade will make xx%. 

 

Biodel (BIOD, $3.28, down $0.16) Stock Trade

Original Entry Price:  $3.25 (2/25/14)

Lowered Price from Selling Options:  $3.25

Exit Target:  $6+

Return:  1%

Stop Target:  $3.25 (STOP LIMIT)

Action:  Set STOP LIMIT ORDERS to close the trade at $3.25 on weakness.

Biodel traded to a high of $3.71 last Thursday but there is risk to $3 and the 50-day MA on a close below $3.25 and our break even point.  Resistance is at $3.50.  The 52-week high is just north of $6 and the 52-week low is at $1.93.  We could hold this trade open through any volatility this week but we can set LIMIT ORDERS at $3.25 to protect ourselves and possibly get back in at lower prices.

Galena Biopharma (GALE, $3.36, down $0.10) LEAP Trade

October 7 calls (LEAPs) (GALE141017C00007000, $0.80, flat)

Original Entry Price:  $1.15 (2/10/13)

Exit Target:  $2.30

Return:  -57%

Stop Target:  None 

 

Galena Biopharma (GALE, $3.36, down $0.10) Stock Trade

Original Entry Price:  $5.17 (2/10/14)

Lowered Price from Selling Options:  $5.17

Exit Target:  $10

Return:  -35%

Stop Target:  $2.50

Action:  Support is at $3 and the 200-day MA on a continued pullback.  A close back above $3.50 and then $4 would be bullish.

 

Discovery Laboratories (DSCO, $2.60, up $0.02) Stock Trade

Original Entry Price:  $2.42 (1/7/14)

Lowered Price from Selling Options:  $2.42

Exit Target:  $4.50-$5

Return:  7%

Stop Target:  $1, raise to $2.50 (Stop Limit)

 

Discovery Laboratories (DSCO, $2.60, up $0.02) Covered Call Stock/ Option Trade

Sold April 3 calls (DSCO140419C00003000, $0.15, flat)

Original Entry Price:  $2.42 (1/7/14)

Lowered Price from Selling Options:  $2.17

Exit Target:  $4.50-$5

Return:  20%

Stop Target:  $1

Action:  Set STOP LIMIT ORDERS to close the Stock Trade at $2.50.

We have set a Stop Limit of $2.50 on our stock trade as we want to limit our exposure if shares drift lower.  We still like the longer-term prospects of the company and why we are writing covered calls on a second position but biotech started to show weakness last week.  Support at $2.50 was tested on Monday and the next wave of support is at $2.40 and the 50-day MA.  A close back above $2.70-$2.75 would be bullish.

 

On 1/7/2014 we recommended buying shares at $2.42 and selling the April 3 calls for 25 cents to lower our cost basis to $2.17.  If we are called away in mid-April at $3 the trade will make 39%. 

 

Opko Health (OPK, $9.19, up $0.20) LEAP Option Trade

March 10 calls (OPK140322C00010000, $0.15, up $0.05) LEAP OPTION

Original Entry Price:  $0.70 (12/17/13)

Exit Target:  $1.40

Return:  -79%

Stop Target:  None

Action:  The March options have less than 2 weeks before they expire so this trade could come down to the wire.  Shares tested support at $9 before holding this level into the weekend.  There is further risk to $8.75-$8.50 on a close back below $9.  Resistance remains at $9.50-$10 and a close above the latter would be super bullish for a run to $12-$13 on short-covering.  Our breakeven point is $10.70, technically, by Friday after next.  Support is at $9.

 Pizza Inn Holdings (PZZI, $5.89, down $0.23) Stock Trade

Original Entry Price:  $8.10 (10/11/13)

Lowered Price from Selling Options/ Dividends:  No options available

Exit Target:  $12+

Return:  -27%

Stop Target:  $5

Action:  Shares traded to a low of $5.73 on Friday after testing support at $6 on Thursday.  A close below $5.75 would be bearish but we are looking for the double-bottom to hold.  Resistance is at $6, followed by $6.50.

The company has 150 Pie Five shops opening this year and is expanding rapidly.  We believe this will be a $15-$20 stock in 1-2 years and insiders and mutual funds own nearly 40% of the company.

DryShips (DRYS, $3.95, down $0.07)

Original Entry Price:  $5.25 (1/3/11)

Lowered Price from Selling Options:  $4.60

Exit Target:  $5

Return:  -14%

Stop Target:  $2

Action:  Set LIMIT ORDERS to close the trade at $4.75 or better.

This will give us a 3% return but you can aim higher if shares continue to run.  Shares traded past $4 and up to $4.37 on Thursday before finishing under $4 on Friday.  We said a close above $3.80 (now support) would be bullish and our breakeven point is just up ahead at $4.60.  Support is at $3.80 followed by $3.50.

Trades on HOLD (5):  AKS Steel Holding (AKS), Rambus (RMBS)

Bebe Stores (BEBE) private equity offering coming north of $9?, Vivus (VVUS), Dendreon (DNDN)

 

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5.  Week Ahead 

Here is a chart of the events for the week ahead: