Posted by: ctraderd | October 21, 2012

Watchlist- Week of 10/22/12

The markets didn’t get hit so hard in the third week of October. The Dow Jones Industrial Average only fell a total of –5.76 for a measly –.04%, the S&P 500 fell –20.93 for a total of –1.44%, and QQQ shares fell a total of –2.38 for a total of –3.50%. Most of my positions expired on Friday, including GLD, AAPL, and WFM. When those options expired, they killed 99% of my profits from my whole trading career. I was up on the GLD options and the WFM options at one point, but they ended up expiring as losses. This is my lesson to you guys on knowing when to take profits. That is one of the most important facts to learn in trading. Another one would definitely be knowing that losses are just part of the game and they are going to happen. All right enough with my trading philosophy, so let’s move on to the watchlist. Before making any decisions based on this article, read my disclaimer and do your own research!! 

1.) iShares MSCI Emerging Markets Index (EEM):

EEM actually closed unchanged on the week. I am still holding my Dec12 43 Calls and Puts. I am nearly at breakeven on my Puts, only down -42 and I am down –340 on my Calls. If I become green on my puts and EEM, falls below my price target on $40 per share, then I will sell my Puts. If EEM goes up over the week, I will likely sell my Calls if EEM goes above my price target of $44 per share.

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2.) Exelixis, Inc. (EXEL):

EXEL had a minor correction last week, falling only –.06 for a total of -1.26%. EXEL was knocking on the door of 5 most of the week and actually broke through the barrier, but unfortunately, the stock could not manage to close above 5 for the week. EXEL fell –.22 for a total of –4.55% on Friday, so I may be picking up some more shares in preparation of EXEL’s November 29th Cabozantinib PDUFA. As we near closer to the PDUFA, there will probably be a run up, which is the reason for my holding of 1000 shares with a price target of 5.50+.

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3.) Sarepta Therapeutics, Inc. (SRPT):

SRPT continues to close the gap from its phenomenal jump of 199% a few weeks ago. Falling –3.29 last week for a total of –11.18%, I could not buy into any puts due to the fact that my money was tied up in my positions. Due to Options Expiration, I have managed to scrounge up a little cash and I will use it to pick up some options on Monday. Remember, when playing SRPT, keep your stops close incase something unexpected happens. 

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4.) Achillion Pharmaceuticals, Inc. (ACHN):

ACHN fell –.66 for a total of –6.05% last week. Shares are nearing my buy price target of $10 per share. If $10 per share is touched, I may add a starter position of just 100 shares to minimize risk. The only reason for this possible buy is for volatility.

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Disclosure: Long EEM Dec12 43 Calls and Puts, Long EXEL, No position in SRPT or ACHN but looking to add within the next 48 hours.

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