All posts by Max Ganik

Daily Recap 5/21/15

Today was a more exiting day for the market bulls. Last night futures were down 6 handles and came back roaring today closing up 5 pts. It was an exciting day for tech as BABA and AMZN stole the show. BABA was the real winner as it went up around $3.50 today.

Keep Reading

AAPL Butterfly Trade For June

AAPL has continued to remain in its trading range for over a few months, and this trade is playing for it to remain in this range (125-133). Arguably, I am late to the game betting for consolidation but I think the consolidation will continue at least for a few more weeks. I have outlined a few good reasons as to why I am putting on this trade. The trade is the June 125/131/137 Call Butterfly for $2.02. I also purchased the May 29th 126/127/134/145 Iron Condor for $.25 (My hedges: Two long vertical spreads).

Keep Reading

Daily Recap

Today was in my opinion another boring day in the market. There were no major moves in the broader indices, with both stocks closing relatively flat. Commodities were in the spotlight as oil and gold both fell a few percentage points respectively. With respect to MCD and TWTR there was no intra day movers that caught my attention, just a lot of fades (SPY and NFLX to note).

Keep Reading

Daily Recap

Looking back at today, the one thing that would stand out is the breakout in the SPY along with a meaningful decline in VXX. Both of these signs say that the market will probably have a small low volume rally for the coming days. I do not expect a run-away move because the volume is very low. I would have a bullish bias until I see a topping candle. This could be a doji reversal or a bearish engulfing candle. Either one of these signs will tell me the market is going to breakdown. I think that the opportunity lies in individual names rather then playing SPY.

Keep Reading

How to Trade AAPL for a Bounce

The last couple days in AAPL have been very eventful. To start off the weak, AAPL reported very strong earnings that beat all of the streets estimates. The main headline was the 61 million iPhone figure and the 27% EPS growth Y/Y. In addition to that, the share repurchase program was increased from $130 billion to $200 billion. This is all very impressive and shows why AAPL is a phenomenal company. The question is, why has AAPL sold off $7 peak to trough in the two days following? I think the answer is, peoples’ expectations are very high for AAPL and because AAPL did not give any surprises there were no new buyers for the stock. That is a big problem; everyone that likes AAPL probably already owns it. And anyone that does not own AAPL is probably not convinced by this earning report to change their mind. This leads to a stalemate between the bulls and the bears. How should we play this?
I think the way to play this is to respect the new trading range that AAPL is in. We do not yet know the bottom of the range as AAPL has not yet had a meaningful bounce, however, I think that if we get down to 124-125 we should see a sizable bounce. That level has held for over a month and has attracted any buyers (and would also be a $10 pullback).

Keep Reading