Yesterdays early weakness morphed into afternoon strength. When have we seen this before? Buy the dip, rope a dope, whatever you want to call it, these morning pull backs have been great buying opportunities.
Yesterday morning $GOOGL was red. It was lower. The stock was hanging around 795-796. It had been weeks of stagnant action for Google.
The options were pricing in more of the same. The $810 weekly calls were asking $.40. Hundreds of contracts were sold at $.30. The $805 calls were $1.00. You are talking about options 1% away with 4 sessions to go. These are options that would be priced 100%+ higher if this wasn't 2016.
FANG was back. After a boring August, Facebook Amazon Google and Netflix were roaring higher.
Amazon and Facebook hit new all time highs. $GOOGL missed by a few $. $NFLX broke over $100 for the first time in a few months.
Are the breakouts upon us? We will get confirmation this week, but so far, so good.
$FB $130 $AMZN $800 $GOOGL $820 $NFLX $105 this week?
I am already in some $GOOGL $805 calls from yesterday and $NFLX $100 Calls from last week. The $NFLX calls have a week and a half of time left on them.
These calls went over $7 yesterday. I think $GOOGL has a great chance to break to new highs this week, meaning $814+. Yesterday early on I thought $800 would work, which it would have for a 50-75% gain, and a few hours later it was nearing $810. $GOOGL has made some enormous multi-day runs in the past. Could yesterdays action be the start of that?
$NFLX also broke higher yesterday and moved back into triple digits. . I have $100 calls for next week.
$105 would be a nice upside price by the end of the week with a continuation to $110 later this month.
$IBB was up near 2% yesterday. The more I see the government talking about high drug prices the more I think $IBB will trade heavy the next few months.
I entered some $277.50 puts yesterday for a move lower. And I think this move will take $IBB to $250 in the short term.
and finally $CMG.
I look at the Pershing stake in $CMG as an act of desperation. It's a way for Ackman to try and untarnish his image. Like $CMG customers last year, it's not going to end nicely.
This mornings pop is something I will look to Put at some point this morning.
Put the pop.
$NFLX could come back down to $100 today to test support. If that holds the odds for a move to $105 this week increase.
$GOOGL also could succumb to the early morning weakness, but as long as $800 holds I will be trading for a move to new record highs this week.
$IBB is something I will be trading for downside the next few weeks. Momentum is waning with support strong at $250.
$CMG put the pop is how I will trade this today.
See you in the chat room.