All posts by jimmybob

Panera Bread Co. (PNRA)

Starbux (SBUX) announced yesterday they were buying Bay Bread, a small bakery chain from San Francisco.   Panera Bread Co. (PNRA) opened lower this morning on the news, as folks worried that the deal may effect Panera Bread Co.'s(PNRA) growth.

The only thing I think it will do short term, is bring attention to a stock that should be trading closer to $200 then $100.

We positioned ourselves with June $145 calls at .95, and June $150s at .40. The stock is currently trading at $138.76, and think she flies when she breaks the 200 dma at 139.31

“Hold the line!!” – SPY

It was November 30, 2011, when the world's Central Banks united to ease strains on the global financial system. This move marked the end of a very turbulent summer and fall, where markets fell across the globe on fears of a Eurozone debt crisis.

Seven months later, we find ourselves in a similar situation. You know how the saying goes, "Those who don't learn from history, are doomed to repeat it". Will it be the bears who were taken to the woodshed betting on governments to sit on their hands? Or will it be the bulls, betting on more intervention?

Where will folks put their money with treasuries at all-time lows and negative Bond yields. Silver? Gold? The Dollar? It's almost like governments are forcing folks into equities. Time will tell, but I will continue to be a short term bull into we close under $127.90 on the SPY.

 

 

The Crossroads – Where are we headed?

On April 4th, the market hit a 4 year high as the $SPY touched $142.21. If you had told someone last October that the market would be up nearly 40% 6 months later, they would call you crazy. But that is exactly what happened from the 107.43 low on October 4th. Amongst all the negative sentiment, the market mysteriously found a bottom and rallied furiously, squeezing all the bears... the ones who watched the riots in Greece with glee, the ones who were hoping for someone else's pain to give them glory. We have seen this story over and over. The Eurozone debt situation is not a new problem. The market has been dealing with it for 3 years. We have seen this before, and it will not be the cause for a larger sell off in equities. May's decline has been somewhat orderly. The trading days have lacked the 1-2% swings we became accustomed to in August and October. This is no panic sell-off, its profit taking.  Yes, the USD has been on a major tear, trading up for 14 straight days at one point... the most since 1985!

Looking at that data point alone, I woud assume the markets had a massive sell-off. Yet we are not even in 'correction' territory. It's buy the dip time for me. With the election coming, there is no way the market is allowed to fall any further. Well we shouldn't call it a market, since the Obama administration will pull out all the stops to ensure the "economy" is not the cause for Romney winning. And to make that happen, we will need to have a nice summer rally.

Best way to make money trading, is to be ahead of the curve. Here is what I am doing to ensure I am:

Expect some "buy the pullback" upgrade to come out on your favorite momentum stock. Stocks like Priceline.com(PCLN), LinkedIn(LNKD), Buffalo Wild Wings (BWLD), Panera Bread(PNRA), Chipotle Mexican Grill(CMG), Intuitive Surgical(ISRG), and Starbucks(SBUX).

Buy out of the money calls on those plays to maximize the impending short squeeze. The dumb sheep are the ones who are shorting it based on the chart, and will be covering when they start getting squeezed.

Second, expect some sort of China stimulus. They are missing the talks of their growing economy and want to be back in the spotlight. China can be the key for a nice recovery alone, and China sure knows how to manufacture fake growth to inspire folks to load up on China stocks like Sina.com(SINA) and Baidu(BIDU) as well as the oversold commodity stocks.

We will have more on our watchlist tomorrow, but we are banking on a nice rally coming in the next few weeks. By the time you blink, we will be back over the April highs. Most folks will be scratching their eyes wondering what happened. Here at OptionMillionaires we will be counting our profits.

Take a look at the chart below. Lets have a great week!!!

F5 Networks (FFIV)

Have to be careful trying to catch a falling knife, but F5 Networks(FFIV) is one we are not worried about drawing some blood. Negative remarks about the Cloud space has hurt F5 Networks (FFIV), but think the reaction is overdone.

 

Grabbed $110 calls @ .66 and $115 @ .10 for the bounce. Stock is at 107.60.

 

 

 

 

Origin Agritech (SEED)

Origin Agritech (SEED) is one of those China stocks that will run 200-300% in a day, like it has in the past. Today it is getting some nice ask volume, so we are positioning ourselves with some June 16th $2 calls at .05. Options provide a great opportunity to take little risk and have possible large returns. We think Origin Agritech (SEED) may provide that sometime soon.