Earnings plays can be very rewarding for those who are on the right side of the trade via options. Apple (AAPL) and Amazon (AMZN) catapulted 10%+ on their earnings report the last two weeks, while Green Mountain Coffee Roasters (GMCR) fell 50% on theirs. Which will be the one to bring option players the 1000%+ gain in the coming week? Here are a few we have on radar for next week, and my thoughts.
All posts by jimmybob
LinkedIn (LNKD) The Growth Story Continues
I think people underestimate the true potential of a growth stock. The endless possibilities and limitless valuations. Growth stocks are an exception to normal market standards. Unfazed by macro economic conditions and gyrations, growth stocks continue to power to new highs. Like I said in previous posts, its only when everyone is on the Bull Bandwagon, that the stock pulls back.
Today's earnings from LinkedIN (LNKD) shows the stock is far from any sort of pullback and is still in the midst of a tremendous growth cycle. It also looks like shorts are starting to realize this, reducing their short postions from 7 million shares in January to 4.3 million in April.
Traders will continue to cite chinks in the armor to induce a sell off and rationalize their losing trade. Maybe its the insiders selling shares? Maybe the 850 PE ratio? Competition?
Of course these are all valid arguments, but not when a company is growing revenues over 100% YOY. LinkedIn (LNKD) earnings today reinforced our belief that the shares are headed to $150+ before summers end.
You heard it here first when the stock was trading at $100, and now you will hear it gain when the stock is at $120.
As for you LinkedIN(LNKD) bears, please let us know when you go long....
Thanks!
Veeco Instruments Inc (VECO)
It was January 2012, when we first wrote about Veeco Instruments Inc (VECO). The stock was in oversold territory and we played the calls for a nice profit on earnings. History has a tendency to repeat itself so we had our eyes on Veeco Instruments Inc (VECO) calls for Tuesday.
Here is our call in chat:
04-30 10:10:52 Message jimmybob Option Millionaires Live VECO 33 @ .80 10 ofem
Those calls closed with a bid of $3.10 today for a 375%+ gain, and since they expire May 19th, we think they can see further gains.
Here is one of the traders who profited from the trade:
10 VECO may 33 c @ 2.15 - in yesterday @ .80 per jimmybob call... thanks again and may look for another entry later in the day...
Check out the chat to see more calls like these : (HERE)
5-2 Watchlist WYNN GMCR LNKD TRIP VECO OPEN
Looks like the job mornings this morning will cause some selling pressure today. Will make some calls less expensive mid-morning. Also, the big Friday jobs report for April will be on folks minds today and tomorrow.
SINA Corporation (SINA)
SINA Corporation (SINA) is a stock we watch on a daily basis at Option Millionaires. Why? Mostly because the stock tends to be volatile which in turn, provides some amazing possible returns on calls or puts. We brought SINA Corporation (SINA) to your attention last week as a possibly bottom bouncer. We expect more follow through on todays move.
Here is what we said in chat on Monday:
2012-04-30 09:39:22 Message jimmybob Option Millionaires Live SINA bottomed 62.50 calls @ .20 and .24
2012-04-30 09:39:29 Message jimmybob Option Millionaires Live opentrade SINA 62.50 calls avg .22
Those calls hit .90 today for a 450% possible return, a $220 investment on Monday would be $900 today. And we dont think SINA Corporation (SINA) is done yet.