All posts by uranium-pinto-beans

X Marks The Spot – United States Steel

U.S. Steel reported earnings before the open today.  Pre-market the stock was up, and after the open the stock fell over 4%.  I had calls from yesterday that I sold for a small loss.  I waited like a snake in the grass and jumped on X $28 and $30 weekly calls.  Both were sold later on for over 100% gains.  X managed to work its way from 4% down to an over 1% gain before fading later in the session.

Charts seem to be working for me again, that may end soon as they don't work very well in these centrally planned markets, but for now if they are working they are a great tool.

Based on the chart I see more gains ahead for X and will be buying up the May 19 $30 X calls tomorrow.  The current price is $.48.   X closed at $27.65.  X needs a 10% move for those options to turn a profit, and I think we will get that over the next few weeks.

 

 

X has a nice channel, with the current price sitting right at the bottom of it.  I could very easily see X at $32 before those May 19 calls expire.  Remember a little dab will do.  If we are looking at potential 200-300% gain, just a small purchase will offer ample returns.

FSLR Positioned For Another Bounce

If you've followed us than you know we are bearish on FSLR.  Absent a reverse split FSLR will be a a penny stock at some point this year, but we don't care about that.  All we care about is how fast it moves, when that move will come, and how will we position ourselves for that move.

Today FSLR hit a brand new all time low.  The shorts have this stock right all 42% of them, which is exactly why I think we will see sharp rallies as FSLR drops to $5.  Rumors, news, upgrades, anything at all could create a nice pop in FSLR shares.  With everyone betting against it, one mildly positive event will be enough to push this stock 20% higher in a short span of time.  This 20% move will be highly profitable for those positioned for it.

I think that move is coming.  It's happened each of the last two weeks.  I called it two weeks ago and was able to book a nice profit. 

I am positioned again for a move for FSLR.  I bought the $19 calls for $.58.  This will be just another flip before more flopping for FSLR.

 

 

 

 

April 24th Gameplan

 

Today I made three trades. Those of you in the chat room would know I was waiting like a snake in the grass. I felt after hitting around $137.10 on SPY and bouncing that we needed one more push lower. I was waiting for it and when we hit $137 on SPY I was in buying calls. SPY hit $136.93 for the LOD, which meant my buys at SPY $137 were a great spot. Patience paying off.

 

Gameplan for tomorrow? Like today......

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Buy Before AAPL Earnings? Option Traders Know Better…

 

AAPL reports earnings after the bell on Tuesday.  I think we can all agree on one thing, the stock will not trade flat after hours and on Wednesday.  The stock will be halted Tuesday at about 4:25Pm Est.  It will re-open after hours at least 5-7% higher or lower.  I see the stock trading lower to about $550.  $550 is my price for an AAPL low as I think the bar has been set high for AAPL.    On Wednesday AAPL, as I see it, will open lower.  I will be a buyer of calls on this dip and I think I will make a tidy profit on Wednesday employing this strategy.

Anyone buying stock options to play AAPL earnings right now is just plain crazy.  Look at the premiums.  For the call and put options expiring this week AAPL will have to move OVER 10% just so you can BREAK EVEN.  That is not a sensible option trade in my opinion.  Let's wait until Wednesday morning after the premiums get crushed to more manageable levels.  Below is the option chain for AAPL.  The farther out you go the cheaper it gets, but even 10% out,   AAPL calls and puts are wildly over valued.

 

I think the money will be made on Wednesday, either playing the rip or dip.  Savvy option traders know better than to buy over priced options.  We'll wait it out, just like we did for SNDK on Friday, and ultimately make a nice profit.

OPEX MADNESS

 

OPEX or Options Expiration day offers the potential to turn a few pennies into a few dollars.  We had a great OPEX day in the chat room.  SNDK was the trade and I put a bid in before the open for the $36 calls with SNKD at $34.80.  A minute into the open I was filled and posted my trade in the chat room. 50 contracts at $.06 each.   Those contracts hit $.65 each.  I sold out at $.34 early in the session as I did not want to waste the premium as it will erode drastically as the day wore on.  $300 into  $1,700.    I also purchased the $35 calls for $.22 a minute afer the $36 calls as SNDK continued to fall right after the open.  They hit $1.65!  $220 into $1,650 had I sold right at the high.

The price of stock options relies on numerous factors.  One factor is the time to expiration.  With the SNDK options expiring today I was able to get in at a very cheap price.  Any move in SNDK exaggerated the price of my options.  It was the perfect option trade, and posted right in the subscriber chat room for all to see.  I posted my my buys and my sells right when they occurred.

There is nothing else out there that can give you the returns that trading stock options provide.  Pennies into dollars.   Madness.