General Options Blog

October 20th, 2017 Watch List

Markets pared the morning losses on Thursday to close mixed, with the S&P and Dow closing in the green while the Nasdaq finished in the red. Asia markets closed higher overnight and Europe markets are rallying this morning. U.S. futures are pointing up, the Dollar is higher, while Oil, Gold, and Treasuries are all lower.

And here is the morning Prepper from UPB : https://www.optionmillionaires.com/friday-morning-market-prepper-16/

And a nice piece on the market yesterday from UPB : https://www.optionmillionaires.com/market-finally-topped/

ISRG reported earnings after the close yesterday that smashed estimates while also raising their procedure growth guidance. It was the type of report I expected  it needed to break into all-time highs, but looks like folks are using it as a 'sell the news' event. The report puts the stock on track for $400 in the coming months but a gap down today will put a hurt on my Nov $410 calls. If the stock breaks into the $330s, I may try some lotto calls to play for a bounce. Nothing more frustrating than getting the earnings right but the stock does not react the way you want it - but that is how earnings trades play out sometimes.

MZOR sold off yesterday, with the stock closing down 6.5% and giving back Wednesdays gains. My Nov $65 calls held up surprisingly well, and will continue to hold for the inevitable break over $60.

TRUP broke into all-time highs again yesterday and made another all-time closing high. Will need to add those later dated strikes today and close out the last of my Oct strikes. The same goes for GBT.

The Senate approved a 'budget blueprint' last night, which sets the way for the long-awaited, possible Tax Reform. Futures rallied on the news and have helped lift the markets this morning. Could certainly be another catalyst into the end of the year: http://www.marketwatch.com/story/senate-republicans-approve-budget-proposal-clearing-path-to-tax-overhaul-2017-10-19

The SPY came down and broke under $254.50 for a few minutes before staging a bounce. Thankfully I waited to add any hedges. Looks like that will be strong  support going forward:

And here are the analyst changes of note for today:

PayPal price target raised to $80 from $70 at BMO Capital
BMO Capital analyst Paulo Ribeiro raised his price target on Paypal to $80 following Q3 results and kept his Outperform rating. Ribeiro noted accelerating momentum in new accounts and increased engagement helping EPS growth, along with expansion in products and services. The analyst also says the company's initial FY18 outlook suggests strength in mobile total payment volume and an encouraging rollout of Venmo monetization
Susquehanna sees takeover potential at Stratasys, upgrades to Positive
As reported previously, Susquehanna analyst David Ryzhik upgraded Stratasys to Positive from Neutral as a result of improved System revenue growth prospects, growing recurring revenue streams, and takeover potential. He believes the company could provide a suitor with a market leading position, broad product profile, and a growing revenue stream. Ryzhik raised his price target to $30 from $22 on Stratasys share
Intuitive Surgical well positioned to maintain market leadership, says Wedbush
Wedbush analyst Tao Levy said Intuitive Surgical reported an "impressive quarter" marked by solid procedure growth and system shipments, which he expects to continue for a few more quarters. While new competitor systems are entering the market, Levy believes Intuitive's promising pipeline of new products and strong utilization trends leave it well positioned to maintain its leadership position. He raised his price target on Intuitive shares to $409 from $395 and keeps an Outperform rating on the stock
Atlassian price target raised to $55 from $47 at Cowen
Cowen analyst Gregg Moskowitz raised his price target on Atlassian to $55 from $47 following Q3 results. The analyst continues to view it as a fast-growing, disruptive software company with a lot of runway. Moskowitz reiterated his Outperform rating on Atlassian shares
Ulta Beauty weakness a buying opportunity, says Cowen
Cowen analyst Oliver Chen said the recent weakness in Ulta Beauty is a buying opportunity, citing his conviction that comps and margins remains strong. The analyst said product diversification is driving solid and more balanced results. He believes the company continues to gain market share. Chen reiterated his Outperform rating and $336 price target on Ulta Beauty shares
Harley-Davidson upgraded to Buy from Hold at Argus
Argus analyst David Coleman upgraded Harley-Davidson to Buy with a $53 price target due to market share gains and a strengthening of its product mix, despite industrywide pricing pressure. Coleman said Harley continues to reduce older motorcycle inventory and has begun an ambitious effort to launch 100 new models by 2027. The analyst is impressed with new models and styles and which should enable most buyers to get the look, sound, and feel that they want directly from the sales floor, without costly upgrades. Coleman does not believe Harley-Davidson's discounted valuation is warranted based on increasing market share, improved mix, and potential to attract new customers
Intuitive Surgical target raised to $390 after 'great quarter' at Morgan Stanley
Morgan Stanley analyst David Lewis said Intuitive Surgical reported a "great quarter" that demonstrated its continued momentum. The analyst, who said "expectations were high into the quarter, but Intuitive Surgical delivered," raised his price target on the stock to $390 from $383.33, adding that he believes the company's procedure guidance looks conservative. Lewis keeps an Overweight rating on Intuitive shares
Celgene disappointment to be temporary, says Wells Fargo
Wells Fargo analyst Jim Birchenough views Celgene's discontinuation of development for GED-0301 for Crohn's Disease as a temporary disappointment. The analyst does not see any read-through to Celgene's anchor strategy in inflammatory bowel disease with Ozanimod, where he expects positive Crohn's disease data within weeks. He notes GED-0301 is not a contributor to his valuation or assumptions. Birchenough keeps an Outperform rating on Celgene with a $163 price target
Intuitive Surgical solid results not enough to justify valuation, says Canaccord
Canaccord analyst Jason Mills said he remains cautious on Intuitive Surgical coming out of the Q3 earnings call. He said the results were solid, with continued strong worldwide procedure growth, but its rate slowed from the prior year. He said he continues to see fair valuation in the shares and would not put any new money to work. He does recommend long-term investors maintain a core position to trade around, but to lock in profits at current levels. Mills maintained his Hold rating and lowered his price target to $325 from $332 on Intuitive shares
Morgan Stanley says Celgene may fall 5%-10% on 'major negative' of trial failure
Morgan Stanley analyst Matthew Harrison, who already had an Underweight rating on Celgene shares, called the company's halting of its Phase 3 GED-0301 program a "major negative" and predicted the stock will likely fall 5%-10% following the news. While it was known that GED-0301 was one of the more risky assets in Celgene's pipeline, Harrison also believes it was thought of as a significant potential driver of upside, which is now removed. He keeps a $120 price target on Celgene shares, which are down about 6% to $128.32 in pre-market trading

And here is what I am watching today, may look for lottos on AMZN and PCLN as well:

Stock Ticker

Call/Put

Strike

Expiration

Closing Price

Possible Entry Price

TRUP

Call

$35.00

May

.95 x 1.45

1.10

GBT

Call

$45.00

Dec 15th

.65 x 1

0.85

Let's have a great day!

-JB