Earnings continue this week with some big retailers reporting earnings. This should offer an opportunity to make a profitable trade. GOOG hit new highs last week and looks ready to make an even bigger move, which way will it go this week? AAPL continues to break higher after a 6 month downtrend, will it keep moving up or will the stock pull back?
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AAPL I think a move back to $500 is coming, and it could come as soon as this week. A break of $500 would require an over 10% move from AAPL's close on Friday.
I will be looking for calls this week. I like the $480 strike for $.48. If we get a move to $500 these options will offer a tremendous return. A move to ~$470 by mid-week will also see these options rise in value.
The Trade Idea:
AAPL $480 weekly calls for $.48
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GOOG has been on a strong run the last few weeks and sits right near the all time highs it hit last week. I think it moves over $900 and to $1,000 before it gets a big pull back. The stock has broken out of a 5 year channel. A break below $820 negates the move to $1,000, and I will become bearish there. I like the $915 calls for this week.
The trade idea:
GOOG $915 calls $1.00
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BA has been consistently heading higher and recently hit new highs. An analyst last week raised the stock from a sell to a hold. My question is, if I listened to you and sold the stock, how the heck am I supposed to hold it now if I don't have any shares left? Like we saw with AAPL, the bottom is usually confirmed when the last analyst caves in and downgrades the stock. With BA the stock has seen a bevy of upgrades and a host of positive comments. We should see at least a short term pull back to the $90 area. I like the $92.5 puts for a pull back last price $.39. I would like to get them cheaper if I can.
The trade idea:
BA weekly $92.5 puts for $.30
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FCX has seen a magnificent move from its neck line test a few weeks ago at $27.50. This rally is running out of steam and I like the risk reward on the weekly FCX $32.50 puts last trade $.48.
The trade idea:
FCX weekly $32.50 puts $.48
I will post other trade ideas later this week in the chat room, blog, and/or forum.
Have a great week,
UPB