A much better day for option traders today. Stocks moved higher and hit fresh highs just before the close before giving back some gains before the close. SPY was able to close above its 200 day moving average. Here is tonight's market update:
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
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.
Silver and Gold, with all the recent carnage in the markets these precious metals have fallen as well. It seems the market has forgotten that the central banks have cornered themselves into an endless cycle of money printing.
Good for us that the central banks can't print more gold or silver, which makes it a great buy, in my opinion down here.
This is what I was saying about SLV and GLD:
"GLD $151.62 SLV $26.96 both going to be strong in JUNE IMO. You may have seen the bottom already this year. Will be looking for calls on both at the open"
This is what I was hearing in my head when I was buying my SLV calls (taken from my favorite xmas program):
Silver and gold, silver and gold, everyone wishes for silver and gold,
How do you measure it's worth, just by the pleasure it gives here on Earth
Silver and gold, silver and gold, means so much more when I see,
Silver and Gold Decorations On My Money Tree
I own the June 8th SLV $28 calls at $.26
I own the June 16th SLV $28 calls at $.47
I own the June 16th GLD $158 calls at $1.50