General Options Blog

CREE and VECO taken to the WOODSHED!

It was only 2010, when CREE and VECO were high flying stocks. It seemed like both these companies were going to take advantage of the huge demand for their LED products, among other things. There were multiple $100+ Price targets on CREE , and VECO started looking more and more undervalued. Fast Foward a year, to 2011, and you have 2 stocks beat to heck on lower demand,  and lower margins.

CREE reports earnings After hours today, and is expected to show an EPS of .26 on 310 million in revenue for Quarter 2. Higher revenues over the year over year quarter, but 50% less profit. Most analysts still hold CREE in high regards, but it is very hard to see the share price move up, when the growth in earnings is not there.

Was quarter 2 the start of a turnaround for CREE? We will find out this afternoon, and are playing VECO calls in anticipation of a possible beat and rosy forecast.

We brought the VECO JAN $24 calls to the chat room at .35.

Happy Trading!!!

 

Beam me up Scotty!

We wrote about PCLN(Priceline.com) a few weeks back, after it hit $448, and was added to Cramers "Stay Away" list. (read here) We spoke how PCLN was a best of breed stock, and folks should take advantage of the dip. Well its almost 30 days later, and PCLN (Priceline.com) finally looks ready to break the $494 wall we spoke of.

Making money on options is all about finding ones that move. If they stay flat, you lose money, plain and simple. PCLN has a history of some big swings(Beta). We fully expect PCLN to trade above $500 this week. We brought the $505 weekly calls at .70 this morning to our chat room.

I think i can hear the transporter room going as I write this, and Captain Kirk getting set to beam us up.

 

Happy Trading!

Some of our trades this past week

We had a phenomenal week at option millionaires, with many alerts and trades providing opportunities for huge returns.

The week started with our call of SINA at the open on Tuesday. Noticing the pre-market volume, and the action on all the China ADR's, we thought SINA provided a great risk vs reward opportunity and brought the $55 weekly calls to our chat rooms attention at .40. As SINA started to break out, we also brought the $60 Weekly calls to the chatrooms attention at .08. You can see out chart below after the alerts. The stock had moved up from $50 open to $51.57. We still felt SINA would test $55 in short order, and felt if it broke $55, $60 had a shot before the week was out.

 

Sure enough, SINA broke $60 by Thursday on a JPM upgrade, and the $55 calls hit a high of $6.50 and the $60 calls hit a high of 2.12. So both alerts returned over 1600% from the alerts. If you bought $80 of the $60 calls, you could have sold for $2k 3 days later.

 

DECK was another play we have been screaming about, and liked the $90 Jan 21st calls, which we brought to our chat at .60. They hit over $2.00 on Wednesday, as the stock finally hit the $90 target we thought it would hit in short term. Check out the call.

Check out the chart we posted:

Only a few days later DECK hit out short term target to the penny at $90, and has since retreated.

We wrote about PRX, a generic pharma company, on JAN 6th, when the stock was trading at $33.90. We brought the $35 calls currently asking .35, to the attention of our chat room based on some news of possible upside revisions to its performance. Those calls have now hit $1.50 for almost a 500% gain, and should be an even bigger gainer before expiry on friday.

There were many other calls in the chat room. Make sure you check us out this week, as there is only TWO MORE WEEKS until out free trial ends.

 

 

 

 

 

CME (CME GROUP Inc)

CME (CME Group) stock has been ripped to shreds the past few weeks, on the MF global disaster. Rumors out there that CME will be on the hook for some of the losses.

I dont think that will be the case. Either way, CME looks ready to bounce from the $220 level. $240 should come in short order on the $230 break.

Huge volume this morning. Playing the JAN 21st $240 calls currently asking .75.