General Options Blog

Option Millionaires? Not Yet, but getting there…

We wrote about PCLN on December 14th, 2011, as a bounce play and continued to like it going into 2012, as Cramer added it to his "Pigs gets slaughtered list"(We wrote about that here). Going against Cramer is like bagging the promo queen... We wish we could do it, and when we finally do, didn't realize it would be that easy!

PCLN has ERUPTED from its 445.73 "Cramer Bottom" and hit $526 last week, an $80+ move. Even more spectacular, is the potential profits one can make on a move like this trading the options. We recommended the  $505 JAN 21st calls asking  .85 on Tuesday Jan 17th(READ HERE). Those calls hit a high of $22. So $85 into $2200 potential for each call purchased. Can we thank you enough Cramer?

Check it out as we brought this to out chat room first and we were the first on the planet to buy those calls on Jan 17th:

This is why we trade options, and hope we can continue bringing this type of trading opportunities to our trading community!

The Chase is ON!

The chase is on.... for  performance that is. Now that the SPY has closed above $130, folks are rushing into stocks as the potential to miss the rally, outweighs the possible downside risks.

Now is the time to turn to those old stocks, still fundamentally sound, but beaten down.

Stocks to watch the next few days: PCLN CME ICE CRM.

We are also watching BLK for a bounce on Earnings this morning.



The Big Mac Index

In a world dominated by the ever increasing consumption of fast food and obesity why not have a "Big Mac Index". You can use the Big Mac index as a reference to other currencies around the world, for instance the Big Mac costs 44% less in China than it does in the U.S.


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( 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 ( 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!