General Options Blog

DNDN – Halted

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DNDN was once a high flying stock, with hits hyped prostate cancer drug provenge, leading the hype. DNDn went from sub $5 stock in early 2009, to $55 stock in early 2010. Dissapointing sales results and other factors have resulted in a massive sell-off and DNDN has been trading near multi-year lows.Over the last few weeks, the stock has shown some life and with todays news, i fully expect this to be trading over $10 in the short term. As i write this the stock is trading at $8.64. It usually takes some time before folks peel back the onion and see whats going on here, so you should have time to get some calls or go long the stock under $9 before the end of day stampede.

 

 

 

$9 calls are .32 right now, and look to be the play.

 

 

 

 

 

AUTOZONE (AZO) to the upside after earnings

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Autozone reported earnings this morning. Analysts were expecting an EPS of $4.44, Autozone reported $4.68. A key quote from Autozones press release,

"This past quarter marked our twelfth consecutive quarter of 20% growth in earnings per share and our twenty-first consecutive quarter of double digit growth."

Growth stocks were all the buzz at the start of the year, and seemed to get old as we head towards the end of the year. AZO continues to be the one that is diamond in the rough, and should see more upside here, irregardless of its current hefty share price. AZO's low BETA allows for option traders to buy calls on the cheap, and should reap large gains as it moves to the upside here.

This stock is no NFLX, so when i see the company buying almost 1 million shares @ $325 avg last Quarter, with $650 million left to purchase, I feel even more confident of continued upside here.

Looking at the $360 Dec 17th Call for .50/.55. Will take half off when the calls are $1.

Futures up, Dollar up, and Curious George comes out of his tree…

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So there has been a few things a trader could count on each trading day... If the market was up, the US Dollar was down.. and vice versa. So here it is Sunday night(monday Morning), and for the first time in recent memory, the futures are up a decent amount (.5%+), and the US Dollar is up nearly as much (. 47%).

It was enough to get Curious George out of his tree.

 

It has been a risk on, risk off environment. The US Dollar has been a benefactor of the Risk-off trade, as traders have flocked to the greenback as a safe haven as equities sold off. With Wednesdays coordination of world banks to increase liquidity, the risk on trade was given the green light. Equities had their best day since 2009, and the US Dollar dropped.

 

Is the US Dollar ready to have a mind of its own, and continue it's ascension to $80? Time will tell, but tonights action has me confused, and curious george... well.... Curious...

A successful trader has many tools to help them tread the equity "waters", and the forex is one of them. Tonights inverese correlation has me confused. Lets see how the market is at open tomorrow.