Here is an update on the trade idea we sent out via text this morning.

Once again, for those having issues receiving the texts or want to receive via email, just make sure you subscribe to this forum area: https://www.optionmillionaires.com/forum/forumdisplay.php/9-SMS-Text-Alert-Archives

Also, I will try my best to post my rationale around the trade, as well as the strategy within an hour of the trade idea.

 

Todays Trade Idea is VMW 75 June calls .45/.50 at the time of the trade. This is a beaten down stock that has plenty of upside. This morning it tested the 69.50 triple support line and found a nice bid. Once I saw the volume I went in the weekly 72.50 calls @ .45 and went for the June 75s @ .45/.50 (less risk on those)

Will wait and see for todays action on an exit plan, but figure these will be doubles soon. And I think VMW can retest the 50 DMA of 74.27.

Stay tuned to chat and twitter for any updates. And please remember the alert last week on V. Those who did not lock 100%+ in profits were holding bidless calls by the end of the week.

 

What a boring start to the week as the market bounced between gains and losses. There were some nice movers yesterday to include SODA and the two stocks on the watchlist WYNN and CME. As well as LULU afterhours, which took a beating from the surprise announcement of the future departure of it’s CEO.

Overnight the Bank of Japan kept rates untouched, which seems to have shaken global markets. You also have a court hearing starting in Germany today around the Bond buying programs through the ECB and Draghi. A negative outcome on the hearing could result in the ‘do what ever it takes’ wording from the ECB president being changed to ‘not sure what we can do anymore”

Futures are down over 1% at the moment, while commodities are also taking it on the chin with the SLV right near multi-year lows pre-market.

Buy the Dip will once again be tested today.

 

Here are some of the analyst changes for today:

 

 

AAPL Apple news in-line with expectations, says Oppenheimer

Oppenheimer believes that Apple's update of its iOS and the introduction of iTunes Radio were in-line with expectations. Oppenheimer thinks that the company's hardware updates will be critical, and the firm keeps an Outperform rating on the stock

 

LULU Lululemon price target lowered to $60 from $72 at Goldman

Goldman believes Neutral rated lululemon weakness this morning is justified given execution risk of new management, slowing comp trends, and supply chain investments that could pressure margins

 

LULU Lululemon new CEO could have positive influence, says Stifel

After lululemon announced that its CEO would resign once a replacement is found for her, Stifel believes that a new CEO with operational expertise and merchandising competency could have a positive influence on the company. The firm thinks the company's long-term strategy is sound, and it keeps an $85 price target and Buy rating on the stock

 

P Pandora can continue to execute despite increased risk, says RBC Capital

RBC Capital believes that the launch of Apple's (AAPL) iTunes Radio increases the competitive pressure on Pandora (P). However, the firm thinks that some of the impact from the new service may already be priced into Pandora's stock, and it notes that Pandora's service has more potential reach because it is available on platforms other than Apple. The firm keeps an Outperform rating on Pandora

 

C Citigroup EPS can increase about 45% over next two years, says Bernstein

Bernstein believes that Citigroup's adjusted EPS can jump about 45% over the next two years, driven by lower credit costs and positive operating leverage,. The firm thinks the company can meet or exceed cost reductions reflected in consensus estimates and it keeps an Outperform rating on the stock

 

AMZN Amazon.com shares should be bought by long-term investors, says Bernstein

Bernstein expects Amazon.com's 2014 gross profit margins to significantly beat expectations. The firm expects the company's EBITDA and operating income to exceed expectations over the longer term, and it keeps a $350 price target and Outperform rating on the stock

 

NAV Navistar upgraded to Market Perform from Underperform at BMO Capital

BMO Capital upgraded Navistar to Market Perform based on the slow recovery in market share and cost cutting efforts. Price target raised to $35 from $20

 

AMZN Piper sees slight downside to Amazon quarter after data

Piper Jaffray says ChannelAdvisor data indicates slight downside to Amazon.com's June quarter. The firm notes ChannelAdvisor sales saw a sequential deceleration to 26% year-over-year growth in May from 31% in April and the March quarter average of 32%. Piper has an Overweight rating on shares of Amazon with a $325 price target

 

LULU Lululemon downgraded to Neutral from Buy at UBS

UBS downgraded lululemon and removed it from its Most Preferred List due to the unexpected departure of CEO Christine Day. The analyst believes there is less visibility and confidence in merchandise/operational execution and risk to estimates. Price target lowered to $72 from $90

 

 

Holding CME, WYNN, BPT, WU, LNKD, DUST, ZSL, GLL calls for now. Will be keeping it small again today and will look for some bounce plays that I missed yesterday in GOOG as well as trying to get a lower strike on my JUNE DUST calls.

 

DUST is extremely risky, i still have my 180 calls i purchased for 2.35 that are now bidless, so will try to recoup the losses. Will wait for GOOG to dip before trying to get some calls.

 

 

Stock Ticker	Call/Put	Strike	Expiration	Closing Price	Entry Price
GOOG	CALL	$920.00	Weekly	0.90	0.35
DUST	CALL	$110.00	June	1.10	1

 

 

Lets have a great day!

 

- JB

 

 

Lets see if the mini two day rally to end last week continues today after a volatile start to June. There are few catalysts this week and the FOMC meeting June 18th-19th will continue to generate buzz : http://www.federalreserve.gov/monetarypolicy/fomccalendars.htm

Earnings are light as well but LULU could be interesting at the bell, although positions are pricey. ULTA also reports tomorrow after the bell. The Nikkei closed up nearly 5% overnight, the biggest rally since 2011, and will most likely head back to previous highs over the next week or two.

AAPL has it’s WWDC today and could provide a bid in shares depending on some announcements. Folks are expecting some announcement on music streaming, the new IOS, developers access to Apple TV, and possibly an update to Maps. We shall see.

 

FB was upgraded today and is seeing a nice bid in the pre-market. TSLA was the front cover story on Barron’s with a negative spin and $50 price target which has the stock under $100 pre-market. Musk hung up on the interviewer claiming they had no clue about the industry, and quite honestly i agree with some of that, as the article was using BMW and F fundamentals to warrant their price valuation for TSLA. Either way, will hope for a break to $85 and I will go calls.

 

If you missed it, here is the week ahead from last night : https://www.optionmillionaires.com/forum/showthread.php/438-The-Week-Ahead-with-UPB-and-JPB-6-9-2013

 

Here are some of the analyst changes today:

 

 

CRM Salesforce.com price target raised to $65 from $51.75 at Wunderlich

Wunderlich raised its price target for Salesforce.com citing a more positive outlook post the company's acquisition of ExactTarget. The firm keeps a Buy rating on the stock

 

WU Western Union upgraded to Outperform from Market Perform at Raymond James

 

AAPL Piper sees 80% chance of iRadio at today's Apple event

Piper sees an 80% chance of Apple announcing its iRadio ad supported music service at today's WWDC keynote. The firm sees a 90% chance of Apple unveiling a redesigned operating system and an 80% chance of new maps and an update to Siri. Piper reiterates an Overweight rating on shares of Apple with a $655 price target

 

MON Monsanto upgraded to Outperform from Neutral at Macquarie

Macquarie upgraded Monsanto based on relative valuation. Price target raised to $117 from $105

 

FB Facebook upgraded to Buy from Hold at Stifel

Stifel upgraded Facebook with a $29 price target citing near-term catalysts and its belief that shares have bottomed. The firm sees potential catalysts from inclusion in the S&P 500 Index, enthusiasm over back-to-school, and the monetization of Instagram

 

Cree price target raised to $70 from $59 at Stifel

Stifel increased its price target on Cree based on strong LED lighting adoption trends. The firm thinks that the company will be at the high end of its Q4 guidance range or surpass the range. The firm keeps a Buy rating on the shares

 

FB JPMorgan reiterates Overweight on Facebook after weakness

JPMorgan attributes the recent underperformance in shares of Facebook to concerns around user engagement and monetization into the back half of the year. However, the firm believes competing services are having only a modest impact on time spent on Facebook and reiterates an Overweight rating on the stock with a $35 price target

 

Ulta Salon shares should be bought ahead of earnings, says Sterne Agee

Sterne Agee expects Ulta's Q1 results to surpass its guidance, and the firm predicts that the company's Q2 guidance will be solid. Sterne Agee keeps a Buy rating on the stock

 

 

Here are the strikes I am looking at for the open:

 

 

Stock Ticker	Call/Put	Strike	Expiration	Closing Price	Entry Price
CME	CALL	$75.00	June	0.35	0.35
WYNN	CALL	$147.50	June	0.31	0.30

 

 

Will be keeping it small for now. Stay tuned for chat and twitter for updates.

 

Lets have a great day!

 

- JB

 

 

What a volatile week it has been, as the market has traded in a wide range on a daily basis. The SPY pulled back below the 50DMA, and then found footing later in the day to close in the green. The much anticipated May jobs report is out and came in right around expectations, although the unemployment rate move up to 7.6% from 7.5% as more folks looked for work.

I would like to think this job report is like Goldilocks and the Three Bears, and that this job report was not too hot, and not too cold... it was just right to appease those that the fed is going to take the pedal off the gas, as well as making sure things are not too bad either. Futures are moving higher on the report. We shall see if those gains hold.

 

V started the week off nicely for us, but shows how risky holding weeklies can be as not selling for more then a double on Tuesday proved painful. BPT continues its uptrend and still feel confident about $100 before June expiry. VRA had some horrible news to go with poor earnings, so that was a tough one this week, although it was upgraded today.

 

Will try for a few small lottos today. Here are some of the analyst changes for today:

 

 

 

 

 

EQIX Equinix shares should be bought on weakness, says Stifel

After Equinix (EQIX) dropped in after-hours trading based on Iron Mountain's (IRM) statement that it is experiencing difficulties with qualifying for REIT status, Stifel thinks that past favorable rulings on data centers' applications for REIT status bode well for Equinix. The firm reiterates a $265 price target and Buy rating on Equinix

 

 

FB Facebook recommended ahead of product launches at Morgan Stanley

Morgan Stanley recommends using recent weakness to add to Facebook positions ahead of 2H and 2014 product launches that include video advertising and local discovery ad product, among other reasons. Shares are Overweight rated with a $34 price target

 

VMW VMware downgraded to Hold from Buy at Drexel Hamilton

 

VRA Vera Bradley upgraded to Neutral from Underperform at Sterne Agee

Sterne Agee upgraded Vera Bradley to Neutral due to valuation

 

LULU Lululemon upgraded to Underperform from Sell at CLSA

CLSA upgraded lululemon to Underperform based on full valuation and reduced product issues. Price target raised to $85 from $55

 

ANF Abercrombie & Fitch upgraded to Buy from Neutral at BofA/Merrill :

 

MELI MercadoLibre downgraded to Neutral from Overweight at JPMorgan

JPMorgan downgraded MercadoLibre with a $120 price target citing valuation

 

AAPL Apple checks show downward trending iPhone sales, says Jefferies

Jefferies said its channel checks indicate iPhone sell-through is trending downward in the June quarter to around 30M units versus 35M units in the March quarter. The firm believes iPad minis are cannibalizing more than expected and keeps a Hold rating on Apple shares with a $420 price target

 

SODA SodaStream price target raised to $82 from $66 at Citigroup

Citigroup raised its price target for SodaStream shares after meeting with management and keeps a Buy rating the stock. Citi expects SodaStream's products to increase at a faster rate than previously expected due to expanding markets and new products launches. The firm notes management said "no comment" regarding recent merger headlines

 

 

 

Here are some of the strikes I will be looking at for the open:

 

 

Stock Ticker	Call/Put	Strike	Expiration	Closing Price	Entry Price
LNKD	CALL	$175.00	Weekly	0.34	0.35
TSLA	CALL	$100.00	Weekly	0.85	0.40
SINA	CALL	$60.00	Weekly	0.10	0.05

 

 

Hope to see you Sunday night at 10:30pm for the week ahead!!

 

Lets have a great day!

 

- JB