Markets closed higher on Tuesday and for the 5th session in a row, with the S&P adding .03% in a very quiet session. Asia stocks closed mostly higher overnight while Europe shares are mixed this morning. U.S. futures are pointing to a slightly higher open, the Dollar and Yields are higher while Oil and Gold are lower.
And this is what UPB is reading this morning: https://www.optionmillionaires.com/wednesday-morning-reads-135/
OLED closed up 1% yesterday and over $200, but will need to continue to the move for my calls to start paying off. The chart still looks great for a breakout and move to $210+ in the coming days:
WYNN is gapping higher this morning on positive developments out of Macau : https://www.reuters.com/article/us-china-cenbank-yuan/chinas-central-bank-lifts-yuan-transfer-limits-for-macau-idUSKBN1YM1BK
Going to regret not adding calls on Monday. If the stock does not gap too high, may add some $145 weekly calls as I think this news is extremely positive:
RARE was halted this morning to announce news of a sale of future European Royalties on it's Crysvita drug for $320 million. Should put some wind in the sails this morning. The stock closed right at highs yesterday. Still looking to close the rest of my $45 calls before Friday and add Jan/Feb strikes:
JP Morgan came out with their top Biotech picks for 2020: top picks in Biotech are BioMarin (BMRN), Vertex (VRTX), Apellis (APLS), MyoKardia (MYOK), Ascendis Pharma (ASND) and Karyopharm (KPTI). Other names to consider, says the analysts, are Acadia (ACAD), Gilead (GILD), United Therapeutics (UTHR), Bluebird Bio (BLUE) and Sage Therapeutics (SAGE)
Still compiling my own list into 2020, BLUE is definitely one on the list along with RARE.
A disappointing day for BHC. Still looking to add some April strikes but will wait for it to clear $29.75 or so. Still holding my Jan freebies as well.
That $320 area setting up as resistance here on the SPY:
Here are the analyst changes of note for today:
| Navistar price target lowered to $32 from $33 at RBC Capital | |
| RBC Capital analyst Seth Weber nudged his price target on Navistar lower to $32 and kept his Sector Perform rating after its Q4 results and FY20 guidance cut. The analyst notes that while the company's improved portfolio has positioned it to better withstand the industry downturn, his neutral stance also reflects the industry's elevated inventory amid expanded capacity as well as the uncertain operating backdrop. Weber adds that the industry headwinds are further reflected in Navistar's expectations of industry volumes trending to the lower end of prior forecasted range | |
| Yeti products now available at Lowe's, says Jefferies | |
| Jefferies analyst Randal Konik said his checks reveal that Yeti (YETI) products are now being sold by Lowe's (LOW) online and in at least 29 stores in 6 states, with more store distribution to come in February. He sees this as a sign of Yeti's increasing awareness, distribution, and brand "love." The analyst, who sees the total addressable market widening for Yeti, keeps a Buy rating and $47 price target on the shares | |
| Deutsche constructive on Airlines into 2020, upgrades Delta Air to Buy | |
| Deutsche Bank analyst Michael Linenberg upgraded Delta Air Lines (DAL) to Buy from Hold with a price target of $70, up from $61. The analyst also raised his price target for Buy-rated JetBlue (JBLU) to $26 from $23 and Buy-rated United Airlines (UAL) to $110 from $108. Airline stocks are discounting risk from Boeing's (BA) 737 MAX, says Linenberg, who remains constructive on the sector for 2020. Who would have thought that "healthy" sales growth and the return of margin expansion, accompanied by an accommodative monetary backdrop, would result in significant share price underperformance for U.S. airline stocks in 2019, the analyst asks | |
| Robot Roomba sales heading for slower growth, says Needham | |
| Needham analyst James Ricchiuti keeps his Hold rating on iRobot, also lowering his FY19 and FY20 EPS views by 4c and 65c to $2.68 and 60c respectively. The analyst says his update is driven by expectations of a more promotional strategy for Roomba to maintain its market share and believes that his prior assumptions for gross margins appear optimistic, given the costs required to fund with these pricing and marketing initiatives | |
| FedEx price target lowered to $167 from $175 at Raymond James | |
| Raymond James analyst Patrick Tyler Brown lowered his price target for FedEx to $167 from $175 following the company's Q2 results. In a research note to investors, the analyst says that while he admits that yet another FedEx guidance cut on the heels of greater-than-anticipated impacts from trade uncertainty, a slow industrial macro, unanticipated start-up costs around standing up its Ground's seven-day service and package mix has been "hyper-frustrating," he sees limited downside. Further, the analyst says he does believe the investments being made across the portfolio position FedEx to reap future operational cost benefits, synergies and growth. He reiterates an Outperform rating | |
| Deutsche ups Facebook target to $270, calls top large cap pick for 2020 | |
| Deutsche Bank analyst Lloyd Walmsley raised his price target for Facebook to $270 from $260 and calls the company a top large cap pick for 2020. The stock closed Tuesday up 47c to $198.39. The analyst is bullish on Facebook and sees the "renewed strength" in the core Facebook app becoming a "critical leg of the story" around the shares in 2020. As this becomes clearer over the next few quarters, investors should gain comfort in terminal value in the core Facebook app, leading to multiple expansion on top of revenue and earnings upside, Walmsley tells investors in a research note. His updated sum-of-the-parts valuation assumes a higher valuation for core Facebook | |
| WPX Energy price target raised to $17 from $15 at JPMorgan | |
| JPMorgan analyst Michael Glick raised his price target for WPX Energy to $17 from $15 after taking a closer look at the company's $2.5B merger with Felix. The Felix asset is "clearly accretive" at the asset level as well in terms of asset intensity/capital efficiency, oil cuts, margins and base decline rates, Glick tells investors in a research note. The analyst keeps an Overweight rating on WPX shares | |
| FedEx price target lowered to $183 from $189 at Wells Fargo | |
| Wells Fargo analyst Allison Poliniak-Cusic lowered his price target for FedEx to $183 from $189 following the company's quarterly results, saying FedEx "once again took a knife to expectations," lowering its full year outlook, citing lower than expected revenue across all businesses as well as a less favorable mix. The analyst tells investors in a research note that while the cost challenges in Ground were a negative surprise in the quarter, she remains Overweight and continues to take the view that FY20 earnings will be a likely bottom for FedEx as the TNT integration moves behind them, international demand stabilizes or inflects higher when/if a trade agreement is finalized and FedEx grows into its recent investments | |
And this is what I am watching today:
|
Stock Ticker |
Call/Put |
Strike |
Expiration |
Closing Price |
Possible Entry Price |
|
RARE |
CALL |
$55.00 |
Jan 17th |
.25 x .35 |
0.50 |
|
BLUE |
CALL |
$130.00 |
Jan 17th |
1.10 x 1.60 |
1.25 |
|
ICPT |
CALL |
$135.00 |
Dec 27th |
.30 x 1.30 |
0.50 |
|
WYNN |
CALL |
$142.00 |
weekly |
.11 x .14 |
0.30 |
|
BHC |
CALL |
$37.00 |
April 17th |
.37 x .43 |
0.40 |
Let's have Great Day!
-JB