June 2nd, 2022 Watch List

Stocks closed lower again on Wednesday, with the S&P dropping .75% although off the lows of the session. Asia markets closed mixed overnight while Europe indexes are mostly higher this morning. U.S. futures are pointing to a bounce this morning, the Dollar, Yields, and Oil are lower while Gold is higher.

And this is what UPB is reading this morning: https://www.optionmillionaires.com/morning-reads-34/

I added some SAGE calls yesterday as outlined on the watchlist. Think the positive data released in the pre-market yesterday should help bid the stock and there is always the possibility BIIB buys them out - they already hold a 10%+ stake and are on the hook for half a billion in royalty payments if/when SAGE's drug comes to market. It also trades right near cash, with the company holding a $1.6 bil warchest:

BIIB was a $200 stock back in 2018 before some hiccups in data:

BIIB also bought their stake at $104, which would make today's prices an extreme discount. Think a move over $40 is coming in the next week or two regardless and will look to close some of my calls out for 100% to cover costs when I get the chance:

It was a strong session for ZYME despite the market weakness, with the stock closing up nearly 4%, though it could not hold the $7 handle. Would hope that happens today and the premiums start coming into my calls so I can take some off to cover costs:

BPT also closed up 4% and over that key $20 handle. May look to take the last of my profits on the June strikes today and hold the July's for the eventual parabolic move over $25 in the coming week or so:

IBM broke but then failed to hold that $140 handle. Today should be the day. Not one to look at monthly charts often, but it is certainly setting up for a blue-sky breakout once that break holds:

MED, one of my Top 5 Stocks for 2020, announced a $100 mil accelerated buyback authorization yesterday. The company is well positioned and a great growth story but has fallen with the rest of the market. Think there is an opportunity to trade here to $200+. May nibble some June calls today:

AMZN will be splitting its stocks on Friday and will be effective Monday. The stock has had its best 4-day performance since the March 2020 rally. Google shareholders just approved their split but there is no date. Could be one to watch in the coming weeks for a ramp into the split date:


Will be eyeing U, ROKU, MDB, and VEEV for possible lotto trades today.

Would want to see that $410 level hold on the SPY today and would bode well into tomorrow and the weekend:

Here are the analyst changes of note for today

MongoDB price target lowered to $310 from $362 at Needham
Needham analyst Mike Cikos lowered the firm's price target on MongoDB to $310 from $362 to reflect the declines in the broader stock market but keeps a Buy rating on the shares after its "strong" Q1 earnings. The company's Atlas growth of 82% is enough to satisfy investor expectations, and Enterprise Advanced growth of 30% y/y was a welcome surprise, the analyst tells investors in a research note. Cikos adds that MongoDB healthily raised its revenue expectations after adjusting for macroeconomic headwinds which only began to appear in the latter part of Q1
Univest keeps Sell on Cassava after medical journal retracts article
Univest Securities analyst James Jang reiterated a Sell rating and $8 price target on shares of Cassava Sciences (SAVA) after the "Alzheimer's Research and Therapy" scientific journal retracted from publication "another" article previously published by Dr. Wong related to Simufilam's proposed mechanism of action due to their Editor-in-Chief's loss in confidence in the integrity of the data. Jang adds that Biogen (BIIB) having recently decided to cut back on Aduhelm's commercial infrastructure and increased FDA oversight in the Alzheimer's disease space increases risk for Cassava

BJ's Wholesale price target raised to $72 from $69 at Jefferies
Jefferies analyst Corey Tarlowe raised the firm's price target on BJ's Wholesale (BJ) to $72 from $69 and keeps a Buy rating on the shares as he took over coverage of the name. The firm's survey of 900-plus warehouse club members about renewal intentions and shopping behaviors returned results that were "bullish" for both BJ's and peer Costco (COST), noted Tarlowe. Renewal intentions appear strong, data suggests there is opportunity to raise membership prices, and members indicated they are visiting clubs more frequently and spending more versus prior surveys, Tarlowe tells investors
FedEx price target lowered to $245 from $250 at Morgan Stanley
Morgan Stanley analyst Ravi Shanker lowered the firm's price target on FedEx to $245 from $250 and keeps an Equal Weight rating on the shares ahead of the company's earnings report, telling investors that he expects fiscal Q4 results to come in below consensus as "the noise of recent quarters is likely to continue." However, Shanker adds that "anything short of a big miss may be good enough" as investors look ahead toward long-term targets at the analyst day on June 28-29. Disappointing FY23 guidance could deflate expectations going into the analyst day, but he believes the FY23 guidance will be "normal" and consistent with history, Shanker added

Elastic price target lowered to $100 from $125 at Stifel
Stifel analyst Brad Reback lowered the firm's price target on Elastic to $100 from $125 and keeps a Buy rating on the shares after the company reported fiscal Q4 results that "were fine," but he wonders why Elastic isn't having more sustained success down-market. He does not expect meaningful upside to management's FY23 guidance in what is "looking like a transition year," but Reback thinks there is likely limited near-term downside as he awaits an acceleration in the underlying business, he tells investors

And here is what I am watching today: MED, HSKA, GOOG, U, ROKU, MDB, VEEV, SPOT, EXPE, and TREE.

Let's have a great day!


JimmyBob (Scott)has been trading equities for over 15 years, a majority of which were OTC micro-cap stocks. He started trading high risk stock options over the past 7 years, and has proven winning trades in excess of 15,000%.

As one of the Co-Founders of optionmillionaires.com, Scott enjoys sharing his knowledge with other investors through timely blog posts, daily watch lists in the forum, weekly webinars, and helpful advice within the chatroom.

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