June 3rd, 2022 Watch List

Market soared on Thursday, despite MSFT lowering their guidance in the pre-market, with the S&P adding 1.8% while the Nasdaq rallied 2.69%. Asia stocks closed mostly higher overnight with some exchanges closed for holiday while Europe stocks are flat this morning. U.S. futures are pointing to a lower ope, the Dollar and Yields are higher while Oil and Gold are lower ahead of the May jobs report.

And this is what UPB is reading this morning: https://www.optionmillionaires.com/morning-reads-35/

It was an interesting session on Thursday, with stocks fading at the open on Microsofts lowered guidance, only to find a bid and rally for the rest of the day to close at highs. The rally was enough to put the S&P and Nasdaq back into the green for the week. If stocks can have a decent session today, could be back to back week of gains and maybe a hint of optimism going into the weekend... all this despite continued warnings of a recession from some leaders of the biggest companies on the planet.. ie. JPM, TSLA, BLK. We have two more weeks until the next Fed meeting and the expected .50% rate hike. A good sign if the SPY holds $410 today with $420 being the next point of resistance on a rally:

SAGE reversed early morning losses to close up 7%. I was able to exit some of my calls out to cover costs at 100% - this is not the type of market anything is safe day-to-day,. Will look to hold the rest for a possible move over $40 in the next week or two. If you missed my tweets, some more thoughts I why this should be trading higher:

BMY announced they were acquiring TPTX for $76 or $4.1 bil in an all-cash transaction. Another Bio M&A deal that should hopefully start to put a floor in the space, especially considering all these names trading at/near/below cash levels... ie. ZYME/SAGE.. ect.

ZYME tested the $7s again. yesterday but failed to hold, Hoping 3rd time is a charm today and be able to get the opportunity to lock some of my calls in to cover costs:

IBM finally breached and closed above that $140 handle after testing the $136s in the morning. It is gapping lower with the market this morning. If it can regain the $140s today think mid-high $140s can come next week:

Some promising signs in names like U, which had a great session yesterday with no true catalyst. Pending any massive sell off today, U should make it three weeks in a row of gains and maybe forming a bottom, even if a temporary one. Think can move into the $50s for so in the coming weeks so may look for some later dated strikes today:

U weekly:

U Daily:

TREE received an outperform rating this morning at William Blair. Could start making a move back to the $100s in the coming weeks. Only monthly strikes available but may look at some calls to play for that move:

EXPE chart still looks great and a move to $150+ looks possible. Have my eyes on that as well today:

Also still watching MED, HSKA, GOOG, ROKU, and SPOT.

Here are the analyst changes of note for today:

Okta price target raised to $140 from $125 at DA Davidson
DA Davidson analyst Rudy Kessinger raised the firm's price target on Okta to $140 from $125 and keeps a Buy rating on the shares. The analyst cites the company's "strong" Q1 earnings beat while noting that he had previously anticipated Okta's security breach to "only minimally impact near-term results". Okta's best-of-breed products will go a long way in helping them repair their reputation, Kessinger tells investors in a research note
Etsy price target lowered to $90 from $180 at UBS
UBS analyst Kunal Madhukar lowered the firm's price target on Etsy to $90 from $180 and keeps a Neutral rating on the shares. Based on the data from UBS Evidence Lab, the company's growth deceleration continues despite the easier comps, the analyst tells investors in a research note

RH price target lowered to $450 from $550 at Cowen
Cowen analyst Max Rakhlenko lowered the firm's price target on RH to $450 from $550 and keeps an Outperform rating on the shares. The analyst said its Q1 results were better than feared but its medium-term outlook is uncertain. He said he is encouraged by the launch of Contemporary sourcebook, noted RH England is on track and likes its upsized 2.45bn repurchase authorization
LendingTree assumed with an Outperform at William Blair
William Blair analyst Cristopher Kennedy assumed coverage of LendingTree with an Outperform rating and no price target. The stock's 51% decline year-to-date largely reflects the macro pressures tied to the mortgage market and creates an attractive risk/reward, Kennedy tells investors in a research note. Management moderated full-year guidance following the March quarter results, and Street EBITDA estimates for 2022 and 2023 have been reduced by about 17% since the beginning of the year, the analyst points out. He says LendingTree has evolved into a more diversified business that helps connect consumers with financial service providers

Roblox price target lowered to $52 from $59 at Citi
Citi analyst Jason Bazinet lowered the firm's price target on Roblox to $52 from $59 and keeps a Buy rating on the shares post the Q1 results. The company reported Q1 bookings, revenue, and adjusted EBITDA below consensus estimates but expects to see year-over-year booking growth rates improve as it progresses through the year, Bazinet tells investors in a research note. The analyst updated his model to reflect Roblox's performance to date and his latest outlook

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

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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