Markets closed higher on Thursday, with the S&P squeezing out a .03% gain while the Nasdaq rose .39%. Asia markets closed mixed overnight while Europe stocks are in the green this morning despite the surprise upsets coming out ot the Snap elections in the UK. U.S. futures are higher, the Dollar is stronger, while Gold, Oil, and Treasuries are all lower.
Here is the morning prepper from UPB : https://www.optionmillionaires.com/friday-morning-market-prepper-10/
Super Thursday turned out to be a dud, with markets trading in another tight range as the supposed volatility events came and went. Even this morning markets are higher despite a surprise result in the UK elections that puts into question the Brexit, which is nearly at it's 1 year anniversary. Another round of events that can be added to this market 'climbing the wall of worry'. Next week we get the Fed, with all expectations pointing to another rate hike. Lets see how it is spun over the weekend and into next week by the market pundits.
I added some BIDU puts yesterday as the China ADRs started to reverse the early morning sympathy gaps from BABA. I was looking for the stock to pullback to $182, but seemed to find support around $184 so I closed the puts for a nice gain. If you have listened to me in the chatroom over the past year or two, you know my thoughts on BIDU. I compare the BIDU now to what YHOO was back in the day in the United States. BIDU's lack of execution and foresight is catching up to them, and there is increased competition from some very smart companies in China now. Eventually I think BIDU will be at the bottom of the totem pole. A trade I may revisit in the future.
ALGN looked ready to break out over $150 and move into new all-time highs so I added some June $155s to go along with my June $150s and July $165s. Once the stock started to move near $152 I closed the last of my $150s out for over 600%. I can see this stock being $180-190+ in the coming months and will continue to play the calls for that outcome.
CMG looked to breakdown in the morning before finding a bid - once it neared $462 I salvaged my puts. As long as it is under the 50dma I think it is susceptible to more downside to $430 and will be watching for more opportunities.
I was looking at AGN calls all day and finally added some $235s for next week. They look relatively inexpensive and a move to $240 next week will make them a 1100%+ gainer. $235 will be the breakout point:
CTRL moved over $21 and into 52 week high territory before pulling back. Will need a bigger move for my $22.50s and will look for later dated strikes today. Like I have been saying think this has possibility for $27+ in 2017.
Just an FYI: I will be doing a back half of 2017 Webinar which will have some new stock ideas, as well as targets for some of my favorite ones through 2017 and 2018. Not a big fan of going out more than 1 year but will try this time as I think it helps adds color to my crazy thoughts and trades. If you have any suggestions or things you would like covered please email us at optionmillionaires@gmail.com or you can DM me in the chatroom and/or comment below.
Looks like $244 still solid resistance for the SPY and will wait for a $242 test and bounce before adding that as support:
Here are the analyst changes of note:
Alder 50% pullback provides 'compelling' buying opportunity, says Leerink
Leerink analyst Paul Matteis views the 50% pullback in shares of Alder Biopharmaceuticals since the middle of November as a "compelling" buying opportunity. After a "deep dive" into three major bear theses, Matteis says Alder "represents one of the most compelling buying opportunities in the CNS space." He lowered his price target for the shares to $32 from $33 and keeps an Outperform rating on the name
Kratos Defense shares have material upside, says Canaccord
Canaccord analyst Ken Herbert believes Kratos is increasing its profile and he expects it will continue to be one of the better performing small-cap defense stocks. The analyst believes there is a lack of awareness among investors of the stock, but as the company continues to deliver on its expectations, the stock has material upside. Herbert reiterated his Buy rating and $14 price target on Kratos Defense shares
Children's Place selloff a 'significant' buying opportunity, says FBR Capital
FBR Capital analyst Susan Anderson views the 14% pullback over the past month in shares of Children's Place as a "significant" buying opportunity. The analyst calls her recent meetings with company management "very positive." The meetings supported the analyst's belief that Children's Place "is in a league of its own given" given the company's internal initiatives as well as a "more stable" children's sector. Anderson expects the stock will continue to outperform over the next several years and reiterates an Outperform rating on the name with a $127 price target
Alibaba price target raised to $161 from $144 at BofA/Merrill
BofA/Merrill Eddie Leung raised Alibaba's price target to $161 from $144 following better than expected FY18 sales guidance. The analyst expects continued improvement in marketing/customer services, ecommerce industry growth, and Intime consolidation contribution. Leung said added value is being driven by data and technologies that is increasing marketing spending, improving advertiser conversion rates, and increasing user engagement through a wider range of marketing tools. The analyst has a Buy rating on Alibaba shares
Egalet may benefit from increased scrutiny of opioids, says JMP Securities
After the FDA requested that Endo (ENDP) remove its Opana ER opioid from the market due to increased risk of abuse using injections, JMP Securities analyst Jason Butler says that Egalet's (EGLT) abuse deterrent opioid alternatives could be boosted by the FDA's increased scrutiny of opioids. The analyst reiterates a $15 price target and Outperform rating on the stock
Nvidia price target raised to a Street high $185 from $155 at BofA/Merrill
BofA/Merrill analyst Vivek Arya raised Nvidia's price target to $185 form $155 and reiterated his Buy rating saying he sees strong upside to 2H and 2018 consensus estimates. The analyst said Nvidia's new Volta product cycle offers stronger pricing and said share momentum could continue as large-cap active US managers only own 17% of shares, a potential expanding ownership by Softbank vision fund, and scarcity value
Credit Suisse sees no impact to Incyte's epacadostat from NewLink IDO news
Credit Suisse analyst Alethia Young said she is not surprised that Roche (RHHBY) returned IDO inhibitor GDC-0919 to NewLink (NLNK) after seeing the "disappointing data" at ASCO. She doesn't see an impact to Incyte's (INCY) own IDO inhibitor, epacadostat, from the news, as she thought the data made GDC-0919 appear clinically inferior to epacadostat in combination with PD-1. She keeps an Outperform rating on Incyte shares, adding that investors may get another update on Bristol-Myers' (BMY) internal IDO, BMS-986205, later this year
House financial reform bill unlikely to advance in Senate, says RBC Capital
RBC Capital analyst Gerard Cassidy says that the financial regulation reform bill passed yesterday by the House would help the banking sector but probably won;t be passed by the Senate. Large publicly traded banks include Bank of America (BAC), Citi (C), Goldman Sachs (GS), JPMorgan (JPM), Morgan Stanley (MS), U.S. Bancorp (USB) and Wells Fargo (WFC)
Coach price target raised to $54 from $50 at Baird
Baird analyst Mark Altschwager raised his price target on Coach to $54 from $50 and said he remains positive on the shares as the company appears to be one of the few playing offense in a tough retail environment. The analyst sees continued top-line drivers including improved conversion, outlet collaborations, and footwear expansion. Altschwager reiterated his Outperform rating on Coach shares
Nvidia price target raised to $175 from $140 at Argus
Argus analyst Jim Kelleher says that Nvidia's financial results are improving much more rapidly than those of its peers, keeping its stock attractive despite its huge gains. The analyst notes that the company used its Investor Day to elaborate on its strategy in key growth markets. He raised his price target on the shares to $175 from $140 and keeps a Buy rating
Alibaba guidance 'impressive,' says KeyBanc
KeyBanc says that Alibaba's guidance for a 45%-49% revenue increase in fiscal 2018 is "impressive." The firm says that the company's newer initiatives make it more confident in the company's ability " to continue to increase its monetization rates on its core commerce over the long term." It keeps a $137 price target and Buy rating on the shares
Dunkin' Q2 sales estimate lowered on 'sluggish' checks at Credit Suisse
Credit Suisse analyst Jason West cut his forecast for Dunkin' Brands' U.S. same-store sales to flat from a prior view they'd be up 2% after his franchisee contacts indicated that sales remained flat-to-slightly negative into Q2. However, the contacts noted some improvement of late, citing weather and new beverages, West added. He maintains his Outperform rating and $61 price target on Dunkin' shares
And here is what I am watching today:
|
Stock Ticker |
Call/Put |
Strike |
Expiration |
Closing Price |
Possible Entry Price |
|
CTRL |
CALL |
$22.50 |
July |
.75 x .90 |
0.85 |
|
LITE |
CALL |
$70.00 |
June |
.40 x .55 |
0.40 |
|
AMZN(Lotto) |
CALL |
$1020.00 |
Weekly |
.59 x .82 |
0.25 |
Let's have a GREAT DAY!
-JB