May 28th, 2019 Watch List

Futures are pointing to a slightly higher open, as the S&P looks to end a 3 week losing streak - it is a 5 week losing streak for the Dow.  Asia markets closed higher overnight while Europe stocks are mostly in the red this morning. The US Dollar and Oil are slightly higher while Gold and Yields are lower.

And this is what UPB is reading this morning:

It was a great end to the week, with SPLK going splat and ROKU soaring to more all-time highs.

As discussed on Friday's watchlist. was looking to play some SPLK puts as I thought the stock would fade its morning green despite a strong beat and raise:

May 24th, 2019 Watch List


The stock actually rallied at the open to test $129.70, before melting for the rest of the morning. I was able to scale out puts for some nice profits with the last sale yielding over 1000%. It was a nice way to end the week and great to see a plan come together.

ROKU closed at all-time highs once again on Friday, with the stock showing strength for the entire session. This morning Stephen's downgraded the stock to equal-weight after having only initiated ROKU at an overweight on May 6th. At some point the ROKU freight train slows down, this downgrade will be another test of its resilience. Although a day or two of consolidation would not be a bad thing here, and should set it up for the eventual $100 test:

HUYA received an upgrade this morning at JPM. They took the stock to overweight but lowered the PT to $26 from $28.  The stock was at $29 in March and April so the PT downgrade is mostly an adjustment to the 30% pullback since then:

Still holding my July $26 calls and may look for some Aug strikes today.

GOLD is back under that $1280 level and remains in a downtrend.:

Still holding my June DUST calls and may look for some other strikes to play for the bigger move that is coming:

YEXT reports earnings Thursday after the close. The monthly options are implying a 15% move. Still looking to add some more calls ahead of the report, likely Aug strikes.


And here are some of the implied moves for companies reporting this week:

WYNN is back on watch for some calls, would want to see the $114 level hold today:

The SPY closed right around that $283 support/resistance, . Think the $280 level comes in play at some point soon, so will  look for some inexpensive weekly put hedges on a break below $282.50(likely in a cloud/SaaS name):

Here are the analyst changes of note for today:

Beyond Meat initiated with a Market Perform at William Blair
William Blair analyst Jon Andersen started Beyond Meat with a Market Perform rating
BioMarin initial selloff on valrox data 'wholly misplaced,' says Piper Jaffray
Piper Jaffray analyst Christopher Raymond recommends using this morning's weakness in shares of BioMarin as a buying opportunity. The stock in premarket trading is now little changed after selling off earlier in the morning. The initial premarket reaction to year three Phase 1/2 data and initial Phase 3 data for valrox is "wholly misplaced," Raymond tells investors in a research note. Specifically, with mean F8 levels going from 36.4 IU/dL at year two to 32.7 IU/dL at year three, and median going from 26.2 IU/dL to 19.9 IU/dL, the bear scenario 10-15 IU/dL is "off the table," says the analyst. He believes that while some investors "appear to be nitpicking" management's characterization of a plateau, the plateau is "exactly what we have here." Raymond expects BioMarin shares to recover this morning's conference call and he keeps an Overweight rating on the name with a $120 price target
Square to start 'rapidly' compounding adjusted EBITDA, says Guggenheim
Guggenheim analyst Jeff Cantwell said he sees Square shares as undervalued at current levels, contending that the company is entering a period when he expects it to "rapidly" compound adjusted EBITDA, given emerging tailwinds in international markets, its expanding hardware lineup, the emergence of the Cash App and Cash Card as a key revenue contributor and continued expansion in the company's products and services. He believes the market often tends to be hyper-focused on near-term trends for Square and undervalues the company's long-term financial profile, said Cantwell, who forecasts that the company can generate $3B in adjusted EBITDA and $4 in adjusted EPS in 2024. Cantwell has a Buy rating and $94 price target on Square
China trade damage could result in lower Apple earnings, says Cowen
Cowen analyst Krish Sankar assessed the potential damage to Apple's earnings from the China trade war. He estimates a 5%-30% unit demand destruction across all hardware sales could impact earnings by 1%-8%. The analyst said in the case of a 100% demand destruction, meaning the iPhones is banned in China, he estimates a roughly 26% impact to FY20 earnings. Sankar maintained his Outperform rating and $245 price target on Apple shares
Scynexis weakness a buying opportunity, says Canaccord
Canaccord analyst Dewey Steadman said the recent pullback in Scynexis represents a compelling long-term entry point. He calls Scynexis a unique story in the infectious disease space with a chance for a large retail indication with its ibrexafungerp WC program alongside important life-saving applications for refractory fungal infections with the same product. Steadman reiterated his Buy rating and $4 price target on Scynexis shares price target raised to $2,500 from $2,400 at Cowen
Cowen analyst John Blackledge raised his price target on to $2,500 from $2,400 given positive results from its recent cloud survey. The survey showed respondents expect accelerating spending on AWS in 2019 versus other cloud platforms. Blackledge reiterated his Outperform rating on Amazon shares
Descartes Systems price target raised to $45 from $41 at RBC Capital
RBC Capital analyst Paul Treiber raised his price target on Descartes Systems to $45 and kept his Outperform rating, also raising his implied enterprise value to forward EBITDA estimate multiple to 26-times from 24-times. The analyst says the 19% stock price run-up since the company reported Q4 results reflects improved investor sentiment toward its $250M Visual Compliance acquisition and organic growth. Treiber adds that although the valuation on Descartes Systems has risen to the high end of its historical range, he also expects the company to generate the "fastest adjusted EBITDA growth in 7.5 years" in Q1 and above-consensus EBITDA in Q2
Citi cuts Apple target to $205 after 'materially' lowering iPhone estimates
Citi analyst Jim Suva lowered his price target for Apple to $205 from $220 while maintaining a Buy rating on the shares. The analyst "proactively" cut his iPhone unit sale estimates as he believes the U.S./China trade situation will result in a slowdown of iPhone demand in China as China residents shift their purchasing preference to Chinese brands. Suva's independent due diligence "now shows a less favorable brand image for iPhone." Apple has 12% unit share in China and these unit shipments could be cut in half, the analyst tells investors in a research note. Nonetheless, Suva finds Apple shares attractive despite "materially" lowering his estimates
Tesla shares 'oversold,' says Oppenheimer
Oppenheimer analyst Colin Rusch notes that Tesla shares have plummeted on concerns such as increased focus on autonomy, China/U.S. trade tensions and price declines for Models S and X suggesting larger demand issues. The analyst remains underwhelmed by competitive vehicles but believes Tesla is testing potential saturation at current volumes. Further, Rusch believes shares are "oversold" but that Tesla will need to show strong sell-through in all key markets while improving gross margin for shares to recover. He reiterates an Outperform rating and $437 price target on the shares
Stephens makes 'tactical downgrade' of Roku to Equal Weight
As previously reported, Stephens analyst Kyle Evans downgraded Roku to Equal Weight from Overweight, stating that though he remains "very positive" on Roku over the long-term, he believes the stock's recently increased valuation combined with raised expectations creates increased near-term risk. Despite the "tactical downgrade," Evans added that "everything" he is tracking on the fundamental side continues to look strong and he keeps an $84 price target on Roku shares
JPMorgan upgrades Huya to Overweight, says 30% selloff overdone
JPMorgan analyst Daniel Chen upgraded Huya to Overweight from Neutral while lowering his price target for the shares to $26 from $28. The analyst believes Huya's 30% share price decline since April 1 is overdone. Chen says that contrary to apparent investor concern on near term margin pressure from competition, he's incrementally more positive on the company's fundamentals. Competition within China game live broadcasting industry is turning more benign after Tencent's new policy against host poaching between top platforms, Chen tells investors in a research note. Further, the analyst is more positive on the China game market after game approval resumption

And here is what I am watching today:

Stock Ticker




Closing Price

Possible Entry Price




Aug 16th

.30 x .40





July 19th

.35 x .50





Aug 16th

.45 x .60


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, 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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