Markets closed higher yesterday, with the S&P adding .26% in another somewhat quiet session. Asia stocks closed mixed overnight while Europe stocks are flat. U.S. futures are pointing to a slightly higher open, the Dollar and Gold are lower while Oil and Yields are higher.
And this is what UPB is reading this morning : https://www.optionmillionaires.com/friday-morning-reads-114/
BLK gapped higher at the open yesterday, testing $454 before pulling back to close at $450. I was able to close the last of my $452.50 calls for over 900%. If it can hold $448 today, will look for some later dated strikes to play for a move into the $460+ territory:
I added more ABMD calls yesterday as the stock was nearing the $180 resistance and look poised to break-thru. The stock failed to break and then closed right near the lows of the day after a late session fade. Still think the stock heads over $190 but my calls expire today so will need to have a large move before the close. May try some November calls if the stock breaks $180 today:
NFLX faded its morning gap higher, nearly reversing all the gains before closing at $293. The earnings certainly did not shift sentiment much and many are still bearish the stock. Will likely be on the sidelines on this one for the foreseeable future.
ISRG reported earnings after the close yesterday that beat estimates while also raising their procedural guidance. There are concerns of MDT competition coming in the next few years which has weighed on the stock. It is up 3% or so in the pre-market... I am actually surprised it is not up much more considering the strong numbers which helped alleviate fears from their last quarter. I may look for some lotto calls for a move over $460 depending on the option pricing and as long as it holds the $440 handle:
Will be looking for potential friday lotto trades in ALGN, SHW, TREE, GOOGL, and possibly ROKU.
That $300 spot on the SPY has been a tough nut to crack. Would be a great sign headed into the weekend if we can close above that level:
Here are the analyst changes of note for today:
| Intuitive Surgical price target raised to $615 from $610 at Raymond James | |
| Raymond James analyst Lawrence Keusch raised his price target for Intuitive Surgical to $615 from $610 and maintained an Outperform rating following the company's "strong" Q3 earnings report. In a research note to investors, Keusch says he remains constructive on shares, given a multi-year new product cycle, procedure growth trends remaining intact, and significant balance sheet optionality with a ~$5.4B in net cash position. The analyst says he is a buyer of the stock following the "robust" performance, and says he views near-term competitive concerns as now largely derisked in the mid-term | |
| Fiserv price target raised to $125 from $110 at SunTrustF | |
| SunTrust analyst Andrew Jeffrey raised his price target on Fiserv (FISV) to $125 and kept his Buy rating, saying there is "material upside" for the company's earnings and free cash flows. The analyst notes that the stock price features about a 10% EBITDA discount relative to its peer Fidelity National (FIS) that is likely driven by the lagging organic revenue growth of its Global Business Solutions, but he believes that "detractors" are not focusing on the company's superior free cash flows. Jeffrey adds that the two stocks should trade closer to parity because of their comparable long-term organic revenue growth and Fiserve's "more cohesive" capital returns | |
| Jefferies likes setup for Intercept shares into 2020 | |
| Jefferies analyst Michael Yee says he left investor meetings more positive on 2020 setup for shares of Intercept Pharmaceuticals. Consensus is already negative on the obeticholic acid launch, expectations are low, and sales could do better than expected next year given the low numbers, Yee tells investors in a research note. He believes the risk/reward is skewed to the upside with shares "just above floor value" of primary biliary cirrhosis at $40 to $50. The value of nonalcoholic steatohepatitis is "heavily discounted" despite a large market opportunity and obeticholic acid being the likely first and only treatment "for the foreseeable future," adds Yee. He keeps a Buy rating on Intercept with a $125 price target | |
| Atlassian remains well positioned for durable growth, says Cowen | |
| Cowen analyst J. Derrick Wood said Atlassian reported solid Q1 results with revenues, billings, and earnings beating estimates. The analyst noted the company raised guidance as well prompting him to tell investors to add to positions as the company remains well positioned for durable growth with multiple levers to pull. Wood reiterated his Outperform rating on Atlassian shares | |
| Equinix price target raised to $625 from $575 at Nomura Instinet | |
| Nomura Instinet analyst Gregory McNiff raised his price target for Equinix to $625 from $575 saying several checks at a series of industry events suggest the company continues to improve its competitive position. The analyst, who believes less than half of eligible enterprise workloads have migrated to the cloud, keeps a Buy rating on Equinix shares | |
| Tesla's deliviery guidance 'ambitious,' 'difficult task,' says Wedbush | |
| Wedbush analyst Daniel Ives reiterated a Neutral rating and $220 price target on Tesla, saying he continues to be cautious on the story ahead of the company's Q3 results on October 23. In a research note to investors, Ives says that while the company did hit the target set back in July to sequentially increase the amount of vehicles delivered, he notes that it was only by about 1,700 units and that in order to hit its ambitious unit guidance of 360,000-400,000, the company will have to deliver about 105,000 vehicles in Q4, which he continues to view as a "difficult" task. Ives expects China will be a major focus of the company's conference call, as it remains a hot topic among the Street | |
And here is what I am watching today:
|
Stock Ticker |
Call/Put |
Strike |
Expiration |
Closing Price |
Possible Entry Price |
|
ISRG |
CALL |
$560.00 |
weekly |
1.65 x 1.85 |
0.25 |
|
BLK |
CALL |
$46.50 |
Oct 25th |
.70 x .90 |
0.80 |
|
ABMD |
CALL |
$230.00 |
Nov 15th |
.45 x 1.25 |
0.60 |
Let's have a Great DAY!
-JB