October 6th, 2022 Watch List

Stocks closed lower on Wednesday, with the S&P losing .20%, albeit off the lows of the day. Asia stocks closed in the red overnight while Europe indexes are trading lower this morning. U.S. futures are pointing to a mixed open, the Dollar, Yields, and Gold are higher while Oil is lower.

And this is what UPB is reading this morning: https://www.optionmillionaires.com/morning-reads-114/

Markets finally showed some resiliency yesterday, reversing a rough morning to nearly close in the green. That $380 handle on the SPY continues to look like some tough resistance so would want to see that breached soon:

PTON gave back some of its 25% rally from Monday and Tuesday, closing down 4%. This morning they announced more layoffs and the CEO warned about the companies ability to operate if they cannot turn things around in the next 6 months. I find it hard to believe a company who derives a lot of their revenue from high margin recurring subscriptions cannot survive. Not going to add anything to my calls but do think the stock can still trade north of $10 in the coming days:

It was a great session for WING yesterday, closing up nearly 7% on no catalyst to speak of. Think this trades into the $150s and $160s in the coming weeks:

ROKU gave back some of Tuesdays gains yesterday but I like the chart here and think this trades into the mid-high $60s by tomorrow and $70s next week pending any market craziness. Will look to close the last of my weekly calls at some point today or tomorrow and add some later dated strikes:

TWLO closed in the red yesterday but right near its 50dma. If it finds a bid today over that level may look to add some calls for a move to $80 in the coming days:

It has ben rough for APRN as of late. Still love the story and may look to add some later dated calls on the name in the coming days.

Here are the analyst changes of note for today:


Hasbro price target lowered to $112 from $128 at DA Davidson
DA Davidson analyst Linda Bolton Weiser lowered the firm's price target on Hasbro to $112 from $128 but keeps a Buy rating on the shares. The analyst cites the company's 2022 guidance cut announced at its analyst meeting, with Q3 revenue seen down 15% due to retailer inventory reductions. Weiser adds that she is also cutting her assum
American Airlines price target lowered to $7 from $8 at BofA
BofA analyst Andrew Diodora lowered the firm's price target on American Airlines to $7 from $8 and keeps an Underperform rating on the shares. In his Q3 earnings preview for the airlines group, Diodora argues that investor focus "has gone back and forth between cost inflation and the revenue recovery all year," but revenues are back in the spotlight as the operational disruptions from the summer have eased. Airline bookings have plateaued since the spring and he expects Q4 revenue guidance "to look very similar" to Q3, which "makes it hard to find idiosyncratic stories in airlines," Diodora said
Zillow price target lowered to $40 from $50 at Jefferies
Jefferies analyst John Colantuoni lowered the firm's price target on Zillow to $40 from $50 and keeps a Buy rating on the shares. The analyst reduced estimates and price targets across U.S. internet in anticipation of a slowing macro environment. He thinks share multiples are likely to inflect before fundamentals, and recommends "leaning on" risk/reward to determine which Internet stocks to own long term. His preference is to hold names offering a combination of "competitive differentiation, exposure to attractive end-markets, levers to offset softer demand, and robust" free cash flow. Colantuoni reduced 2023 revenue estimates by 5% on average, which results in his numbers falling 4% below consensus. However, the correction across internet has created more attractive risk/rewards, the analyst writes. He believes Airbnb (ABNB) offers the most recession-proof characteristics, ACV Auctions (ACV) offers the most attractive long-term growth profile, and Etsy (ETSY) offers fundamentals that have already "hit trough
TripAdvisor price target lowered to $18 from $21 at Jefferies
Jefferies analyst John Colantuoni lowered the firm's price target on TripAdvisor to $18 from $21 and keeps an Underperform rating on the shares. The analyst reduced estimates and price targets across U.S. internet in anticipation of a slowing macro environment. He thinks share multiples are likely to inflect before fundamentals, and recommends "leaning on" risk/reward to determine which Internet stocks to own long term. His preference is to hold names offering a combination of "competitive differentiation, exposure to attractive end-markets, levers to offset softer demand, and robust" free cash flow. Colantuoni reduced 2023 revenue estimates by 5% on average, which results in his numbers falling 4% below consensus. However, the correction across internet has created more attractive risk/rewards, the analyst writes. He believes Airbnb (ABNB) offers the most recession-proof characteristics, ACV Auctions (ACV) offers the most attractive long-term growth profile, and Etsy (ETSY) offers fundamentals that have already "hit trough."

And here is what I am watching today: CMG, TWLO, SPOT, U, ROKU,, TZA, GNRC, WYNN, BIIB,, WIX, BJ, U, LVS, ICPT, CI, CMG, HUM, TRIP, SAGE, and PTCT.

Let's have a great day!

-JB

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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