What a crazy day yesterday as the market sold off all morning and $SPY dropped under $141 for a bit. We did recoup some the rest of the day, but was still a big down day as the DOW dropped 250 pts. I rarely use the DOW to describe the overall market but 250 pts down sounds better then 1.39% for the SPY. I was saying it on audio yesterday that it did not feel like a big down day. On typical 1.5-2% down days, you will find momentum and growth stocks down 3-5%, and most of them were less then 2% down, even, or even green. Obviously DOW components MMM and Dupont dragged on the index with horrible earnings. We did have quite a few earnings reports yesterday. FB and PNRA stole the show with expectation beating earnings. NFLX and BWLD missed expectations, with both stocks down near 10-15%+ yesterday and this morning. We shall see where the market takes those stocks but I will not be buying any positions into BWLD or NFLX.
Currently hold SODA 45 calls, COH 62.50/65 calls, PNRA 185 C, BWLD 100 calls(worthless), NFLX 90/100 calls (WORTHLESS), WDC 35WC and 40 Nov C, WHR 100 calls, SINA 60/62.50 calls.
Positions I am looking at for open:
|Stock||Call/Put||Strike||Expiration||Closing Price||Entry Price|
|FFIV||Call||$120||NOV||.25 x .30||0.30|
Anytime FB has run-up or even pre-IPO, social stocks were a good play. Think $SINA and $LNKD get serious mojo at the open so will be looking for calls quick on both. Will not chase LNKD 110 but will try for the fill. FFIV chart looks exactly like PNRA and think the fade means cheap calls, will try for NOV so have time if the move is not big. Still like WYNN and will look for the NOV 130s, as those positions are actually cheaper then before they announced the date, while the OCT positions are now more expensive(makes no sense which is good for us!).
Will hold my COH, WDC, and WHR calls for the near term.
Also, make sure you read my take on SODA : https://www.optionmillionaires.com/2012/folks-have-the-story-wrong-on-sodastream-soda-or-do-they/
Lets have a great day!