SINA continued its downward spiral Monday and Tuesday. We figured a bounce and squeeze was in order, as it has done so in the past. Today finally looks like the time for the bounce, as SINA held $60 and has bounced all morning to $62.50. Should bounce nice the rest of the week. Weekly options are extremely risky, but can be very rewarding as well. Looking at the $67.50 for .40.
DNDN was once a high flying stock, with hits hyped prostate cancer drug provenge, leading the hype. DNDn went from sub $5 stock in early 2009, to $55 stock in early 2010. Dissapointing sales results and other factors have resulted in a massive sell-off and DNDN has been trading near multi-year lows.Over the last few weeks, the stock has shown some life and with todays news, i fully expect this to be trading over $10 in the short term. As i write this the stock is trading at $8.64. It usually takes some time before folks peel back the onion and see whats going on here, so you should have time to get some calls or go long the stock under $9 before the end of day stampede.
$9 calls are .32 right now, and look to be the play.
Autozone reported earnings this morning. Analysts were expecting an EPS of $4.44, Autozone reported $4.68. A key quote from Autozones press release,
"This past quarter marked our twelfth consecutive quarter of 20% growth in earnings per share and our twenty-first consecutive quarter of double digit growth."
Growth stocks were all the buzz at the start of the year, and seemed to get old as we head towards the end of the year. AZO continues to be the one that is diamond in the rough, and should see more upside here, irregardless of its current hefty share price. AZO's low BETA allows for option traders to buy calls on the cheap, and should reap large gains as it moves to the upside here.
This stock is no NFLX, so when i see the company buying almost 1 million shares @ $325 avg last Quarter, with $650 million left to purchase, I feel even more confident of continued upside here.
Looking at the $360 Dec 17th Call for .50/.55. Will take half off when the calls are $1.
SINA opened and green, and pulled back. Looks like SINA can still continue its bounce. We alerted and added the $75 weekly calls this morning. Looking for $75-$78 on SINA this week. When it moves over $70, it will squeeze quickly.