$GS Calls Covered in Sunday Nights Live Webinar at Option Millionaires
Each Sunday night I host a live webinar and cover the week ahead. The Webinar is entitled "The Week Ahead with UPB". This week we covered the earnings reports and sprinkled in some charts that required watching. Jimmybob had a guest appearance later on in the webinar and was all over the $GS calls. $GS has soared this week and call holders booked some serious profits.
Take a look at the $125 strike for GS calls. They started the week at $.20 and hit a high of $4.30.
$GOOG Heading To The Bottom Of Channel? (VIDEO)
$GOOG has seen some amazing moves into OPEX this year. Back in July we had the calls turning in some massive gains some going from $.15 to $9.80 https://www.optionmillionaires.com/2012/stock-options-gone-wild.
Earlier this year we had puts going from $.05 to $13.50 on OPEX. A smart trader trades a stock for both ways, and we've done that with $GOOG. The question is where does it go tomorrow and beyond?
I like the PUTS heading into the weekend with the $710 strike at $1.15 offering a great risk/reward. I own the $700 and $705 puts into tomorrow with both offering stronger returns if we get a GOOG pull back. The stock has been buoyant and I've traded the calls during this recent run up only recently turning bearish on the stock. A few weeks ago we alerted the $695 calls at $.25 they went to over $4.00. Will the PUTs make a similar return?
I think $GOOG will test the bottom of the 5 year channel which brings the stock to a price in the low $580's in the near future. Good luck to $GOOG option traders both long and short.
12-19 Watchlist
Another great trading day yesterday as SAM continued to move, GS exploded higher, SODA tested 45, BBBY continued its move, MON broke 92.50, and seemed everything on the call side was up nicely. SINA had a consolidation day and I still like her for 52-53 this week. Also had CMG on the watchlist yesterday and we grabbed the 305s @ .50. The move the last few days has shocked even myself, as we are now a stones throw away from testing the 52 week highs, and getting closer to 150 on the SPY, like I have been talking about for months. Futures are green again this morning with some data out. Japan continued its recent market surge and the Nikkei closed over 10,000 for the first time since March. Couple that with the Shanghai index move over the past few weeks, and you have quite a rally over in Asia. Lets not get over confident about a huge rally coming over the next few trading days to close out 2013, but i also wouldn't rule it out. Seems the ones to watch right now are the oversold, shorted stocks that still have decent fundamentals. One of the reasons I like CMG, SODA, SAM, FSLR, and SINA.
Here are some of the Analysts ratings and remarks today:
(PNRA)
Panera Bread upgraded at Wedbush
As previously reported, Wedbush upgraded Panera Bread to Outperform from Neutral. The firm upgraded shares based on checks that indicate Q4 same-store-sales are tracking at the high end of 5%-6% guidance, comps sustainability, and low commodity impact. Price target raised to $190 from $160.
Bidu Initiated with Sell, $80 PT at Maxim Group
(AAPL)
Apple TV likely in time for 2013 holiday, says Piper Jaffray
Piper Jaffray believes Apple will launch a television in time for the 2013 holiday season and calls the stock a top pick for 2013. Piper believes investors that sold Apple shares to avoid a potential tax increase could return to the stock given the valuation. The firm keeps an Overweight rating on the name with a $900 price target.
(SBUX)
Starbucks checks show Verismo being well received, says Citigroup
Citigroup said its channel checks indicate Starbucks' new single-serve cappuccino machine Verismo is being well received by consumers. Citi believes the company's Q4-to-date U.S. same-store-sales are likely trending up 6%-8% compared to up 7% in Q3. Citigroup remains positive on shares of Starbucks with a Buy rating and $63 price target.
Currently hold CMG calls so on the fence around adding PNRA calls, although i think that stock should be $180+ right now. May look at calls at open. MLNX CEO on bloomberg yesterday and article out from Barclays defending the stock and keeping 140 PT, so like that one. Have had it on watch for days so this is the time I get in. Will also grab some BBBY calls at some point today for earnings.
Strikes on watch this morning
Stock Ticker | Call/Put | Strike | Expiration | Closing Price |
PNRA | CALL | $175.00 | weekly | 0.25 |
MLNX | CALL | $70.00 | weekly | 0.25 |
MLNX | CALL | $72.50 | weekly | 0.15 |
BBBY | CALL | $65.00 | weekly | 0.47 |
BBBY | CALL | $67.50 | weekly | 0.20 |
Lets have another great day!!
- Jimmybob
12-18 Watchlist
First off, the site is moving quickers as we upgraded our server, but we did have some temporary issues so apologize in advance for any troubles accessing the site. Now on to the fun:
What a great start to the week as a few of the plays on watch from last week continued to ramp higher, and others started their advance. SAM continues to move, marking its 3rd consecutive day of gains closing right near the high of day on huge volume. SODA finally broke the $43 resistance on amazing volume as well with NO NEWS. Seems to be more optimism on this fiscal cliff fiasco getting resolved so futures are solid green. If you were in the chatroom or on the week ahead class you heard quite a bit about japan and the oncoming currency wars coming in 2013. The clowns on tv are still talking about QE, and I think that term will be replaced by another coined phrase in regards to currency. We shall see.
Going forward I will try to include meaningful upgrades and downgrades, most from fly on the wall.
Here are todays:
GS (GS)
Goldman Sachs upgraded to Positive from Neutral at Susquehanna
Susquehanna believes Goldman is well positioned to benefit in fixed income from potential rising rates due to a fiscal cliff resolution and expects the company to gain share in FICC due to reduced competition. Price target raised to $149 from $127.
AMZN (AMZN)
Amazon.com price target raised to $300 from $250 at RBC Capital
After conducting checks, RBC Capital believes that Amazon.com's investments in fulfillment centers could begin to slow in 2013. The firm maintains an Outperform rating on the stock.
AAPL reiteration from BofA : (AAPL)
Apple sell-off on supply chain concerns overdone, says BofA/Merrill
BofA/Merrill believes the sell-off in Apple due to supply chain concerns is overdone and that valuation is at trough levels. The firm trimmed estimates but notes supply chain adjustments are common and recent supplier production cuts come after peak production ramps and double ordering. Shares of Apple are Buy rated with a $720 price target.
Here are the positions I am looking at for open:
Stock Ticker | Call/Put | Strike | Expiration | Closing Price |
CMG | CALL | $305.00 | weekly | 0.45 |
SINA | CALL | $52.50 | weekly | 0.21 |
MON | CALL | $92.50 | weekly | 0.13 |
I kept saying CMG would break out last week but that never happened. Yesterday was the start of what I think is a 2-3 day run for CMG over $300. Still love SINA for bounce over 50, and MON to $93 or so this week.
Lets have a great trading day!
- Jimmybob