I wrote yesterday, that I thought AAPL would need to destroy estimates in it’s earnings report to move higher, and boy did it ever.
Bad news can pummel a stock into submission. Take a look at the chart for SINA Corporation (SINA) below. We have made some very profitable trades on SINA Corporation (SINA) in the past, and we think it's ready to make another move to the upside.
When SINA moves, it tends to be violent as folks chase a move they fear they are missing. Lets see if SINA starts pulling out of oversold territory today.
We currently hold the $60 and $62.50 April Calls.
It was a great day for me on Tuesday. I sold my SLV $30 calls at $.48 for a nice little 20% gain. I sold my X $28 calls for a nice 28% haircut. I held my LNKD calls now at a decent loss, but I think I will make out this week.
I bought GS $115 calls at $.30. They hit $.90 and closed at $.86. I sold out at $.78. A great trade which I posted both my buy and sells in the chat room. More on GS later on.
X on the dip and near the session lows I bought the $30 calls for $.06 and the $28 calls for $.27. Both options soared as X recovered its losses. In the chat room with X down big I said I saw the stock going green, sure enough X was up over 1% after being down over 4%. It then faded late in the day.
AAPL I bought the $605 calls for $3.75. I'm not sure many of you thought it was the right move at the time. My thoughts were that the drop in AAPL price offered a chance to get in the calls at a much cheaper price. It was worth the risk and it should pay off nicely for me tomorrow.
Tomorrow… oh yes tomorrow.
U.S. Steel reported earnings before the open today. Pre-market the stock was up, and after the open the stock fell over 4%. I had calls from yesterday that I sold for a small loss. I waited like a snake in the grass and jumped on X $28 and $30 weekly calls. Both were sold later on for over 100% gains. X managed to work its way from 4% down to an over 1% gain before fading later in the session.
Charts seem to be working for me again, that may end soon as they don't work very well in these centrally planned markets, but for now if they are working they are a great tool.
Based on the chart I see more gains ahead for X and will be buying up the May 19 $30 X calls tomorrow. The current price is $.48. X closed at $27.65. X needs a 10% move for those options to turn a profit, and I think we will get that over the next few weeks.
X has a nice channel, with the current price sitting right at the bottom of it. I could very easily see X at $32 before those May 19 calls expire. Remember a little dab will do. If we are looking at potential 200-300% gain, just a small purchase will offer ample returns.
If you've followed us than you know we are bearish on FSLR. Absent a reverse split FSLR will be a a penny stock at some point this year, but we don't care about that. All we care about is how fast it moves, when that move will come, and how will we position ourselves for that move.
Today FSLR hit a brand new all time low. The shorts have this stock right all 42% of them, which is exactly why I think we will see sharp rallies as FSLR drops to $5. Rumors, news, upgrades, anything at all could create a nice pop in FSLR shares. With everyone betting against it, one mildly positive event will be enough to push this stock 20% higher in a short span of time. This 20% move will be highly profitable for those positioned for it.
I think that move is coming. It's happened each of the last two weeks. I called it two weeks ago and was able to book a nice profit.
I am positioned again for a move for FSLR. I bought the $19 calls for $.58. This will be just another flip before more flopping for FSLR.