Some Wednesday Ideas

Yesterdays early weakness morphed into afternoon strength.  When have we seen this before?  Buy the dip, rope a dope, whatever you want to call it, these morning pull backs have been great buying opportunities.

Yesterday morning $GOOGL was red.  It was lower.  The stock was hanging around 795-796.  It had been weeks of stagnant action for Google.

The options were pricing in more of the same.  The $810 weekly calls were asking $.40.  Hundreds of contracts were sold at $.30.  The $805 calls were $1.00.   You are talking about options 1% away with 4 sessions to go.  These are options that would be priced 100%+ higher if this wasn't 2016.

Boring Breakouts. 

Boring Breakouts

FANG was back.   After a boring August, Facebook Amazon Google and Netflix were roaring higher.

Amazon and Facebook hit new all time highs.  $GOOGL missed by a few $.  $NFLX broke over $100 for the first time in a few months.

Are the breakouts upon us?  We will get confirmation this week, but so far, so good.

$FB $130  $AMZN $800 $GOOGL $820 $NFLX $105 this week?

I am already in some $GOOGL $805 calls from yesterday and $NFLX $100 Calls from last week.  The $NFLX calls have a week and a half of time left on them.

These calls went over $7 yesterday.  I think $GOOGL has a great chance to break to new highs this week, meaning $814+.  Yesterday early on I thought $800 would work, which it would have for a 50-75% gain, and a few hours later it was nearing $810.  $GOOGL has made some enormous multi-day runs in the past.  Could yesterdays action be the start of that?

$NFLX also broke higher yesterday and moved back into triple digits. .  I have $100 calls for next week.

$105 would be a nice upside price by the end of the week with a continuation to $110 later this month.

$IBB was up near 2% yesterday.  The more I see the government talking about high drug prices the more I think $IBB will trade heavy the next few months.

I entered some $277.50 puts yesterday for a move lower.  And I think this move will take $IBB to $250 in the short term.

and finally $CMG.

I look at the Pershing stake in $CMG as an act of desperation.  It's a way for Ackman to try and untarnish his image.  Like $CMG customers last year, it's not going to end nicely.

This mornings pop is something I will look to Put at some point this morning.

Put the pop.

$NFLX could come back down to $100 today to test support.  If that holds the odds for a move to $105 this week increase.

$GOOGL also could succumb to the early morning weakness, but as long as $800 holds I will be trading for a move to new record highs this week.

$IBB is something I will be trading for downside the next few weeks.  Momentum is waning with support strong at $250.

$CMG put the pop is how I will trade this today.

See you in the chat room.

Known to most as Uranium Pinto Beans, Jason has more than 15 years under his belt of trading stocks, options and currencies. His expertise primarily lies in chart analysis, and he has a strong eye for undervalued stock. Because he’s got the ability to identify great risk/reward trades he usually enjoys taking the path less traveled and reaping the benefits from the adventure.

He is a co-founder of Option Millionaires, and he is best known for his weekly webinars with Scott, as well as his high level training webinars and charts found in the forums.

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