Tag Archives: calls

Origin Agritech Ltd.(SEED)

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We rarely play sub $5 stocks at OptionMillionaires. Quite honestly, it makes more sense to buy a stock outright, then spend money on options when it is trading under $5. But there are exceptions to every rule, and Origin Agritech Ltd.(SEED) is one of them. Why? Because this is a stock waiting to explode on positive news. It seems like everyone and his brother has let this stock to rot, then kicked it to the curb and ran it over with their car.

CEO leaves the company for personal reasons? Sell! China stocks getting a bad rep from RINO and other scams? SELL! Company lowers revenue guidance?? SELL SELL SELL!!

Only problem with the selling, is noone stopped to take a look at what they were selling. As of the close on friday,Origin Agritech Ltd.(SEED) has a market cap of $57 million. Last Quarter they reported $49.2 million in revenues and an EPS of .20. When AGS were as hot as they are now, Origin Agritech Ltd.(SEED) was trading at over $12 per share. Now do your research, then ask yourself... "What has changed in the past 2 years that has caused Origin Agritech Ltd.(SEED) to lose 75% of it's value"?

Below is 2 charts, Monthly and Daily. We fully expect Origin Agritech Ltd.(SEED) to breakout near term over $3. We alerted our chat to the $3 calls @ .10 on friday. We have a funny feeling Origin Agritech Ltd.(SEED) will be sprouting nicely this coming week.

DAILY

 

WEEKLY

Ingredients to lose money in this market…

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I will make this quick, as it's about making money, not losing money in this market. In tribute to the Food Network here are some ingredients needed to lose money in this market:

1. Use only technical analysis and fundamentals

2. Use the P/E ratio to determine a stocks value

3. Listen to analysts and price targets

4. Follow fools who have been calling a top for 3 months now in high growth stocks like PCLN, CMG, LNKD, and others : (read here)

 

Want to make money in this market? Check us out in chat. 

 

Red Hat Inc ( RHT )

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Red Hat Inc (RHT) reported earnings after hours on Wednesday that handily beat estimates, and announced a $300 million buyback program. Seems analysts had the company all wrong, as the stock rallied 20% gaining over $10. Trades like these can make a traders day, especially when playing the options. Here is what we said on our watchlist, and then what we said in our chatroom in real time:

RHT – Like this company and had nice ER’s last night. APRIL calls are the play, 57.50/60s

 

 

2012-03-29 09:35:00 Message jimmybob Option Millionaires Live opentrade RHT APRIL 60 calls @ .20/.25
2012-03-29 09:36:22 Message jimmybob Option Millionaires Live RHT 55.68
2012-03-29 10:15:10 Message jimmybob Option Millionaires Live RHT ~ scary part is this keeps going higher on lower volume... folks holding for higher and this isnt a SHORTED stock ~~ could be clear sailing to 60

 


LinkedIn(LNKD) going to $150+ short-term…

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LinkedIn(LNKD) going to $150 short term? Who in their right mind would think a stock most think is insanely overvalued at $103, will move another 50% in the next few months? Well we do. We wrote about LinkedIn(LNKD) after earnings(HERE) and last week after it broke out like we said it would above $100(HERE) .

Its only when folks start believing something can happen is when it starts. Take a look at Priceline.com(PCLN) chart below. Everyone and his brother was calling the top on PCLN since it went mid $550s in the spring of 2011. It's only when everyone started believing, that it found its legs into the stratosphere. (and yes we called it at $445) 

 

 

Dilution from a secondary offering? Lock-up shares hitting the market? Multi-billion market cap for a company doing a few  hundred million in revs? These are exactly the reasons you see asshole analysts posting $60 PT on the issue. Tune out the noise, and focus on the trade. We will have more on LinkedIN(LNKD) this weekend. For now, just remember who told you its going to $150+ by the summer.