Tag Archives: calls

LinkedIn (LNKD) Finally Hit $150 on Blow-out Earnings Report

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LinkedInAudit

It was 6 months later then we expected, but LinkedIn (LNKD) finally hit the $150 target we have been calling for since early spring. It wasn't an easy ride, and there were plenty of bumps in the road, but in order to win in this rigged market, one needs to have conviction. Here are some of our posts over the past year on the issue : August ; May ;  April ; March ; and February .

If there is one thing bears can learn from this is that fundamentals do not always tell the story. Folks have been clamoring for a pullback ever since the P/E ratio eclipsed 700. Next it was the bears warning folks about the 'alarming' amount of insider sales. Do you invest money in the directors ability to value the company, or to return shareholder value??!??!?!?  Bears were doing the former and obviously had it wrong.

Our conviction allowed us to purchase some Feb 16th $145 calls before the close on Thursday at .41 which we alerted to our chatroom as well as private twitter feed:

jimmyatoptions LNKD

 

Those calls hit 7.85 on Friday, so our $410 investment was worth $7,850 less then 24 hours later. We did sell half of them at $5.40 and hold the rest for next week :

02/08/2013  09:53:06 Sold 5 LNKD Feb 16 2013 145.0 Call @ 5.4

LNKD 145 feb 16th

We put the weekly LinkedIn(LNKD) calls on our watchlist in the morning as a risky trade, as they expire the same day. But thought they might offer a good risk vs. reward scenario. We have a Dittotrade.com account where followers get in on our trades automatically , and were able to get some good positions at the open on the 145 and 150 calls:

LNKD DITTOTRADE 2-8

The 145 calls we bought at .39/.43 hit $6.92 for a 1500%+ gain, and the $150s we bought at .08/.09 hit 2.25 for a 2200%+ gain. It was a great day for some of the followers. Moral of the story is tune out the noise and focus on your trade. Would expect LinkedIn(LNKD) to trade in the 148-160 range short term. Below is chart we posted  last week, where accumulation pointed to an impending large move to the upside:

LNKD 1-29

 

Stay tuned for more updates in the coming weeks on one of our favorite stocks, LinkedIn(LNKD)

1-29-2013 Watchlist

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A nice start to the week as the market held it’s ground but ended the markets winning streak. The futures are red at the moment but not down too much. Seems all the dips are supported the last few weeks so not concerned about any pullbacks, as they are short lived. Quite a few earnings yesterday and this morning. VMW, BMC, STX all bombed and are down big, F beat but is down on europe concerns. HOG, LLY, and PFE beat and look good pre-market.

 

The plan today is to stick with yesterdays winners, as well as possibly adding some $SODA calls for a bounce. I will be watching $AMZN like a hawk, but will be hard pressed to buy any calls as they are so expensive. I have a feeling it will overshoot over $300, but the $310 weekly calls are 1.55!!!!! If the plan changes I will post in chat and twitter today.

 

CMG had price increase from BAC this morning, so continue to like for a $320+ break. LNKD moved nicely and will likely hold my entire position into tomorrow, where I will look to close some out before the close and FB earnings.

 

SHLD surprised me as I thought we had a few days to get in, and I really like her for next week. I was able to get some Feb 16th 52.50 calls @ .30 an they closed at .84. If not in, its possible you could overpay only to watch it pull back a bit, so be a bit careful for now.

 

Here are the analyst changes i like this morning:

 

Chipotle investor sentiment more positive, says BofA/Merrill

BofA/Merrill said Chipotle's pre-announcement a few weeks ago clarified near-term issues and has shifted sentiment positively, allowing investors to focus on long-term fundamentals. The firm expects long-term unit growth and metrics, new businesses, and aggressive buybacks to drive shares. The firm rates Chipotle a Buy with an increased price target of $350, up from $310.

 

Keryx Biopharmaceuticals price target raised to $11 from $3 at Oppenheimer

Oppenheimer increased its target on Keryx after the company reported stronger than expected data for its Phase III trial evaluating Zerenex for the treatment of hyperphosphatemia in dialysis patients. The firm believes that Zerenex is very attractive from a commercial perspective, and it reiterates an Outperform rating on the stock.

 

Seagate investment validates Fusion-io market opportunity, says Piper Jaffray

Piper Jaffray views Seagate's (STX) $40M investment in Virident as a validation of the overall market opportunity for Fusion-io (FIO). The firm says Virident is the only logical alternative to Fusion-io and that Seagate's investment likely increases the takeover premium Fusion-io will garner. Piper thinks Seagate's investment will not change the competitive dynamic in the space as Virident has already received investments from Intel (INTC), Cisco (CSCO), Micron (MU) and others. The firm keeps an Overweight rating on Fusion-io shares with a $33 price target.

 

(CRM)

Salesforce.com initiated with a Buy at Maxim

Target $200.

 

I will be sticking to the same holdings from yesterday which are SHLD 52.50 FEB calls - CMG 330/335 weekly calls - LNKD 130/135 weekly calls

 

Here are the strikes I am looking to add this morning on SODA :

 

 

Stock Ticker Call/Put Strike Expiration Closing Price Entry Price
SODA CALL $57.50 FEB 0.40 0.40
SODA CALL $60.00 FEB 0.25 0.15

 

 

I am still in a lot of positions to include BPT, SAM, SBUX, TZOO, and KERX.

 

LeeMalone will be doing another class on using Think or Swim and trading options. The class will be for gold members and above at 4:30 on Thursday. Registration link will be up later today!

 

 

Lets have a great day!!

 

- Jimmybob

Booking Priceline (PCLN) Profits

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047_priceline

During the start of 2012, Priceline (PCLN) became one of the hottest stocks, running hard from the mid $400 to over $700. A move that befuddled those who thought Priceline(PCLN) was overvalued and ready to fall, but not us: https://www.optionmillionaires.com/2012/the-price-is-right-pcln/ and how we banked huge profits on the move : https://www.optionmillionaires.com/2012/option-millionaires-not-yet-but-getting-there/ . Stocks that can make large moves during the last day or two of option expiration are Option traders wet dreams, and Priceline (PCLN) is a stock that fit the bill. With Priceline(PCLN) still well below it's April high, and the folks buying equities like a clearance sale on Michael Kors, we figured Priceline (PCLN) was bound to make a nice move at the end of the week. Travelzoo(TZOO) also reported better then expected earnings thursday, and figured that may help be a catalyst for a move in Priceline(PCLN) shares.
Posted in our chatroom Thursday:

2013-01-24 10:48:27 AM jimmybob bywisdom $PCLN 690 C .50/.70 entry
 
Tweeted this on Thursday : $PCLN back to the land of make believe, where folks start believing shes going to $1000... Calls before the move over 800 = priceless $$

Then saw the Nomura price Target upgrade friday morning, and figured she would get some mojo. Had these strikes as  2 of 4 positions to look at for the open on our watchlist (https://www.optionmillionaires.com/2013/1-25-2013-watchlist/ ):

 
Stock Ticker Call/Put Strike Expiration Closing Price Entry Price
PCLN CALL $690.00 Weekly 0.65 0.50
PCLN CALL $695.00 Weekly 0.30 0.25

Said this in our chatroom before the open:

2013-01-25 08:26:52 AM jimmybob f PCLN could be in play 5%+ move last nomura U/G i believe

These were all my purchase of the  Priceline(PCLN) calls between Thursday and Friday:

01/24/2013 09:59:20 Bought 20 PCLN Jan 25 2013 690.0 Call @ 0.5
01/24/2013 10:45:51 Bought 50 PCLN Jan 25 2013 690.0 Call @ 0.7
01/24/2013 11:31:26 Bought 37 PCLN Jan 25 2013 700.0 Call @ 0.3
01/24/2013 11:32:15 Bought 2 PCLN Jan 25 2013 700.0 Call @ 0.4
01/24/2013 15:33:49 Bought 50 PCLN Jan 25 2013 695.0 Call @ 0.45
01/25/2013 11:42:28 Bought 30 PCLN Jan 25 2013 710.0 Call @ 0.34
01/25/2013 11:42:28 Bought 20 PCLN Jan 25 2013 710.0 Call @ 0.34

These totaled $9,630 plus commissions. I staggered in and out of the strikes as Priceline(PCLN) moved up, so it was not in my account all at once. With options, you only need a few hundred dollars to return thousands and risking thousands to purchase options alone can decimate your account in short order, so do not try the trade at home please!

If you add up all the strikes and the prices they hit by friday close the $9,630 purchase would be over $430,000. The 70 - $690 calls alone would be worth $199,000 at the $28.50 close from .50/.70 entry. Below are my closing trades for the calls:

01/25/2013 09:54:06 Sold 10 PCLN Jan 25 2013 690.0 Call @ 5.7
01/25/2013 09:54:06 Sold 20 PCLN Jan 25 2013 690.0 Call @ 5.6
01/25/2013 09:54:06 Sold 30 PCLN Jan 25 2013 690.0 Call @ 5.5
01/25/2013 09:54:06 Sold 10 PCLN Jan 25 2013 690.0 Call @ 5.4
01/25/2013 11:50:31 Sold 20 PCLN Jan 25 2013 695.0 Call @ 12
01/25/2013 11:53:46 Sold 30 PCLN Jan 25 2013 695.0 Call @ 9
01/25/2013 12:09:56 Sold 1 PCLN Jan 25 2013 700.0 Call @ 7.8
01/25/2013 12:09:56 Sold 10 PCLN Jan 25 2013 700.0 Call @ 7.64
01/25/2013 12:09:56 Sold 28 PCLN Jan 25 2013 700.0 Call @ 7.62
01/25/2013 12:21:34 Sold 50 PCLN Jan 25 2013 710.0 Call @ 3

The Sales total $133,835 from the $9,630 in less then 24 hours. You can even take that trade and scale it back and use $963 to make $13,383.  Not bad but did leave quite a bit on the table. Again, just shows you the power of options when you have a market that has become very easy to trade as of late.

Trades like these do not happen often, and you are more likely to lose your entire investment buying weekly options expiring in 2 days, then make money.

On to the next trade!

- Jimmybob

 

1-25-2013 Watchlist

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What another great day yesterday with NFLX really making some folks day, month, year and TZOO ramping in the morning. Looking forward to today, but will be a bit more cautious on some of the weeklies expiring today and will play maybe a few.

 

That conference in Davos is filled with headlines and bullish comments from everyone but my Grandmother, who is on the ski slopes. It almost shakes me from my short term bullishness. If these folks are bullish, they are already in equities or are maybe they are charitable folks who give the retail traders the heads up, lets us get in, then start buying. Most of these funds are in the market, its the retail sheep who have been shaken out of it. And conferences like this, with bullish remarks written all over it, is the way they will get the sheep back in the corral for slaughter. When there is noone left to buy because everyone is in is when this market falls. AAPL is a great example of that. More on this sometime soon!

 

Draghi issued some more bullish comments on the eurozone mess, and Japan nikkei ripped over 2% higher over night, nearing 11,000. Worst thing you can do is try and time the top and get in the way of these bulls. For now I play the trend. We battled 150 on the SPY yesterday and looks to be a battle area again today.

 

Not too many analyst changes today, below are the ones i like to include ADSK’s second upgrade in 2 days, with GS putting her on the conviction buy list.

 

 

SBUX)

Starbucks global comp sales beat expectations, says Bernstein

Bernstein reports that Starbucks' 7% global comparative sales increase in its Q1 beat expectations for a 5.5% gain. The firm thinks the company's channel development sales will likely re accelerate in coming quarters and it maintains a $65 price target and Outperform rating on the shares

 

Starbucks PT lifted to $56 share fr. $55: Barclays

 

(SBUX)

Starbucks price target raised to $63 from $53 at RBC Capital

After Starbucks reported in-line Q1 results, RBC Capital believes that the company's sales momentum has continued in Q2. The firm thinks that the company's earnings visibility is high, and that it has several growth drivers. But RBC believes these factors are baked into the stock price and it maintains a Sector Perform rating on the stock

ADSK)

Autodesk upgraded to Conviction Buy from Sell at Goldman

Goldman upgraded Autodesk to Conviction Buy from Sell due to improved execution and an acceleration in non-residential construction end-markets. The firm believes Suite revenue will accelerate due to improved macro trends. Price target raised to $45 from $25

 

Nomura maintains priceline.com Incorporated (NASDAQ: PCLN) with a Buy and raises the price target from $730.00 to $820.00

 

SBUX and VRSN reported good earnings ah’s and both should ramp higher. I love SAM and here is my write up as promised: https://www.optionmillionaires.com/2013/boston-beer-co-inc-sam-crafting-profits-for-shareholders/

 

I am holding weekly calls on PCLN, GOOG, NFLX, and SINA. The SINA 60s I sold at .7 for a 75% haircut and i have 62.50s expiring worthless. I still love SHLD and will try for some calls sometime today or monday. Here are the few strikes I am looking at today:

 

 

Stock Ticker Call/Put Strike Expiration Closing Price Entry Price
PCLN CALL $690.00 Weekly 0.65 0.50
PCLN CALL $695.00 Weekly 0.30 0.25
GOOG CALL $760.00 Weekly 0.95 0.50
SHLD CALL $52.50 FEB 0.35 0.30

 

 

As always we will be holding our week ahead webinar at 10:30pm Sunday, and hope to see you there!

 

Lets have a great day!

 

- jimmybob

1-23-2012

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Another trading session in 2013, another 5 year high as the market closed another strong day yesterday. Adding fuel to possibility of a continued rally were earnings results from ISRG, IBM, GOOG, and CREE that all beat expectations (for the most part). It’s typical to see an after hours party on these reports, then to see red futures in the morning. Not concerned and think we will fight our way to green by the close.

 

AAPL reports after the bell as well as NFLX. Will be grabbing a few calls on NFLX, but will not be playing AAPL.

 

WIll have a post on my thoughts for the next few weeks sometime soon. Been saying SPY 150 for quite sometime now, and now that we are almost there, I need to re-evaluate my sentiment, which i think is even more bullish(crazy as it sounds). Folks think this is a bull market, yet we are just back to levels from 2007, meaning it is possible we move 10-20% from here in the coming year. More on that later.

 

Tons of news from stocks to include another round of horrible news from MCP with production way below expectations and an offering. GOOG had quite a few upgrades and PT increases, SODA had a reiteration and PT raise to $60 and ISRG had a few raises:

 

 

(MCP)

Molycorp files to sell $200M in common stock; $100M in convertible senior notes

Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC and Goldman, Sachs & Co. will act as joint bookrunners for the Primary Shares Offering, Morgan Stanley & Co. LLC and J.P. Morgan Securities LLC will act as joint bookrunners for the Notes Offering and Morgan Stanley & Co. LLC will act as sole bookrunner for the Borrowed Shares Offering.

 

GOOG)

Google price target raised to $843 from $794 at Morgan Stanley

Shares are Overweight rated.

 

GOOG)
Google price target raised to $860 from $802 at JPMorgan

(GOOG)

Google outlook remains positive, says Cantor

Cantor believes that Google's Q4 results highlight very healthy performances by its search and display businesses, and the firm thinks the company's Motorola unit is on track for a turnaround. The firm raised its price target on the stock to $900 from $820 and reiterates a Buy rating.

 

JPMorgan says it is incrementally positive on Google's mobile transition following the company's solid Q4 results. The firm raised its price target for shares to $860 and said it would be a buyer following the results. JPMorgan keeps an Overweight rating on Google.

 

(GOOG)

Google price target raised to $875 from $850 at Jefferies

Jefferies raised its price target for Google shares citing the company's solid Q4 results and reiterates a Buy rating on the stock.

 

Bank of America maintains Google Inc. (NASDAQ: GOOG) with a Neutral and raises the price target from $780.00 to $790.00.

 

Oppenheimer maintains Google Inc. (NASDAQ: GOOG) with a Perform and raises the price target from $730.00 to $765.00.

 

 

 

 

IBM)

IBM upgraded to Hold from Sell at Societe Generale

Societe Generale upgraded IBM citing better than expected 2013 guidance. Price target is $201.

 

 

 

 

Intuitive Surgical guidance has upside, says William Blair

William Blair sees potential upside to Intuitive Surgical's 2013 outlook due to new product releases, Japanese government support, and domestic surgeon and patient demand for procedures. The firm encourages investors to add to positions in the name following the company's Q4 results and keeps an Outperform rating on the stock.

 

(ISRG)

Intuitive Surgical price target raised to $625 from $600 at Lazard Capital

Lazard Capital raised its price target for Intuitive Surgical following the company's Q4 results and keeps a Buy rating on the stock.

 

(SODA)

SodaStream momentum should continue, says Oppenheimer

After meeting with SodaStream's management, Oppenheimer thinks that the company's strong operating momentum should continue into 2013. Oppenheimer reports that the company said it had a strong Q4, and the firm thinks the company's U.S. sales and profitability could be set to increase significantly. The firm reiterates an Outperform rating on the stock.

 

 

I still love SAM here and will continue to look to add to my calls until she breaks 150. Craft beer continues to be the growth story and I think folks are undervaluing that in SAM : http://www.latimes.com/business/money/la-fi-mo-craft-beer-20130121,0,2513404.story

I sent a text alert on SINA 60 calls yesterday and still like her for a break over $60 this week. Will send another text when the position is closed. I posted about BPT yesterday and grabbed 85 FEB calls, which i continue to like here.

 

Will try for NFLX calls, maybe some ISRG calls if possible, and will watch the high Beta names like PCLN and LNKD for some call opportunities. Think stocks sold off on earnings worries will rally nicely today.

 

Here are the strikes I am watching:

 

 

Stock Ticker Call/Put Strike Expiration Closing Price Entry Price
PCLN CALL $695.00 Weekly 0.65 0.50
ISRG CALL $620.00 Feb 0.55 0.40
NFLX CALL $120.00 Weekly 0.16 0.15
SAM CALL $155.00 FEB 0.45 0.40

 

 

 

Lets have a great day!

 

- Jimmybob