It was last fall, October 1st to be precise, the market was just coming out of a nasty pull back, when I looked out and saw some stocks setting up for significant upside.
What another great day folks, as NFLX and FDO provided some huge returns! LNKD also provided a nice flip opportunity on the 125 calls, and VRNG brought some end of day aciton. ADP numbers out this morning a little worse then expected but not too much, so the futures are holding their gains. Draghi and the ECB is currently having a press conference, nothing is really expected that will be market moving, but you never know. Although the market seems a little squeamish at times this week(or maybe thats me) the SPY chart looks very stable and trending up. I still think $SPY $150 is in reach short term, and will play it that way until something changes my mind.
What I am watching today:
BLK - I am very sorry for not putting this on the watchlist yesterday. Company reports earnings on Oct 17th, and the OCT 20 calls were showing zero premium, meaning they were/are CHEAP relative to where the stock is and the fact that they are a company that has beat EPS 7 Qs in a row yet the stock is down for the year while the market is up 15%. I like the 190/195 calls. Already added both yesterday and will load 195 calls again today.
LNKD - Chart showing tight bollies, last time we had that on the chart stock ran from 107-122. Not saying it runs like that, but think she breaks out hard next two days. $125 calls were the play yesterday and I am still holding all mine. Better play if not in maybe grabbing the 130/135 calls for next week for a flip/
NFLX - folks keep asking if i think it goes higher, and i say yes! But we know how fickle NFLX can be. I locked in my 57.50s for way too cheap (3.25 from .43) and still hold 62.50s which i may sell today. If NFLX shows continued unbiased buying I will look to get some more calls , maybe 65s.
MLNX - stock i LOVE and have been big on last 2 weeks. Bought the 140 calls @ .50 ast week. I think MLNX heads to 125+ short term and will look to get 145/150 calls today/
That is all for now, as always keep an eye on chat and twitter. I will also be writing about Blackrock today on the blog... not that there will be any reaction on the stock, but if folks by calls it may cause market makers to play some games with the prices.
Lets have a GREEN DAY!
Welcome to October! Before going to sleep last night the futures were solid red, and when i woke up, they were solidly in the green. Markets continue to ramp higher here pre-market, and most of Europe is up 1%+. China markets are closed this week for a holiday.
Looks like commodities are getting a serious bid with SLV and AGQ finally breaking out. Those maybe some nice plays but wont buy this gap.
Barron's had a nice pump article on GS over the weekend and it is getting some nice action PM. BIDU was downgraded by Jefferies and is down 2% pre-market, i am very high on BIDU breaking out this week so may have to re-evaluate that thesis.
Ben Bernacke speaks today, but dont expect anything market moving.
Stocks I am watching today with strikes:
LNKD 130 C | SINA 67.50 & 70 C | CF 230 & 235 C | NFLX 57.50 C
Those are the ones watching for now. On a gap like today, need to be cautious as you may lose 25%+ in a flash if you buy into a gap. Lets have a great week! I will be posting a link for audio today and I will go live sometime this morning!