Looks like the job mornings this morning will cause some selling pressure today. Will make some calls less expensive mid-morning. Also, the big Friday jobs report for April will be on folks minds today and tomorrow.
SODA keeps breaking out to the upside today, and we still think $45+ is in the cards short term. January and February continues to be the months of the OVERSOLD Growth stock recovery, and SODA sure fits the bill. With stocks like GMCR and NFLX coming back from the dead, it only seems fitting that another stock, with huge growth, starts coming back from its 50% haircut.
It seems the close over $42 sets it up for continued upward momentum.
We wrote about SODA yesterday as a play on GMCRs blow out earnings. With SODA you are getting an emerging company, without the cloud of uncertainty from the SEC. Their international business is huge, and they are growing in the U.S.
The stock hit 79.72 in the summer, and think it will follow in the footsteps of the other beaten down growth stocks. Which means she pops 20%+ from the it's current $41 price tag.
Obviously it's just our opinion and we are buying the $45 FEB 18th calls currently at .50.(we got them at .30 in our chat yesterday)
Seems like all the beaten down, piece of shit stocks want to run today. SINA (SINA.COM) is a beaten down china ADR that is getting some legs on the FMCN news today, just like all the other ADR's. SINA (SINA.COM) does have a tendency to explode after being beaten down, like it did in October. SO play accordingly.
GMCR is continuing its breakout today, after getting an afternoon pop yesterday. Looks like a combination of some NPD rumor news, as well as short covering??? Hate the stock, but play the play, and GMCR can be profitable trading on both sides.
Volatility is an option players friend!