Earnings plays can be very rewarding for those who are on the right side of the trade via options. Apple (AAPL) and Amazon (AMZN) catapulted 10%+ on their earnings report the last two weeks, while Green Mountain Coffee Roasters (GMCR) fell 50% on theirs. Which will be the one to bring option players the 1000%+ gain in the coming week? Here are a few we have on radar for next week, and my thoughts.
Tag Archives: PCLN
EXPEDIA INC (EXPE) – The Poorman’s Priceline.com(PCLN)
Expedia (EXPE) reported earnings last week that beat expectations. The stock took off like a rocket before pulling back in the afternoon. It seems travel is not being effected by the Eurozone mess, and quite honestly, looks in very good shape. We like Expedia (EXPE) as the POOR MAN's Priceline.com(PCLN). Company did $3.4 bil in revenues last year and has a 5 bil market cap. Something has to give. Expect the bandwagon to get crowded and Expedia(EXPE) to keep pushing towards $50 this week. The stock is currently trading at 43.40.
Disclosure: We have May 19th 45 calls @ .60/.65/.75
Priceline.com(PCLN)
We have chronicled the move of Priceline.com(PCLN) over the past few months. We have been one of the few public Bulls on this stock. While everyone was calling for a sell-off, we were buying calls. You can read some of them (here).
We noted on Monday how the past two week sell-off was a much needed enema. All the momentum stocks were taken to the woodshed... PCLN included. This market is not for the normal retail trader, as this would be the person who thinks Priceline.com(PCLN) is overbought, and is set for a massive sell-off(which folks have been clamoring for since $400). Right now is the time for the trader with the steel balls, unfazed by the volatility, to grab calls on Priceline.com(PCLN).
As we write this, the stock is trading at $728. We fully expect a break of $750+ this week, as the upside resistance has been removed(thats right you chickens).
As Yogi Berra would day, "It's DeJaVu all over again!"
4-18-2012 Watchlist
4-18-2012 watchlist
A great RAMP day yesterday. Just like what I wrote about Monday, we needed a few day CLEANSING of the bulls. Needed to shake people out, and get the shorts happy in the hopes of their 10%+ correction, then pull the carpet out.
Ingredients to lose money in this market…
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
Want to make money in this market? Check us out in chat.