Tag Archives: prx

July 16th, 2012 – Watchlist : LNKD, CMG, PRX, EBAY, YHOO, GS, BLK

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After a huge rally on friday, it is not surprising to wake up to red futures. Earnings seasons starts to kick into full gear this week, and should bring some excitement to some rather dull weeks.

 

Some interesting news this morning on a stock i have followed for years PRX with a buyout offer of $50. Have to find a post i made about that one, but always though it was undervalued. Good thing about the deal, is they can pursue a better offer until Aug 25th, meaning someone may come and sweeten the deal.  Good idea would have been buying some leap calls.

Anyway onto the watch list:

WYNN – reports AHs tomorrow. The stock has taken a beaten on weakening vegas numbers as well as possible issues abroad. I have a feeling she beats nicely after last Qs hiccup. Will look for some $110/$115 strikes for the ramp. If she misses, stock will see $80-85, so could be a nice play either way.

LNKD – Bollie are tight on the chart, and i think the stock is ready to finally break and hold $110. Thought the test would happen friday, but i was wrong. Think it happens today or tomorrow. Will look for $115 calls sometime today : http://stockcharts.com/c-sc/sc?s=LNKD&p=D&b=9&g=0&i=p71833622492&a=255600933&r=1342443536796

CMG – think the story is not over with this one, at least not yet. I actually like BWLD as the next growth story, but think CMG has one or two last laughs in her. Earnings not till Thursday AH’s, but will look for some calls for a premium build and hopefully sell them before the close thursday. Will post more in chat,  but may go for the $430 calls @ $1 and hopefully feel for 50%+ the week.

 

Many other stocks on watch this week for potential plays: GS, BLK, YHOO, EBAY, GOOG …

Will have an earnings central post late tonight with strikes and opinions on some of the earning plays!

The Crossroads – Where are we headed?

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On April 4th, the market hit a 4 year high as the $SPY touched $142.21. If you had told someone last October that the market would be up nearly 40% 6 months later, they would call you crazy. But that is exactly what happened from the 107.43 low on October 4th. Amongst all the negative sentiment, the market mysteriously found a bottom and rallied furiously, squeezing all the bears... the ones who watched the riots in Greece with glee, the ones who were hoping for someone else's pain to give them glory. We have seen this story over and over. The Eurozone debt situation is not a new problem. The market has been dealing with it for 3 years. We have seen this before, and it will not be the cause for a larger sell off in equities. May's decline has been somewhat orderly. The trading days have lacked the 1-2% swings we became accustomed to in August and October. This is no panic sell-off, its profit taking.  Yes, the USD has been on a major tear, trading up for 14 straight days at one point... the most since 1985!

Looking at that data point alone, I woud assume the markets had a massive sell-off. Yet we are not even in 'correction' territory. It's buy the dip time for me. With the election coming, there is no way the market is allowed to fall any further. Well we shouldn't call it a market, since the Obama administration will pull out all the stops to ensure the "economy" is not the cause for Romney winning. And to make that happen, we will need to have a nice summer rally.

Best way to make money trading, is to be ahead of the curve. Here is what I am doing to ensure I am:

Expect some "buy the pullback" upgrade to come out on your favorite momentum stock. Stocks like Priceline.com(PCLN), LinkedIn(LNKD), Buffalo Wild Wings (BWLD), Panera Bread(PNRA), Chipotle Mexican Grill(CMG), Intuitive Surgical(ISRG), and Starbucks(SBUX).

Buy out of the money calls on those plays to maximize the impending short squeeze. The dumb sheep are the ones who are shorting it based on the chart, and will be covering when they start getting squeezed.

Second, expect some sort of China stimulus. They are missing the talks of their growing economy and want to be back in the spotlight. China can be the key for a nice recovery alone, and China sure knows how to manufacture fake growth to inspire folks to load up on China stocks like Sina.com(SINA) and Baidu(BIDU) as well as the oversold commodity stocks.

We will have more on our watchlist tomorrow, but we are banking on a nice rally coming in the next few weeks. By the time you blink, we will be back over the April highs. Most folks will be scratching their eyes wondering what happened. Here at OptionMillionaires we will be counting our profits.

Take a look at the chart below. Lets have a great week!!!

Par Pharmaceuticals (PRX) into earnings

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I have been following Par Pharmaceuticals (PRX) for 4+ years now, and have watched it move from $8.57 in 2008 to $42.80 last week. I quite honestly think the stock is just starting to get traction. I wrote about Par Pharmaceuticals (PRX) on April 24th, when the stock was trading at $40.94, and gave quite a few reasons for my bullish sentiment. Earnings are out pre-market tomorrow. Here is what we were buying today:

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This weeks Earnings Preview: WYNN, MAKO, PRX, FOSL, PCLN, SODA

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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.

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