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: puts
Veeco Instruments Inc (VECO)
It was January 2012, when we first wrote about Veeco Instruments Inc (VECO). The stock was in oversold territory and we played the calls for a nice profit on earnings. History has a tendency to repeat itself so we had our eyes on Veeco Instruments Inc (VECO) calls for Tuesday.
Here is our call in chat:
04-30 10:10:52 Message jimmybob Option Millionaires Live VECO 33 @ .80 10 ofem
Those calls closed with a bid of $3.10 today for a 375%+ gain, and since they expire May 19th, we think they can see further gains.
Here is one of the traders who profited from the trade:
10 VECO may 33 c @ 2.15 - in yesterday @ .80 per jimmybob call... thanks again and may look for another entry later in the day...
Check out the chat to see more calls like these : (HERE)
Shutterfly, Inc (NASDAQ:SFLY)
At Option Millionaires, we are all about growth stocks. Being ahead of the market on these stocks can be VERY rewarding. We brought you LinkedIn (LNKD) at $80 which moved 35% over the past few months. We now bring you Shutterfly, Inc (NASDAQ:SFLY).
Just like LinkedIn (LNKD), it took an earnings report to show it's ready to take the market by storm. Shutterfly, Inc (NASDAQ:SFLY) was a once high flying stock in 2011, hitting a high of $66.70 in April 2011. It fell all the way to $21.34 on growth concerns. It's recent acquisition of Kodaks online photo service, was another step in the right direction. A step that came at the expense of short term profits, but sets the stage for long term growth.
Shutterfly, Inc (NASDAQ:SFLY) earnings report after the bell showed a 72% YoY growth of personalized products (Photo Books and cards), which accounts for 77% of the companies revenue. They also grew their customer base by 16% to 1.6 million. Obviously the Kodak acquisition will help with that number.
We really like this company for the near term, and think the stock will head toward $45.
We alerted the $40 calls in our chatroom this afternoon. Stay tuned for more about Shutterfly, Inc (NASDAQ:SFLY) in the coming days.
4-27 Watchlist
It has been a very nice week so far. AMAZON is ending the week in style and looks like next week could bring more multibaggers...
Spanish Debt Auctions? Are you kidding me?
Who is the fool here? Is it CNBC who has the headline "Earnings, Spanish auctions to sway wallstreet thursday", or is it retail trader Joe who actually believes the auction will have any impact on the market?? Let me get this out of the way first... I AM SORRY FOR CALLING YOU A FOOL. I hope you accept my apology.
We have written about this scenario many times(you can read that here). So do as we did and ask yourself: "How will a poor Spanish Debt Auction effect the market?"
We started to ask that question, then thought, how could the auction not do well? The US market is up between 7-16% this year. Interest rates continue to remain low. Commodities have become clouded in manipulation and folks are still wary from the MF Global fiasco. Where are investors going to put their money to work that will actually give them a return on their investment?
Sovereign Debt from an established economy with high yields sounds like a great deal. Heck, that wouldn't take much of a sales pitch.
So why the concern? Is the Eurozone in trouble again? Better yet, when was it not in trouble? The Duct tape is still there, nothing has changed. First Greece, then Portugal, then Italy, now Spain.If not the Eurozone, then its the sudden realization that CHINA manufactured its growth over the past few years.Thats old news, but it gets pulled out of the hat when fear needs to come back into the market.
It's always going to be something, but the headline that makes me more confident of a rally Thursday and Friday, is Cramer's view on the Spanish auction... that it will be "awful".
We have done well in 2012 by ignoring the macro headlines, and focusing on our trades. We shall see what tomorrow brings, but dont be surprised when the Spanish Auction becomes nothing more then a dog and pony show.