Tag Archives: Trade Tip

Option Trade Ideas For The Week of May 6th – FSLR, DIS, FOSL, TSLA, AGU

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Friday's job report sent the market to new all time highs, and with central banks globally keeping their foot on the monetary pedal, asset prices continue to rise.  They are succeeding in forcing money into risky assets, but how long will that last?  Here are some trades I am looking at for this week.

The prices of these options will likely be different then Friday's closing price, I am just using them as a guide.

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FSLR - We have earnings on Monday.  The stock has been seeing a nice short squeeze.  I think the stock will see a big move post earnings.  Remember this was a stock two years ago that was changing hands at over $140 a share.  I would not be shocked to see it head well over $50 this week and possible as high as $60.  My trade is a strangle buying both a put and a call in the hopes of capturing a profit if FSLR makes a big move higher.

The trade:  Weekly options:  FSLR $40 puts for $.40 and the FSLR $55 calls for $.30

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LNCO - Barrons has a negative piece out this weekend.  In January someone made a giant bet on downside for the stock by August expiration.

The trade:  LNCO August $35 puts for $1.00

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DIS - Stock at all time highs.  Analysts can't upgrade this stock fast enough.  I think it goes the other way post earnings.  The earnings report will be a chance for profit takers to sell after the bitg move up from the low $40's.

The trade: DIS $62.50 puts for $.40

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TSLA - The stock has a massive short position which has helped fuel the stocks recent rally to new all time highs.  I think it heads higher post earnings, but would be shocked to see it start the day in the red.  I will be a buyer of that dip via OTM weekly calls.

The trade:  Watch TSLA fall early in the session after reporting earnings.  I will buy OTM calls on the dip, $53 strike.

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GOOG - I would like the stock to see a modest pull back before I get in for the trade to $900.  I think $GOOG is poised to hit that figure in the next week or two, meaning this week and next I will trade weekly calls to try and capitalize on this move.  I will let you know in the chat room when I make the trade.

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There are a few other trades I am looking at including: FOSL, AGU and CF.  I will update you on my trade ideas for those stocks as the week progresses.

Earning Trade Ideas (CAT, CREE, NFLX, BIDU, CROX, DECK) April 22nd – April 26th

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Earnings season heats up this week. Last week we had SNDK, EBAY, and GOOG to name a few. This week earnings includes numerous high fliers and some historically volatile reporters, making for an exciting week to be trading stock options. I am going to share some possible trades I will be looking at for this week.

The prices I list are the from the close on Friday. They will more than likely be different at the open and vary throughout the week. But it should give a decent guideline of what I am looking to do with each trade. I will give bias for each stock as well.

BTB = before the bell
ATC = after the close

CAT reports Monday BTB I think the stock will see an initial drop to long term support at 78.35.70 range and then rally. I will be looking at the $80 calls once we hit the lows and will be looking to pay $.60-.70 for them.

    CAT

$80 calls $.60 - $.65 entry on a drop, bias for the week bullish.

    NFLX

I think it moves higher post er's but the options are pricing in another giant move. My bias is bullish for the stock and if someone wants to sell me the $190 calls for $1.50 I'm in.

    COH

I may trade for continued downside. The $48 puts at $.60 should work nicely.

    CREE

nice bull flag showing possible spike post earnings. I would like the $55 calls at $1.00 if they are kind enough to sell them to me at that price.

    YUM

over sold on bird flu, I think a pop post earnings and would enjoy the $67.50 calls at $.50 entry if I can.

    BA

continuation of an already big move is likely. $90 calls at $.50 currently .65 x .68.

    QCOM

played for downside last two weeks, this time we trade for upside. $65 calls .98 x $1.00 would like to wait it out for $.65 - .70.

    CSTR

$60 may calls for earnings at $.45. I like it for upside post earnings.

    BIDU

$92.50 calls .94 x $1.00, sell them to me for .75 and I'm in.

    CROX

$16 calls for $.50.

General Option Idea Recap:

I am bullish post earnings on:

CAT,NFLX,YUMCREE,QCOM,CSTR,BIDU,CROX,DECK

I am bearish on:

COH

Two Trades We Entered Today With April Expiration

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Sometimes a nice gap down at the open provides some great opportunities to add calls on positions you have been waiting for nice entries on. There were two particular stocks I was watching the past few days, and saw a great entry point given the strength of the stocks on an overall weak day.

The first stock is BP Prudhoe Bay Royalty Trust (BPT), a dividend playing trust that had fallen last summer sharply from the $130 level. The stock bounced last ex-divy announcement in the winter, and just released it's next ex-divy date yesterday. Folks were betting on decreasing dividends going forward, and I think the last two dividends show this Bear thesis is not playing out like it should. Be careful because the calls do look cheap, but the dividend is factored in. I grabbed the April 85 calls @ .25 and the May $85 calls @ .50. I will probably sell the April calls sometime before the ex-divy on April 11th, and may hold the May's depending the price.

BPT 4-5

The second trade was on another one of my favorites OpenTable (OPEN). OpenTable (OPEN) touched a multi-year high of $65 on Tuesday, and sold off to $58 today. The stock found a bid and has been flying since, touching $62.50 today. Still think this one is undervalued and a potential buyout candidate. We bought the $67.50 calls @ .30 and may look for $70 calls if it breaks $70. Will update on the trades next week.

 

OPEN 4-5

 

Happy Trading!!

- JB

Trade via Text Alert Today

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As promised, we will try and have more information on any text trades that are sent out during the trading day. You can expect one/two texts per week depending on the market.

 

Todays text alert was SODA, the second time in the past few weeks I have alerted SODA. Last time SODA failed to hold 50, and the 52.50 calls @ .15 never materialized. ( https://www.optionmillionaires.com/2013/sodastreamsoda-shares-set-to-rally/ ) Today, SODA broke solidly above $50 on strong volume, and has held its ground. A very bullish sign, and I think SODA breaks into new 52 week high territory in the next few sessions.

We bought the 55 calls @ .30/.35 and will sell half if they become a double. Then hold the rest for a possible move higher. Stay tuned for any changes on the trade.

- JB