Tag Archives: Watchlist

CME Group (CME)

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CME Group (CME) is a stock that has been very kind to us over the years. At the start of 2012, we were able to position ourselves with some calls  into earnings and banked some serious coin. Take a look at the charts below for the call. And this was what we were saying before the stock took off: "CME GOING TO GET LEGS" ; CME GROUP

 

BEFORE

AFTER

The $270 calls we purchased at .75 hit $21 at the high. So $75 into $2100. History has a tendency to repeat itself, and we are looking at CME group (CME) for another possible move over the next few days. Why? Isn't the stock up nearly 8% over the last 4 trading sessions and above the 200 & 50 day moving averages? It is, and someone taking a glance at the chart may consider CME Group (CME) to be overbought. But the real question is: Who is buying CME Group (CME)? CME Group (CME) is a favorite among institutional investors. Retail traders are not buying and selling the stock.  With a forward split coming to attract attention, and another massive divy coming, we think its the beginning of a bull run on CME Group (CME) shares.

Time will tell, but we think CME Group (CME) will trade above $300 in short order. Take a look at our chart below.

 

 

 

 

We are positioned with a large quantity of $280 and $290 June calls.

Panera Bread Co. (PNRA)

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Starbux (SBUX) announced yesterday they were buying Bay Bread, a small bakery chain from San Francisco.   Panera Bread Co. (PNRA) opened lower this morning on the news, as folks worried that the deal may effect Panera Bread Co.'s(PNRA) growth.

The only thing I think it will do short term, is bring attention to a stock that should be trading closer to $200 then $100.

We positioned ourselves with June $145 calls at .95, and June $150s at .40. The stock is currently trading at $138.76, and think she flies when she breaks the 200 dma at 139.31

“Hold the line!!” – SPY

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It was November 30, 2011, when the world's Central Banks united to ease strains on the global financial system. This move marked the end of a very turbulent summer and fall, where markets fell across the globe on fears of a Eurozone debt crisis.

Seven months later, we find ourselves in a similar situation. You know how the saying goes, "Those who don't learn from history, are doomed to repeat it". Will it be the bears who were taken to the woodshed betting on governments to sit on their hands? Or will it be the bulls, betting on more intervention?

Where will folks put their money with treasuries at all-time lows and negative Bond yields. Silver? Gold? The Dollar? It's almost like governments are forcing folks into equities. Time will tell, but I will continue to be a short term bull into we close under $127.90 on the SPY.

 

 

AutoZone, Inc (AZO) – Upside Coming

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We have written about AutoZone, Inc.(AZO) many times over the past year. This is a stock that has moved consistently to the upside since hitting $84 in late 2008. The stock price has been buoyed by great earnings and a strong buyback program. Last week Advanced Auto Parts (AAP) gave some weak guidance which shook the auto parts sector. AutoZone, Inc (AZO) took it on the chin falling nearly 6% last thursday to close at $365.58. Folks were fearing a slowdown and worried there would be some effects on AutoZone, inc (AZO) earnings.  They were wrong as AutoZone, Inc (AZO) reported earnings this morning that missed slightly on the revenue side, but beat everywhere else. Traders were skittish and took the stock down 4% pre-market only to watch it trade into the green late this morning.

We think it is inevitable for the stock to trade over $400 in the short term, and purchased $410 June 16th calls @ .41 average.

 

5-22 Watchlist

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May 22nd Watchlist

What a great day yesterday, as the market shook off an opening drop and ramped up the rest of the day. Moves like that are the kind that options traders dream for… One directional! We haven’t had that in a few weeks, and most of the calls purchased Friday or at the open, were up big. Of course AAPL was the big winner as the 565 strikes were the most profitable trade. Lets see if AAPL continues its course, but remember to always lock some in on the way up and never look back!

 

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