04-06
APOG & BLUD
04-07
AA, BBBY, CHTT, ISCA & MOS
04-08
EXM, GLBC & SGR
04-09
CVX & JOSB
04-10
None.
This week we do not have any strong strangle candidates - so, I will not venture to push any of the potential strangle candidates on this week's list.
There are a few stocks here that have moved HUGE after earnings, but their moves have not been consistent and we are not in the business of gambling - we only straddle or strangle when we know we have stocks like APOL and RIMM (two perfect storms). Therefore, I just want you to watch the following stocks as they might create MONSTER CALL / PUT OPTION PLAYS after earnings: CHTT, MOS, SGR and JOSB.
Do your homework first. Look at the stock's respective resistance, support, volume, short ratio, earnings history, trend, market sector, peer group and most importantly technical signals before you make your trade.
PS. Can't wait til next week for GS, ISRG and GOOG!
Enjoy trading!
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11 comments:
Jose, I actually think BBBY may buckle at the knees.
Darwin,
I am inclined to agree with you based on technicals and the bad economy. BBBY is just too high technically and I do not see it maintaining this stock price with the recent consumers pain - and BBBY is all about consumers. BBBY may pull back today, Monday and tomorrow before earnings - if it does, I would not trade before earnings (this stock is a little tricky).
Thank you,
Jose
agreed....i did take callers on LDK and S on the open. LDK looks set to break it's 50 day. S has been basing near its highs lately.
Like we expected BBBY pulled back today (slowly and painfully) - that is why I hate BBBY - you really have to be in-the-money to make any money with BBBY.
Yes, S appears to be near its resistance; however, it can still move another buck if the markets go up according to this graph below:
http://investertech.com/tkchart/tkchart.asp?stkname=S&wt=1&ind=nn
And LDK can fill the 8.+ gap down (meaning it can move up another buck also) according to the attached graph:
http://investertech.com/tkchart/tkchart.asp?stkname=LDK&wt=0&ind=nn
Nice work!
Jose
Darwin,
Did you buy BBBY to go down? Like I said, BBBY has always been a "tricky" stock - even with consumers not spending a nickel nowadays, the stock beat by a mile compared to previous quarters... I hope you followed my humble advice.
Regards,
Jose
I followed your humble advice...Thx Jose. Lets see how LDK follows it's move today. Bought a few more callers on S.
Darwin,
Life is good! Again, my two humble cents - all three major indexes need to pull back soon. They may all fake up and then go down hard as the MACD on all is at the top and buyers / short covering will eventually dry up. I would start taking my profits on LDK and just let some of the position ride the potential move between 8 and 10.00USD. S is a little high, too. Look at the recent triple top around 4.50USD and it does not break through that resistance level + MACD is also at the top - a move down may be coming soon...
Enjoy trading!
Jose
Thx Jose...yes things could get heavy...a tight leash is in order. I like your eye on ISRG next week.
Jose, I closed my LDK on the morning spike for .20 profit per contract. Still holding my May callers on S (4's). I did buy two front month lottery PUTS for next week- F (4's)& FSLR (135's). Will GS's secondary upset the markets apple cart?
Darwin,
Congrats on the LDK move - profits are to be taken!
The puts on F look good as the stock is a little overbought at these levels (4+). Be careful with this trade as F only moves about thirty cents at a time (gaps) - I would personally take profits quickly on this one on any weakness on the markets / stock. Remember that F is going up as they have been bragging about the fact that they do not need help from the Obama Admin - and have also said that they will be profitable soon.
Regarding FSLR - the stock can move up a lot more all by itself based on technicals; however, the markets are so overbought right now that it will probably come down with the markets next week. FSLR really moves with the markets if there are no stock specific news. So, if the markets go up next week (which I doubt), FSLR will move up and vice versa.
GS - I want to say that GS is a perfect PUT at these levels based on technicals. However, GS is a very interesting story - it looks like they got the MOJO back and the talks about giving all of the TARP money back to Obama has everyone interested on the buy side. Let's not forget that their old business model cannot continue to survive as they are now actually a "bank" like company (no longer an investment bank) - this happened last year. I personally anticipate a pull back on GS based on technicals - but, I am going to wait for the earnings to be released and I will make my move at that point. The rule of thumb is that second offerings increase the number of shares outstanding and dilute earnings; thus, having a negative impact on a stock price. But things are different today as folks may see GS stock offering as a sign of strengh - that is, being able to raise capital in these market conditions by selling your own stock (not easy these days). In conclusion, regarding GS, I will continue to wait for news to come out and make any moves after the news come out. GS always gives you an opportunity to trade as it opens up or down a few bucks and then moves big from there. Look at the attached graph to see what I mean:
http://investertech.com/tkchart/tkchart.asp?stkname=gs&px=3&wt=0
Thx for ALL the input Jose! Watching closely this week.
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