Citi traded well today, but it was on low volume, at least for Citi... our Jan 13 4.50 calls have still held well even with the pullback, only once breaking even where we added to our position... We are still bullish and even if they can't resinstate their dividend until 12 they should still push further north and once the $5 price is broke and holds institutions will be buying...
Happy Trading...
Monday, December 27, 2010
After holiday interest in two drink companies...
Today was a shopping day, cleared the 10" of snow off the car window loaded up the family and went shopping...
Went to a Bed bath and Beyond (BBB) and first thing you notice when you walk in is all the Coffee Pods for sale, some of these were upwards of $80 bucks a box. Good thing is they are still Green Mountain Coffee Roaster (GMCR) products... Right next to these was a demonstration of the Israeli Company Sodastream's (SODA) product. This is the product that will make almost any kind of soda you would want, of course you must buy the flavor packet and carbonation products. For those of you involved with Sharkwater you know we have taken an interest in GMCR and were recently trying to get a read on if SODA was going to be on our radar scope after the IPO... Fortunately we played both well, the question is now that they are both priced about the same what, if any, is the trade here.
I still like GMCR, it had some competition news and a class action law suit regarding its accounting issues that pulled it back the day we picked it up. We are currently out of GMCR and looking to see what the best move is. Being bullish on the equity we see the ATM calls a good place to start, there is some volitility with them so they are priced a little high. There is some interest in the $40 calls over the next several months, but no insight into if they are probable sells or buys. Not much in the put section. Another trade would be a covered call since there is some added volitility, the Jan 11 35$ would return approx 20% plus the ~2/share.
I am not to impressed with SODA yet, the convenience of the pod is evident and useful on a daily basis even with the premium you pay for your single serve pod. I first saw these when travelling on business several years ago now there everywhere. This is in contrast to buying a case of your favorite soda and sticking it in the fridge or going to the soda machine or break room and paying for one when you want vice having to have the coffee every morning... I would only stick to the options if you are looking to play this. We are going to keep watching this one to see how well it performs in the U.S. as it is just breaking into the market here and we need to find out how well it is doing in Europe.
Happy trading...
Went to a Bed bath and Beyond (BBB) and first thing you notice when you walk in is all the Coffee Pods for sale, some of these were upwards of $80 bucks a box. Good thing is they are still Green Mountain Coffee Roaster (GMCR) products... Right next to these was a demonstration of the Israeli Company Sodastream's (SODA) product. This is the product that will make almost any kind of soda you would want, of course you must buy the flavor packet and carbonation products. For those of you involved with Sharkwater you know we have taken an interest in GMCR and were recently trying to get a read on if SODA was going to be on our radar scope after the IPO... Fortunately we played both well, the question is now that they are both priced about the same what, if any, is the trade here.
I still like GMCR, it had some competition news and a class action law suit regarding its accounting issues that pulled it back the day we picked it up. We are currently out of GMCR and looking to see what the best move is. Being bullish on the equity we see the ATM calls a good place to start, there is some volitility with them so they are priced a little high. There is some interest in the $40 calls over the next several months, but no insight into if they are probable sells or buys. Not much in the put section. Another trade would be a covered call since there is some added volitility, the Jan 11 35$ would return approx 20% plus the ~2/share.
I am not to impressed with SODA yet, the convenience of the pod is evident and useful on a daily basis even with the premium you pay for your single serve pod. I first saw these when travelling on business several years ago now there everywhere. This is in contrast to buying a case of your favorite soda and sticking it in the fridge or going to the soda machine or break room and paying for one when you want vice having to have the coffee every morning... I would only stick to the options if you are looking to play this. We are going to keep watching this one to see how well it performs in the U.S. as it is just breaking into the market here and we need to find out how well it is doing in Europe.
Happy trading...
Saturday, December 25, 2010
SQNM Breaks 7.50
Update: Sequenom is now ITM. We have the $7.50 Jan calls. Picked them up early so recommend holding longer and either exercising if over 8.50 or letting the intrinsic value make you profitable...
Happy Trading
Happy Trading
Merry Christmas!
It is snowing here on the east coast, of course the weather models were on both sides of the extreme, either not much or much. Looks like we are coming in right in the middle with 5-10 inches forecast...
So I'm sorry I missed out on XOMA this past week, I was informed when it was still in the high-3s but that was after a 60% run-up and no real news... XOMA is another biotech, not optionable so I didn't have a chance nor make the time to look into this one. It is looking at the EU for an orphan status on a diabetic drug and had good phase 1 results, this wasn't recent so either people are trying to own before this happens, especially given the ITMN EU success. Don't know anything about this, valuation, market potential etc... it is wav overbought on the technicals but recommend taking a closer look for yourselves!
As we close out this year if your trading has beens successful please consider an end-of-year donation to a charity of your choice... I recomment St Judes Hospital or Compassion International but anyone will do.
Back to desert... Merry Christmas!
Happy Trading...
So I'm sorry I missed out on XOMA this past week, I was informed when it was still in the high-3s but that was after a 60% run-up and no real news... XOMA is another biotech, not optionable so I didn't have a chance nor make the time to look into this one. It is looking at the EU for an orphan status on a diabetic drug and had good phase 1 results, this wasn't recent so either people are trying to own before this happens, especially given the ITMN EU success. Don't know anything about this, valuation, market potential etc... it is wav overbought on the technicals but recommend taking a closer look for yourselves!
As we close out this year if your trading has beens successful please consider an end-of-year donation to a charity of your choice... I recomment St Judes Hospital or Compassion International but anyone will do.
Back to desert... Merry Christmas!
Happy Trading...
Saturday, December 18, 2010
Entropic (ENTR) < 10
Long ENTR if it pulls back under $10, buy half now and wait for further pullback or confirmed up-trend.
Current 50-day MA ~ 9 (it has its 50-day pretty well) 200-day MA ~ 7.
Entropic makes the chips that support the record in one room watch in another technology in DVR's today. If the trend in technology is to put everything into HD TVs and Blu-ray players 2011 could see the chips in many more devices...
This is a long play (so an investment) and may turn into a covered call type of trade next year.
Happy trading...
Current 50-day MA ~ 9 (it has its 50-day pretty well) 200-day MA ~ 7.
Entropic makes the chips that support the record in one room watch in another technology in DVR's today. If the trend in technology is to put everything into HD TVs and Blu-ray players 2011 could see the chips in many more devices...
This is a long play (so an investment) and may turn into a covered call type of trade next year.
Happy trading...
Friday, December 17, 2010
ITMN Update!!!!!!!!!!
How about them profits!!!! Sorry, the call spread limited our profits, but it was much safer playing a biotech! So, those of you that were greedy and just bought calls outright!!!!!!!!!!!!!!! Christmas is coming...
And how about these if you were in the know that the decision was coming this early!
Happy Trading!
Wednesday, December 15, 2010
Back in with Citi (C)
Picked up another 20 jan 13 4.50 calls today after the pullback to last weeks purchase point. Here is the daily chart, the harimi cross was text-book right before the last 2-day pullback (Not a selloff given the volume was light). With the tax-cuts moving through today that should help bouy the market into the end of the year and if the Jan effect holds true in 2011 a push through $5 should be in the mix. Given the higher highs and lower lows since Sept the trend is still looking good.
Happy Trading...
Happy Trading...
Friday, December 10, 2010
April 2011 Bull Call Spread on Intermune
For those in last year on our huge intermune hit, here is a low-risk way to play the next announcement, although you limit reward.
Buy April 20 Calls $ 4.25, sell April 25 Calls at 3.25 for $100 to open per contract. Risk 100 Reward 400per contract if Intermune above 25 April 16.
Expect European results of pirefedone early 2011.
Happy Trading...
Buy April 20 Calls $ 4.25, sell April 25 Calls at 3.25 for $100 to open per contract. Risk 100 Reward 400per contract if Intermune above 25 April 16.
Expect European results of pirefedone early 2011.
Happy Trading...
Wednesday, December 8, 2010
C and SOLR breakouts
Today we continued to pick up Jan 13 4.5 Calls on C. These are both for investment and for trades as C approaches the 5$ mark. Five is the key to intsitutional buying and most fund managers aren't holding when compared to its financial competitors. Now that the US does not ow them a reverse stock-split would do the trick along with the continued rise on huge volume.
GT Solar is up over 60% since we mentioned in an earlier post, here is the daily chart since we mentioned, we picked on the lowest candle stick...
GT Solar is up over 60% since we mentioned in an earlier post, here is the daily chart since we mentioned, we picked on the lowest candle stick...
It is approaching an overbought territory and we would pick up on any broad-market sell-off with a 6.75 stop.
Happy trading...
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