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Juniper Networks (JNPR) Jumping Higher Today!! What are my Options Honey?! By: Tim Bolger

Juniper Networks (JNPR) is poised to sail higher in the coming months and Tech stocks continue momentum to the upside! Attached is a bio on Juniper courtesy of Yahoo Finance: Juniper Networks, Inc. designs, develops, and sells products and services that provide network infrastructure for networking requirements of service providers, enterprises, governments, and research and public sector organizations worldwide. The company operates in two segments, Infrastructure and SLT. The Infrastructure segment primarily provides scalable routing and switching products that are used to control and direct network traffic. Its products include Internet protocol routing and carrier Ethernet routing portfolio, and Ethernet switching portfolio comprising T series, M series, PTX series, E Series, MX series, and EX series, as well as QFabric and WLAN products. The SLT segment offers solutions that protect the users, applications, and data on the network itself to provide network services across a distributed infrastructure. This segment provides services gateways, integrated firewalls, and VPN solutions, which provide firewall/VPN performance and scalability and combines routing, switching, and security functionality; Junos Pulse mobile security suite and SA series SSL VPN appliances to provide secure access to corporate resources for remote and mobile users from any Web-enabled device; IDP series appliances that utilize intrusion detection methods to increase the detection rate of and prevent network attacks; and identity and policy control solutions to integrate subscriber privileges, application requirements, and business policies with the IP network infrastructure. The company sells its products and service through direct sales, as well as through distributors, value-added resellers, and original equipment manufacturer partners. Juniper Networks, Inc. was founded in 1996 and is headquartered in Sunnyvale, California.

I am long shares of JNPR and think there is big opportunity in the JNPR Options as well. So what is the Options play on JNPR??

Trade #1: I would consider buying the JNPR $23 strike Call Options with a July 20, 2012 for $1.35 a contract. Attached are the Options chains for Juniper with a July 20, 2012 expiration date courtesy of Yahoo Finance: http://finance.yahoo.com/q/op?s=JNPR&m=2012-07.  I can buy 20 contracts for $2,700 plus trading fees and that will get me long exposure to 2,000 shares of Juniper at a $23 exercise price. If Juniper trades to 30 by this summer’s expiration date, these contracts will be worth $14,000 or more. Go Juniper Bulls and let’s make some honey…I mean money!!

Trade#2: I would consider selling the JNPR $23 strike Put Options with an April 20, 2012 expiration date for $1.40 a contract. Attached are the Options chains for Juniper with an April 20, 2012 expiration date courtesy of Yahoo Finance:http://finance.yahoo.com/q/op?s=JNPR&m=2012-04. I can sell 10 Put Option contracts and have $1,400 credited to my brokerage account. I think Juniper shares continue to move higher over the next several months and I believe the shares will trade higher than the $23 strike on the expiration date of these derivative contracts. However, I am comfortable with the worst case scenario of getting exercised on these shares at $23 each and going long a 1,000 shares of Juniper. Remember, this trade is not for beginners and I need to have $23,000 in cash in my brokerage account as collateral in case I get exercised on these shares. I will only get exercised on JNPR shares if the stock is trading below $23 per share on the April 20th, 2012 expiration date of these Put Options. Stay tuned for more action on Http://www/optionshoney.com.

Check out the Technical Chart below on Juniper Networks (JNPR) courtesy of Finviz.com:

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Tech Giant Oracle Has Big Quarterly Numbers and Stock Slides!! What are my Options?! By: Tim Bolger

German Sailing Grand Prix Kiel 2006. Team: BMW...

German Sailing Grand Prix Kiel 2006. Team: BMW Oracle Racing. (Photo credit: Wikipedia)

Oracle Corporation (ORCL): the business software and hardware global giant is sliding over 2% to $29.48(3:19 PM EDT) after it beat the streets quarterly earnings expectations after the closing bell on March 20, 2012 (Q3 results ending Feb 29th).

In morning trade, Orcl stock popped to an intraday high of $31.15 a share and then reversed course to the downside breaking the important technical of $30 a share. Nearly 80,000,000 shares have traded hands on this tech giant before 3:26 PM EDT on a day of huge volume, in which investors/analysts have a mixed sentiment on the financial results of the company. Oracle beat analyst expectations by a slight percentage, coming in with $9.04 Billion in revenue for the quarter.  The street had Oracle coming in with an estimated $9.02 Billion, which is only a small beat and may partially explain why the shares are sliding after a quick knee jerk pop to the upside this morning.

On a more positive note, Oracle had a very impressive gross margin of 78.9% and an operating margin of 37.8%. Non-GAAP earnings beat the street by 6 cents, coming in at $0.62 cents a share and the street had predicted Oracle to come in at $0.56 cents a share. Check out the chart below courtesy of Capital IQ to take a closer look at the Non-GAAP earnings results in more detail:

anImage

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Despite the slide in Oracle shares today, I am still a raging bull when it comes to investing in this global technology giant. Larry Ellison is one of the smartest and richest Tech moguls on planet earth and I am very confident in the long term picture of continued profitability and share appreciation of this Bay Area Tech giant. I am maintaining my $37 price target for Orcl shares over the next 11 months and would be a buyer of the shares on this pullback.  I think this is short term storm for and pullback in Orcl shares and presents a great long term buying opportunity for new investors and those looking to accumulate more shares for their core positions. A great entry point in the stock will be at a share price of $27.50 or less. Now, what is the Option play?! I like the longer term Call options and selling the near term Put options on Oracle.

Trade#1: I would consider selling the Oracle(ORCL) $29 strike Put Option for $0.90 cents a contract with an April 20, 2012 expiration date. Attached is Oracle Options Chains with an April 20, 2012 expiration date courtesy of YahooFinance: http://finance.yahoo.com/q/op?s=ORCL&m=2012-04. If I sell 20 Orcl Put Options for $0.90 cents each, I will credit $1,800 into my brokerage account ($0.90 cents x 100 shares per contract=$90 and $90 x 20 contracts =$1,800).

Remember, by selling the Put options, we are taking the big risk of potentially being exercised on the shares of Oracle at $29, if shares of Orcl stock are trading below $29 on the expiration date of these contracts.  Therefore, we need to have $58,000 in cash in our brokerage account as cash collateral in the event that we get exercised on the 20 Put option contracts that we are considering selling. 20 contractsx$2,900($29 x 100 shares per contract)=$58,000. This is definitely not a trade for beginners, especially if you do not have the cash reserves to initiate the trade. However, I am a fan of this trade and a big long term bull on Oracle. In a worst case scenario, I am comfortable going long 2,000 shares of Oracle at $29 a share if I get exercised. By selling the Put options, I am in a sense financing $1,800 towards the potential eventual purchase of 2,000 shares of Oracle at $29 per share. By selling the Put Options, I am actually getting long the stock at $28.10 (net cost of $58,000-$1,800 credit=$56,200)because of the $1,800 that was initially credited to my brokerage account at the opening of this derivatives transaction.

Trade #2: I would consider buying the Oracle(Orcl) $29 strike Call Options with a Sept 21, 2012 expiration date for $1.25 a contract. Attached is the Orcl Options Chains with a Sept 21, 2012 expiration date courtesy of Yahoo Finance: http://finance.yahoo.com/q/op?s=ORCL&m=2012-09. I can buy 20 contracts for $2,500($125 per contract of 100 shares x20 contracts= $2,500 to open this trade) and that will give me long exposure on 2,000 shares of Orcl stock at $29 a share for the next several months. If the stock trades to $35 by the September expiration date, my initial $2,500 investment will be worth over $12,000. That would be beautiful return on our capital and I think that Tech stocks continue to lead this market rally higher in 2012!!! Lets go Orcl Bulls!! Remember, we need Orcl stock to decline another  5 or 6% in order for us to get an opportunity to buy these September 2012 Call Options for $1.25 a contract. Options take alot of patience and discipline to be successful in making money. Please remember to consult your investment advisor before buying or selling any equity securities/stock options. Good luck and stay tuned for more big action at http://www.Optionshoney.com.

Honey?! Lock in Some Profits on Oracle Call Options?! By: Tim Bolger

Deutsch: Oracle-Zentrale in Redwood Shores.

Image via Wikipedia

I have been a long term bull on the Oracle Corporation(ORCL) and love this company… Earlier this week , I recommended that Options honey readers consider buying the Mar 16, 2012 expiration $30 strike Call Options on Oracle (ORCL) for .20 cents(.20 x 100 shares per contract=$20 a contract plus trading fees). Oracle is trading up 1.23% at 29.61(11:21 AM EST) and the March 16, 2012 $30 strike Call Option contracts have gained almost 100% in value. Attached is the March 16, 2012 expiration $30 strike ORCL Call Option courtesy of Yahoo Financehttp://finance.yahoo.com/q?s=ORCL120317C00030000
 
You might want to consider selling 40% of your position to lock in a big gain at .40 cents a contract(.40 x 100 shares per contract=$40). That would be a quick gain of $800 minus trading fees. That’s nice!! Lovin’ that Honey…I mean Money!! If you bought 100 contracts, you will still have 60 contracts remaining in order to profit huge from the potential move in the stock above $30 in the next few trading days. I reiterate my $37 2012 price target on Oracle shares and strongly believe that if the stock breaks 30, it will run into the low 30s very quickly.

Good luck Oracle Bulls & Stay Tuned to http://www.Optionshoney.com!!

Technology Stocks Move Higher!! Oracle Options Honey?!! By: Tim Bolger

Oracle Headquarters Redwood Shores

Image via Wikipedia

Oracle Corporation world HQ

Image via Wikipedia

I’ve been a long term bull on Oracle Corporation and believe that it is one of the best run companies on the planet…It has some of the highest gross margins and cutting edge software products on the planet as well…To put the icing on the cake, it is run by CEO and Co-founder Larry Ellison…Ellison dominates the Technology business software sector and almost everything he touches turns to Gold…Attached is my post on Oracle Corp earlier this year:

http://optionshoney.com/2012/01/16/ellison-and-oracle-dominate-the-globe-what-is-the-options-play-honey/.

After a huge run up in the Nasdaq, Oracle has lagged over the past 6 months and I believe that it is starting to get footing and will climb higher…I am a buyer of the stock under $29 a share and I have a $37 twelve month price target on this Tech stock…It is definitely a great stock to park alot of cash into, especially if the markets get very volatile again.  Any pull backs in the stock are excellent opportunities for long term investors to add to their core positions in Oracle shares.  I am watching the Call Options on Oracle very closely and have been monitoring the stock for several years…Remember, Options take patience/precision and are not suitable for all investors.  I often cost average my purchase of Options contracts, just like I would buying shares of a company. I rarely ever back up the truck all at once when buying Options contracts because I do not have a crystal ball that perfectly predicts short term bottoms in stocks and overall market indexes.  So what am I buying?! Options honey?!

Over the past few weeks, I have been diversifying my portfolio with Options contracts on several Technology companies including Juniper (JNPR) and Nuance Communications (NUAN) to name a few…

Oracle Options Honey?!

Trade#1:  I am looking at buying the Oracle (ORCL) March 16, 2012 $30 strike Call Options for .20 cents a contract. 100 shares per Options contract x .20 cents= $20 per contract plus trading fees. Attached is the Mar 16, 2012 expiration Options chains for Oracle Corporation courtesy of Yahoo Finance: http://finance.yahoo.com/q/op?s=ORCL+Options. For $1,000 plus trading fees, I can purchase 50 contracts on ORCL with a $30 strike price. If the stock trades to $31 in the next 3 weeks, my 1k will be worth over $5k. My goal is for the stock to trade to $32, and 1k will be worth 10k for example…I believe ORCL is in an uptrend and if it breaks $30, the stock will run quickly into the low 30s. Good luck to all of the Oracle Bulls!! Remember that options are high risk financial instruments and are not well suited for all traders or conservative investors. Please see the optionshoney.com disclosure and please consult your investment advisor before buying or selling any options/equity securities.

Trade#2: For the longer term bull on Oracle(ORCL), I would think about buying the ORCL Sept 21, 2012 expiration $31 strike Call Options for $1.35 a contract. Attached is the Sept 21, 2012 expiration Options chains courtesy of Yahoo Finance: http://finance.yahoo.com/q/op?s=ORCL&m=2012-09. If the stock trades to $35 by the September expiration, you will almost triple your money…Stay tuned for more options action at Optionshoney.com.

Technology Stocks in the Spotlight!! Call Options?! Juniper Networks… By: Tim Bolger

Technology Stocks have been on a tear in early 2012 and have had a great run over the past few years…I am following a number of Tech stocks and several of these will be in focus over the next few months on Optionshoney.com. Dell is sinking over 6% today after an unfavorable quarterly earnings report and alot of selling among investors today. Apple hit an all time high of $526 a share last week and has been an absolutely amazing stock to own over the past several years.

What stock is going to pop next?! Well, I have several on the radar and reiterate how options trading takes alot of precise timing and patience before we make a trade.  Many stocks will pop, but our timing is key to benefit from big moves in a stock…

So what is the options play?!

I am a big fan of Sunnyvale, CA based Juniper Networks (JNPR) and think the stock could trade into the mid 30s in 2012. A quick bio on Juniper Networks (JNPR) courtesy of Yahoo Finance:  Juniper Networks, Inc. designs, develops, and sells products and services that provide network infrastructure to create environments for the deployment of services and applications over a single network. The company’s Infrastructure segment primarily provides scalable routing and switching products that control and direct network traffic. Its products include Internet protocol (IP) routing and carrier Ethernet routing portfolio, and Ethernet switching portfolio comprising T-series, E-series, MX-series, VXA Series, and EX-series, as well as JCS, TX, and TX plus products. The company’s SLT segment offers firewall virtual private network systems and appliances, SRX services gateways, secure socket layer virtual private network appliances, intrusion detection and prevention appliances, the J-series router product family, and wide area network optimization platforms. Its products protect the network and data on the network, enhances existing bandwidth, and accelerates applications. In addition, the company provides Junos platform comprising the Junos Space network application platform and Junos Pulse integrated, multi-service network client, which enables its customers to expand network software into application space and deploy software clients to control delivery, as well as offers support, professional, and educational services. It sells its products and services through direct sales force, distributors, value-added resellers, and original equipment manufacturer partners to wireline, wireless, and cable operators; Internet content and application providers; businesses; federal, state, and local governments; and research and education institutions. Juniper Networks, Inc. was founded in 1996 and is headquartered in Sunnyvale, California.

Forbes is reporting today on Juniper’s acquisition of Mykonos Software: Juniper Buys Mykonos Software For $80 Million In Cashat Forbes(Wed 9:35AM EST)

Trade#1: I like the JNPR Mar 16, 2012 $24 strike Call Options for .95 cents a contract. I can purchase 10 contracts for $950 plus trading fees and that will get me long 1000 shares of JNPR at $24 per share. This trade is speculating on a 10% move to the upside in JNPR shares over the next 3 weeks. If shares trade $26, we will double our money at a minimum…Attached is the March 16, 2012 expiration Options Chains for JNPR courtesy of Yahoo Finance: http://finance.yahoo.com/q/op?s=JNPR+Options.

Trade#2: I like buying some longer term Call Options on JNPR and would be a buyer of the JNPR July 20, 2012 $23 strike Call Options for $2.90 a contract. I can purchase 10 contracts for $2,900 plus trading fees as a means to get long 1000 shares of JNPR stock at a strike price of $23 per share. Attached is the JNPR July 20, 2012 Expiration Options Chains courtesy of Yahoo Finance:http://finance.yahoo.com/q/op?s=JNPR&m=2012-07. I am looking for JNPR shares to trade $30 or higher before the expiration of these contracts. If the stock trades over $30 per share in the next few months, my 10 contracts would be worth over $7,000. Good luck to all of JNPR Bulls!! I would also be a buyer of the stock at $24 or less per share.  I strongly believe that Juniper will be a great stock over the next couple of years and will significantly outperform the major market indexes.  Additionally, Juniper is a potential acquisition target for a much larger Technology company. I believe that a takeover of Juniper would be at a substantial premium to where the stock is trading at today. Currently, JNPR is trading at $24.19 and is up over 1.75% today (11:19 a.m. Eastern time)…

See below a 3 month technical chart on Juniper Networks(JNPR) courtesy of Fidelity:

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Technology Giant “Apple” Spikes Higher on Blow-Out Earnings Report!! What are my Options Honey?? By: Tim Bolger

Apple Inc.(AAPL) blew out Wall St. Analyst expectations with its quarterly earnings report released last night. Steve Jobs thank you…you were a legendary business player and the most innovative technology pioneer that ever walked the planet. And now thanks to all of your hard work Mr. Jobs, Apple has just surpassed Exxon Mobil as the largest and most valuable company on planet earth by market capitalization. WOW!!!! [$$] Apple Again Becomes Most Valuable Company, So What’s Next?at The Wall Street Journal(Wed 10:06AM EST)

Who bought shares of AAPL in 2000? Well if you invested just $10,000 on the stock back then, you would be a multi-millionaire today.  The ipod, iphone, mac-books, ipad, etc have been one blockbuster innovative technology product after the next…Consumers around the globe have been buying all of these AAPL products like hot cakes and just can’t get enough of them. The halo effect has helped AAPL continue to dominate and sky rocket higher!! Everyone that I know with an iphone absolutely loves it…Sorry Blackberry and RIMM…Hello iphone and Android…And now there are over 500,000 mobile apps for that sleek, trendy mobile phone.

Let’s take a closer look at a few amazing financial statistics on Apple.  It is currently sitting on over $97 billion in cash and securities!!! What should Apple do with all that cash??  Well, I would argue they should have bought back millions of shares(treasury stock) the last few years and that would have been the best return on their capital for shareholders as AAPL shares continue to sky rocket higher!!  Well, they missed that boat and now is time for the company to consider paying out a special dividend to shareholders and consider acquiring smaller technology companies that they see fit to add more value to shareholders.  Apple is sitting on $103 in cash per share.  AAPL now has  a market capitalization of over $418 billion and hit an all time record intraday high of $454.45 a share today. Will AAPL hit a $1 trillion market cap in the next decade? Maybe the next 5 years?? It is starting to feel very realistic and only time will tell the rest of this amazing Tech story…

What is the Options play? Well, clearly buying the Call Options now are very expensive and that should have been done prior to this blow out quarterly report by AAPL and big spike in the shares…I would wait for a big pull back in the shares before buying any out of the money calls on AAPL.  I do feel that the longer term trend in AAPL shares is still much higher and think the stock could hit $525 in 2012.   The law of large numbers tells me that the stock may pull back to around $415, before surging to $500+ though and would wait for a pull back in the stock to buy Call Options or shares of the stock.

However, for the short term trade, I would consider selling the $440 Feb 17, 2012 AAPL Put Option for $12.70.  Yahoo Finance Options Chain: http://finance.yahoo.com/q/op?s=AAPL&m=2012-02. Keep in mind that in order to sell 1 Put Option contract on AAPL at a $440 strike, I will need $44,000 in cash in my brokerage account in case I get exercised on the AAPL shares. By selling this Put Option, I will receive $1,270 and I am comfortable with the worst case scenario of being exercised on the shares at $440. Best case scenario, the shares remain above $440 through the Feb expiration date and I pocket $1,270 without having to buy the shares as well. For longer term AAPL investors, I would wait for the shares to pull back to the $400-415 range before loading up on the shares or adding to already existing core positions in the stock.

Stay tuned to Optionshoney.com for the next big opportunity to buy some Call Options on AAPL, if the stock pulls back 10-12% from its current stock price level of around $447. I will be waiting patiently on the side line for an opportunity to buy these Call Options if AAPl stock pulls back to around $415.  If it continues to go straight up, I may have missed the boat on this trade and will just have to watch it keep flying higher.

Buying Call options after a big spike in a company’s shares is always a high risk trade and not one that I want to put my money on very often. Patience and timing are both very instrumental in making money and winning Options trades.

Chart Courtesy of Fidelity Investments:

Chart

E-Commerce China DangDang Inc(Dang) Soaring in January! Call Options Active! By: Tim Bolger

Chinese E-commerce company DangDang Inc(Dang) has been soaring in the past month and is up big this week on heavy volume. Dang profile: http://finance.yahoo.com/q/pr?s=DANG+Profile. The shares may continue to see huge upside over the long run and is a high growth/high beta stock.  It was recently announced that famous institutional money manager Tiger Global Management has increased there holding in Dang and is the largest institutional shareholder of the company. Clearly, they are betting on the long term growth of Dang as well and have an extremely successful track record of making money in the global equity markets.  Check out this recent article by Seeking AlphaDangdang: Like Rolling Back Time To Buy Amazon At $6at Seeking Alpha(Tue, Jan 17).                                                        

So what is the Options play on Dang??

Options Trade#1:  I like selling the Dang Feb 17, 2012 7 strike Put Options for .65 cents a contract. If I sell 10 contracts I will collect a premium of $650 minus trading fees. If the stock closes above $7 at expiration, I will make $650 minus fees. Worst case scenario, I get exercised on the shares and I am comfortable being long the stock at $7 a share.  By selling the puts it will help finance the potential purchase of 1000 shares of Dang at $7.  Ten contracts x 100 shares per contract=1000 shares. To put on this trade, I will need $7,000 in collateral in my brokerage account in case I get exercised on the shares of stock. Here is the yahoofinance options chain http://finance.yahoo.com/q/op?s=DANG&m=2012-02.

Options Trade#2: For the big Dang bulls, I would think about buying the Dang Jun 15 2012 8 and 9 Call Optionshttp://finance.yahoo.com/q/op?s=DANG&m=2012-06 I like the 8 strike Calls at .95 cents and the 9 strike Calls at .45 cents on a pullback in the stock to around 6.75.   I also like buying the 1o strike leap call options on Dang.  I would think about buying the Dang Jan 17, 2014 10 strike Call Options for around 1.90 a contract.  http://finance.yahoo.com/q/op?s=DANG&m=2014-01. If Dang stock trades back to over 30 in the next few years, these leap call options will be worth big money!!  Stay tuned for more action on optionshoney.com.

http://finance.yahoo.com/q/ta?s=DANG&t=6m&l=on&z=l&q=l&p=&a=&c=

Chart forE-Commerce China Dangdang Inc. (DANG)

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