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Gotta Love the Fizzy Water and SodaStream (SODA)?! Options?? By: Tim Bolger

SodaStream International (SODA): the manufacturer, developer, and marketer of state of the art carbonated beverage making machines is taking the stage on Optionshoney.com. I have been doing rigorous fundamental research on this Israeli company and closely watching the stock trade for the past 3 months. I became very interested in this beverage company based on its unique technology and the fact that I had heard great product reviews from a few friends who owned this carbonated beverage making machine. Just a few days ago, I jumped on the SODA bandwagon and purchased my own SODA machine to carbonate water at the homestead. It’s so much fun and makes yummy bubbly carbonated water in just a few seconds.  It’s really awesome!! Then you just have to add your favorite syrup flavor and vodka if you so please and shizam you’ve got a killer cocktail or non-alcoholic beverage.  Will SodaStream be the next huge beverage machine growth story for investors, just like the Keurig and K-Cup were for Green Mountain Coffee Roasters (GMCR) Investors?!  I hope so and think it is very possible for this company to double or triple in market cap value and feel that this company is still in early global growth stages.

SodaStream is also super environmentally friendly and eliminates the need for recycling hundreds of millions of plastic soda water bottles every year…Now that rocks! The more people around the globe that fall in love with this beverage company’s cool products and fizz their own water at home, the cleaner this planet will be in the future. And, it truly makes yummy carbonated water in just a few seconds!! Sodawater and a squeezed lemon or orange is not only quick to make, but it’s super refreshing…

For all the SODA Bulls, let’s hope this stock is preparing to take off like a rocket ship. It has experienced some headwinds over the past few months and the stock has declined quite significantly. I think this is short term pullback in the stock and the longer term fundamentals remain intact for this beverage machine’s growth story…but only time will tell.  It  is heavily shorted and any good news could create a huge short covering and big pop in the stock!  I usually like to buy slightly beaten down stocks when they are presenting value opportunities and not trading at their 52 week highs. I’m ready to dive in to Sodastream options.

What is the Options play on SodaStream (SODA)?!

1. Soda Stream $89

Trade#1: I am considering selling the SodaStream (SODA) $32.50 strike Put Options with an April 20, 2012 expiration for $1.75 a contract. Attached is the SODA April 20, 2012 expiration Options chains courtesy of Yahoo Finance: http://finance.yahoo.com/q/op?s=SODA+Options. I need the stock to fall a few more percent, in order to sell these options for $1.75 a contract. If I sell 10 contracts for $175 a contract ($1.75 x 100 shares per contract=$175), I will credit $1,750 into my brokerage account minus trading fees. Remember, that by selling the Put Options, I am taking the risk of getting exercised on the shares at $32.50 per share, if the stock is trading below $32.50 on the expiration date of the derivative contracts. Therefore, to execute this trade, I will need $32,500 in cash in my brokerage account as collateral in case I get exercised and have to purchase 1,000 shares of the stock at $32.50 (10 contracts x 100 shares per contract=1,000 shares x $32.50 per share= $32,500 plus trading fees to buy the stock). I like this trade and am very comfortable in a worst case scenario of going long a 1,000 shares of the stock at $32.50. My 12 month price target on this stock is $60-70 per share. Selling the 10 Put Option contracts will finance $1,750 minus fees towards my potential purchase of the shares of stock at $32.50 as well and that is awesome.

Trade#2:  I would consider buying the SODA $32.50 strike Call Options with an October 19, 2012 expiration date for $4.25 a contract. Attached is the SODA Options chains with an October 19, 2012 expiration date courtesy of YahooFinance: http://finance.yahoo.com/q/op?s=SODA&m=2012-10. I need SODA shares to decline another 5-6% in order for me to buy these contracts for my desired price. Currently, the Ask (the price a seller is willing to sell the contracts for) is $6.60 a contract for these Call Options.  If I buy 10 contracts for $4.25, I will get long exposure to 1,000 shares of SODA at $32.50 per share. 10 Options contracts will cost me $4,250 plus trading fees. If shares of SODA trade to $50 before the October 2012 expiration date, these 10 contracts will be worth at least $17,500 and I will profit over $13,000 on the trade. Show me the Honey…I mean $$$. Let’s go SODA Bulls and remember Options trading is very risky. More conservative investors should avoid trading Options and just consider buying shares of SODA stock at $32 or less. Please remember to consult your investment advisor before buying and/or selling Equity Securities/Options. Stay tuned for more Options action at http://www.Optionshoney.com.

Check out the Technical chart on shares of SODA below courtesy of FinViz.com:

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Awesome Economic Data!! AAWW Moving Higher!!! Call Options?!! By: Tim Bolger

Keep an eye on ATSG and AAWW!! AAWW breaks above the $50 technical that I have been patiently awaiting…A better global economy is great news for both of these air cargo stocks. Go Bulls!!! Show me the Honey baby!!  I posted the other day on Options Honey suggesting that traders consider buying the AAWW Call Options ahead of the company’s upcoming Feb earnings report. Yesterday’s Options post on Optionshoney.com:  http://optionshoney.com/2012/02/02/atlas-air-worldwide-holdings-jumping-higher-trade-call-options-into-feb-13-2012-earnings/. The AAWW 52.50 strike Mar 2012 Call Options are up over 35% from yesterday’s close as AAWW surges over 4% today. ATSG is up over 5% today as well. Check out the 2 day chart below on AAWW, ATSG, and the S & P 500 courtesy of Fidelity Investments.  ATSG and AAWW are clearly outperforming the S & P 500 today and are ready to break out to the upside…Stay tuned for more exciting Options plays on Optionshoney.com…

 

Chart

Genworth Financial (GNW) Blows Past Q42011 Wall St. Earnings Estimates!! Stock Surges! Call Options Jump!! By: Tim Bolger

Thought I would make a quick post here to remind my Optionshoney readers and traders of my huge market call on Genworth Financial (GNW) prior to the earnings release last night after the bell. Attached is my previous post on 1/26/12 suggesting traders buy GNW Call Options on the stocks weakness that day ahead of the upcoming earnings release last night: https://optionshoney.wordpress.com/2012/01/26/gnw-earnings-on-feb-2-2012-buy-call-options-and-sell-put-options-on-stock-weakness-today/

GNW is the Biggest Gainer this morning in the S & P 500*Genworth shares shump 17%, S&P 500 best MarketWatch–9:36 AM. Mortgage delinquencies declined 73% year over year and GNW came in with a Q42011 earnings of 22 cents diluted earnings per share(EPS), beating the street expectations by 4 cents! All of this translated into big money made this morning on my previous post suggesting buying the 7 and 8 strike March 17, 2012 GNW Call Options! Go Bulls. Jumping with Joy this morning that’s for sure… Lock in your profits this morning or hold tight for a bigger upside move and more money made on these Call Options? If you own a bunch of contracts, it might be smart to take 30% off the table and lock in some huge profits made over night…Or just hold tight and ride this baby higher!! If GNW breaks above $10 and continues to move higher with financials, this stock may run to $12 in the next 30 days!! Stay tuned for more honey calls and mega options plays at Optionshoney.com. Yeah baby!!! Are you starting to feel the buzz??? There is alot of honey brewing on this site…Can you feel it?? This is a very exciting day for me and many other lovers of GNW. Remember at 9.25 a share, GNW is still cheap for long term investors. GNW has a book value of close to $33 a share.  Check out the 10 day chart below on GNW courtesy of Fidelity Investments:

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Hecla Mining Rallying on Big Volume!! March $5 Call Options!? By: Tim Bolger

I previously posted an article/options play on Optionshoney.com regarding the huge sell off in Hecla Mining (HL) shares and argued that the sell off was overdone. Read more at http://optionshoney.com/2012/01/11/hecla-mining-pounded-on-huge-volume-lets-mine-the-honey-with-options/.  I was looking for a bounce in the shares in the short term and that has come to fruition in the past week.  HL is rallying over 4% this afternoon and is moving much higher alongside several other metals stocks and rare earth mining stocks.

What are my Options Honey??

I still like the HL Mar 17, 2012 $5 strike Call Options for around .30 cents a contract. Stay tuned for more and go bulls on HL!! Check out the 10 day chart below on Hecla Mining (HL) and you can see the big bounce in the shares after a huge sell off.  Also in the chart, is Silver Wheaton (SLW), which is another top metals pick for me. I will discuss SLW in greater detail in posts to come shortly on Optionshoney.com.

Chart Courtesy of Fidelity Investments:

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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)

Goldman Sachs(GS) Call Options Active on Q42011 Earnings Beat!! By: Tim Bolger

Goldman Sachs(GS) is arguably the most powerful and innovative investment firm on planet Earth and runs Wall St. in my opinion.  Run by Wall St. legend Lloyd Blankfein (CEO of GS), they are at the forefront of several capital markets deals, stellar traders, have an amazing advisory services business, investment management, investment banking, etc.  Many of the smartest financial professionals in the world flock to Goldman for an opportunity to make millions of dollars.  If you work at Goldman, in my opinion you are the creme de la creme of financial services pros…When Goldman talks, investors listen…whether they like the news they are hearing or not. GS can move markets with their fundamental research and analysis of the markets.  GS is also brilliant on the technical side of trades as well and I think they are among the best trading firms in the world…they definitely have a spectacular track record in that department…

Despite their brilliant fleet of financial wizards, GS stock had a terrible year in 2011 alongside a majority of financial stocks and declined over 45%. Today, they beat Wall St. earnings estimates and the stock is up over 5% on big volume. GS earned $1.01 Billion in Q4 2011 and had Earnings Per Share(EPS) of $1.84 for the quarter. Fourth quarter EPS beat the street by a whopping 60 cents a share and investors are reacting very positively to this quarterly news report and piling into both the shares of stock and options contracts. Is the slide in GS shares over?? Is it time to get in the shares for the long term??  I would argue that owning the shares anywhere around a $100 is a great buying opportunity for longer term investors who believe in both the survival of Wall Street and the global capital markets…I certainly do and GS will be one of the biggest and most powerful whales in the sea. Businesses need capital for growth/survival in difficult economic cycles and to compete in this ever fast changing world…

GS Call Options are very active today and might be time to load up…Check out the front month GS 105 strike Jan 20,2012 Call Options being bought like hot cakes today as investors pile in to position for a bigger move up in the shares over the next few days.  Here is the options chain for Jan 20, 2012:  http://finance.yahoo.com/q/op?s=GS+Options. This is a very risky but potentially lucrative trade for those traders with a hunger for risk and is a trade being executed by many professional options traders and savvy investors today.  A more conservative play would be to think about buying the April 20, 2012 110 or 115 strike Call Options on GS to position yourself for a continued rise in the shares. Here is the GS April 20, 2012 Options chains:  http://finance.yahoo.com/q/op?s=GS&m=2012-04. GS traded close to 175 last year and definitely has alot of room to run if the stock continues to gain momentum and more positive investor sentiment. If a few analysts upgrade the stock as well, that would be very favorable for GS shares and could easily send the shares higher to 125+ in the next couple of months…We shall see and only time will tell the story… On a bearish note, the markets may be nearing a short term top and if the market falls, GS may decline with the rest of the equity markets…We might want to wait on the side line for a pullback in the shares and the overall markets before jumping into this trade on GS. Remember patience and timing is key to making successful Options trades…And yes alot of luck is involved in making money with Options as well…No investor or trader has a magic crystal ball that will tell for certain what actually will happen on Wall Street or to any individual stocks for that matter. Check out the 5 day chart on GS courtesy of YahooFinance below. Big volume today and the shares are spiking to the upside!! Optionshoney.com disclaimer.  Until next time folks. Stay tuned for more…

—Tim Bolger

http://finance.yahoo.com/q/ta?s=GS&t=5d&l=on&z=l&q=l&p=&a=&c=

Chart forThe Goldman Sachs Group, Inc. (GS)

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