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Posts tagged ‘Fidelity Investments’

OptionsHoney on Fire!! Call Options on Visa and KKR Financial Holdings Ahead Of Earnings?! By: Tim Bolger

It has been an amazing few weeks for everyone reading Optionshoney.com and jumping in on some of my Options plays!!  I hope everyone is both enjoying my posts and making lots of honey ( i mean money) on my investment research and Options plays.  GNW, GS,  AAWW, POT, DANG, AVL, HL, etc have all been huge winners in 2012 and I have never been more focused in my entire life on hitting home runs…  My 4-5 years of following a majority of the stocks that I am designing Options trades on is starting to pay off tenfold.  I conduct rigorous fundamental research analysis on all of these companies that I post on and I follow the technicals closely as well… GNW and GS being the biggest returns thus far in 2012…

What is my Options play now?! I love Visa and KKR Financial Holdings ahead of earnings.  Both companies are headquartered in the San Francisco Bay Area and that is a place I call home…After Mastercard smashed earnings estimates this past week, I am long the $110 and $115 strike Feb Call Options on Visa(V). Attached is the Feb 17, 2012 Options Chain on V Call/Put Options courtesy of Yahoo Finance: http://finance.yahoo.com/q/op?s=V+Options.  If V blows past estimates on Feb 8, 2012 and investors pile into shares, this could be a massive Options trade!!! More positive V news at: Visa Tops One M Chip Cards In The U.S.
DJ Realtime News – 8:00 AM ET 02/06/2012.

I am also long KKR Financial(KFN)  into earnings after the bell today. Check out the company at:   http://www.kkrfinancial.com. I own the April 2012 KFN $10 strike Call Options for a nickel and the April 2012 KFN $9 strike Call Options for .25 cents.  Here is the Options Chain for the April 2012 Call/Put Options on KFN courtesy of Yahoo Finance: http://finance.yahoo.com/q/op?s=KFN&m=2012-04. KFN is rallying a few percent today ahead of earnings and I am looking for this stock to break out to the upside on a good earnings report after the bell today.  KFN is trading at $9.22 right now and is up 21 cents on a negative day across all the major U.S. stock indexes. KFN is headquartered in lovely San Francisco and is poised to pop.  KFN has a trailing P/E of 5.1 and pays an 8% dividend.  Yes, this is a great value stock and pays an awesome dividend. I think this stock could easily trade to $17-20 dollars in a couple of years.  Go KFN Bulls…and who doesn’t love getting paid an 8% return on your money, while you wait for appreciation in this stock?!!

A profile on KFN courtesy of Yahoo finance:  KKR Financial Holdings LLC, together with its subsidiaries, operates as a specialty finance company with expertise in a range of asset classes. It primarily invests in financial assets, such as below investment grade corporate debt, including senior secured and unsecured loans, mezzanine loans, high yield corporate bonds, and distressed and stressed debt securities; marketable equity securities; and private equity. The company also invests in other asset classes, including natural resources and real estate. Its corporate debt investments are held in collateralized loan obligation (CLO) transactions that the company uses as long term financing for these investments. The senior secured notes issued by the CLO transactions are owned by unaffiliated third party investors and the company owns the majority of the mezzanine and subordinated notes in the CLO transactions. KKR Financial Advisors LLC serves as the manager of the company. KKR Financial Holdings LLC was founded in 2004 and is based in San Francisco, California.   Check out the ten day technical chart courtesy of Fidelity Investments on V and KFN below:

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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…

 

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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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Atlas Air WorldWide Holdings Jumping Higher!! Trade Call Options into Feb 13, 2012 Earnings?!!! By: Tim Bolger

Atlas Air Worldwide Holdings(AAWW) has rallied over 25% in the past month and I think it continues to move much higher.  AAWW is a global provider of outsourced aircraft and aviation operating services. Read more on AAWW’s profile: http://finance.yahoo.com/q/pr?s=AAWW+Profile.  AAWW secured financing yesterday for the remaining delivery of six Boeing 747-8 Freighter Deliveries . That is spectacular news for investors!! Read more at Atlas Air Worldwide Completes Financing Arrangements for Remaining Six Boeing 747-8 Freighter DeliveriesBusiness Wire(Wed, Feb 1) If this stock breaks out above 50 shortly, I think it trades to the mid 60s in the next few months. Another major catalyst that might propel these shares much higher is AAWW’s earnings release on Feb 13, 2012.  A blow out quarter for AAWW and any positive 2012 guidance by securing the financing on the remaining delivery of 6 Boeing Freighter’s will be great for both shareholders of the stock and investors long Call Stock Options. AAWW  http://www.atlasair.com and it’s subsidiaries below:

What is the Options Trade on Atlas Air Worldwide Holdings(AAWW)?

Options Trade#1: For the short term trade into earnings of AAWW, I would think about purchasing the AAWW March 16, 2012 50.0 and 52.50 Strike Call Options. Attached is the March 16, 2012 expiration Put/ Call Options Chain courtesy of Yahoo Financehttp://finance.yahoo.com/q/op?s=AAWW&m=2012-03.  I would be a buyer of the $50 strike Call Options at $2.10 and the $52.50 strike Call Options at $1.25.  For $2,000, I can purchase 16 Call Option contracts on AAWW March 16,2012 $52.50 strike Call Options plus trading fees. That will give me the option to buy 1,600 AAWW shares at $52.50 a share.  If AAWW, blows out earnings this month and the stock trades to 60+ a share, this will be a very lucrative Options trade. Our $2,000 of capital invested on this Options play will be worth over $12,000 if the stock trades to $60 before expiration of the contracts. That would be awesome!! Keep in mind that if the stock closes below $52.50 at March expiration and AAWW has a bad quarterly earnings report on Feb 13, 2012, the Call Options may expire worthless. That is the high risk of Options…Hopefully, that will not be the case, but you know that you are risking the entire $2,000 plus trading fees on this Options trade.  For the more conservative longer term investor, owning the shares of AAWW stock may be a great alternative to buying the higher risk Call Options.  The growth story of AAWW’s revenue and earnings will be great over the next several years.  Good luck AAWW Bulls!! This could be a Big Money Options trade for all of you Optionshoney lovers!!

Check out the 60 day technical chart on AAWW below courtesy of Fidelity Investments:

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Rare Earth Miners Continue Rally!! Lynas Corp and General Molycorp Soaring!! Options?? By: Tim Bolger

A little over a week ago, I posted on Optionshoney https://optionshoney.wordpress.com/2012/01/25/rare-earth-miners-up-big-in-late-trade-options-active-on-molycorp-and-avalon-rare-metals-by-tim-bolger/my bullish view on a number of Rare Earth Miners that were my top picks for 2012 and I argued that they could trend much higher following the blow-out quarter of Apple earnings.  To reiterate, my favorite investment picks in the rare earth space are Avalon Rare Metals (AVL), General Molycorp (GMO), Molycorp (MCP), and Lynas Corp. (LYSDY.Pk).  Take a look at the ten day technical chart below courtesy of Fidelity Investments.  This move to the upside has meant big money for call options on GMO and AVL.  The $3 and $4 strike Call Options on AVL and GMO are rallying again today…The biggest move to the upside in the past days has been led by Australina Rare Earth Miner: Lynas Corp, which has soared over 25% in past ten days.

Ten day chart is courtesy of Fidelity Investments:

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GNW Earnings on Feb 2, 2012! Buy Call Options and Sell Put Options on Stock Weakness Today!? By: Tim Bolger

I discussed the big run up in Genworth Financial(GNW) over the past few weeks in a previous post on Optionshoney.com.  The broader stock market indexes are all in slightly negative territory this afternoon as gold and silver continue to march higher!!! What is the play on GNW into earnings next week!? I am personally sticking with my bullish call on GNW and want to have long exposure going into earnings next week.

What is the Options play?

Options Trade#1: I would think about buying the GNW March 17, 2012 7 and 8 strike Call Options. Gnw shares are trading down around 4% today and I would be a buyer of these options at 1.08 and .50 cents a contract. I can purchase 10 contracts for a $1.08 ($1.08 x 100 shares per contract x 10 contracts=$1,080) and 20 contracts for .50 cents (.50 x 100 shares per contract x 20 contracts=$1,000) for a total cost of $2,080 plus trading fees. For a few thousand dollars, I will get long exposure to 3000 shares of GNW going into earnings next week.  That is called leverage with purchasing Call Options. Buying 3000 shares of GNW stock today would cost me close to $23,100. If they beat the street and give any positive signals about a rapid decline in mortgage defaults or a housing recovery, this trade will be very profitable. If they miss and the stock tanks, I could lose a total of $2,080 plus fees on this trade. Remember options are very risky and extremely volatile.  Please remember to consult your investment advisor before making any stock or options purchases.

Options Trade#2: I would also be a seller of the Feb 18, 2012 7 strike Put Options for .30 cents a contract. If I sell 20 contracts I will credit $600 to my brokerage account. Worst case scenario, I get exercised on the shares and I have to purchase 2000 shares of GNW at $7 for $14,000 plus fees. By selling the Put Options I will reduce the cost of buying the 2000 shares by the $600 credit to my brokerage account.  Best case scenario, they blow out earnings next week and I keep the $600 without having to buy the shares…However, my long term outlook and price target on the stock is 17, so I like owning the stock at these levels.  The book value of GNW shares is close to $28 a share…Good luck Longs!! Till next time on Optionshoney.com.

5 Year Chart 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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