Options lovers, news junkies, stock market enthusiasts

Posts tagged ‘Inc. – Shares’

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!!

Advertisements

Diamond Foods Spiking 6% After Big Sell Off Yesterday!! Call Options?! By: Tim Bolger

Just a quick note on Diamond Foods(DMND). I posted an article yesterday: http://optionshoney.com/2012/02/09/big-shake-up-at-diamond-foods-this-is-totally-nutz-ceo-and-cfo-are-out-options-honey/recommending that investors buy shares of the San Francisco snack food maker on a huge 42% decline in the shares. DMND is up close to 6% today, on a day in the red across all the major U.S. stock indexes.  Additionally, I suggested buying the Call Options on DMND to take advantage of yesterday’s tremendous share weakness.  I bought the Feb 17, 2012 $23 strike Call Options for $1.45 yesterday and hope that a few other traders jumped on that train. Well, I know alot of Wall St. Pros are all over this big trade and yesterday was a record volume day for Options traded on DMND foods, but I hope a few Optionshoney lovers are making money on this trade as well. Forbes reports: Plunge In Diamond Foods Yields Feast Of Options Trades at Forbes(Fri 10:07AM EST). Consider locking in profits today as these DMND Options contracts are trading 61% higher over night:http://finance.yahoo.com/q?s=DMND120218C00023000. Always remember that pigs get slaughtered…no need to be greedy and it’s a very smart move to take 60% of our profits off the table on this rally in DMND shares and the Call Options…But, this stock may run to 28 by the Feb 17th expiration next week and we could still see huge upside in the value of these Call Options contracts. Options are risky financial instruments and please consult your investment advisor before buying any Options contracts or stocks that I research/trade on this site.  Stay tuned for more action at Optionshoney.com.

Check out the 2 day chart on DMND courtesy of Fidelity Investments:

Chart

Lock in Profits on Dryships(DRYS)?! Buy the 2014 Dryships Leaps and Sell the Feb 12 2.50 strikes… By: Tim Bolger

Dryships (Drys) has made an amazing run ahead of earnings over the past 4 trading days…If you bought the Feb 17, 2012 2.50 Call Options, let’s not get greedy and it might be time to lock in some big profits today. Or at least take 60% off the table. The contracts that I purchased on Friday Feb 3, 2012 for $13 a contract are now trading at $37 a contract! That’s a huge gain and a smart trader will lock in some of those profits…keep in mind that if Drys has a good earnings report next week, these contracts could still run to $75 plus a contract before Feb 17, 2012 expiration…wish I had crystal ball folks…The more conservative play is to take 60% of your money off the table on the shorter term options contracts and get long the 2014 $5 strike Call Option Leaps on Drys for the bull run…This stock traded $120 a share only a few years back and I would love to see it run back to $20 or $30 a share in the next five years. That is why I am also long shares of the common stock of Drys as well, which have no expiration date…Pending the company never files for bankruptcy protection…Let’s hope not… See below the ten day chart on Drys courtesy of Fidelity Investments:

Chart

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

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:

Chart

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:

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)

Tag Cloud