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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:

Coal Stocks Continue Free Fall!! Alpha Natural Resources(ANR) Options Honey?!! By: Tim Bolger

Alpha Natural Resources (ANR) acquired Massey Energy a few years back and has continued to slide alongside the entire Coal sector over the past 12 months. The stock is down over 70% in the past 12 months and is lighting up on my radar as a potential big long term investment opportunity. It has been a very warm winter in the NorthEast and that is not a good environment for Coal stocks…But, are coal stocks hitting a near term bottom?! Legendary Omaha, Nebraska Investor Warren Buffett has made many of his best investments when a sector is out of favor and trading at cheap valuations, but have great long term fundamentals.  Presently, I am seeing lots of value in Coal stocks and think the big slide over the past 12 months may be nearing an end.

Attached is a profile on Alpha Natural Resources(ANR) courtesy of Yahoo Finance: Alpha Natural Resources, Inc., together with its subsidiaries, engages in producing, processing, and selling steam and metallurgical coal in the United States. The company has mining operations in Virginia, West Virginia, Pennsylvania, Kentucky, and Wyoming. As of December 31, 2011, it owned or leased approximately 4.7 billion tons of proven and probable coal reserves; and operated 145 mines in northern and central Appalachia and the Powder River basin. The company is also involved in repairing and reselling equipment and parts used in surface mining; manufacturing particulate scrubbers and filters for underground diesel engine applications; rebuilding underground mining equipment; and providing coal and environmental analysis, and degassing services. In addition, it engages in the sale of non-strategic assets, such as timber, gas, and oil rights, as well as the lease and sale of non-strategic surface properties and reserves; coal brokerage; and road construction business. The company serves electric utilities, steel and coke producers, industrial customers, and energy traders and brokers. Alpha Natural Resources, Inc. was founded in 2002 and is based in Abingdon, Virginia.

What is the Options play on Alpha Natural Resources(ANR)?! ANR stock is trading at $16.64(10:29 Est Standard Time) and is down close to 70% in the last 12 months. Is now the perfect time to load up on the stock and options??

Trade#1: I would consider buying the ANR September 21, 2012 $19 strike Call Options for $1.60 a contract. Attached are the Sept. 21, 2012 Options Chains courtesy of Yahoo Finance:http://finance.yahoo.com/q/op?s=ANR&m=2012-09.  I can buy 10 contracts for $1,600 plus trading fees. That will get me long exposure to 1,000 shares of ANR at a strike price of $19. If Coal stocks recover over the next 6 1/2 months, ANR may be poised to lead this sector higher and outperform a majority of coal stocks. I am looking for ANR to trade $28 or higher by the September 21, 2012 Options expiration date. Hopefully, it will be a hot summer and that will be good for coal stocks, if Air conditioning use sky rockets. At $28 a share, my contracts will be worth $9.00($9.00x 100 shares per contract=$900 each) or greater. $900 x10 contacts=$9,000. Let’s hope this Coal slide comes to an end shortly and reverses course. Good luck to all the Coal and ANR Bulls!!! For more conservative longer term investors, I like buying shares of ANR stock at $15.00 or less.

Trade#2: I am an ANR Bull and would consider selling the ANR April 20, 2012 $15 strike Put Options for .90 cents a contract. Attached is the April 20, 2012 Options Chains on ANR courtesy of Yahoo Finance:http://finance.yahoo.com/q/op?s=ANR&m=2012-04. If I Sell 10 Put Option contracts, I will credit $900 to my brokerage account. 10 contracts x $90 per contract=$900. Remember, that we need $15,000 in cash reserves in our brokerage account in order to place this trade. The $15,000 is for the worst case scenario in which we get exercised on the 10 Put Option Contracts we sold (10 contracts x 100 shares=1,000 shares) of ANR at the $15 strike price at expiration. We will only get exercised on the shares of ANR if the stock trades below $15 on the expiration date. Either way, I am comfortable getting long shares of ANR stock at $15 and selling the Put Option contracts will help finance $900 towards my potential purchase of the $15,000 in stock. Go ANR Bulls and remember that Options are risky financial instruments. Please consult your investment advisor before buying or selling any Options/Equity Securities.

English: Logo for Alpha Natural Resources

Image via Wikipedia

See Below a 1 year chart on Alpha Natural Resources(ANR) courtesy of BigCharts.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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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:

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Dryships (DRYS) Leap Call Options?! By: Tim Bolger

Ocean Rig Corcovado and Ocean Rig Olympia naming ceremony at Samsung Heavy Industries 16/12/2010

For the long term bulls on Dryships (DRYS), I would think about buying the Leap Call Options on the stock.  Dryships may trade to $10 plus over the course of the next few years if the global economy continues to improve and the Dry Baltic Index moves higher after plummeting the past few years.  Increased demand from India, China, and many other emerging economies for resources such as iron ore, will be great news for dry bulk shippers, such as Dryships. Attached is the Yahoo Finance Options Chain for the Jan 2014 Call/Put Options on Drys:  http://finance.yahoo.com/q/op?s=DRYS&m=2014-01. I would be a buyer of the DRYS Jan 17, 2014 $5 strike Call Options at around .35 cents a contract. Good luck longs!! Stay tuned for more action at optionshoney.com.

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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