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Put Options on CQP on 3/9/2020

broken support, $CQPCheniere Energy Partners, L.P. (CQP) owns and operates regasification facilities at the Sabine Pass liquefied natural gas (LNG) terminal located in Cameron Parish, Louisiana on the Sabine-Neches Waterway.

The company's regasification facilities include infrastructure of five LNG storage tanks with capacity of approximately 16.9 billion cubic feet equivalent; two marine berths that accommodate vessels of up to 266,000 cubic meters; and vaporizers with regasification capacity of approximately 4.0 billion cubic feet per day.

It also owns the Creole Trail Pipeline, a 94-mile pipeline interconnecting the Sabine Pass LNG terminal with various interstate pipelines. Cheniere Energy Partners GP, LLC serves as the general partner of the company. 

Shares have fallen to a new low and lower prices are expected. 

 

Last Trade: $30.59

Trading Range: $30.40 to $49.30

Trade

  • Buy 1 March $31.00 Put at $1.50
  • For a net debit of $1.50

Profit/Loss Analysis

  • Breakeven at $29.50
  • Maximum profit is unbounded
  • Maximum loss is ($150.00) at strike of $31.00

Closing Summary

  • Sold 1 March $31.00 Put at $7.50

Position closed on 3/19/2020 at price of $7.50 with a 400.00% gain in 10 days.

Updates

3/19/2020 10:59:24 AM

CQP $31 Put sold for $7.50

3/19/2020 10:59:26 AM

CQP $31 Put sold for $7.50

Put Options on CNK on 3/2/2020

bearish flag, $CNKCinemark Holdings, Inc. (CNK) engages in the motion picture exhibition business.

As of December 31, 2019, it operated 554 theatres with 6,132 screens in 42 states of the United States, as well as in Brazil, Argentina, Chile, Colombia, Peru, Ecuador, Honduras, El Salvador, Nicaragua, Costa Rica, Panama, Guatemala, Bolivia, Curaçao, and Paraguay. 

On February 21st, Cinemark Holdings (CNK) reported Quarter December 2019 earnings of $0.22 per share on revenue of $788.8 million. The consensus earnings estimate was $0.45 per share on revenue of $790.0 million. Revenue fell 1.2% compared to the same quarter a year ago. Since then share have formed a bearish "flag." Lower share prices are expected.

 

Last Trade: $25.96

Trading Range: $23.70 to 43.51

Trade

  • Buy 1 March $25.00 Put at $1.20
  • For a net debit of $1.20

Profit/Loss Analysis

  • Breakeven at $23.80
  • Maximum profit is unbounded
  • Maximum loss is ($120.00) at strike of $25.00

Closing Summary

  • Sold 1 March $25.00 Put at $10.00

Position closed on 3/12/2020 at price of $10.00 with a 733.33% gain in 10 days.

Updates

3/12/2020 3:53:50 PM

CNK $25 Put Optios closed at $10.00

Put Options on DD on 2/25/2020

bearish flag on $DDDuPont de Nemours, Inc. (DD) provides technology-based materials, ingredients, and solutions in the United States, Canada, the Asia Pacific, Latin America, Europe, the Middle East, and Africa.

The company provide Electronics & Imaging segment supplies materials to manufacture photovoltaics and solar cells; materials and printing systems to the advanced printing industry; and materials and solutions for the fabrication of semiconductors and integrated circuits addressing front-end and back-end of the manufacturing process.

This segment also provides permanent and process chemistries for the fabrication of printed circuit boards to include laminates and substrates, electroless, and electrolytic metallization solutions, as well as patterning solutions, and materials and metallization processes for metal finishing, decorative, and industrial applications.

On January 30th, Du Pont reported Quarter December 2019 earnings of $0.95 per share on revenue of $5.2 billion. The consensus earnings estimate was $0.96 per share on revenue of $5.2 billion. 

The company said it expects 2020 earnings of $3.70 to $3.90 per share on revenue of $21.50 billion to $22.00 billion. The current consensus earnings estimate is $4.11 per share on revenue of $21.98 billion for the year ending December 31, 2020. Since the report, shares have formed a bearish "flag" and lower share prices are expected.

 

We will be trading March 20th Options

 

Last Trade: $50.80

Trading Range: $49.60 to $83.7215

Trade

  • Buy 1 March $50.00 Put at $1.10
  • For a net debit of $1.10

Profit/Loss Analysis

  • Breakeven at $48.90
  • Maximum profit is unbounded
  • Maximum loss is ($110.00) at strike of $50.00

Closing Summary

  • Sold 1 March $50.00 Put at $4.25

Position closed on 2/27/2020 at price of $4.25 with a 286.36% gain in 2 days.

Updates

2/27/2020 12:42:36 PM

DD $50 Put Options closed for $4.25

Put Options on HLF on 5/13/2019

broken support $HLFHerbalife Nutrition Ltd. (HLF) develops and sells nutrition solutions in North America, Mexico, South and Central America, Europe, the Middle East, Africa, and the Asia Pacific.

It provides science-based products in the areas of weight management; targeted nutrition; energy, sports, and fitness; and outer nutrition.

The company offers weight management products, including meal replacement products, protein shakes, drink mixes, weight loss enhancers, and healthy snacks; targeted nutrition products comprising dietary and nutritional supplements that contain herbs, vitamins, minerals, and other natural ingredients; outer nutrition products consisting of facial skin, body, and hair care products; and energy, sports, and fitness products, such as N-R-G tea and energy drink products.

It also provides literature, promotional, and other materials, including start-up kits, sales tools, and educational materials.

The company offers its products through own retail stores, as well as through independent service providers, sales representatives, and sales officers. Shares have fallen to the a new low after the company missed its quarterly results. 

On May 2, it reported 1st Quarter March 2019 earnings of $0.66 per share on revenue of $1.2 billion. The consensus earnings estimate was $0.67 per share. The company said it expects second quarter earnings of $0.65 to $0.80 per share and 2019 earnings of $2.50 to $2.95 per share. The company's previous guidance was 2019 earnings of $2.90 to $3.32 per share. The consensus earnings estimate was $0.92 per share for the quarter ending June 30, 2019 and $3.17 per share for the year ending December 31, 2019. 

We will be trading June 21 put options

 

Last Trade: $48.14

Trading Range: $47.47 to $61.77

Trade

  • Buy 1 June $47.50 Put at $1.35
  • For a net debit of $1.35

Profit/Loss Analysis

  • Breakeven at $46.15
  • Maximum profit is unbounded
  • Maximum loss is ($135.00) at strike of $48.00

Closing Summary

  • Sold 1 June $47.50 Put at $6.00

Position closed on 6/3/2019 at price of $6.00 with a 344.44% gain in 21 days.

Updates

6/3/2019 9:48:52 AM

HLF put options closed at $6.00

Call Options on UBNT on 9/10/2018

Bullish Cup and Handle on $UBNTUbiquiti Networks, Inc. (UBNT) develops networking technology for service providers, enterprises, and consumers worldwide.

The company's service provider product platforms offer carrier-class network infrastructure for fixed wireless broadband, wireless backhaul systems, and routing; and enterprise product platforms provide wireless LAN infrastructure, video surveillance products, switching and routing solutions, security gateways, and other complimentary WLAN products.

Its products and solutions include radios, antennas, software, communications protocols, and management tools to deliver carrier and enterprise class wireless broadband access and other services in the unlicensed RF spectrum.

The company also provides technology platforms, such as airMAX platform, which includes proprietary protocols that contain technologies for minimizing signal noise; EdgeMAX, a disruptive software and system routing platform; airFiber, a point-to-point radio system; and UFiber platform to build fiber Internet networks.

In addition, it offers UniFi Enterprise Wi-Fi System that includes Wi-Fi certified hardware with a software based management controller; UniFi Video IP cameras for data transmission and power-over-Ethernet; UniFi Switches that deliver performance, switching, and PoE+ support for enterprise networks; and UniFi Security Gateway that extends the UniFi enterprise solutions to provide routing and network security, as well as develops AmpliFi platform, a Wi-Fi system solution for connected homes.

Further, the company provides embedded radio products; and mounting brackets, cables, and power over Ethernet adapters. 

Shares have formed a bullish "cup and handle" and are expected to move higher out of this formation. 

Entry Point: $89.62

Trading Range: $47.78 - $92.95

 

Trade

  • Buy 1 September $90.00 Call at $1.50
  • For a net debit of $1.50

Profit/Loss Analysis

  • Breakeven at $91.50
  • Maximum profit is unbounded
  • Maximum loss is ($150.00) at strike of $90.00

Closing Summary

  • Sold 1 September $90.00 Call at $9.00

Position closed on 9/13/2018 at price of $9.00 with a 500.00% gain in 3 days.

Updates

9/13/2018 9:42:11 AM

UBNT Sep $90 Call options closed at $9.00

Call Options on FIVE on 8/20/2018

Bullish Cup and Handle on $FIVEBelow, Inc. (FIVE) operates as a specialty value retailer in the United States.

It offers accessories, including novelty socks, sunglasses, jewelry, scarves, gloves, hair accessories, athletic tops and bottoms, and T-shirts, as well as beauty products comprising nail polish, lip gloss, fragrance, and branded cosmetics; and items used to complete and personalize living space, including glitter lamps, posters, frames, fleece blankets, pillows, candles, incense, and related items, as well as provides storage options for the customer's room and locker.

The company also provides sport balls; team sports merchandise and fitness accessories, such as hand weights, jump ropes, and gym balls; games, including name brand board games, puzzles, toys, and plush items; and pool, beach and outdoor toys, games, and accessories.

In addition, it offers accessories, such as cases, chargers, headphones, and other related items for PCs, cell phones, and tablet computers; books, video games, and DVDs; craft activity kits; arts and crafts supplies that consist of crayons, markers, and stickers; and trend-right items for school comprising backpacks, fashion notebooks and journals, novelty pens and pencils, and everyday name brand items.

Further, the company provides party goods, gag gifts, decorations, and greeting cards, as well as every day and special occasion merchandise products; assortment of classic and novelty candy bars, movie-size box candy, and gum and snack food; chilled drinks through coolers; and seasonally-specific items used to celebrate and decorate for events, such as Christmas, Easter, Halloween, and St. Patrick's Day. It primarily serves teen and pre-teen customers. As of October 20, 2017, it operated approximately 600 stores in 32 states. 

Shares have formed a bullish "flag" following its last quarterly report, and are expected to head higher. The formation is supported by the stock's 50-day moving average. The company report its quarterly results next week (Aug 29th).

Entry Point: $108.60

 

52-Week Trading Range: $45.52 to $109.09

Trade

  • Buy 1 September $108.00 Call at $2.00
  • For a net debit of $2.00

Profit/Loss Analysis

  • Breakeven at $110.00
  • Maximum profit is unbounded
  • Maximum loss is ($200.00) at strike of $108.00

Closing Summary

  • Sold 1 September $108.00 Call at $25.50

Position closed on 9/13/2018 at price of $25.50 with a 1175.00% gain in 24 days.

Updates

9/13/2018 9:39:01 AM

FIVE $108 Call closed at $25.50

Call Options on MIK on 8/23/2017

Call Options on MIKThe Michaels Companies, Inc. (MIK) owns and operates arts and crafts specialty retail stores in North America.

It operates Michaels stores that offer approximately 33,000 stock-keeping units (SKUs) in crafts, home decor and seasonal, framing, and paper crafting; and Aaron Brothers stores, which offer approximately 5,900 SKUs, including photo frames, a line of ready-made frames, art prints, framed art, art supplies, and custom framing.

The company also operates Pat Catan's stores that provide approximately 53,000 SKUs, including an assortment of kids craft items, fine art supplies, yarn, floral supplies, scrapbooking materials, home decor, bakeware, and wedding related merchandise.

In addition, the company provides private brands, including Recollections, Studio Decor, Bead Landing, Creatology, Ashland, Celebrate It, Art Minds, Artist’s Loft, Craft Smart, Loops & Threads, Make Market, Foamies, LockerLookz, Imagin8, and Sticky Sticks.

Further, it manufactures custom and specialty framing merchandise; distributes craft and hobby items products under the Darice brand, as well as decor products; and sells its products through an e-commerce platform. As of January 28, 2017, it operated 1,367 stores in 49 states and Canada under the brands Michaels, Aaron Brothers, and Pat Catan's brands. 

The Company is expected to report its earnings on Thursday before the market opens. Ahead of that, shares are heading higher in an upward trading channel showin blue. The formation is supported by the stock's 50-day moving average shown in brown. Higher share prices are expected for this stock.

 

Entry Point:  $19.75

52-Weeks Trading Range: $17.25 to $26.30

Trade

  • Buy 1 September $20.00 Call at $0.75
  • For a net debit of $0.75

Profit/Loss Analysis

  • Breakeven at $20.75
  • Maximum profit is unbounded
  • Maximum loss is ($75.00) at strike of $20.00

Closing Summary

  • Sold 1 September $20.00 Call at $4.00

Position closed on 8/24/2017 at price of $4.00 with a 433.33% gain in 0 days.

Updates

8/24/2017 9:31:55 AM

MIK $20 Call Options Sold for $4.00

Put Options on FAST on 4/19/2017

Bearish Flag on FASTFastenal Company (FAST) engages in the wholesale distribution of industrial and construction supplies in the United States, Canada, and internationally.

It offers fasteners, and other industrial and construction supplies primarily under the Fastenal name. The company’s fastener products include threaded fasteners, such as bolts, nuts, screws, studs, and related washers, which are used in manufactured products and building projects, as well as in the maintenance and repair of machines and structures. It also offers miscellaneous supplies and hardware, including various pins and machinery keys, concrete anchors, metal framing systems, wire ropes, strut products, rivets, and related accessories.

The company serves the manufacturing market comprising original equipment manufacturers, maintenance, repair, and operations; and non-residential construction market, which include general, electrical, plumbing, sheet metal, and road contractors. It also serves farmers, truckers, railroads, mining companies, schools, and retail trades; and oil exploration, production, and refinement companies, as well as federal, state, and local governmental entities.

The company distributes its products through a network of approximately 2,600 company owned stores. 

Shares have formed a bearish"flag" following the company's lastest quarterly report. Note that its peer, Grainger (GWW) also lowered its guidance going forward. It seems that the entire sector will remain under pressure. Notee that shares were upgraded this morning. Use the strength to buy put options.

 

52-Weeks Trading Range: $37.70 - $52.74

Last Trade: $44.95

Trade

  • Buy 1 May $50.00 Put at $1.30
  • For a net debit of $1.30

Profit/Loss Analysis

  • Breakeven at $48.70
  • Maximum profit is unbounded
  • Maximum loss is ($130.00) at strike of $50.00

Closing Summary

  • Sold 1 May $50.00 Put at $5.00

Position closed on 5/11/2017 at price of $5.00 with a 284.62% gain in 22 days.

Updates

5/11/2017 10:28:48 AM

FAST $50 Put options sold at $5.00

Put Options on DDR on 5/1/2017

Bearish Flag on DDRDDR Corp. (DDR) is an equity real estate investment trust.

It invests in the real estate markets of the United States and Puerto Rico. The firm is in the business of acquiring, owning, developing, redeveloping, expanding, leasing and managing shopping centers.

As of December 31, 2016, it owned and managed approximately 106 million total square feet of gross leasable area (GLA). As of December 31, 2016, the portfolio properties included 319 shopping centers (including 152 centers owned through joint ventures). As of December 31, 2016, the portfolio properties also included over 650 acres of undeveloped land, including parcels located adjacent to certain of the shopping centers. As of December 31, 2016, the portfolio properties aggregated to 75.8 million square feet of Company-owned GLA located in 35 states, plus Puerto Rico. 

It formerly known as Developers Diversified Realty Corp. DDR Corp is based in Beachwood, Ohio. The Company last reported revenues of $231 million in the reported quarter. The prior-year quarter’s revenue figure was $246.2 million. Going forward, the company withdrew its guidance. Shares have formed a bearish flag on the news. Lower share prices from this formation is expected.

 

Last Trade: $10.80

52-Weeks Trading Range: $10.79 - $19.92

Trade

  • Buy 1 May $10.00 Put at $0.10
  • For a net debit of $0.10

Profit/Loss Analysis

  • Breakeven at $9.90
  • Maximum profit is unbounded
  • Maximum loss is ($10.00) at strike of $10.00

Closing Summary

  • Sold 1 May $10.00 Put at $0.70

Position closed on 5/8/2017 at price of $0.70 with a 600.00% gain in 7 days.

Updates

5/8/2017 12:04:30 PM

DDR $10 Put options closed at $0.70

Call Options on KEY on 11/7/2016

Pennant on KEYKeyCorp (KEY) operates as the bank holding company for KeyBank National Association that provides various retail and commercial banking services to individual, corporate, and institutional clients in the United States.

The company’s Key Community Bank segment offers deposit and investment products; personal finance services and loans, including residential mortgages, home equity, credit cards, and various installment loans for individuals; deposits, investment and credit products, and business advisory services to small businesses; and financial, estate and retirement planning, and asset management services to high-net-worth clients. This segment also provides commercial lending, cash management, equipment leasing, investment and employee benefit programs, succession planning, access to capital markets, derivatives, and foreign exchange services to mid-sized businesses.

Its Key Corporate Bank segment offers a suite of banking and capital market products, such as syndicated finance, debt and equity capital market products, commercial payments, equipment finance, commercial mortgage banking, derivatives, foreign exchange, financial advisory, and public finance, as well as commercial mortgage loans for middle market clients comprising consumer, energy, healthcare, industrial, public, real estate, and technology sectors.

In addition, KeyCorp provides personal, securities lending, and custody services; access to mutual funds; treasury, investment banking, international banking, and investment management services; public retirement plans, and foundations and endowments plans; and financial services consisting of community development financing, securities underwriting, and brokerage, as well as merchant services.

Shares have formed a bullish "pennant" and higher share prices are expected.

 

52-Weeks Trading Range: $9.88 - $14.43

Last Trade: $14.33

Trade

  • Buy 1 December $14.00 Call at $0.50
  • For a net debit of $0.50

Profit/Loss Analysis

  • Breakeven at $14.50
  • Maximum profit is unbounded
  • Maximum loss is ($50.00) at strike of $14.00

Closing Summary

  • Sold 1 December $14.00 Call at $2.04

Position closed on 11/10/2016 at price of $2.04 with a 308.00% gain in 3 days.

Updates

11/10/2016 10:30:33 AM

KEY Call Options closed at $2.04

Put Options on NVO on 9/6/2016

Bearish Flag on NVONovo Nordisk A/S (NVO) is a European healthcare company.

The firm engages in the discovery, development, manufacture, and marketing of pharmaceutical products worldwide.

It operates in two segments, Diabetes and Obesity Care, and Biopharmaceuticals.

The Diabetes and Obesity Care segment provides insulins, GLP-1 analog, obesity, and oral antidiabetic drugs, as well as other protein related products comprising glucagon, protein related delivery systems, and needles.

The Biopharmaceuticals segment offers products in the areas of haemophilia care, growth hormone therapy, and hormone replacement therapy.

The company markets and distributes its products through distributors and independent agents in North America, Europe, Japan and South Korea, China, Hong Kong, Taiwan, and other countries. Novo Nordisk A/S has a collaboration agreement with the Langer Laboratory. 

Shares habve formed a bearish "flag" formation following several developments for this company. The company's long term CEO said he is retiring at the end of 2016. Last month, the company said they lost a "sizable" contract for its top-selling insulin NovoLog. At its latest earnings release, the company lowered its guidance for the full year. Lowr share prices are expected for this stock.

 

We will be trading October 21, 2016 Options.

 

52-Weeks Trading Range: $45.36 - $59.00

Last Trade: $45.80

Trade

  • Buy 1 October $45.00 Put at $1.00
  • For a net debit of $1.00

Profit/Loss Analysis

  • Breakeven at $44.00
  • Maximum profit is unbounded
  • Maximum loss is ($100.00) at strike of $45.00

Closing Summary

  • Sold 1 October $45.00 Put at $5.00

Position closed on 10/4/2016 at price of $5.00 with a 400.00% gain in 28 days.

Updates

10/4/2016 10:34:44 AM

We are taking profits on NVO $45 Put options. Closed at $5.00.

Put Options on MU on 6/16/2015

Broken Support on MUMicron Technology, Inc. (MU) provides semiconductor solutions worldwide.

The company manufactures and markets dynamic random access memory (DRAM), NAND flash, and NOR flash memory products; and packaging solutions and semiconductor systems.  It operates in four segments: Compute and Networking Business Unit, Mobile Business Unit, Storage Business Unit, and Embedded Business Unit. Shares are currently trading near their low of the year on concerns over DRAM prices. 

A number of anaylsts have been bearish on the stock. 

Morgan Stanley analyst Joseph Moore downgraded Micron to Underweight, the firm's equivalent of a "sell" rating, from Equal Weight. Moore said that his checks in Taiwan indicate that the outlook for DRAM, a form of flash memory sold by Micron, is "cautious versus expectations" for the third quarter. Previously, the analyst had expected DRAM to experience a seasonal boost in Q3, but he now expects this lift to be delayed until at least Q4. Moreover, DRAM prices will probably stay weak through Q3 as customers' inventories of DRAM are excessive, while sales of PC DRAM will probably remain weak in Q3 and could stay low in Q4, the analyst stated. Moore is concerned that DRAM supply could exceed expectations in 2016, while demand for the product could decelerate next year. Micron could have difficulty improving its earnings in 2016 from current levels, warned the analyst, who set a $21 price target on the shares.

On June 9, after conducting checks in Taiwan, research firm Piper Jaffray predicted that PC DRAM prices would continue to decline. However, the firm kept an Overweight rating on Micron, citing its belief that the stock's valuation was "compelling."

Much more pessimistic was research firm Drexel Hamilton, which on June 9 cut its rating on Micron to Sell from Hold, DRAM price declines are likely to continue to decline, the firm predicted.

This is how we are going to trade this: We will buy MU July 17th $25 Put options.

 

52-Weeks Trading Range: $23.70 to $36.59

Last Trade: $24.03

Trade

  • Buy 1 July $25.00 Put at $1.60
  • For a net debit of $1.60

Profit/Loss Analysis

  • Breakeven at $23.40
  • Maximum profit is unbounded
  • Maximum loss is ($160.00) at strike of $25.00

Closing Summary

  • Sold 1 July $25.00 Put at $5.95

Position closed on 6/26/2015 at price of $5.95 with a 271.88% gain in 10 days.

Updates

6/26/2015 12:06:22 PM

We are taking profits on MU July $25 put at $5.95

Put Options on MOS on 7/26/2013

Broken Support on MOSThe Mosaic Company (MOS) produces and markets concentrated phosphate and potash crop nutrients for the agriculture industry worldwide. It operates in two segments, Phosphates and Potash.

The company also offers phosphate-based animal feed ingredients; and produces and sells potash for use as fertilizers and animal feed ingredients, as well as for use in various industrial applications. Its potash products are also used for de-icing and as a water softener regenerant.

The Company sells its products to wholesale distributors, retail chains, cooperatives, independent retailers, and national accounts through a network of sales offices, crop nutrient blending and bagging facilities, port terminals, and warehouse distribution facilities.

Shares have fallen through a support level after the company's earnings came in below expectations, and the company guided lower going forward! Lower share prices are expected for this stock.

52-Week Trading Range: $48.29 - $64.65

Entry Point: $52.00

Here is the trade:

Buy One August $52.5 Put option for less than $1.95

The pay off is shown below.

Trade

  • Buy 1 August $52.50 Put at $1.95
  • For a net debit of $1.95

Profit/Loss Analysis

  • Breakeven at $50.55
  • Maximum profit is unbounded
  • Maximum loss is ($195.00) at strike of $53.00

Closing Summary

  • Sold 1 August $52.50 Put at $11.50

Position closed on 7/30/2013 at price of $11.50 with a 489.74% gain in 3 days.

Updates

7/30/2013 9:33:35 AM

We are closing MOS August $52.5 Put at $11.10

Call Spread on F on 11/19/2012

Ford Motor began a manufacturing revolution with mass production assembly lines in the early 20th century, but today it is one of the world's largest automakers. Brands include Ford and Lincoln; Mercury ceased production in 2010. Among its models are the redesigned Ford Mustang, the F-Series pickup, and the fuel-efficient Focus. Finance unit Ford Motor Credit is one of the US's leading auto finance companies. Ford owns a small stake in Mazda but sold Volvo in 2010 to Zhejiang Geely Holding, parent of Geely Automobile, for about $1.3 billion cash and other monetary consideration. It operates about 65 plants worldwide, but gets more than half of its sales from North America. 

Stockwinner is bullish on this name for the following reasons: 

  1. Ford valuaiton is cheap comapred to its rival GE
  2. The stock has a 2% dividend that GE does not 
  3. The trade has enough time to work which makes it a safer trade during this volatile envinroment 

Trade: Buy 1 Feb 11/12 Call spread for less than .30

  • Buy 1 Feb 11 call for .52
  • Sell 1 Feb 12 call for  .22

Breakeven & Profit/Loss analysis 

  • Breakeven at 11.30 by Feb expiration
  • Profit up to .70 between 11.30 to 12 , max profit .70 above 12 
  • Lose up to .30 between 11.30 to 11 , max loss .30 below 11 

The payoff table is presented below: 

Trade

  • Buy 1 February $11.00 Call at $0.52
  • Sell 1 February $12.00 Call at $0.22
  • For a net debit of $0.30

Profit/Loss Analysis

  • Breakeven at $11.30
  • Maximum profit is $70.00 at strike of $12.00
  • Maximum loss is ($30.00) at strike of $11.00

Closing Summary

  • Sold 1 February $11.00 Call at $3.00
  • Bought 1 February $12.00 Call at $1.85

Position closed on 1/11/2013 at price of $1.15 with a 283.33% gain in 53 days.

Updates

1/11/2013 10:59:26 AM

We are closing this position following Ford's upgrade by Goldman Sachs. The brokerage house upgraded the stock to Conviction Buy. We are closing the February $11 call at $3.00 and February $12 call at $1.85. That is a net proceed of $1.15, and compares to the initial investment of $0.30.

If you elect to stay in the trade, please adjust your stop losses.

Put Options on QSII on 7/20/2012

Quality Systems (QSII) engages in the development and marketing of healthcare information systems in the United States. The company operates in four divisions: QSI Dental, NextGen, Hospital Solutions, and Revenue Cycle Management (RCM) Services. The QSI Dental division develops, markets, and supports software suites for dental organizations. It also supports various dental organizations utilizing its Software as a Service model-based financial and clinical software, as well as certain medical clients that utilize its UNIX-based medical practice management software. Shares last traded at $23.99.

We are Bearish on this name for the following reason:

  1. Shares have formed a bearish "flag" as most of the hospitals and medical practices have implemendted to requirements of automating their practices as required by the Affordable Healthcare Act." It seems that best days of this stock are behind it. We expect shares to reach a new.On July 20, 2012,

TRADE: Buy 1 Aug $25 Put

 

 

Trade

  • Buy 1 January $50.00 Call at $1.50
  • For a net debit of $1.50

Profit/Loss Analysis

  • Breakeven at $51.50
  • Maximum profit is unbounded
  • Maximum loss is ($150.00) at strike of $50.00

Closing Summary

  • Sold 1 January $50.00 Call at $9.40

Position closed on 7/27/2012 at price of $9.40 with a 526.67% gain in 6 days.