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Put Options on PHM on 9/25/2018

broken support on $PHMPulteGroup, Inc. (PHM) engages in the homebuilding business in the United States.

The company is involved in the acquisition and development of land primarily for residential purposes; and the construction of housing on such land. It offers various home designs, including single-family detached, townhouses, condominiums, and duplexes under the Centex, Pulte Homes, Del Webb, DiVosta Homes, and John Wieland Homes and Neighborhoods names.

As of December 31, 2017, the company controlled 89,253 owned lots and 52,156 lots under land option agreements. It also arranges financing through the origination of mortgage loans primarily for homebuyers; sells the servicing rights for the originated loans; and provides title insurance policies, and examination and closing services to homebuyers.

Shares have fallen through all support levels and are trading at their yearly low. We expect shares to continue to move lower.

We will be trading October 20th Put Options

Last Trade: $25.69

Trading Range: $25.56 - $35.21

Trade

  • Buy 1 October $26.00 Put at $0.80
  • For a net debit of $0.80

Profit/Loss Analysis

  • Breakeven at $25.20
  • Maximum profit is unbounded
  • Maximum loss is ($80.00) at strike of $26.00

Closing Summary

  • Sold 1 October $26.00 Put at $2.80

Position closed on 10/11/2018 at price of $2.80 with a 250.00% gain in 16 days.

Updates

10/11/2018 10:02:57 AM

PHM $26 Put sold for $2.80

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 AAXN on 4/16/2018

Bullish Cup & Handle on $AAXNAxon Enterprise, Inc. (AAXN) develops, manufactures, and sells conducted electrical weapons (CEWs) worldwide.

The company operates through two segments, TASER Weapons, and Software and Sensors.

It offers TASER X26P and TASER X2 smart weapons for law enforcement; consumer CEWs; and replacement cartridges and consumables, as well as performance power magazines.

The company also provides Axon Body 2; Axon Flex 2 that builds upon the Axon Flex camera system; Axon Fleet, an in-car video system; Axon Dock, a camera charging station; TASER Cam HD, a recording device; Axon Signal, a technology; and Signal Sidearm, a device compatible with firearm holsters.

In addition, it offers Evidence.com, a cloud-based digital evidence management system that allows agencies to store data and enables new workflows for managing and sharing that data; Evidence Sync, a desktop-based application that enables evidence to be uploaded to Evidence.com; and Commander, an on-premise application that consolidates customer's digital evidence in one secure location.

Further, the company provides Axon Citizen, a mobile application that offers a public safety portal, where community members can submit photos and videos of an incident; Axon Capture, a mobile application to allow officers to capture digital evidence from the field; Axon View, a mobile application to provide instant playback of unfolding events; and Axon Interview, a recording system designed for the interview room.

Axon Enterprise, Inc. sells its products to military forces, private security, correctional facilities, and consumer personal protection markets, as well as to federal, state, and local law enforcement agencies through its direct sales force, distribution partners, online store, and third-party resellers. 

Shares have formed a bullish a "cup and handle" and higher share prices are expected for this stock. The 50-day moving average is shown in brown.

Entry Point: $42.79

52-Weeks Trading Range: $20.57 - $44.06

Trade

  • Buy 1 May $40.00 Call at $4.20
  • For a net debit of $4.20

Profit/Loss Analysis

  • Breakeven at $44.20
  • Maximum profit is unbounded
  • Maximum loss is ($420.00) at strike of $40.00

Closing Summary

  • Sold 1 May $40.00 Call at $15.50

Position closed on 5/9/2018 at price of $15.50 with a 269.05% gain in 23 days.

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 CRC on 11/30/2016

Bullish Cup & Handle on CRCCalifornia Resources Corporation (CRCoperates as an oil and natural gas exploration and production company in the State of California.

It produces oil, natural gas, and natural gas liquids.

The company holds interests in approximately 2.4 million net acres. As of December 31, 2015, it had net proved reserves of 644 million barrels of oil equivalent. It also gathers, processes, and markets oil and gas products to marketers, California refineries, and other purchasers that have access to transportation and storage facilities.

It operates approximately three drilling rigs across the state with over two located in the San Joaquin basin (steamflood activities) and approximately one in the Los Angeles basin (waterflood activities). It has drilled over 290 gross development wells with over 250 wells in the San Joaquin basin and approximately 30 wells in the Los Angeles basin. It has also drilled approximately three exploration wells in the San Joaquin basin. Its operations include approximately 140 fields with over 9,070 gross active wellbores. 

In addition, the company generates and sells electricity to the grid and to others through contractual agreements.

Shares have formed a "bullish cup and handle" as shown in blue on the chart. In the past two days, shares sold off shrply on fears that OPEC may not reach an accord. Today, the cartel is near a deal to trim its output by 1.2 million barrels per day and non-OPEC members to cut their productions by 600,000 barrels per day. 

We will be trading December 16th Call Options.

52-Weeks Trading Range:  $2.81 - $43.21

Last Trade: $14.30

Trade

  • Buy 1 December $14.00 Call at $1.60
  • For a net debit of $1.60

Profit/Loss Analysis

  • Breakeven at $15.60
  • Maximum profit is unbounded
  • Maximum loss is ($160.00) at strike of $14.00

Closing Summary

  • Sold 1 December $14.00 Call at $5.40

Position closed on 12/1/2016 at price of $5.40 with a 237.50% gain in 0 days.

Updates

12/1/2016 10:22:21 AM

Taking Prodits on CRC December $14 Call Options.

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 CREE on 6/29/2015

Bearish Flag  on CREECree, Inc. (CREE) develops, manufactures, and sells lighting-class light emitting diode (LED), lighting, and semiconductor products for power and radio-frequency (RF) applications in the United States, China, Europe, South Korea, Japan, Malaysia, Taiwan, and internationally.

The company’s LED Products segment provides blue and green LED chips that are used in various applications, including video screens, gaming displays, function indicator lights and automotive backlighting, headlamps, and directional indicators; LED components comprising packaged LED products for lighting applications, and surface mount and through-hole packaged LED products for video, signage, general illumination, transportation, gaming, and specialty lighting applications; and silicon carbide (SiC) materials, which are used in manufacturing products for RF, power switching, gemstone, and other applications.

Its Lighting Products segment offers LED and traditional lighting systems for use in settings, such as office and retail space, restaurants and hospitality, schools and universities, manufacturing, healthcare, airports, municipal, residential, street lighting, parking structures, and other applications. This segment sells its products to distributors, retailers, and customers.

The company’s Power and RF Products segment provides SiC-based power products, such as Schottky diodes, SiC metal semiconductor field-effect transistors, and SiC power modules that are used in power supplies in computer servers, solar inverters, uninterruptible and industrial power supplies, and other applications; and RF devices, including a range of GaN high electron mobility transistors (HEMTs) and monolithic microwave integrated circuits (MMICs) for military, telecom, and other commercial applications, as well as provides foundry services for GaN HEMTs and MMICs that allow customers to design their own custom RF circuits.

Shares have formed a bearish "flag" and lower share prices are expected for this stock.

 

52-Weeks Trading Range: $26.86 - $53.33

Last Trade: $27.00

Trade

  • Buy 1 July $27.50 Put at $0.70
  • For a net debit of $0.70

Profit/Loss Analysis

  • Breakeven at $26.80
  • Maximum profit is unbounded
  • Maximum loss is ($70.00) at strike of $28.00

Closing Summary

  • Sold 1 July $27.50 Put at $2.40

Position closed on 7/9/2015 at price of $2.40 with a 242.86% gain in 10 days.

Updates

7/9/2015 10:55:40 AM

We are taking profits on CREE July $27.5 Put. Bought at $0.70, Closed at $2.40.

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.