Options Trading Blog
Options Trading Tips and Strategies
Levels to Watch: 50DMA- $53.5, 100 DMA -$50.04, 200 DMA- $47.59.
(Chart Glance) Before Earnings, Apollo was resting on its primary support level at $52. Apol has beeb underperforming the broader market since the beginning of the year. Today, a huge bearish gap down into previouss 2011 support. $40 seems like near term support.
Apollo shares plunge 14% as Apollo cuts its estimates for enrollment and operating profit. After board of directors gave positive numbers and forecasts for the last six months, insiders have been liquidating their positions and not adding to them.
By Greg Zimny
Levels to watch: 50 DMA- $519.98, 100 DMA -$507.59, 200 DMA- $507.59.
Support 1- $597
Support 2- $574.2
Support 3- $507.6
Chart Glance: rallied out of a major consolidation zone. Clean high volume breakout to new highs. Price action displays clear demand for current levels. The stock is in a clear uptrend. The $550 level was a resistance zone that PCLN struggled to get through.
After Earnings: PCLN CEO Jeffery Boyd stated, “PCLNs hotel bookings growth outperformed rivals.” Gross Margin has widened to 73% from 65.5%. International bookings were up %66 vs 55% forecast. PCLNs “name your own price” business model, was hurt by competitors “discount strategies.” Bookings predicted to slow down in quarters to come because of high gas prices cramping the consumer.
By Greg Zimny
I believe that the Credit Crisis is not yet over. The next Country to watch is Portugal. Portugal passed its third bailout review by the ECB this morning. S&P Kraemer s states, “if there is a country that will default, most likely it would be Portugal.”
Today after the close:
Azo- After bell earnings. Quarterly Earnings and Revenue: (Q2E) $4.01 Quarterly Revenue: (Q2E) $1.8B. Maybe some AZO news leaked after hours yesterday because AZO was trading around the $412 level.
Dpz- Domino’s Quarterly Earnings and Revenue: (QE4) $.49 Quarterly Revenue: $512M. Domino’s earnings have increased the last five consecutive years. In my opinion, this quarter will not be any different as the consumer is still spending money on eating out.
Kog- After the bell today. Quarterly Earnings and Revenue (QE4) $.09 Quarterly Revenue (QE4) $59.9M. History shows that KOG sells off after earnings. In my opinion, KOG will miss on earnings because of bad weather but give a positive forward guidance. Finally, we saw a customer buy 9,500 Mar 10 Puts. Either a customers huge bet to the downside or profit protection strategies.
By: Greg Zimny
Natural gas plummeted today and closed down 4% to 2.4460. In Warren Buffett’s quarterly letter he explained how his $2 billion bond investment in Energy Future Holdings might lose all of its value if Natural Gas continues to stay depressed. When Uncle Buffett says jump, the market says how high. ATP Oil & Gas (ATPG) rallied over 18% to $8.42 after the company said drilling in Mississippi went better than expected. Dendreon (DNDN), the once lucrative Seattle biotech plunged over 20% to $11.81 after its main prostate drug “Provenge” had weak sales. This is the same drug that insurers did not want to accept when the company plummeted 40% in one day back in July. So this really shouldn’t be a surprise to anyone. DNDN can provide great trading opportunities, but trying to bottom pick this name can prove to be very dangerous. Fundamentals have not changed at all. Priceline (PCLN) is up over 5% in afterhours to $627. Stock has rallied 100 points since breaking out on 1/12/12. And of course, how could I forget about AAPL. Stock made new all time highs today at $528.50 and closed at $525.76. Markets can stay irrational much longer than you can remain solvent.
Written by Cameron Patrick
Terms and Conditions – Rules for the Weekly Contest.
The person who predicts the closest price to the closing print of Apple Stock ($AAPL) on Thursday afternoon at 3:15 PM CST wins a Free iPod Shuffle, color of your choice. No entries will be accepted after after Tuesday 12 pm CST. Contestants will not be disqualified for going over the price. This is for educational purposes only and has no ties to gambling whatsoever. We will announced winner on Friday by twitter and email. Please Follow @Keeneonmarket on Twitter. Only one Guess per week, per email.
Good luck and enjoy!
Therefore, the EUR/USD sold off in the Europe trading session. Currently, the EUR/USD is trading higher at the $1.34 level. In my opinion, only a margin hike or Central Bank Action will slow down this Brent/Crude Train. Keep an eye out for the French Elections coming in early April 2012. Volatility remains high in the currency and energy markets. 10 YR Treasury is at $1.91 as the shift from bonds to risk assets continue.
Unusual Option Activity:
· We have seen huge Call buying in OTM RIG Calls. Also, when AAPL was down $6 this morning we observed aggressive May $540 Call buyers .
· When DNDN was trading at $13.52, someone sold 3,900 Mar 15 Calls for $.56. DNDN is currently trading at 12$,
· A Customer bought 2,000 LPX April 8 Calls for $.6. LPX stock popped and the calls are currently worth $.70.
By: Greg Zimny
•Price Target: 50 DMA- $11.16 200 DMA $9.22. In October 2011, LNG hit a low of $4 . Today, LNG hit a fresh 52 wk high of $15.7 LNG has been on a rage this year. On January 1st, 2012 LNG was trading in the low $9’s
MAIN QUESTIONS REGARDING FUTURE OF LNG: How will they restructure their current debt?? This has to be done ahead of financing for the liquefaction project?
Will they sell even more shares of stock? The number of outstanding shares has increased from 51.0m in 2009 to 129.6m today. This doesn’t impact their net loss, but it makes the loss per share look smaller since a larger number of shareholders are dividing up the losses.
Also, Blackstone Group makes a huge $2B bet on LNG. Does this mean they have financing for LNG plant? would be HUGE. Proceeds will be used toward developing the liquefaction project at Sabine Pass. LNG expects debt financing to occur Q1 2012.
How will they restructure their current debt ahead of financing for the liquefaction project? This will impact their interest expenses.
– Will they sell even more shares of stock? The number of outstanding shares has increased from 51.0m in 2009 to 129.6m today. This doesn’t impact their net loss, but it makes the loss per share look smaller since a larger number of shareholders are dividing up the losses.