Options Trading Blog
Options Trading Tips and Strategies
Salesforce reports today after the bell . Quarterly earnings (Q4E) $.40 and Quarterly revenue (Q4E) $524M. Salesforce has a PEG of 3.7 and Forward PE of around $85. At this price I think CRM might be overvalued. SHLD ripped 10$ on reporting a $2.5 billion loss, hmmm.
Unusual Options Activity:
We saw a customer buying SNE JULY 22 and 23 Calls and sold the $16 Puts. In my opinion, this is very bullish activity.SNE is trading 9.5x average volume. Andrew Keene bought the July 23 Calls for $.95.
Also, we have seen a big sell order of 10,000 contracts of IAU on April 18 Calls for a $.25. This could be covering of a prior position or an outright short.
By: Greg Zimny
Moreover, Goldman Sachs announces that it is now long on WTI. Maybe it is the time to fade WTI Crude! According to Nancy Pelosi, “speculators are pushing the price of oil up and killing our economy and consumer. In fact, US oil production is at its highest level since 2003. We need to take strong action to protect consumers from this speculation.” It appears that a WTI crude oil margin hike is inevitable. WTI is at a fresh year high trading around the $107 level and appears that their appears to be real buyers and not jest people short covering. Finally, EUR/USD broke out of its trading range and is close to the $1.332 level.
AFTER THE BELL EARNINGS:
DECK: Quarterly Earnings and Estimates (Q4E)- $3.13 Quarterly Revenue(Q4E)-$562M. Deckers offer luxury shoes such as UGGs and multiple types of UGG accessories. Deckers Management reiterated their guidance after last quarter and stated, “pre- spring orders looking strong.” Expect a big move in one direction or another.
GPS: Quarterly Earnings and Estimates (Q4E)- $.42 Quarterly Revenue(Q4E)- $4.3B. Despite Gaps annual sales growth of $-1.75 for the last five years, could Gap miss analysts expectations and still run like Abercrombie is doing? Also, Gap is expanding into high-growth markets such as China, opening 30 new stores.
by: Greg Zimny
MGM Resorts (MGM) reported a loss of $0.23 cents per share against consensus of $0.19. The stock saw continued selling and closed at $13.73. I would really watch this name if the market gets weak because now that earnings are out of the way, I still think there is room to swing this on the downside. I remain firm in my $12.40 target for MGM. Hewlett-Packard released guidance after hours that was short from what analysts were expecting. This was due to weak PC group sales. This really should not be a surprise to anyone. This name could see some trading action tomorrow. Stock is currently down 1.85% to $28.80 in after-hours trading. Netflix was unloved today, trading down 5 points to $112.40. But something really important to note is that NFLX filled the gap between $112 and $108. Netflix could really go either way here in my opinion but Momentum, MacD and RSI are starting to display signs of bearish divergence. Deckers (DECK), Crocs (CROX), E Commerce China (DANG), First Solar (FSLR), Foster Wheeler AG (FWLT), GAP (GPS), Molycorp (MCP), Rubicon Technologies (RBCN), Salesforce.com (CRM) and SandRidge Energy (SD) ALL REPORT TOMORROW. This will be a big day. Anything positive from DANG will lift the likes of RENN, BORN and YOKU, while FSLR will affect the solars. Some pin action names to watch off FSLR earnings would be SPWR, ASTI, STP, YGE and TSL. AVL and TC could really move off MCP earnings as well. AVL is forming a nice base around the $2.90 area as well as a little wedge. This name looks poised to run.
Written by Cameron Patrick