Shatwan, of Libya, said “all are happy” with the price of crude oil, meaning producers and consumers. See what happens when you don’t fill out the survey card!
GGR is acting like they found something in India. This oil exploration company is based in Canada and sat around through all of ’04 but has exploded to 10x so far this year. I was too late on the last leg up in June but, now that it has rested around $6-8 for 5 months, it looks like it’s on the move again. You can buy this stock for $11 and sell the March $10 calls for $2.60 (15% premium) or the June $12.50s for $2.65 (40% premium) but those outrageous prices should give you an idea of the expectations on this stock.
If I hadn’t already picked TMG last week I would pick it again today – don’t miss this one.
This is a good time to begin taking a position in WMT. I am going to take 25% of my goal holdings and pick up the Jan ‘o7 $45s for $7 (a $4 premium) and I will offer to sell the January $50s for $1. If I get called away, I will pocket about 30%, if not – I will double up and do it again.
Today is a big day for Apple. I am hoping that it bounces off $75 but I hoped that at $65 and $70 and I still don’t own it! There was a bounce off $70 to $67.50 but I got greedy and waited and it shot right away from me (this was way back in history on Dec 1st).
========== Trade of the Day =========
With gold topping $540 on the international markets, I think the shakedown on Goldcorp will relax for at least a day or two for at least another run at $22. With the stock at $20.82 and the $20 option trading at $1 (a .18 premium) I am going to take a rare option week risk on this on but looking to bail at $1.50-$1.75 as the stock may again be beaten back from its highs. The best way to play this stock is just to buy it and sell options to suckers like me (see this morning’s article) and I think today’s entry price coupled with the sale of the January $22.50 for $1 or more is a wonderful way to initiate a position with a cushion all the way down to the 50 dma of $20 and a 14% profit if you are called away.
In the oil patch, OII, NE, COP, THE, BP, PDS and NGS all look attractive but with options expiration week we have to be very careful in this sector.
JNJ is just too darn low at $60. As long as they don’t bid up Guidant, the stock should stage a nice comeback soon. I see $55 as a real floor here but I’m not ready to enter at $60 until the deal is resolved up or down.
I really don’t think much of VIA buying Dreamworks for $1.6Bn, which is 1/3 of VIA’s pre-split market cap. The nice thing is once they split, whatever division doesn’t get stuck with this bill will soar. It actually seems like they are trying to tank their own stock price as this move coincides with an authorization for the company to buy back $3Bn (1/2+) of its own shares.
GOOG refuses to go down, now CSFB retargets them to $475 ($400 was seeming kind of silly as a target for next year) so the stock should be heading for that $420 challenge we predicted last week (I’m still not gonna touch it). Being added to the Nasdaq 100 should make today as safe as any to buy it for a day trade though.
MEDI will explode today with a positive study on their flu treatment (flu is very good business atm). Don’t be put off by the 151 p/e on this one, the company only has $1M in sales. This might be enough to get them picked up and certainly enough to challenge the high of $37.58.
On the tiny bio side, OXGN is moving forward with an English cancer study and should see $5 again, the stock is down way too far due to a secondary offering but people never take into account that the company gets cash for those shares and it’s not as dillutive as it seems (unless they blow it!).
BCRX is presenting this week! You can buy the Jan $15s for $1.25 and sell the current $15s for .50 if you are cheap but I am just going to go for the Januarys. This stock is being desperately held down into options as it is already up 25% from the last option period.
MYOG is a great example of why it is fun to play biotech but we are too late on that one (although you might have thought that at $20 as well!).
INGN is one that I do hold a position on but these stocks are very very high risk!
Sirius marches on.
ELN is really back now but very dangerous as it could reverse on a bad study. Still it is the most likely double I track.
MIDD will keep going up as long as steel goes down.
YHOO should benefit from GOOG’s upgrade.
People keep buying RIMM while institutions continue to dump it.
HPQ is over-reacting to announcement of several minor items. The macro picture here is that IBM is hitting the retail channel hard to prime them up for a flood of cheap Lenovo/IBM machines that will hurt HP much more than it will Dell. I’m looking for a short entry point on this one.
You may think the market looks good this morning but it has fallen by 1/2 since Europe came on-line this morning so be very careful today!
