AHWOA Members

I will be heading out of town at lunch time this afternoon. In lieu of our usual After Hours with Option Addict meeting, I have provided a link and password to attend a live session this afternoon. I’ll be giving a quick presentation about the market at noon, followed by Q&A. We will then have live entertainment followed by cocktails and a meet and greet.

In all seriousness, hop on and mix it up with me. Log into the After Hours with Option Addict blog, link and password will be there. If I don’t see you, have a good weekend.

OA

OA EARNINGS PLAY: X

You might recall an earnings trade we took last year in APOL. It was a stock that had been left for dead, and a trade that had zero expectations priced into it going into earnings.

I’ve found a strikingly similar set-up in US Steel.

On the Macro side, I like that China ($SSEC) is breaking from a multi-year range, and that the steel stocks have quietly rallied to the upper end of multi-year ranges, and X is sitting at an identical spot that APOL was when it gapped and sprinted after its earnings announcement.

I have zero insight as to what US Steel will report next week. HOWEVER, I do recognize in a stocks volume structure, what would happen if it just gapped a little higher. It would find initiative buyers and start that move to $40 that we’ve been talking about for over a year.

Disclaimer: Long Aug 28 Calls

OA

OA BUY: GOGO

Long GOGO Calls into the bell here. August 18′s.

Good day,

OA

“DEM THREE’S THO”

In our After Hours with Option Addict sessions, I’ve been trying to explain how growth stocks are all interconnected in terms of market sentiment. We’ve categorized stocks into a 1-5 rating system and illustrated how quality stocks like INTC, MSFT, IBM have been rallying though all this market activity. We looked at momentum stocks (2′s) like BIDU, AAPL, AMZN and how well they’ve traded lately. Then we dialed into growth stocks (3′s) and looked at dozens of non correlated stocks, like DANG, FEYE, TWTR, TRLA, CSIQ….and showed how the charts are identical, despite the fact that the companies, fundamentals, and valuations are not.

I’ve been saying for weeks that this is a market set-up “specifically for the 3′s.” The same stocks Janet Yellen called into question. As of this moment, these stocks are leading the market here, leaving their multi-week ranges. Should they go, it will trigger a move from price acceptance, into price discovery mode. Since exposure to these stocks was reduced earlier this year, this could create a chase, which you are all familiar with.

On the day, I booked SCTY calls, took a position in FSLR calls for tomorrow (tarriff ruling). Still want X calls for earnings and GOGO.

OA

THINGS ARE GETTING PRETTY SERIOUS

My burrito plays are exploding. I still have quite a few stocks that have paused in this stretch, but I am playing them with August expirys to help me sleep at night.

The KING has been slapped with a downgrade, but as luck would have it, wise men have used such opportunity to hoarde shares at a ridiculous discount. I’m not a seller of this just yet.

I still think this will be the type of starting point that creates a lasting move in the market, similar to what we walked through in the month of May. Don’t sleep on the opportunity here.

In the mean time….let’s bond a little. Tell me what you think about this market. Tell me your very best idea. Ask me a question…as long as it doesn’t pertain to whether or not I still like First Solar.

OA

AHWOA Members

I will be heading out of town at lunch time this afternoon. In lieu of our usual After Hours with Option Addict meeting, I have provided a link and password to attend a live session this afternoon. I’ll be giving a quick presentation about the market at noon, followed by Q&A. We will then have live entertainment followed by cocktails and a meet and greet.

In all seriousness, hop on and mix it up with me. Log into the After Hours with Option Addict blog, link and password will be there. If I don’t see you, have a good weekend.

OA

OA EARNINGS PLAY: X

You might recall an earnings trade we took last year in APOL. It was a stock that had been left for dead, and a trade that had zero expectations priced into it going into earnings.

I’ve found a strikingly similar set-up in US Steel.

On the Macro side, I like that China ($SSEC) is breaking from a multi-year range, and that the steel stocks have quietly rallied to the upper end of multi-year ranges, and X is sitting at an identical spot that APOL was when it gapped and sprinted after its earnings announcement.

I have zero insight as to what US Steel will report next week. HOWEVER, I do recognize in a stocks volume structure, what would happen if it just gapped a little higher. It would find initiative buyers and start that move to $40 that we’ve been talking about for over a year.

Disclaimer: Long Aug 28 Calls

OA

OA BUY: GOGO

Long GOGO Calls into the bell here. August 18′s.

Good day,

OA

“DEM THREE’S THO”

In our After Hours with Option Addict sessions, I’ve been trying to explain how growth stocks are all interconnected in terms of market sentiment. We’ve categorized stocks into a 1-5 rating system and illustrated how quality stocks like INTC, MSFT, IBM have been rallying though all this market activity. We looked at momentum stocks (2′s) like BIDU, AAPL, AMZN and how well they’ve traded lately. Then we dialed into growth stocks (3′s) and looked at dozens of non correlated stocks, like DANG, FEYE, TWTR, TRLA, CSIQ….and showed how the charts are identical, despite the fact that the companies, fundamentals, and valuations are not.

I’ve been saying for weeks that this is a market set-up “specifically for the 3′s.” The same stocks Janet Yellen called into question. As of this moment, these stocks are leading the market here, leaving their multi-week ranges. Should they go, it will trigger a move from price acceptance, into price discovery mode. Since exposure to these stocks was reduced earlier this year, this could create a chase, which you are all familiar with.

On the day, I booked SCTY calls, took a position in FSLR calls for tomorrow (tarriff ruling). Still want X calls for earnings and GOGO.

OA

THINGS ARE GETTING PRETTY SERIOUS

My burrito plays are exploding. I still have quite a few stocks that have paused in this stretch, but I am playing them with August expirys to help me sleep at night.

The KING has been slapped with a downgrade, but as luck would have it, wise men have used such opportunity to hoarde shares at a ridiculous discount. I’m not a seller of this just yet.

I still think this will be the type of starting point that creates a lasting move in the market, similar to what we walked through in the month of May. Don’t sleep on the opportunity here.

In the mean time….let’s bond a little. Tell me what you think about this market. Tell me your very best idea. Ask me a question…as long as it doesn’t pertain to whether or not I still like First Solar.

OA