TUESDAY, JULY 18, 2017
So much has been going on and I apologize for ignoring my blog, but my regular “day job” has been taking up all my time. This is a good thing because it just gives me more money to invest / trade! ha!
What can I say…I mean wow. There were many people on twitter screaming it was overbought and it was going back to $100.00 (I wish). I ignored them all and kept buying on any weakness. I even purchased a short-term trade with the AUG 145 CALL a few weeks ago and sold today for a 135% gain! I was going to hold through earnings, but it’s hard to pass up such a great return.
EARNINGS SEASON WHOHOOO!
My favorite time of year! Earnings season officially kicked off when a few of the banks reported last Friday. Then Netflix [stock_quote symbol=nflx] reported last night. Wow!
Congratulations to anyone holding Netflix call options today. I, unfortunately, do not hold a position in Netflix because I sold too soon and I have been waiting for a market correction to scoop some up. Oh well…
I strongly believe the remainder of earnings over the coming weeks will be positive and paint a picture that is better than most have believed. This entire year has been like that. At the beginning we were heading into a recession and the world was coming to an end, but as the year has moved forward things are really looking good.
LOOK AROUND AND WATCH
I watch things carefully and I’ve noticed new clients coming in, new constructions projects, new employees and overall growth across the board. It’s a good feeling and a good sign of things to come.
My point is: look around and watch what’s happening. I do not believe it is a bad time to get into the market. I do not believe the market is “overpriced” or “overbought” especially with tech. I would be a buyer of Intel [stock_quote symbol=intc] during this recent weakness and Cisco [stock_quote symbol=csco]. I would be a buyer of any real large cap company and a long-term holder.
THE BEATEN DOWN
Intel comes to mind when I think beaten down. American Eagle [stock_quote symbol=aeo] is another. Anything close to retail should have Amazon [stock_quote symbol=amzn] built-in to the price by now. I do own Amazon as a hedge against my other retail holdings and that seems to work well. I even bought the JAN 6 CALL on freak’n Sears [stock_quote symbol=shld] the other day and sold at a nice 50% profit today.
There is money to be made out there, all you have to do is be comfortable with what you’re buying. I bought the JAN 2018 6 CALL on Sears because I watched the chart, I’ve been watching Sears for months and I knew that $6 was reasonable. I accepted my worse-case scenario would be I’d call the shares at $6.00 and wait. Therefore, I took the chance and it paid well.
Same goes for Pandora [stock_quote symbol=p]. What a trade! It was severely beaten down a few weeks ago and when it changed direction and started heading back up to $8.00 I purchased the JAN 2018 10/12 CALL SPREAD and it has been a very nice winner. I’m up 25.26% as of close today. Pandora is headed higher and I just might make my 10/12 range by January.
My two losers (can’t win them all) are Verizon [stock_quote symbol=vz] and 3D Systems [stock_quote symbol=ddd]. I’m getting slaughtered on both down 12.61% and 28.16% respectively. It hurts to watch, but I own the JAN 40 CALL’s on Verizon so I’m holding strong. If it dips to $40.00 I’m doubling down.
3D Systems is another story entirely. I took a bold risk trying to make up for my Rite Aid [stock_quote symbol=rad] disaster (I suppose I never explained that one) and own the AUG 19/24 CALL SPREAD. I almost became profitable today when 3D decided to jump to $18.40 per share before selling right back off again. I was all excited for just a brief minute! Earnings is Aug 2 and I believe I’m holding through earnings unless it makes a run back to $22.00 soon (like very soon), otherwise, THETA (time decay) is killing me.
MORE TO COME….