12:15pm (EST)
We mentioned this week could be flat and that a trading range would develop before next week’s possible push to new highs but today’s current gains have put the bulls in the lead for a weekly gain. Albeit, the gains would be small but a win is a win and it would give the bulls momentum heading into February options expiration week.
BlackBerry Group (BBRY, $16.60, down $0.36), formally known as Research In Motion, is making a run at new 52-week highs following its dip to $12 in late January/ beginning of February. We were hoping for shares to drop below this level to $10 where we were going to recommend the stock for our Weekly Wrap.
We also said we may not get that chance following the dip-and-rip from last week but we thought we would have time to establish position this week on Monday. Nope.
The stock opened at $13.71 and closed at $14.98 on Monday following last Friday’s low of $12.15 and close of $13.03. Shares cleared and held $16 on Tuesday and Wednesday and yesterday’s high was $16.98. Today’s high was $17.22 before the pullback and the 52-week high is $18.32. This is over a 40% pop from last Friday’s lows and we missed a golden opportunity to make some serious cash on the options.
We will have an opportunity to trade BlackBerry again and we will keep watching it for either a call or put option play down the road.
The Casino stocks are getting a lift after New Jersey’s Governor, Chris Christie, has had a change of heart and realizes the potential revenues online gambling could bring to his state. He is open to allow a 10-year trial period for online betting in an effort to help Atlantic City casinos stem years of declining revenues. The one stock benefitting the most today is Caesars Entertainment (CZR, $12.88, $2.81) which is up 28%.
The February 10 calls (CZR130216C00010000, $3.20, up $2.70) are up a whopping 540% today while the March 12.50 calls (CZR130316C00012500, $1.70, up $1.40) are up 467%.
We are in the sector but we didn’t pick Caesars which is a recent IPO. This sector has underperformed the market and we have been saying online poker and gambling could gain traction in 2013.
As far as the market, the Dow is up 51 points to 13,995 and has traded up to 14,022. A close above 14,009 would give the bulls the weekly win. The S&P is up 7 points to 1,517 and fresh 5-year highs while the Nasdaq has barreled through our 3,175 go target and is up 30 points to 3,194. The 52-week high for Tech is 3,196.93 so watch this number into the close.
We have some last minute updates on our current trades before we roll so let’s hit the Members Area. We will be back Sunday night with the Weekly Wrap and Monday morning with the Daily. Until then, have a great weekend everyone.
