Although this is a light week for Wall Street with fireworks on Friday, the real show begins next week with 2Q earnings season kicking off. There are a few trades worth watching this week as Acuity Brands (AYI), A. Schulman (SHLM), CalAmp (CAMP) and Paychex (PAYX) report on Tuesday
Constellation Brands (STZ), Frischs Restaurants (FRS), Greenbrier Companies (GBX) and Unifirst (UNF) announce their numbers on Wednesday.
On Thursday, International Speedway (ISCA) and ITT Educational Services (ESI) wrap up the week with the market closed on Friday. ITT Educational is at 52-week lows and may be ripe for a put option trade.
There are also a few trades I like for the Weekly Wrap, which is now 18-4 (82%) for 2014 (103-11, or 90% win rate, since 2011).
The Daily portfolio is in prime position and has been on an incredible run lately. The portfolio is 21-4 since mid-April for an astounding win rate of over 80%. For the year I have a 65% win rate for ALL of my trades. This is consistent with the 6-year track record which is also sporting an incredible win rate of nearly 70% and has never had a losing year.
It is a feat I’m proud of but also shows my dedication to outperform the Wall Street pros year-in and year-out.
As far as the market, trading has been mixed to choppy but the first day of July is usually bullish. Heading into the second half of trading , the Dow is down 18 points to 16,833 while the S&P 500 is up a point to 1,961. The Nasdaq is up a 12-pack to 4,410 and the Russell 2000 is gaining a point to 1,190.
I have 3 New Trades today for the Daily. I also have another Profit Alert for the Weekly Wrap and possibly a new recommendation as well. Look for another update in an hour or so but for now, check out the updates!
Closed Trades for 2014: 63-33 – the Weekly Wrap is 18-4 (82%) for 2014 (103-11, or 90% win rate, since 2011) and is designed for traders that want to use options with less risk. All trades are dated and time stamped so new subscribers can look at the past history to see how the trades have played out.
Do not risk more than 5% of your trading account on any one trade but do try to take ALL of the trades. Please remember, ALL “Exit Targets” and “Stop Targets” are targets. You should not have any “Hard Stops” entered to close any trades or “Exit Orders” in your brokerage account unless we list one. I will send out a “Profit Alert” or “New Trade” if I want you to close a position OR if a new trade comes out. Otherwise, follow instructions at all times in the 9am and 12pm-1pm updates. Also, I will usually give you a heads-up if I think I’m going to send an email outside of these time frames.
Fortinet (FTNT, 24.87, up $0.14)
Buy to OPEN August 27 calls (FTNT140816C00027000, $0.55, up $0.05)
Buy to OPEN September 28 calls (FTNT140920C00028000, $0.55, up $0.05)
Action: I have mentioned if shares clear $25 a run to $30 could come quickly. I like both these options at current levels.
Rambus (RMBS, $14.45, up $0.16)
Buy to OPEN August 15 calls (RMBS140816C00015000, $0.60, up $0.05)
Buy to OPEN August 16 calls (RMBS140816C00016000, $0.33, up $0.03)
Action: I still believe RMBS makes a strong push past $15 over the next month of so.
Imax (IMAX, $28.20, up $0.29)
Buy to OPEN September 30 calls (IMAX140921C00030000, $0.60, up $0.05)
Action: A close above $28 would be bullish. I like these options to play a run past $30.
General Motors (GM, $36.86, up $0.24)
September 32 puts (GM140920P00032000, $0.35, flat)
Entry Price: $0.40 (6/23/2014)
Exit Target: $0.80- $1.20
Stop Target: None
Action: GM announced 3 more recalls after Friday’s close for another 475,000 vehicles.
A close below $36 would be bearish. Resistance at $37 was stretched and I like the trade as long as $38 holds.
Limelight Networks (LLNW, $3.07, up $0.05)
September 3 calls (LLNW140920C00003000, $0.35, flat)
Entry Price: $0.15 (6/4/2014)
Exit Target: $0.45
Stop Target: None
December 3 calls (LLNW141220C00003000, $0.45, flat)
Entry Price: $0.20 (6/4/2014)
Exit Target: $0.60
Stop Target: None
Action: A close above $3.25 should get shares rolling again. Support is at $2.75.
Shares traded to a high of $3.25 on 6/20 after Tuition Build offered roughly $645 million, or $6.55 a share, for Limelight. The company dismissed the Silicon Valley’s private-equity firm’s offer after basically saying they weren’t experienced enough to run the business.
I have been suggesting a buyout offer would come for Limelight Networks with the company’s cheap market cap and said they would make a very luscious takeover target.
Its litigation issues have decreased dramatically following their recent win against AKAM and they are open to a much bigger marriage.
Other 2014 Portfolio OPEN positions (2): These are trades that are still open in the portfolio but are down over 50%. They have longer expiration dates and are on “hold” but are not worth mentioning until they turn around. This means I would not open any new positions. I’m still keeping track of the trades and will record the results accordingly, when the trade closes or if the options expire. Click on the 2014 Portfolio link in the Members Area to view ALL open/ closed trades.
McDonald’s July 95 puts (from May 2014) – continue to hold
Apollo Group August 23 puts (from April 2014) – continue to hold