9:05am (EST)
The bulls got a decent jobless claims number yesterday and used it to push the market higher as the Dow closed slightly above 10,400 following the 68 point bounce. We eventually stalled after the higher open but the market held higher levels for most of the day and closed above key support levels.
The S&P 500 chipped in with a 9 point gain and closed at 1,102 while the Nasdaq added 7 to finish at 2,190.
Did anyone notice Imax (IMAX, $11.76, up $0.10) hit a 52-week of $11.88 yesterday? We mentioned earlier this week about slow moving stocks that stay under Wall Street’s radar and this has been one of them.
Although shares lack the volume we normally like to see when trading options we have done well playing Imax in 2009. In June, we profiled a “layered” Imax trade that retuned 143%, 18% and 28% on three different call options (July, September, and December call options)…
We rolled profits into an August position that stayed flat for nearly three months but still made over 10% on the position. The market took Imax to a low of $10.16 on “Dubai Friday” at the end of November and shares looked poised to fall back below $10. Wrong.
Imax is still a stock to watch. We were telling our subscribers about this one when it was trading for under $3 a year ago and we were lucky enough to find a rare exception when trading options on low volume stocks.
As we head to press, Dow futures are up 37 points. Current subscribers, please check the Members Area for the trade updates.
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