Facebook Twitter
Now With Over 23,000 Reviews!
Sign up now

Chart of Day: Estee Lauder Refills its Gap

May 16, 2018

On May 7, 2018, we noted we were looking for a near-term gap refill on Estee Lauder (EL), which we just got. We would recommend the EL July 20 2018 135 calls, as they traded at $4.85, which we exited half of on May 13, 2018.

Now, as EL recovers to $144 a share, the calls are up to $10.90.

Take the win and book another double.

Chart of Day: AMD Exploded, Handing us a Double

May 15, 2018

On April 18, 2018, we noted:

AMD one of the most intriguing tech stocks after being beaten to excessively oversold prices.  The stock is just now reversing well off lows of $9. And we believe it could rally back to test $12.50, near-term.  One of the biggest reasons the stock is down is because it was caught up in a sector-wide selloff. It's now far too oversold.  Plus, the company's new lines should drive growth this year, too.  In fact, both Ryzen CPUs and its data center chips could allow it to challenge Intel. Buying and holding AMD here for the long-term is not a bad idea at all. Buy the AMD stock and/or the AMD June 15, 2018 10 calls.

At the time, the stock traded at $10.47. It’s now up to $12.25.

The calls at that time traded at just $1.15. They’re now up to $2.32. Sell to close the calls, but hold the stock for a bit longer. We have no interest in giving back any options gains to near-term time decay.

Chart of Day: Estee Lauder (EL) Pays out 66% in Days

May 13, 2018

On May 7, 2018, we noted:

After poor earnings, the stock gapped lower from $145.85 to $132.50.  However, it looks as if most of the negativity has been priced into the stock, as it catches support.  Several analysts appear to agree that it's now oversold.  Its Outperform rating was just reiterated at Barclays, Credit Suisse and Morgan Stanley.  Deutsche Bank even raised its rating from a hold to a buy.  From its current price of $132.50, we'd like to see a bearish gap refill, near-term. Buy to open the EL July 20, 2018 135 calls at market prices.

At the time, the EL July 20, 2018 135 calls traded at just $4.85. With EL now at $140.19, the calls are at $8.03. Sell to close half for a very quick win of 66% in days. All we had to do was trade when RSI fell under its 30-line, as MACD fell to a historic low, as Williams’ %R fell under 80, and as the stock challenged its lower Bollinger Band (2,20). Easy.

Chart of Day: How to Trade Activision Now

May 09, 2018

On April 16, 2018, we recommended buying to open the ATVI May 67.50 calls, as they traded at $2.40. At the moment, these are up to $3.45. But with expiration nearing, it’s best to close this trade. At the same time, let’s open a new position in ATVI with the June 15, 2018 70 calls, which will give us a bit more room to run without fear of time decay.

The stock can be bought here, too. We have a $75, near-term target.

Chart of Day: Estee Lauder Looking Pretty from Here

May 07, 2018

After poor earnings, the stock gapped lower from $145.85 to $132.50.  However, it looks as if most of the negativity has been priced into the stock, as it catches support.  Several analysts appear to agree that it's now oversold.  Its Outperform rating was just reiterated at Barclays, Credit Suisse and Morgan Stanley.  Deutsche Bank even raised its rating from a hold to a buy.  From its current price of $132.50, we'd like to see a bearish gap refill, near-term.

Buy to open the EL July 20, 2018 135 calls at market prices.

 

Page:   2 ...