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Chart of Day: Dick’s Dives

Feb 16, 2017

Back on Christmas Day 2016, we issued an alert on the DKS February 52.50 put and the March 50 put. Yep, even on holidays we work. Opportunities don't take time off either. So why should we?

When trading resumed post-holiday, the February 52.50 traded at $2.65. It hit a high of $4.50 on Thursday. Sell to close. The March 50 put traded at $2.85. It’s now up to $3.50. But we’re going to hold the March trade because there’s time remaining, and it’s quite possible that DKS could fall back to $40.

A new falling knife is in play. And if you have yet to trade DKS, you still can with a position in the DKS March 48 put up to $3.

 

Chart of Day: Gigamon Inc. (GIMO) may have bottomed

Feb 14, 2017

After falling on earnings, shares of GIMO have become technically undervalued on our momentum indicators, including RSI, MACD and Money Flow. In fact, all three indicators are beginning to reverse higher as we speak. With a likely bearish gap refill at $43 at some point, near-term, we may be able to do well with the GIMO April 2017 35 calls up to $2.65 and, or the March 35 calls up to $1.60.

Chart of Day: UPS Begins to Bounce

Feb 14, 2017

Sometimes, opportunity can be found in absolute disaster.

In December 2016, we called for UPS downside and watched it crater not long after on poor earnings and a predictable drop. Not long after, the stock became insanely oversold technically. So, on February 3, we recommended buying to open the April 105 call.

At the time, it traded at just $3.30. It’s now up to $4.35 as of yesterday. The stock is just beginning to rebound from oversold technicals and could eventually refill a bearish gap around $117 with patience.

 

 

Chart of Day: Easy Money with Bristol Myers

Feb 12, 2017

It shouldn't be this easy to make money.  

But if you follow the rules of technical, fundamental, news and billionaire trading, it becomes easier.

Ever since BMY plummeted on earnings and guidance, it became the buying opportunity of a lifetime. Far too much doom and gloom was priced in. It was time to buy the blood in the streets, as Rothschild often did. It was time to buy the excessive pessimism that Templeton did. And it was time to get greedy, as others got fearful, as Buffett still does.

As we noted on January 22, 2017:

Shares of Bristol Myers (BMY) took a bad hit the other day, falling from $60 to $49.23. However, it seems to have caught prior support at October 2016 lows. As long as that holds, the stock could bounce shortly from oversold MACD, RSI and Money Flow points, as well. Apparently, one of the company’s many drugs had bad news. But remember, this is BMY. It’s an industry heavyweight. It’s simply down temporarily, in our opinion. And we’re trying to take full advantage of that. Consider buying to open the March 2017 49 calls at market. BMY is far too oversold.

As of that Monday, January 23, the March 49 calls traded at $2.35. Then, on the evening of February 5, 2017, we reiterated buying the BMY March 49 calls, which traded at $2.80 by February 6. The calls now trade at $3.50, where we’re recommending that you sell to close half of each.

 

 

 

 

Chart of Day: ACADIA could be Bought Out

Feb 08, 2017

ACADIA (ACAD) is a stock that we’ve dipped in and out of a few times.

Now, with excitement surrounding potential sales, there are rumors it could be on the buyout target list. In fact, right now, there’s word that AstraZeneca, or even Pfizer may be interested in making an offer.  That’s because of two key, multi-billion dollar catalysts.

For one, ACADIA’s Parkinson’s disease Psychosis (PDP) treatment, Nuplazid, is the only drug on market approved to treat PDP and could help millions with $10 billion potential sales. The drug already produced $5.2 million in sales in its first quarter on shelves. 

It’s now also testing the drug with Alzheimer’s psychosis with incredible success, as well.

When tested with Alzheimer’s, the drug met its main goal in a mid-stage study.  It showed a statistically significant reduction in psychosis with a 3.76-point improvement after six weeks, as compared to 1.93-weeks with placebo.

There are two ways to trade the opportunity. One is to buy the stock at market prices. And, or two buy to open the ACAD June 2017 39 calls at market.

 

 

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