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Chart of Day: An Oversold Tech Giant Goes On Sale

Apr 18, 2018

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.  

The company has quite a catalyst with its Intel deal, a buy rating and a $17 price target from analysts at Canaccord Genuity.

The analysts noted, "We reiterate our positive thesis on AMD which is further underwritten by management's ability to monetize the portfolio as strong near-term crypto-currency GPU demand, stronger Ryzen sales and first Ryzen Mobile launches should alleviate risks in Q4/17, while H2/18 sets up as an inflection point with our industry checks indicating 7nm chip development timelines remain intact for what should prove even stronger CPU products across AMD's roadmap versus Intel during 2H/18 and 2019."

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.

Chart of Day: Oil Overbought. How to Trade it Now.

Apr 17, 2018

Now that the fear of war over Syria has begun to fall apart, so are oil prices.

While we're bullish long term on oil, immediate-term not so much.  Not only is the fear premium being yanked, but oil prices are failing at the upper Bollinger Band (2,20) with over-extensions on RSI, MACD and Williams' %R.  That being the case, we're looking to short major oil names that also rocketed on the fear premium, including Exxon Mobil (XOM) and Chevron (CVX).  We can buy to open the XOM June 15, 2018 77.50 put at market, and the CVX May 18, 2018 120 put both at market prices.

 

 

 

Chart of Day: Activision Blizzard is Insanely Oversold

Apr 16, 2018

While ATVI recently pulled back, it’s become aggressively oversold on news that Epic Games’ Fortnite and Bluehole’s Player Unknown Battlegrounds took away player and monetization from Activision’s Overwatch and Call of Duty games. We believe that a great deal of negativity from this news is fully priced into the stock and has created an incredible buy opportunity for smart investors. Sitting at its lower Bollinger Band with oversold reads on MACD, RSI and Williams’ %R, we believe the ATVI could recover to $70.50, near-term.

There are two ways to trade the stock.

One, we can buy the ATVI stock at current market prices.

And, or two, we can buy to open the ATVI May 18, 2018 67.50 calls at market.

 

Chart of Day: Facebook (FB) Just Starting to Rally

Apr 11, 2018

Late yesterday, we recommended buying the FB June 15, 2018 170 calls and the May 18, 2018 170 calls. While the stock slipped at open today, it gave us a great entry price on those calls. In fact, we have the following entry prices:

  • FB June 2018 170 calls -- $6.65 and are now up to $7.85
  • FB May 2018 170 calls -- $5 and are now up to $6.65

 Shortly after, the stock began to pivot and turn higher, as you can see in the chart.

 We also still believe the stock is oversold even here and could refill that bearish gap around $185 a share with patience.

Chart of Day: Facebook (FB) is Still Oversold

Apr 10, 2018

Even after today’s $7 rally on the heels of Zuckerberg’s testimony before Congress, shares of Facebook are still considerably oversold.  In fact, we believe the stock still has $20 of upside from here to refill its bearish gap. The stock is still oversold on RSI, MACD, Williams’ %R as it begins to rotate off its lower Bollinger Band.

There are two ways to trade FB here.

One, buy the stock and hold, long-term. But also buy to open the FB June 15, 2018 170 calls at market prices along with the May 18, 2018 170 calls.

We’re looking for at least a double on the calls.

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