MNST Losing Its Energy

After a huge year of stock gains Monster Beverage Corp has been on a huge losing streak. It has gone from bad to worse and I think it has further to drop. Investigations into the claims made by energy drink manufacturers will at worst hamstring their marketing, and at least give the segment a lot of bad press.

I put in an order today for a $55 Put option with a Dec 22nd expiration. The stock is sitting at $59.48 today but if the current losing streak continues I will make a good return on this trade.

Thanks for reading!

Straight from the Chart 

Disclaimer:
Just to be clear, nothing that I'm posting on this blog is in any way advice that should be followed by anyone else. All investment decisions should be made carefully by all individuals taking into account their own financial situation and appropriate levels of risk. Do not take anything I say for anything more than it is, opinion, speculation, and woefully undereducated guesses as to how I think a few stocks are going to perform.

The bottom falls out of BBY! 32% gain in 2 Weeks!

BBY took a huge dive early this morning falling 10% in early morning trading. It has quickly rebounded and has gained 6% of it back. The 12% gains from yesterday quickly turned into 32% this morning as I was able to exit my $20 PUT option at the bottom of the 10% drop.

This is my favorite kind of trade. Calling the bluff on wild rumors and speculation. Best Buy needs a miracle, not an over-zealous founder trying to convince the public he has the financial backing to take Best Buy private. This stock is toxic and financiers are scared of losing their shirt on it. With the new CEO that has ZERO retail experience on top of that, Best Buy probably has a long way to fall. 

I sold my PUT option this morning to lock in solid gains. As one of my favorite blowhards, Jim Cramer, likes to say "bulls make money, bears make money, pigs get slaughtered". Don't get greedy with solid gains. I'm in this for quick in/quick out gains. Holding for too long in this market is asking for trouble. Options trade on momentum, get out while the momentum is in your favor. 

Thanks for reading!

Straight from the Chart 

Disclaimer:
Just to be clear, nothing that I'm posting on this blog is in any way advice that should be followed by anyone else. All investment decisions should be made carefully by all individuals taking into account their own financial situation and appropriate levels of risk. Do not take anything I say for anything more than it is, opinion, speculation, and woefully undereducated guesses as to how I think a few stocks are going to perform.

Best Buy (BBY) Tumbles!! Up 12% and Moving in the Right Direction!!

Best Buy (BBY) gave a lot of it back today. There was a huge 25% jump the other day on the speculation that Best Buy had the buyers to take it private. The smart money started betting against the buyout right away. That 25% dropped to 13% later that day as it started to sound to good to be true. 

I made the call after that jump that BBY would be back to $18 soon once the hype died down. Got a few more cents to go, but it looks like I was right. On news today that the buyout is beginning to fall through. BBY gave back the rest of the gains. Falling to $18.50 just a short way from my target. 

The $20 Put option jumped nearly 30% today as it has become clear that the stock will not be worth the $24 or $26 dollars that people were hoping for a few weeks ago. 

I will be hanging on to the option for another few weeks as I wait for it to find a bottom under $18. There seems to be a support level around the $17 dollar range and if it hits that level I may bet on the up side. Until then enjoy the ride down! 

I'm up about 12% on this trade in just a few weeks, think i'll hit 15% before the week is out. 

I'll let you know how it goes.

Thanks for reading!

Straight from the Chart 

Disclaimer:
Just to be clear, nothing that I'm posting on this blog is in any way advice that should be followed by anyone else. All investment decisions should be made carefully by all individuals taking into account their own financial situation and appropriate levels of risk. Do not take anything I say for anything more than it is, opinion, speculation, and woefully undereducated guesses as to how I think a few stocks are going to perform.

Hype pushes Best Buy 13% - Put options to ride the wave back down.

Did you hear the news today about Best Buy CEO saying he will maybe make an offer someday that he thinks might come in around $26 a share if he can raise the money from a bunch of people that haven't yet committed a penny to the cause. And then did you see the stock jump 25% on the hype!

BBY closed up 13% as investors started coming to their senses and taking the gains on the beaten and bruised stock. There have been a few of these spikes for BBY over the past few months but none have shown any legs what-so-ever. Expecting this one to be exactly the same.

Placing a conditional order based on the sale of my Jan 2014 $1 Sprint call option. If that one clears for the price I'm expecting an order will hit for a $20 March 2013 put option for BBY. This option lost 30% of its value today on the ridiculous hype. I'll get that back in a couple of weeks.

I'll let you know how it turns out!
 

Thanks for reading!

Straight from the Chart 

Disclaimer:
Just to be clear, nothing that I'm posting on this blog is in any way advice that should be followed by anyone else. All investment decisions should be made carefully by all individuals taking into account their own financial situation and appropriate levels of risk. Do not take anything I say for anything more than it is, opinion, speculation, and woefully undereducated guesses as to how I think a few stocks are going to perform.

 

Taking Profits in Sprint (S) 104% gain on this trade!!

104% up on Sprint in the past 8 months! Not a bad trade. Got in on this around December when Sprint added the iPhone. It has been nothing but up from there. After beating on earnings a few days ago Sprint has formed a good exit point on this trade.

It is a good point to bring up that I think Sprint (S) is a great stock poised for long term investment growth over the next several years. The combination of huge subscriber growth on lower than average prices and unlimited data plans will lead to revenue gains in many quarters to come. But my strategy is not about the long term investments. I'm in the trading game and I think I may have found some other opportunities that present a bigger quick win opportunity.

The chart told a good story back in December as a solid support level was established near historical lows for the stock. The stock rode that support level for several months before subscriber numbers began to forecast huge growth. Sure enough, with a huge beat a few days ago the stock gapped again forming the solid exit we have today.

I am selling my Jan 2014 $1 Call to free up some cash for a new opportunity that has presented a quick win opportunity.

Thanks for reading!

Straight from the Chart 

Disclaimer:
Just to be clear, nothing that I'm posting on this blog is in any way advice that should be followed by anyone else. All investment decisions should be made carefully by all individuals taking into account their own financial situation and appropriate levels of risk. Do not take anything I say for anything more than it is, opinion, speculation, and woefully undereducated guesses as to how I think a few stocks are going to perform.

What a Croc! CROX is looking up.

With my summer internship coming to a close in the next few days I am able to turn some attention back to the markets. Oh how I have missed them. Unfortunately I have also committed one of the cardinal sins of investing in the process. I ignored several of my holdings during my very busy and very important summer. A few of them turned and I have given back some gains. But no use crying over spilled milk. Time to earn it back!

CROX - Yep Crocs. Who woulda thought this company would be making a strong push. 

Crocs is the maker of foam rubber shoes. It peaked about 6 years ago and has been falling off in the US ever since. So why on earth would I be thinking this stock is ready for a move upward? This is purely an international play. Crocs makes inexpensive shoes that are becoming more and more popular in several of the warmer climates in the world. Fortunately their shoes are also durable, and inexpensive. With the expansion of the Crocs line into several fashionable styles there prospects are looking quite good.

The chart also paints a very good long term picture. After falling from a high $20s price point last October the stock has found a strong support level while at the same time breaking out of a recent channel creating upward momentum on the chart. This coupled with CROX raising its guidance for next quarter paints a picture of a stock headed in the right direction. I'm calling this one back to $20 in the next several months. 

I have put in an order for a Jan 2014 $20 Call option. We will keep an eye on it and see what happens!

Thanks for reading!

Straight from the Chart 

Disclaimer:
Just to be clear, nothing that I'm posting on this blog is in any way advice that should be followed by anyone else. All investment decisions should be made carefully by all individuals taking into account their own financial situation and appropriate levels of risk. Do not take anything I say for anything more than it is, opinion, speculation, and woefully undereducated guesses as to how I think a few stocks are going to perform.