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  • F5 Networks (FFIV) Free Falling After Earnings Miss
    9:00am (EST)

    The bears weren't too rough on the Dow yesterday but the S&P 500 and Nasdaq suffered 1% drops following weak Financial earnings and some terrible Tech numbers.  Economic news didn't help matters but the good news is that we have planned for a pullback.

    The Dow fell 12 points to close at 11,825 but managed to trade to a two-year high of 11,861, thanks in part to IBM (IBM, $155.69, up $5.04) which got rewarded for its earnings report. 

    The S&P 500 dropped 13 unlucky points and finished at 1,281.  The index traded to a low of 1,278 and we are watching for a possible break below 1,275 which could lead to 1,250 which is where we are looking to get back into some Tech plays, possibly.

    The Nasdaq got punished for a 40 point loss and settled at 2,725.

    Shares of F5 Networks (FFIV, $138.78, down $3.00) are doing their best Tom Petty this morning after the company came up a little short on its quarterly earnings. The stock is down another $29, to $110 in pre-market action. The company beat their earnings per share number but missed on revenue and offered a lower forecast for 2Q.

    There could be an opportunity here…

    As far as futures, they are pointing towards a slightly lower start: Dow (-11); S&P 500 (-1); Nasdaq 100 (flat). We will be back in the afternoon but stay close to your computer. We may send out a new trade this morning.   
    Tags: FFIV
    Jan 20 9:10 AM | Link | Comment!
  • Apple (AAPL) Beats Estimates, Cree (CREE) Gets Creamed
    9:00am (EST)

    The bulls managed to pull off a huge upset yesterday as the rattled the bears despite being heavy underdogs before the bell. There were a number of Debbie Downers on Apple (AAPL, $340.65, down $7.83) but shares finished the day down just 2% after falling to a low of $326 shortly after the open.

    A lot will be made of the company’s CEO taking a medical leave of absence and the subject will get old quickly, but no matter what happens over the near-term, Apple is not going to miss a beat. Too bad it’s a $300+ stock because it makes playing options on the stock expensive.

    With Apple recovering, Tech rebounded and the bulls were able to enjoy a cigar.

    The Dow gained 50 points to close at 11,837 on Tuesday and made its first close above the 11,800 level since June, 2008.  The index hit a high of 11,858 and our 12,000 target we have had in place since October is just over 1% away. We have mentioned we are expecting a slight pullback afterwards but we are going on record by saying the index could reach 13,000 by yearend. Of course, a lot has to go right but the chart is pointing towards 12,500 and then 13,000 for the Dow, longer-term.

    The S&P 500 added 2 free throws and ended at 1,295.  The index is within spitting distance of our 1,300 target and we mentioned a run to 1,325 could be possible on some fluff. Our weekend work revealed some nice targets for the S&P as well. If things go right in 2011, the index could see 1,450-1,500 by Christmas.

    Tech struggled for much of the morning but battled back and stayed positive shortly after lunch. The index managed a 10 point pop when the dust settled and was last seen standing at 2,765. We mentioned our 3,000 target could be a stretch over the near-term but further signs are pointing towards a possible run to 3,400 over the next 12 months.

    Shares of Cree (CREE, $62.71, down $1.06) are getting taking to the woodshed this morning after the company missed Wall Street’s estimates. The company reported a profit of $49.8 million, or $0.45 a share, up from $33.8 million, or $0.32 a share, in the year earlier period. Revenue jumped nearly 30% to $257 million from $200 million. Excluding charges, the company would have earned $0.55 a share which was still well short of the $0.59 a share expected while there revenue number missed by $20 million. 

    Cree tried to do damage control as they said earnings were lower than expected due to lower LED component sales but shares are getting spanked in pre-market action. Cree is down nearly $10 and is under $53. It’s 52-week low is $47-and change. 

    As we head to press, futures are mixed; Dow (-6); S&P 500 (-3); Nasdaq 100 (+2). Subscribers, check the Members Area for the updates.

    Tags: AAPL, CREE
    Jan 19 9:06 AM | Link | Comment!
  • Intel (INTC) Impresses, JPMorgan (JPM) Beats Estimates
    8:50am (EST)

    The market took a breather on Thursday after some disappointing jobless claims numbers but held support following Wednesday’s big pop. The bulls did rather well in holding their ground but Fed Chairman, Ben Bernanke, kept a lid on any comeback after saying the unemployment rate is not going to fall significantly anytime soon. Despite his predictions of 3%-4% economic expansion in 2011, Big Ben warned it wouldn’t be enough to make a meaningful dent in the 9.6% unemployment rate.

    On that note, the Dow slipped 24 points to close at 11,731 with Merck (MRK, $34.69, down $2.46) being the biggest decliner of the blue-chip index. Shares fell nearly 7% after the company said it would discontinue trials for its anti-clotting drug, Vorapaxar, and accounted for nearly 19 points of the 24 point Dow decline. The Dow is up 57 points for the week and if the bulls hold 11,674, the index will stretch its winning streak to 7 straight.

    The S&P 500 darted in-and-out of positive territory for much of the session before finishing with a 2 point loss to settle at 1,283. The bulls can make it 6 weeks in-a-row if they hold 1,271.

    The Nasdaq also fell 2 points to finish at 2,735 after trading to a high of 2,742 intra-day. Of course, the big news this morning was Intel’s (INTC, $21.29, down $0.01) earnings announcement after the close yesterday.

    The company reported a profit of $3.4 billion, or $0.59 a share, up from $2.3 billion, or $0.40, in the year-earlier period. Revenue jumped over 8% to $11.5 billion. Wall Street was looking for $0.53 a share on sales of $11.4 billion. Intel reported gross margins of nearly 68% and also raised guidance for the current quarter.

    Heading into the open, shares are up 20 cents to $21.49.

    Elsewhere, JPMorgan Chase (JPM, $44.45, down $0.26) reported earnings of $4.8 billion, or $1.12 a share, up from $3.3 billion, or $0.74 a share, in the year ago quarter. Wall Street was looking for $1 a share. Revenue checked in at $26 billion versus expectations for $24 billion.

    As we head to press, Dow futures are down 43 points while the S&P 500 futures are lower by 5 points. The Nasdaq 100 futures are off by 2 points.

    We have a lot to cover in our Members Area this morning as a number of our trades have exploded this week. We have updated all positions with new stops to lock in profits on some of our triple-digit winners.
    Tags: INTC, JPM, MRK
    Jan 14 9:00 AM | Link | Comment!
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