This is an interesting trade idea.
Disney (DIS) may have its share of problems with ESPN at the moment, but with the latest installment of Star Wars set for December 2017 release, we may begin to see signs of life in the stock. The force, as they say, may be strong in this one. Sorry, I’m a big fan of the movie.
As we saw prior to the release of the December 2015 installment, shares began to rocket higher, falling after the release of the movie. Anticipation drove it higher. Once that anticipation effect faded so did the stock. We see this sort of thing happen all the time when trading news.
At the moment, we believe DIS is aggressively oversold and could begin to push higher on anticipation of the movie. It may sound like a nutty idea, but we often see it work well.
There are two ways to trade such an opportunity.
One, we can buy just the stock here around $99.50 and hold. And two, we can buy to open the DIS December 15, 2017 100 calls at market prices.
Shopify Inc. (SHOP) -- $96.90
SHOP November 17, 2017 105 calls -- $4.20
We continue to hold these trades. After an incredible sell-off on the heels of a Citron Research report, many analysts, including myself, believe it’s nothing more than an overreaction. Even Piper Jaffray has noted that the business is legitimate and is sticking with its $110 price target. Credit Suisse believes the bearish argument from Citron is flawed. And Baird analysts are dismissing the suggestion that SHOP is a marketing scheme. Hold both trades here.
Cypress Semiconductor (CY) -- $15.37
We recommended this trade just last week. It’s now up to $16.01 in pre-market and is just now beginning to gain momentum.
Vale S.A. (VALE) stock – $9.80 entry
We mentioned this opportunity not long ago, as a way to trade the cobalt and manganese shortage story with electric vehicle demand heating up. Hold.
Sturm Ruger (RGR) stock -- $52.50
American Outdoor Brands (AOBC) stock -- $15.70
AOBC January 19, 2018 17 calls – 75 cents – exit half
After pulling back yesterday, we are still bullish on the gun trades. We see no reason to exit either opportunity at this point.
HRL January 19, 2018 32.50 calls – 95 cents
HRL December 15, 2017 30 calls -- $2.15
Shares of HRL are now up to $31.25. We are continuing to hold these trades.
Comcast (CMCSA) stock - $37.95
CMCSA October 2017 37.50 calls - $1.20
CMCSA is taking its time recovering, but it’s moving in our direction. We may need to close this one out for a loss, but hold for the time being.
Carnival (CCL) -- $66.50
Carnival October 2017 67.50 calls -- $1.50 (exited half)
The stock last traded at $66.45. We’re watching this one closely. If need be, we’ll close out the second half of the October 2017 calls for a loss and hold the stock. We already exited half of the calls for a win of 67% in September 2017.
NKE stock -- $53.50 entry
NKE October 2017 55 calls -- $1.35 entry
We issued a new trade on Nike (NKE) and on the NKE October 55 call. We may need to close out the calls for a loss, but will still hold the stock.
TrueCar (TRUE) stock -- $16.75 entry
TrueCar October 2017 16 calls -- $1.50 entry
TrueCar January 2018 16 calls -- $2.35 entry
On August 15, we recommended buying TRUE, as well as the October 16 calls and January 16 calls. The stock is moving in the right direction, last trading at $16.01.
Zillow Group (Z) -- $44.75 entry, exited half for win
Zillow Group (Z) November 2017 45 calls- $3.60 entry, exited half for win
While the stock continues to break lower, we continue to hold. We already exited half of the stock and the November 45 calls in early August 2017. We currently hold the second half of each position, as the stock begins to recover at oversold conditions.
Advanced Micro Devices (AMD) -- $13.30 entry
Unfortunately, the AMD September 13 calls did not work out as hoped. However, we continue to hold the stock at oversold conditions. It last traded at $13.47.
- Exited half of Zillow Group (Z) for 8% gain on August 8, 2017
- Exited half of Zillow Group (Z) November 45 calls for 44% gain on Aug 8, 2017
- Exited half of CELG October 2017 130 calls for 150% on August 31, 2017
- Exited second half of CELG October 130 calls for 143% on Sept 1, 2017
- Exited GOLD Sept 92.50 put and 95 put for a full loss
- Exited half of LOW September 2017 75 calls for 71% on Sept 7, 2017
- Exited VNDA stock for 8% on September 8, 2017
- Exited VNDA October 2017 16 calls for 35% on September 8, 2017
- Exited second half of LOW October 2017 75 call for 92% on Sept. 8, 2017
- Exited LOW stock for 4% on September 8, 2017
- Exited half of FEYE stock for 13% gain on September 12, 2017
- Exited half of FEYE Dec. 14 calls for 68% gain on September 12, 2017
- Exited half of FEYE Dec. 15 calls for 63% gain on September 12, 2017
- Exited half of CCL October 2017 67.50 calls for 67% on September 13, 2017
- Exited VIX October 2017 15 put for 18% on September 13, 2017
- Exited VIX October 2017 14 put for 17% on September 13, 2017
- Exited ZIV stock for 2% on September 13, 2017
- Exited SVXY stock for 9% on September 13, 2017
- Exited AMD September 2017 13 calls for a full loss, expired worthless
- Exited second half of FEYE stock for 16% gain on September 14, 2017
- Exited second half of FEYE Dec. 14 calls for 100% gain on September 14, 2017
- Exited second half of FEYE Dec. 15 calls for 89% gain on September 14, 2017
- Exited CRUS stock for a loss of 7% on September 22, 2017
- Exited CRUS October 2017 60 calls for a full loss on September 22, 2017
- Exited half of AJRD November 2017 30 calls for a gain of 200% on Sept 22, 2017
- Exited half of AJRD November 2017 30 calls for a gain of 168% on Sept 22, 2017
- Exited AJRD stock for a gain of 13% on September 22, 2017
- Exited half of AOBC January 2018 17 calls for a gain of 47% on Oct. 4, 2017
- Exited half of EXPE October 145 calls for 22% gain on October 6, 2017
Ian L. Cooper