Option trade ideas

fxkool

fxkool

Here's an option trade worth considering:

SNX May 2015 monthly $70 Call: Buy at $4.10 - $4.30, Stop loss: $3.70, Sell at $8.20.

Risk 10% for a 100% gain.

SNX was sold off after earnings report in spite of bettering last year's result, and is a bargain at this price. I expect a rebound as shorts cover and others buy into this stock. It's just bounced off its 200 day moving average and is looking to head back up.

Happy trading!
 
SNX had a bad day, so it's possible to get in even cheaper now.

http://stockcharts.com/h-sc/ui?s=SNX

My suggested stop loss was just 10% less than my buy price. The stop loss was too tight. A 25% stop loss would give you a 4:1 reward/risk ratio, which is still very good.

SNX has had resistance at $80 for the last four months. It's last run up went to about $79. I'm expecting SNX to run to at least $76-$78, so I'm looking for a 100% gain. The May monthly calls give plenty of time for SNX to make a run up.
 
This SNX trade is going nicely after a rocky start. It happens! I got in at $3.98, a little lower than my $4.10 - $ 4.30 price. Someone got in as low as $3.30. The bid is now at $5.50, so I've upped my stop loss to $4.50, which will ensure a little profit if I get stopped out. We just need another 2 or 3 good days to reach the profit target. The short ratio is 12.4 with 3.2 million shares short, so hopefully the shorts will be covering to send SNX higher. Squeeze the pigs! lol
 
J_S, yeah a May $70 put would cost 80c - 90c. Usually you can get in at the midpoint of the spread (80c).

The market pulled back a little today and SNX was down 5c after running to $75.96. I've upped my stop loss to $5 to get a lil more profit from this trade in case the market drags SNX down with it. Seems the shorts in SNX are fighting back. Tomorrow will be interesting. One reason I like this trade is that insiders and institutions own 98.53% and the shorts are short 14%.
 
In at $3.98 and out at $5.70 for a 43% gain in 7 days. It looked like the market would continue down so when the indices started falling and the bid weakened near the high of the day I got out. Sure enough it went down to low $74s before unexpectedly rebounding to finish where it opened, up 22c. It wasn't the 100% I was hoping for but sometimes you gotta take what the market gives you, and 43% isn't too shabby. :-)
 
I like the look of BBBY. It's pulled back quite a bit and now it looks to rebound back up.

http://stockcharts.com/h-sc/ui?s=BBBY

I got in to the BBBY $70 May monthly calls at $4.00. I'm looking for it to run to $77-$78, for a 75% - 100% gain. Meanwhile SNX is continuing upwards after I jumped out!
 
FX, what about the following Soybean calendar spread trade to consider?

Sell the Aug 15 ZS 1000 Call
Buy the Sep 15 ZS 1000 Call

Need to work out what limit price to set in case the ZS futures drop in the next few weeks?

Have you traded ZS options before?

Maybe someone can help us out with this one?

I was thinking somewhere in the region of -6, but I might be way out?

J_S
 
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