EOT Position Update – April 14, 2010
April 14, 2010
Market Snapshot
The markets shifted into high gear today. It’s truly amazing to watch…
The Dow shot up over 100 points to finish above 11,000 for the first time since September 2008. The S&P 500 blew through the 1200 level today too. And, NASDAQ finished the day up 1.5%, the biggest percentage gain of them all.
The stock market gains are being fueled by better than expected economic data.
Retail sales, as well as quarterly earnings, from Intel (INTC) and JP Morgan (JPM) are the latest news sending the market soaring.
Earnings season’s off to a fast start so far. If more companies are able to follow suit, stocks should continue gaining momentum.
Clearly, bullish momentum is the dominant force in the markets right now. That’s great news for call options!
Like I said the last few weeks, the markets are overbought but they can stay that way for long periods of time in a trending market. So trying to pick a short term top is an exercise in futility.
We’ll continue to ride the trend until it changes.
Now for the updates…
Position Updates
Just a quick note: Remember, we won’t update every open position every week. I try to focus on the positions that have some significant news or price movement.
CTSH October 2010 $60 CALLS
CTSH is off to a great start. In the first week alone, our option hit a peak gain of 67%! The stock exploded yesterday after Infosys Technologies (INFY), one of CTSH’s main competitors, reported their quarterly earnings. The report shows the IT outsourcing business in India continues to gain momentum. Hold tight for CTSH’s earnings the first week of May. Resistance is at $55 and $60. Support is at $49 and $47.50.
ASEI July 2010 $85 CALLS
ASEI continues to consolidate at the lower end of the range it’s been in the last nine weeks. Right now, ASEI is just above the support line of the uptrend. Remember, we’re looking for the quarterly earnings they report in May to beat analyst estimates. So outside of a purely technical breakout, we’ll just have to wait for the earnings announcement. Hold tight for now. Resistance is at $82.25 and $87. Support is at $72.75 and $70.
WFR July 2010 $13 CALLS
WFR continues to run on bullish sentiment toward semiconductor and solar stocks. Our call options move deeper into the money on almost a daily basis. Our option hit peak gain of 162% today! We’re rapidly approaching our next resistance level at $17. Aggressive traders should continue holding for bigger gains. Support is at $11.50 and $11.
VZ July 2010 $30 CALLS
VZ has fallen back a little this week. But it’s still well within the last years trading range. VZ has bounced around between $28.25-$33. I still think VZ’s likely to hit $33 before our July options expire. Aggressive traders should sit tight for now. The next resistance is at $33. Support is at $28 and $27.
INTC July 2010 $20 CALLS
INTC blew away analysts’ quarterly earnings estimates yesterday. Our option hit a peak gain of 173% today! Management also increased their sales forecast for next quarter. And, they said they’re just beginning to see corporate demand pick-up. Overall it was a great quarter. And I think INTC still has room to run. Aggressive traders should hold out for bigger gains ahead. The next resistance is at $25. Support is at $18.50 and $18.
SWKS May 2010 $15 CALLS
SWKS is consolidating between $15.50 and $16.50. It’s been trapped in this range since the beginning of March. But there’s still plenty of upside potential for SWKS as one of the key suppliers for Apple’s iPhone and the new iPad. Aggressive traders should hold tight for quarterly earnings release the last week of April. The next resistance is at $18. Support is at $12.25 and $11.50.
Category: EOT Update
