EOT position update February 26, 2014

February 26, 2014

Market Snapshot

The bull market is strong…

The January pullback was met with an even stronger recovery.  The S&P 500 now stands at a new high after eclipsing the previous high of 1,850 set on January 15th.

The charge is being led higher by risky and aggressive stocks like Google (GOOG),Tesla Motors (TSLA), biotechs, and semiconductors.

But it’s not just a handful of high flying stocks pushing the market higher.  Stocks across the board are moving higher.  The breadth of stocks participating in the rally is truly impressive.

Here’s the bottom line…

The bull market hasn’t slowed down.  In fact, the correction was just the opportunity investors and traders needed to feel comfortable initiating new long positions.

Let’s move onto 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.

AMZN April 2014 $365 Mini Calls
AMZN is on the verge of breaking out from the base it has been carving out over the last few weeks.  Our options moved into positive territory today.  There’s plenty of upside for this high flying growth stock as bullish momentum favors riskier and fast growing companies.  Support is at $340 and again at $320.  Resistance is at $380 and $400.

EIGI May 2014 $15 Calls
EIGI delivered a very strong 4th quarter earnings today.  The initial reaction sent the stock soaring above our $15 resistance level to as high as $16.33 per share.  Our option more than doubled in price from $1.00 to $2.05.  Congratulations to everyone the locked in these impressive gains.  I don’t think this is the end of the road for EIGI. Aggressive traders should continue holding.  EIGI could surge as high as $20 per share before these options expire in May.

Category: EOT Update