Premarket Ideas & Morning Watchlist - March 15th
Markets are down this morning but the action is not weak at all across your sectors. In fact most stocks are in the green here in the premarkets. Last night the 2nd stress tests hit the large banks and Goldman (NASDAQ: GS) & JP Morgan (NASDAQ: JPM) are the two that are looking a bit sour. Bank of America (NASDAQ: BAC) , however, is flying out of the gate here with the stock at fresh 52-week highs above 12.50. Triple Witching today with all types of options expiring, this could either mean we have a volatile day OR SPY goes flat and we literally do nothing all day. Core inflation was reported at 8:30 and a minor manufacturing number both of which failed to really move the indexes. SPY at 156 means yesterday's move though was thrown out the window and you can't jus give up on the possibility of a sell-off so don't be directionally bias today, we could go either way here.
Apple (NASDAQ: AAPL) - Stock is up about 6 points here in the premarkets off comments from Piper Jaffray concerning the Samsung S4. Whether that's really why though I leave for debate but $438 has been a new level of resistance for her and she is trading over it right now. Could it be today it rallies or is this just another setup? Again we'll have to wait for that tape to spell it out for us. Queue up both sides of the trade here but stay close to the money with this don't go out 10 points on your call strikes to play here because the time decay will seep out quick. I'm gonna queue up the $440 and $445 weekly calls but wait to see if the buyers continue after the market opens. I'll need her to hold $438 too if a long trade is even going to work.
Google (NASDAQ: GOOG)/Priceline (NASDAQ: PLCN) - Both of these stocks have been dead and continue to look the same. Writing options on these for the past several days has worked out very well. I would continue to hit both sides of the trade definitely more so the call side. Remember, do NOT get too close to the money as you are writing here otherwise it gets difficult to hold until the close. Obviously put on your spreads as well to minimize your losses. Remember you are simply trying to capitalize on the NON movement.
Netflix (NASDAQ: NFLX) - She shook me out of my $185 put writes and those options are going to open at .30 most likely. I don't think there's an alpha trade here nor do I think it's smart to write the options so close to the money until well into the morning. Leave this one alone for now.
Financials - Now they're all over the place and there's really no leadership. I think though buying dips on Bank of America (NASDAQ: BAC) could work out nicely using the $12.50 weekly calls. If you can get the stock under the half I think that's a good time to start buying up that 12.50 because if the SPY does rally back higher I think you get even further highs on this. It is safer to use NEXT weeks options however so definitely use those for less risk.
I think I'm going to just try and get an alpha move out of apple today either up or down and then try to single out a nice writing strategy.
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