In addition to tonight's new candidate(s), consider these stocks as possible trading ideas and watch list candidates. Some of these stocks may need to see a break past key support or resistance:
DLPH, MHK, CHE, STZ, DIS, INTU, SWK, FISV, ADBE, KMX, M, FB, LAD, LGND, ANSS
NEW DIRECTIONAL CALL PLAYS
PowerShares QQQ ETF - QQQ - close: 110.40 change: +0.33
Stop Loss: 109.40
Target(s): To Be Determined
Current Option Gain/Loss: Unopened
Average Daily Volume = 27.4 million
Entry on June -- at $---.--
Listed on June 03, 2015
Time Frame: Exit PRIOR to July expiration
New Positions: Yes, see below
June does not have a great history for market performance. Stocks tend to move lower. Fortunately that is not a rule set in concrete. The sell in May trade did not show up this year. There's no guarantee that June is going to be a down month either.
As a matter of fact, the path of least resistance remains higher. The NASDAQ 100 index has been consolidating near its recent highs and looks poised to breakout. One way to play it is the QQQ ETF.
The QQQ is one of the largest and most liquid exchange traded funds. This particular ETF tracks the NASDAQ-100 index, which includes 100 of the largest non-financial stocks on the NASDAQ (lots of technology stocks). AAPL, MSFT, AMZN, GOOG, GOOGL, FB, GILD, INTC, CMCSA, CSCO and AMGN are its top holdings. You can see a list of the top twenty five holdings here.
If the market does breakout higher the QQQs could lead the charge. We want to be ready. The April 27th intraday high was $111.16. Tonight we are suggesting a trigger to buy calls at $111.25. We'll try and limit our risk with a relatively tight stop loss at $109.40. This is a short-term trade. We want to be out before the normal July option expiration.
Trigger @ $111.25
- Suggested Positions -
Buy the JUL $112 CALL (QQQ150717C112) current ask $1.20
option price is a current quote and not a suggested entry price.
Entry disclaimer: To avoid an unfavorable entry point, we will not launch a new play if the stock gaps open more than $1.00 past our suggested entry point.
Option Format: symbol-year-month-day-call-strike