Sina Corp. - SINA - cls: 51.23 change: -1.99 stop: 49.99
SINA hit some profit taking on Thursday with a 3.7% decline. We couldn't find anything specific in the news except for a 4.8% sell-off in the Shanghai stock exchange, which is reason enough right there for SINA to trade lower. Meanwhile SINA has another reason to trade lower tomorrow. Another Chinese Internet stock, arguably the leader in the group, Baidu (BIDU) reported earnings tonight. BIDU beat earnings estimates and guided higher but that wasn't enough for investors. BIDU closed at $334.30 but was trading down between $320 and $300 in after hours trading. SINA could see more selling pressure due to BIDU's post-earnings reaction. We would wait and watch for a bounce near $50.00 before considering new bullish positions in SINA. Our target is the $59.50-60.00 range. SINA is due to report earnings somewhere in the October 29th-November 8th range. Hopefully the closer we get to the end of October we'll find a confirmed date since we do not want to hold over SINA's earnings report.
Picked on October 23 at $ 53.40
BEA Systems - BEAS - cls: 17.53 change: -0.02 stop: 19.01
The trading in BEAS today looks like another bearish entry point to buy puts. The stock produced a bearish failed rally under the $18.00 level this morning. BEAS management has decided that they're willing sell for a $21 a share offer but ORCL says they won't pay more than $17 a share. ORCL will cancel its $17 a share offer this Sunday at 5:00 p.m. Our target is the $15.25-14.75 range. We're suggesting a stop loss at $19.01 but readers could try and play with a stop above yesterday's high ($18.67).
Picked on October 23 at $ 17.87
Tsakos Energy - TNP - cls: 68.26 change: -0.08 stop: 72.16
TNP continues to trade sideways. Broken support near the 50-dma and the $70.00 level should be resistance. If you're feeling conservative then tighten your stop toward $70. We remain bearish on the stock at this time. Currently, we plan to exit on Friday, November 2nd unless shares hit our target first. Our target is the $65.10-63.65 zone. Almost all of its technical indicators on both the daily and weekly charts are bearish or they are turning bearish.
Picked on October 22 at $ 67.67 *gap down
Sepracor Inc. - SEPR - cls: 22.75 change: -0.57 stop: 25.05
SEPR continues to show relative weakness. The stock spiked higher toward $24 this morning but quickly failed. SEPR closed with a 2.4% decline and shares are now testing the recent lows. We're not suggesting new positions at this time. Our target is the $20.25-20.00 zone. We do not want to hold over the October 30th earnings report.
Picked on October 21 at $ 22.91 *gap down
(What is a strangle? It's when a trader buys an out-of-the-money (OTM) call and an OTM put on the same stock. The strategy is neutral. You do not care what direction the stock moves as long as the move is big enough to make your investment profitable.)
Borg Warner - BWA - cls: 94.65 change: -0.84 stop: n/a
BWA reported earnings this morning. The company beat Wall Street's $1.05 estimate by 8 cents and they beat on the revenue estimates. The company's guidance was only inline. The reaction in the stock price was disappointing. BWA spiked to $97.77 near its early October highs and then reversed lower. We were expecting a much bigger move. Due to this lack of volatility more conservative traders will want to seriously consider exiting this play immediately to cut their losses. We have three more weeks left in our November options so we're going to stick it out for now. We are not suggesting new positions any longer. The options we suggested for a strangle were the November $100 calls (BWA-KT) and the November $90 puts (BWA-WR). Our estimated cost was $4.50. We want to sell if either option hits $7.25 or more.
Picked on October 23 at $ 95.67
Express Scripts - ESRX - cls: 60.94 chg: +3.57 stop: n/a
As reported last night ESRX announced on Wednesday after the closing bell. The results were better than expected and the company guided higher. The reaction pushed shares of ESRX past resistance at the $60 level. The stock hit an intraday high of $63.96 and closed up 6.2%. We are no longer suggesting new positions in the stock. The options we suggested for a strangle were the November $65 calls (XTQ-KM) and the November $55 puts (XTQ-WK). Our estimated cost was $1.95. We want to sell if either option hits $3.50 or higher.
Picked on October 21 at $ 59.65
Intl. Bus. Mach. - IBM - cls: 112.81 chg: -0.14 stop: n/a
IBM did not move much today. We have just over three weeks left on our November options. We are not suggesting new strangle positions at this time. Our November strangle suggested the November $125 call (IBM-KE) and the November $110 put (IBM-WB). Our estimated cost was $3.00. We wanted to sell if either option hits $6.00.
Picked on October 15 at $118.03
Monster Worldwide - MNST - cls: 38.80 chg: +2.73 stop: n/a
MNST reported earnings last night. The results were better than expected. The stock reacted by gapping open higher above resistance at the $38.00 level. Shares still have resistance near $40.00. We were expecting a bigger reaction and more conservative traders will want to consider exiting their positions now to cut their losses. There are about three weeks left for the November strikes. We are no longer suggesting new positions. The options we suggested for our strangle were the November $40 calls (BSQ-KH) and the November $35 puts (BSQ-WG). Our estimated cost is $1.75. We want to sell if either option hits $2.95 or higher.
Picked on October 23 at $ 37.22
Microsoft - MSFT - cls: 31.99 change: +0.74 stop: n/a
MSFT continued to rally into its earnings report. Shares rose 2.3% and did so on huge volume. After the closing bell MSFT reported earnings and the numbers were better than expected. The stock was trading up in the $35.50-36.00 zone in after hours trading. If MSFT trades over $35.00 the November $32.50 calls will be $2.50 in the money. Therefore we're adjusting our exit price. PLEASE NOTE that our new exit price to sell will be $2.75 or higher. We are no longer suggesting positions on MSFT. The options we suggested for our strangle were the November $32.50 calls (MSQ-KZ) and the November $30.00 puts (MSQ-WK). Our estimated cost is $1.07. We want to sell if either option hits $2.75 or higher.
Picked on October 23 at $ 30.90