NEW DIRECTIONAL CALL PLAYS
NetEase, Inc. - NTES - close: 90.20 change: +2.14
Stop Loss: 87.45
Target(s): To Be Determined
Current Option Gain/Loss: Unopened
Average Daily Volume = 430 thousand
Entry on October -- at $---.--
Listed on October 20, 2014
Time Frame: 8 to 12 weeks
New Positions: Yes, see below
Why We Like It:
NTES is in the technology sector. They are part of the Chinese Internet space. The company operates online video games, an Internet portal and email services in China. Technically the stock has been outperforming most of its peers in the Chinese Internet industry (compare to the performance of the KWEB ETF of which NTES is a component).
Their most recent earnings report was healthy. NTES' quarterly profit was in-line but revenues were up +21% to $475.8 million, beating Wall Street's estimates. NTES' Chief Executive Officer Mr. Ding said, "This quarter we have achieved in three business areas MoM and YoY increase revenue total revenue growth of 17.2%, an increase of 22.3 percent compared with the same period last year, gaming revenues grew 13.1%, advertising services revenue grew 42.9%, mailboxes, electricity suppliers and other business income increased 201.5 percent."
After an initial rally on these results NTES share price stalled out at resistance near $90-91. Here we are more than two months later and NTES is testing resistance near $90-91 again. This time the point & figure chart is suggesting at $102 price target.
We are suggesting a trigger to buy calls at $91.15.
Trigger @ $91.15
- Suggested Positions -
Buy the NOV $95 call (NTES141122C95) current ask $2.05
Option Format: symbol-year-month-day-call-strike