So my last “stocks to watch” post turned out to have a 100% winning rate. Had you taken on any of the positions listed there, you would have profited (to various extents and %s of course).
While that may be the only time that ever happens, I just felt like bragging a little bit. 10/10 on weekly stock pick performance is..well…pretty good.
But regardless, don’t consider all of the trades listed below to be profitable necessarily; some will, some won’t. That’s just how it is.
What this list is meant to be, is a list of stocks for you to consider adding to your watchlist. Nothing more and nothing less. With that said, here are some of the tickers that’ll be on my watchlist.
Some made it to the text alert service, some I own positions in, and some I’ll just be watching. For full disclosure, if any of those conditions apply, they’ll be mentioned in the list below.
$JCI – Johnson Controllers International PLC
$JCI closed on Friday at $39.89. Its 52-week range has been $36.74-$46.17….so it is off of its low and has some space to run.
Looking at the chart, the big gap down on 07-27 (earnings for the stock), the money flowed stayed above the 0 line on the Chaikin Money Flow until a further dip occurred from August 15th-August 23rd. During that bottom is when some sizable call buyers came in to take a bullish stance on the stock, betting on the stock being at a bottom.
I alerted this ticker twice via the free text alert service (August 17th then on the 22nd) after seeing unusual call buying in the name. I took on the 2nd alert, which was buying the JAN18 $40 Cs. I liked the position because it gave me ample til expiry and were close to the money.
I’m still bullish here, holding the same position [+45.46% so far].
I’d recommend buying the same JAN18 $40 Cs if this pulls back on Tuesday, or if it continues higher, the $41 Calls would still be enticing.
$SGMO – Sangamo Therapeutics Inc.
Sangamo closed Friday at $14.25; close the higher end of its 52-week range of $2.65-$15.05.
A flurry of call sweepers brought me to alert the SEP17 $15 Cs twice on Friday, as the stock came down after the first alert, so I thought that dip was a good spot to average down. The stock moved up on volume, dipped on light volume and was ascending on more volume on Friday.
I’m long the SEP17 $15 Cs at a cost-basis of 0.6 [-4.17%]. Despite being close to the 52-week high, I remain bullish here because of the strength the biotech sector here might be enough to kick it over that high. Keep an eye on this one.
$EL – Estee Lauder Cosmetics, Class A
$EL rose on an earnings beat….and continued to rise on chatter of a buy/out. Despite refuting those speculations on Friday, the stock closed out the day Friday +$0.94.
This is a name I also pointed out in my text alerts; two large call sweepers stood out in morning trade, one of the DEC17 $125 Cs and one of the APR18 $110 Cs. I decided to go the way of the DEC17 $125 Cs @ $4.30 – which closed flat at the EOD.
$QVCA – Liberty Interactive Corp., QVC Class A Shares
$QVCA saw two sizable opening call trades on Friday, both in the SEP17 $23 Cs. I alerted them but took no position.
I’ll be looking for strength to buy into these tomorrow/later this week.
$SFM – Sprouts Farmer’s Market Inc.
Sprouts took a hit alongside most other grocery chains on the news that the Amazon and Whole Foods deal reached completion.
I think that this drop was an overreaction. Beyond the fact that it will take quite some time before the $AMZN and $WFM deal starts to impact their bottom line, online grocery shopping itself is in its’ infancy, so I do think the drop in $SFM was on over-reaction.
I opened a position of SEP17 $22.5 Cs…while later in the week some big money came in and bought the OCT17 $22.5 Cs (which were text alerted). I’d watch for an entry point into those, as I’ll be watching for a time to roll mine to OCT.
$CF – CF Industries Holdings INC.
Another of the heaviest activity in options we saw on Friday. I alerted and purchased the 29SEP17 $33 Cs.
CF Industries is trading at the lower end of its 52-week range, closing Friday at $29.98 (with the year’s range being $22.00-$37.17. A $3 move in a stock that’s where it is in that range.
$GDXJ – Vaneck Vectors Junior Gold Miners ETF
As we continue through what should be some pretty choppy action as things seem to be going back and forth with regards to the North Korea situation, we’re going to see some more bursts in Gold prices. I usually trade Gold via futures, but these Junior Miners caught a lot of Unusual Options Activity last week, and are a decent hedge to hold onto in times like these. I’m long the SEP17 $37.5 Cs as of Friday [+14.6% presently]. Gold futures are presently +12.00 from close Friday, so this should play out. If it opens up substantially, I’ll be selling pullbacks and buying them also.
That’s it, for now, in-terms of conviction picks. Be sure to take a look at my last stocks to watch list, as many of them are still in-pay for more upside (namely $RRC and $OSTK…but a lot of the others also).