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How I Am Using $YHOO To Make Trades & Profit On $BABA...Yahoo! Inc.(NASDAQ:YHOO) sold its core business. This means its main and only asset is its Alibaba Group Holding Ltd (NYSE:BABA). Because they trade together, the stock chart of Yahoo! can be used to determine the stock direction of Alibaba. I am using this method right now to look at short on Alibaba. Yahoo! has a dramatic topping tail on the daily stock chart. A topping tail is one of the biggest bearish signals you can get when looking at a chart at its 52 week highs. Thus, Yahoo! is a short, but so is Alibaba. This dramatic sell signal can be mapped out to yield a downside target on Yahoo! to $37.65. In tune with that, Alibaba will likely sell off the same percentage, yielding a price target of $90.00. That is a hefty reward for either shorting Yahoo! or Alibaba. Check please! Time to go place a trade!
YShort
by jenny_rebekka
APPLE: EARNINGS PREVIEW - LOW BAR; 1.38EPS & REVENUE $42.34BNApple earnings to be released after market today Expectations: 1. 1.39EPS and $42.31bn Revenue - I personally have been an Apple bull for some time - I believe the bar for apple has been set low, with EPS 25% lower than last year and Revenue target also 15% lower than last year - I think this is achievable as Iphone SE sales will be included in the income statement for the first time this quarter which should help beat the low 42.34bn target. Risks: 1. Obviously, if Apple misses these expectations i see downside to $89-90 immediately happening - nonetheless I think this opens up a valuable buying opp and I will be buying any 89-90 (or lower) lows, once the earnings hit/ miss flows are over as i believe apple is very cheap on a multiple basis some 10x. Trading Strategy: 1. On an earnings beat I think because AAPL price has been depressed for so long (30% for 6m+), APPL will see significant topside e.g. to $111 so you should BUY AAPL at market and hold past the 101 breakout for 110tp. 2. Equally, if AAPL misses, we should clear existing risk at $95 and reenter APPL at the MISS bottom which should be $89, or perhaps less. - I like owning Apple as it is one of the least leveraged companies, with over 250bn in cash & marketable securities (highly liquid) and generates 40-60bn dollars in bottom line profit, with 200bn revenue - thus it is one of the most profitable companies. With this cash, Apple in the future (under new leadership) can regain its prowess and make new highs e.g. 140-160 within the next 12-18m - before if they actually invest in M/A or some heavy R/D - poor leadership by Tim Cook is to blame for APPL's stagnant performance imo - they should have purchased Yahoo to compete with Google ad rev, Twitter to compete with FB and Netflix to grow their Apple TV business - all of which would have worked due to Apples massive worldwide brand and i believe such acquisitions can be made in the future thus I value owning Apple. Any questions let me know.
NASDAQ:AAPLLong
by QuantumLogicTrading
2
NEXT WEEK'S EARNINGS: NFLX, YHOO, GOOG, OTHERSNext week brings in a bevvy of earnings plays, but not all are worth of a premium selling, implied volatility contraction play. These are the best among the offerings currently to play either via short strangle or iron condor, although others could naturally come to the forefront if implied volatility increases dramatically immediately before earnings. NFLX: implied volatility rank/percentile: 48; implied volatility: 57. Ordinarily, I look to enter these plays when the implied volatility percentile is greater than 70% and the implied volatility is greater than 50%, so I'd like to see vol a bit higher here. Announces earnings on Monday after market close, so look to put on a play shortly before the end of the NY session. Preliminarily, a 78% POP April 29th 94.5/130 short strangle is offering a $185 credit/contract, but it could also be played via iron condor for a smaller, although not insubstantial credit. YHOO: implied volatility rank/percentile: 56; implied volatility: 42. The vol metrics aren't great here, but worth a watch for a small play. Announces earnings on Tuesday after market close. Preliminarily, a 72% POP April 29th 33.5/39.5 short strangle goes for $71/contract. GOOG: implied volatility rank/percentile: 45; implied volatility: 29. Another one to watch, but the vol metrics aren't really there right now. Announces earnings on Thursday after market close. Preliminarily, a 76% POP April 29th 700/820 short strangle will bring in $788/contract, but due to the size of the underlying, I'd probably go iron condor here. The other drawback of the underlying is poor liquidity, so look for a fill of any setup up somewhat above the mid price. Naturally, there are others that may pop at the last minute, so it's a good idea to watch all of them as their earnings come up one by one, keeping in what to look for in good earnings plays (See Posts Below).
NASDAQ:NFLX
by NaughtyPines
FB Bear HugWe're entering a new option chain cycle that will recalculate my cycles for the Cover-Return monetized Intrinsic price- to mid February. Given the recent prevailing bearish move on market performance the cosmic forces that govern Fib Ratios come into play. (Einstein and Planck came to me a dream last night to show me the equations.) The 144/377 EMA sweet spot is "half complete" since the Fib Ratio between 144/377 EMA hit the 38% for a bounce north. Short term Long Call/Short Put Strangle (3 legs out with comparable premiums and neutral Delta) I'll hold open for first 15 days into Feb Option Chain. Price ought to hit 100.62 - 34 EMA (Red with Red Arrow). Right around there I'll close my option positions - and reverse the strategy for a drop to the 377 EMA at 85.17. YHOO is currently showing renewed strength with a revised deal with BABA (do a comparison with YHOO, APPL, MSFT on the Day chart. (Up until a week ago, I figured YHOO was headed for the auction block. I'm thinking of starting to use a 3D Printer to configure the chart into a "globe" to use a latitude/longitude navigational rhumb line calculation.
NASDAQ:METALong
by Zentoro