Your thoughts on few stocks that I'm trading
Hi All,
So I'm wondering what is your take couple of these stocks?
SSNI - with a not so great forth quarter preliminary result and a lot of insider selling the stock is down from $23 to $15. I think it will recover up to $17. What are your thoughts?
XOOM - With the recent expansion of service into new countries and earning slated for the first of February, I think it may catch up to $28 given they meet wall street expectations. What do you guys think?
Here are the stocks that I'm watching right now
bullscan.com/nayan check it out and let me know your thoughts.
Nayan
:welcome
http://onlinetradersforum.com/styles...foro/clear.png I think the volume is too low on either to be really efficiently priced. Since predictive assumptions about any equity are basically 50/50 I like to have every advantage working for me. If you trade in and out of inefficient prices you will pay dearly over the long run. There is a near 30-40% gap in the bid/ask of the options so I'm going to guess that during market hours the bid/ask spread of the stock will be several cents as well. Making directional assumptions about a highly liquid stock will increase your avg of being correct at least by as much as the reduction in bid/ask spread when compared to less than liquid stocks. Everybody has their strategy however and mine involves more liquid stocks so I would have to pass. Anyway Welcome to the forum...
http://onlinetradersforum.com/styles...foro/clear.pngHi Acstudio,
Thanks! Good insight. You are correct about the spread of the stock being several cents apart as I've noticed this many times. These two are risky stocks in a way but I hedge my bets as I've been trading/following them since IPO
http://onlinetradersforum.com/styles...foro/clear.png.
Nayan
Saw your other positions. I have an Iron Condor on LNKD at 200/215/230/245 I put on at about 35 days to expiration so I like this one. However I did it without regard to the upcoming earnings...so I'll probably have to deal with that as volatility climbs or after. Not sure what I was thinking. But it'll be interesting either way.
Too many news stories on JCP and just not enough premium in the options to make a decent play.
And NQ has high volatility but it's drifted to the low end of it's range so not much to work with there.
LNKD is a good pick. I've traded it several times this month. JCP is very interesting with them shutting down stores I expect to see a bit of rise in revenue. JCP stores have long term lease on prime real estates around the country. I'm not sure they own that or not. I plan to get out at $7.30 (lets see if that works
http://onlinetradersforum.com/styles...foro/clear.png) NQ is definitely volatile but if no bad news emerge in the next few weeks/months it may well go up to $18.50 or $20 (my guess).