Good luck this week everyone – a new addition to the TWA Spreadsheet is a highlight for names that are “must watch names.”
Research In Motion ($BBRY) today lost one of its biggest customers, Home Depot. Home Depot has decided that they will go ahead and adopt Apple’s iPhone 4s as the phone they to had out to their managers. This is around 10,000 phones that RIM has lost and Apple gained. This might seem like a small number of units, but it’s not the first time BlackBerry has lost its customers to Apple. BlackBerry came back this year with its new phones, and is currently trying to regain the market share they once had, thus every single customer counts. This doesn’t mean BlackBerry will not be successful, however I am a little skeptical to their future success. I am not convinced that BlackBerry is a good long term investment yet, however this stock has been a great options play in the last week due to its high volatility and i think it will continue to offer some short term opportunities.
Looking at an hourly chart for the past week, we see that $BBRY has had a big run up for a week now since the introduction of the new ticker symbol. BBRY went up over $17 from $13 in just a week. It has been very volatile during this period, making it a great short term options play. However, we can see from the chart above that BBRY broke below the support level of this week’s upward channel. This indicates to me that BBRY could be heading down to the $14.70 level, to test the that support level. It will be very interesting to see how BBRY trades tomorrow for the first 30 minutes of trading. If it’s able to continue back up towards the channel then i could see a short term increase, however i don’t believe it will do so. My projections are that it will continue on a downward trend and test the $14.70 support level. If it breaks past it, we could see the $13s levels in the near future.
I will continue to follow BBRY and will keep you guys updated as investors start trading tomorrow. In the meantime, lookout for some options play opportunities tomorrow as i expect this stock to be very volatile.
This week, new additions to our TWA post are the following columns to help you understand the stocks your trading during this earnings season:
The data compiled to add these lines was taken from a simple FINVIZ screener and will be added to the TWA spreadsheet from now on. Shout out to a trader who suggested I put these on the spreadsheet, as he felt this information would be incredibly useful and I 100% agreed (you know who you are).
Good luck this week, and look for a post discussing one specific futures contract and its intricacies later on this week!
This week, we’re presenting you with a downloadable Excel file regarding some of the top tickers reporting this week, as well as the economic data for the week. Every piece of data is from Briefing.com and is completely free, so we take zero credit for the compiling of the raw data – we are doing this to save you the time and effort of screening stocks that have a higher probability of being a name with a lot of tradeable opportunities:
Next week, we’ll be adding commentary on some of the companies reporting and the most prevalent economic data for that particular week.
As many of you read my post two days ago outlining how to play Apple earnings, I want to check in and see how the position is performing. Despite the position being relatively expensive, Apple did not disappointing and is currently down 10 percent after hours, trading at $460.
If you recall, I created a strangle on Apple using the current January weeklys. I paid a net cost of $23.40 to establish the position using long position in a $490 put and $510 call. Since the position was relatively expensive to create, I had break even points at $463.60 and $536.40. Obviously, the more important break even point in this situation is the $436.60.
Looking back, the position was probably too expensive and had already priced in the volatility. However, As of a few minutes ago, The position is in the money. I am looking for this position to continue deeper into the money for the following reason.
Apple has broken below its 3 year upward trend line, which in my opinion is the start of a significant down trend. Even after the dip below this trend line, technical indicators are not indicating that the stock is, by any means , oversold.