Stay tuned for that BABA options trade we promised. We’re waiting for them to open, as scheduled today.
We’re still holding all open positions, including the silver calls that have under-performed to date. Silver is still massively oversold, though. It’s why we continue to hold, anticipating a big reversal north.
We’re holding all other open positions, as well, after closing out Lennar puts, Home Depot puts, and Yahoo puts for gains this month.
We’re back to waiting for BABA to open, but here’s the game plan.
We’re looking to trade a near-term put option to profit from a downswing in prices. BABA is showing signs of breaking down after such a wild open. At the same time, we’re looking to open a long-dated call to take advantage of an eventual Google-IPO-like move.
When Google opened for trading, it pulled back as BABA is now…
That was before Google found support around $100… and took off for the moon.
Please be very cautious in this market. Over the last three days, the market sold off 265 points, then ran up 170 points, and then sold off 170 points at today’s open. The market has literally lost its mind. So we ask that you trade safely. That means you cannot risk the full house on any position.
In the meantime, Janus Capital (JNS) jumped 43% the other day because “The Bond King,” Bill Gross joined them. But sorry, but he’s not worth a 43% jump in a stock valuation. Here’s a guy that was bombarded with loss after loss, that was close to being kicked to the curb over at Pimco.
Yet somehow his hire at Janus is worth a 43% jump.
Not only is Janus absurdly overvalued on this news it’s overvalued technically, as well. It’s overbought on RSI, MFI and MACD. It’s also well above its upper Bollinger Band with an insanely overvalued Williams % Range read of zero.
Janus needs to come down…
Consider buying to open the Janus (JNS) December 2014 15 put up to $1.90.
We’ll talk again shortly.