Sorry been MIA this week. I have spent a lot of time in the local hospital as two of my in-laws have been in there a lot the last week. Also went to own doctor in Las Cruces yday for an appointment. And I volunteer to help out the nearby Mescalero Apache 8th Grade Basketball team with their coach, my old friend Syrus Wheeler, and had a game on Monday afternoon in Mescalero. At any rate, I’m here today, and onhttps://tradingwithcody.com/chat we’ve got our Weekly Live Q&A at 2pm EST today so let’s rock.
Two not-so-random Revolution Investor links for you first here this morning:
Central bankers apparently have time and money to spend on developing propaganda games. We will look back with outrage at this crap someday. “Put down the Xbox and play these thrilling games created by central bankers http://qz.com/158549
“Our three starting guards had one assist and seven turnovers. They must think it’s a tax credit.” http://deadspin.com/siu-coach-blasts-mamas-boys-players-in-exquisite-ran-1485614485 That line just cracks me up and frankly underscores how the messed up whole tax code has permeated pop culture itself and simply become accepted.
As for trading and/or getting started building some positions, I’d look at the following here right now:
INTC’s wanting to break above $25 and if it does, it really could join the Bubble Blowing Bull Market in full bloom, so to speak. I’d look at common and/or long-dated INTC calls, as I’d outlined here recently https://tradingwithcody.com/2013/12/06/cody-kiss-tell-leap-candidates-no-set-rules-on-shorts-and-gimme-three-steps/:
Q. Ok, serious question: Do your recommend buying Leaps (1-2 yr out calls) for any of your holdings? Do you see anything that looks good for leaps?
A. Yes, we’ve used LEAPS before in some of our stocks, including Facebook LEAPS back when it was in the teens, which paid off hugely for us. Right now, feet to fire, I’d say the best possible names as LEAP candidates would be: INTC, TQNT, CREE and JNPR.
Thanks.
Q. GM; Thanks for getting up so early for us. Regarding LEAPS, I usually have trouble with them because they usually seem very expensive. I burned myself badly last year in AAPL options and don’t want to repeat the experience. Do you have any benchmark for how far out of the money (% or $) you feel comfortable?
A. Believe it or not, I haven’t had an alarm clock for decades and these days, living on a ranch in NM, I get up every day before the sun. I usually spend the mornings reading every analyst report, newspaper and other such things I can get my hands on before you guys see a first peep from me. I suggest just sticking with common stock if you don’t feel comfortable with the options. To answer your question, how far out of the money and time I go on an option depends upon my analysis for the stock and the company and the stock market for that time frame. No set answer on that one. Remember when we bought long-dated FB calls with $30 strikes back when the stock was at $18? That was a big % difference. But I’d look at a $25 or $27 strike on the INTC LEAPS for now which is only a bit out of the money.
I’d also take a look at AAPL here. And I’d rather be a trimmer than a tranche-buyer of FB right here at $55 or so, though I do think it’s still a core holding and as always suggest buying a small first tranche to get started if you don’t own any of it.
Pandora’s really looking like it’s cracked and the momentum there is gone for now. A break below $25 very well might bring out some panic selling from the momentum loving longs in that name.
Meanwhile, Bitcoin’s cracked today and it’s in the $500s right now. I’d mentioned Monday that I wouldn’t be surprised to see it bounce between $500 and $700 for a while. I still think that, though with the panicky selling there today, it very well could move that near-term bitcoin range down to say $400-600 for a while. Very little history to go on with bitcoin, of course.
And what do you guys think about getting together for an exclusive TradingWithCody.com member lunch after my presentation in NYC on February 18? —
I’m going to give a presentation about Everything You Need to Know About Investing at the upcoming Money Show Trader’s Expo in NYC on Tuesday, February 18, 2014 at 10:30 am. Registration for the expo and attendance to my presentation are free.
Go here to sign up: Moneyshow.com/tradeshow/new_york/traders_expo/?scode=034412
Workshop Details
Everything You Need to Know About Investing
In this presentation, I will approach this broad topic with lots of details and explanations and real-life examples of trying to become a successful investor or trader, in a way that will be helpful for the average Joe, but also touching on key topics that pros can use too.
Go here to sign up: Moneyshow.com/tradeshow/new_york/traders_expo/?scode=034412