Quick trading note. I’m selling about half of my $TWTR call options — all of my June dated expiries — for a nice profit today.
Here’s the transcript to this week’s Live Q&A Chat.
Q. Cody, hi, what should we do with the JUNE $TWTR calls??
A. I’m going to sell all my June Twitter calls today or tomorrow. Will send out a Trade Alert when I do start selling them. Worked out well, didn’t they?!
Q. Hi Cody, What are your latest thoughts on gold for the near term?
A. I like the $GDX here again, as I think it’s likely got some momentum coming towards it and gold as equities lose some of their own momentum. Gold looks like it might finally get that pop near-term. I could $1500/oz for gold by the end of the summer. Mining co’s have been CRUSHED over the last year or two and I think they can easily get back to their 2010 highs in the next year or two.
Q. With VIX at $10.65 any play there?
A. There’s gotta be a good $VIX call options play at some point. The problem is that the longer-dated $VIX call options, even just 3 or 6 months out, need the $VIX to pop 30% or more to get into-the-money, and you’d really need some volatility to return to make them profitable on the trade. Feet to fire, I’d sure rather own $VIX call options than short $VIX call options. But I’m not using my own capital on $VIX call options either way for now.
Q. Cody: Are you looking to add $FB 2015 calls in this market. $FB earnings coming in a month from now.
A. Nah, $FB is still my largest position and I am happy to ride it out over the earnings report this time with just common. I might have looked to buy some $FB calls when it was crushed a few weeks ago as I’d mentioned, but I didn’t pull the trigger and I don’t think I’m likely to add $FB calls now that’s popped back up near its all-time highs. Steady as she goes for me.
Q. I saw that you have trimmed across couple days ago. When would you be scaling into some of those positions again? Before earnings or after markets correct 5%, 10% etc. What major things are you looking to add back some of those positions? What are your thoughts about coming earnings in general?
A. I’m not necessarily looking to add back the positions I just trimmed in my stocks like $YELP, $FUEL and $FEYE because they spiked 30-50% each within a week or two of me having bought them. I sold 1/5 (20%) of each, which means they are still bigger positions for me than they were when I’d bought them. Steady as she goes.
Q. I know you are expecting gold and minors go higher this year and into next. So why are we not looking at $GDX options now? I see that $GDX 30 strike 2016 expiry is around $2 premium. risk/reward looks good with a year and half left before expiry. Is this a good idea at all?
A. I am looking at the $GDX call options right now and the 2016 $GDX $30 strikes at $2 ain’t a bad idea at all. I just haven’t done it yet, as I’ve been letting GDX/Gold play out since my last trade in the sector.
Comment: IMO- if you buy $GDX, why not buy $GDXJ- they both will go up and down with the price of gold, $GDXJ will be more volatile- but if it’s a trade, there’s more $$ to be made in $GDXJ- Cody, ” Would rather stick with the best miners, not the little ones.”
Q. Do you think Amazon’s new phone will be a serious player in the market? A game changer?
A. Yes, I think in two years that $AMZN’s phone is going to be a big part of the smartphone market. This year, they’ll sell 3-4 million of them I expect, which won’t move the need for $AMZN. But in three or four more years or so, the Amazon Fire phone will be a 10% market share, selling 100 million units a year.
Q. Whats your opinion on buying some OCT 92.14 CALLS ON $AAPL?
A. Like my answer about the $FB call options, I’m not interested in buying call options on Apple right here right now. I just made a huge homerun with my $AAPL call options that I bought back when AAPL itself was 20% lower than its current quote, and I’m selling them slowly but surely to lock in those profits. $AAPL is my second biggest position right now and that’s probably what I’ll use for my $AAPL exposure for now.
Q. Hows the baby?
A. Baby Lyncoln is ADORABLE and she LOVES her daddy! She lights up when she sees me. And I when I see her too.
Q. $FSLR thoughts, any trade in it for you?
A. Sorry, $FSLR is like $FB and $AAPL right here for me. I bought these long-term investment positions in those stocks when they were HATED. Now that they’re at highs and are loved, I’m a trimmer of them, not a buyer.
Q. Whats your take on marijuana in regards to a real stock that has been getting a lot of attention $GWPH? We all see the writing on the wall it will be legalized for medical use’s and I know U like LNN as a pix and shovels play on that sector but what about the drug use? any insight?
A. $GWPH is the only pure marijuana stock I’d consider touching, but I have no insights on it for you. Seems bubblicious to me.
Q. How did the conference go yesterday? any feedback on your drone topics and plays?
A. The ValueX conference is all week. I spoke keynote last night at it. I flew the drone up behind me from the pool area as I spoke in an atrium. It was cool. I ticked everybody off when I started my speech by telling them that searching for a value stock in a market that is at all-time highs is sorta silly because markets and cycles matter. I don’t care what value stock they found that was “cheap” in 2007, for example, it was still “Cheaper” a year later when the markets crashed.
Okay folks, thank you! See you later. I’m headed back to the conference now.