Trading With Cody

Long-term Revolution Investments and Real-time Trades from Cody Willard

Trade Alert: A first strike at a new wearable play (and my speaking schedule for the Money Show)

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Himax makes the eye piece in the Google Glass wearable that I’ve been raving about. The company reports earnings tonight, and I want to take a small gamble on a few Himax call options. I’m going to use the the HIMX December 2014 expirations with strike price of $6-8.

The stock is down 60% this year and while I don’t expect that growing eye piece demand from Google Glass is going to change the direction of the company’s fundamental outlook tonight, I do think there’s a chance that the company’s also catching some traction in the China LTE component market as Chinese smartphone vendors take market share there.

If the company blows it in the report tonight and the stock gets hit tomorrow, I’ll probably step in and buy some common shares soon to start building this stock into a full-fledged long-term Revolution Investing position. I won’t gamble but a tiny bit of capital on this earnings report tonight, but this way if the stock does take off from here, we’ll already have a toe-hold in the position that we can add to. Either way, I’m planning on buying some HIMX common stock in the next few weeks and coming months.

PS. Here’s my schedule for the MoneyShow in San Francisco on August 21-23. Click here to sign up.

Speaker Schedule

 

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Trade Alert: Margin of safety
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Trade Alert - Two new positions and revisiting an old favorite
Trade Alert: NFLX, WORK, FSLR and covering some hedges

Filed Under: Trade Alert

Disclosure: At the time of publication, the firm in which Willard is a partner and/or Mr. Willard had positions in some of the stocks mentioned above although positions can change at any time and without notice.

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