Friday, September 12, 2014

Friday Sep 12 outlook

The SPY looks to open around 200.25 after finishing yesterday at 200.28. The 10yr finished yesterday at 2.53 and is currently hovering around 2.59. The /VX closed yesterday at 13.5 and is currently trading around 13.6.

No real individual stock stories I like this morning. But these are what I'm watching:

ULTA is up 17% at 113.90 after closing yesterday at 97.50. It beat on both revenue and earnings and increased its outlook. Comps also increased 9.6% in the quarter. Short interest is only about 5% of the float and the stock does not have any weekly options available and the strikes are 5 wide.

HTZ is trading slightly higher at 28.60 on light volume after finishing yesterday at 27.75. This comes after Icahn was able to reach an agreement with the company to add three Icahn reps to the board.


Recap from yesterday:

I through on a LULU 43.5/43 strangle at about 60% IV and sold it at 67% IV as it ripped from 43.25ish to 45. Once again, IV was way under priced. Total trade time was 10 minutes.

JDSU basically went nowhere as far as options were concerned, as I had pretty much expected, opening at 13.65 and closing at 13.35.

At 935 I saw IP had some action in the weekly 47.5 calls which caught my attention as it had little OI. I then saw the stock had opened at 48.20 and was now trading at 49.20. I considered entering some weekly calls expecting some type of rumor to hit. About 20 minutes later it was announced IP was at a conference and was considering becoming a MLP. This sent the stock up to 50 by 1030 before it closed at 50.35.



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