July 22, 2013  Trade Alert #2 -  Terry’s Trades  Portfolio – LIMIT ORDERS

Starbucks seems to have unusually high expectations. The stock has rallied about 20% since the last announcement to a new high last week, whisper numbers are higher than estimates, and there has been some fairly significant insider selling over the past six months.  This is a fairly safe trade that only starts losing money if the stock moves up by $2 or so:

BTO 10 SBUX Aug-13 72.5 calls (SBUX130817C72.5)
STO 10 SBUX Jul4-13 70 calls (SBUX130726C70) for a credit limit of $.41  (selling a diagonal)
July 22, 2013  Trade Alert #2 -  Terry’s Trades  Portfolio – LIMIT ORDERS

Seagate Technology (STX) seems to have sky-high expectations (stock up 20% since the last announcement, whisper numbers exceed estimates, RSI at 94) and institutional investors have sold 19% of their holdings over the last 6 months, all indications that the stock will trade lower after Wednesday’s announcement.  Just in case the stock trades lower between now and then (as Google did last week), we will enter these trades now:

BTO 10 STX Aug-13 48 calls (STX130817C48)
STO 10 STX Jul4-13 47.5 calls (STX130726C47.5) for a debit limit of $.15 (buying a diagonal)

BTO 5 STX Aug-13 49 calls (STX130817C49)
STO 5 STX Jul4-13 47.5 calls (STX130726C47.5) for a credit limit of $.26 (buying a diagonal)

Happy trading.
 
Terry