Two New Calls
Play AAPL and JASO
Dear Bottarelli Research Member,
We’re getting into a nice little trading rhythm.
Yesterday, we closed out two call plays for profits. And then this morning, we closed out two put plays for profits. Sticking with that model, I have two new call candidates that I’d like to issue this morning. Each stock looks poised to make a quick upside burst that’ll allow us to keep lock and loading these fast winners. So let’s dive right in!
The first play is no secret: Apple (AAPL – NASDAQ). As you know, I missed entering Apple calls earlier this week, and we forfeited making a very nice trade. But now that Apple as retraced back to its 50-day moving average, we once again have the opportunity to enter a December call play and profit when Apple bounces off this strong support level. I still think that Apple will re-test its $190 high by year’s end, so let’s get positioned to profit off this move now.
PLAY: Buy the Apple December 175 Calls (APV LO) at or under $9.30, good for the day. Current bid/ask spread is $9.00 to $9.10. Place a protective stop limit at $5.10.
Also on the move is Suntech Power Holdings (STP – NYSE). This morning, the company reported that their Q3 profit rose 43.8% thanks to “robust demand” for their solar products, and this is pushing shares up nicely today.
As you all know, shares of First Solar (FSLR – NASDAQ) recently blasted higher by $50.00 after reporting a blowout quarter, and STP looks like it’s not far behind. Today’s announcement could be the catalyst that pushes STP shares past their recent high of $75.00, but we’re not going to play STP. Instead, we’re going to piggy-back this move using JA Solar Holdings (JASO – NASDAQ).
As you may or may not know, JASO has been one of my top picks in Bottarelli Research Small Cap, with shares up over 200% since our June 11th recommendation. Compared to STP and FSLR, JASO looks to have much more upside potential at current levels. Considering the stock is bouncing off its 50-day moving average, that means it could have another $15.00 of upside before breaking its 52-week high. Add into the equation the fact that JASO calls are priced much more attractively than STP calls, and this one’s an easy call. Let’s ride the upside momentum in the solar sector using December calls on JASO. Here’s the play:
PLAY: Buy the JASO December 55 Calls (QJP LK) at or under $7.00, good for the day. Current bid/ask spread is $6.30 to $6.60. Place a protective stop limit at $3.20.
Lock and load!
Sincerely,
© 2012 CSR Group, LLC. All rights reserved. Published in USA.
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