Add AMZN Calls
In Advance of GOOG
PLAY: Buy the AMZN November 100 Calls (QZN KT) at or under $3.95, good for the day. Place a protective stop limit at $2.10 and a pre-determined sniper sell at $5.60.
Dear Bottarelli Research Member,
Despite the fact that both technology and financial stocks are applying downward pressure to the major market averages, the Dow has been flirting with a flat line for the majority of today’s trading session. If the Blue Chips dip 35 points, for example, buyers will quickly step in. Therefore, the bullish thesis (thus far today) appears to remain firmly in place.
With this backdrop, I find it interesting that the top technology names are selling off leading up to a huge earnings report from Google (GOOG – NASDAQ).After the bell today, we’ll get a full rash of technology earnings. In addition to GOOG, we’ll also get results from IBM and Advanced Micro Devices. Strong results from any one of these companies could easily give investors the confidence to jump back into the tech sector after today’s temporary dip. As a result, I’d like to get positioned in shares of Amazon.com (AMZN – NASDAQ). The thesis here is two-fold.
First, from a chart perspective, the stock is dipping to a nice support level leading into a series of potentially powerful earnings reports. Secondly, considering the strong returns of retail stocks lately (which all have been reporting better-than-expected earnings), there’s a very good chance that AMZN could be the beneficiary of a Christmas buying season that’s better than expected. Perhaps it’s a little too early to be talking about Christmas shopping in October, but a very nice setup has now formed in Amazon, and I’d like to take advantage. Let’s use $95 as the support level and add November calls now.
PLAY: Buy the AMZN November 100 Calls (QZN KT) at or under $3.95, good for the day. Place a protective stop limit at $2.10 and a pre-determined sniper sell at $5.60.
And as always…
Lock and load!
Sincerely,
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