NextOptions.com Index and Earnings Options Play List for 12/7/2016

NextOptions.com Index and Earnings Options Play List for 12/7/2016

We continue to stay red hot to close out 2016 after locking-in profits on three more huge recent winners. Our subscribers have now banked 10 MONSTER triple-digit returns on these juicy option trades since August:

+500% TravelZoo (TZOO) August 13 calls (August 2016)

+423% Finisar (FNSR) October 25 calls (September 2016)

+491% Alibaba (BABA) August 87.50 calls (August 2016)

+230% PNC Financial November 90 calls (October 2016)

+202% Big Lots (BIG) September 50 puts (August 2016)

+135% Sony (SNE) August 31 calls (August 2016)

+122% Guess (GES) September 15 puts (August 2016)

+116% Etsy (ETSY) August 12.50 calls (August 2016)

+100% Momo (MOMO) September 15 calls (August 2016)

+100% Tenet Healthcare (THC) November 19 puts (November 2016)

+75% IShares Russell 2000 (IWM) November 115 puts (November 2016)

8:00am (EST)

The market was sluggish for much of Tuesday before picking up steam in the second half of action. The continued momentum was beautiful to see as I mentioned the bulls needed to show some follow through. The run to fresh all-time peaks were lead by the small-caps and another bullish sign.

The Dow advanced 35 points, or 0.2%, to close at 19,251. The blue-chips were weak throughout the first half of trading with the bears pushing a low of 19,184. Support at 19,100-19,000 has now held for 10-straight sessions with a solid floor being formed. The push to 19,255 keeps upper resistance at 19,200-19,350 in play. Continued closes above the latter could lead to a move towards 19,500-19,600 by yearend.

The S&P 500 added 7 points, or 0.3%, to finish at 2,212. The index slipped a couple of points to 2,202 shortly after the open with rising support at 2,200-2,195 holding. A move back below 2,190 would be a bearish development. Resistance at 2,215-2,225 was challenged on the bounce to 2,212 ahead of the closing bell. If the latter is cleared, pencil-in a test to 2,250, possibly, over the next 3-4 weeks.

The Nasdaq gained 24 points, or 0.5%, to settle at 5,333. Tech made a brief trip into negative territory midday to 5,299 with fresh upper support at 5,300-5,275 getting slightly stretched. The turnaround to just below 5,334 into the close was a bullish signal. Near-term resistance remains at 5,350-5,375.

The Russell 2000 surged nearly 15 points, or 1.1%, to end at 1,352. The small-caps tested 1,335 intraday with rising support at 1,330-1,325 trying to be established for the rest of the week. Prior resistance at 1,335-1,340 was blown away following the move to 1,353 and another all-time high.

The S&P 500 Volatility Index ($VIX, 11.79, down 0.35) traded in negative territory for much of the day following a brief look at 12.30 on the opening sluggishness. Short-term resistance has now moved down to 12.50-11.50. Continued closes below 11.50 should get a 10 handle and possibility, single-digits on the map.

Analogic (ALOG), Dave & Buster's Entertainment (DAVE), Sigma Designs (SIGM) announced earnings after Tuesday's close.

Hooker Furniture (HOFT), Lulelemon Athletica (LULU), Star Gas Partners (SGU), United Natural Foods (UNFI) are announcing numbers this morning.

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Our top triple-digit and winning option recommendations for 2016:

+700% Paychex (PAYX) July 57.50 calls (July 2016)

+527% Mattel (MAT) February 29 calls (February 2016)

+500% TravelZoo (TZOO) August 13 calls (August)

+491% Alibaba (BABA) August 87.50 calls (August 2016)

+461% Tyson Foods (TSN) February 55 calls (February 2016)

+423% Finisar (FNSR) October 25 calls (September 2016)

+385% PowerShares QQQ ETF (QQQ) July 105 puts (June 2016)

+280% S&P 500 Spiders ETF (SPY) February 195 puts (January 2016)

+264% Juniper Networks (JNPR) February 25 puts (January 2016)

+202% Big Lots (BIG) September 50 puts (August 2016)

+230% PNC Financial November 90 calls (October 2016)

+200% Spiders S&P 500 (SPY) March 199 calls (March 2016)

+185% Alaska Air Group (ALK) February 75 calls (January 2016)

+139% iShares Russell 2000 July 110 puts (June 2016)

+135% Sony (SNE) August 31 calls (August 2016)

+133% Hasbro (HAS) May 85 calls (April 2016)

+122% Guess (GES) September 15 puts (August 2016)

+116% Etsy (ETSY) August 12.50 calls (August 2016)

+100% Momo (MOMO) September 15 calls (August 2016)

+100% Tenet Healthcare (THC) November 19 puts (November 2016)

+67% PowerShares QQQ ETF (QQQ) January 100 puts (January 2016)

+44% Finish Line (FINL) February 17.50 puts (January 2016)
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Our top 20 triple-digit winning option recommendations from 2015:

+1,400% Zumiez September 20 puts (September 2015)

+660% Joy Global (JOY) sold calls/ puts

+608% World Wrestling Federation (WWE) call options

+560% United Rentals (URI) August 72.50 puts (July)

+500% Flower Foods (FLO) August 22.50 calls (August)

+400% Dollar Tree (DLTR) September 70 puts

+398% Barnes & Noble September 16 puts (September 2015)

+308% RiteAid (RAD) call options

+288% Rent-A-Center (RCII) put options

+263% Pepsico (PEP) call options (October)

+239% Fossil (FOSL) put options

+218% Visa call options (July)

+207% Schnitzer Steel Industries (SCHN) puts options

+200% Sonic (SONC) call options

+171% Spiders PowerShares QQQ put options

+194% Intuit (INTU) call options

+184% KB Home (KBH) strangle option trade

+160% Western Union call options (August 2015)

+150% Hibbett Sports put options (August 2015)

+150% Veeco Instruments (VECO) call options (August 2015)

+135% iShares Trust Russell 2000 (IWM) July 124 puts

+127% Jabil Circuit (JBL) call options
See our sample Earnings Options & Stocks Play List trades from past earnings quarters to see how easy and simple it is to play and trade options no matter what the market is doing. Even better, see how YOU can turn hundreds into thousands overnight as we show you proof options are the most powerful investments on the planet.

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12/7/2016 comments:

Sprint (S, $8.17, up $0.12)

January 8 calls (S170120C00008000, $0.65, up $0.10)

Profiled Price: $0.55 (11/16/2016)

Exit: $1.10

Profit: 18%

Stop: None

Thoughts: Monday's high reached $8.61. Resistance is at $8-$8.25. Support is at $7.75-$7.50.

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12/7/2016 comments:

Rambus (RMBS, $13.46, up $0.48)

January 14 calls (RMBS170120C00014000, $0.30, up $0.13)

Profiled Price: $0.36 (11/21/2016)

Exit: $0.75+

Profit: -18%

Stop: None

Thoughts: Resistance is at $13.50-$13.75. Fresh support is at $13.

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12/7/2016 comments:

Array BioPharma (ARRY, $8.66, down $0.05)

January 8 calls (ARRY170120C00008000, $1.15, down $0.10)

Profiled Price: $0.75 (11/28/2016)

Exit: $1.50

Profit: 48%

Stop: None

Thoughts: Resistance is at $9. Support is at $8.50. We have a Price Target of $10 by mid to late January for the stock that would get these call options to $2 "in-the-money".

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12/7/2016 comments:

Toll Brothers (TOL, $31.93, up $1.46)

January 30 calls (TOL170120C00030000, $2.50, up $0.90)

Profiled Price: $1.00 (12/5/2016)

Exit: $2.00+

Profit: 60%

Stop: $2.05

Thoughts: Set a Stop at $2.05 to ensure a triple-digit profit.

Shares traded to a peak of $32.18 yesterday with the calls kissing $2.55. We said we liked these calls to play a run to $32 on better-than-expected numbers and the company delivered.

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12/7/2016 comments:

PowerShares QQQ ETF (QQQ, $116.88, up $0.28)

January 120 calls (QQQ170120C00120000, $0.75, flat)

Profiled Price: $0.65 (12/5/2016)

Exit: $1.50

Profit: 12%

Stop: None

Thoughts: Resistance is at $117.50-$118. Support is at $115. We like these call options to play a rebound to $120 and all-time highs by mid-January.

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Upcoming Earnings

Wednesday

After the close: Casey's General Store (CASY), H&R Block (HRB), Ollie's (OLLI)

Thursday

Before the open: Argan (AGX), Ciena (CIEN), Hovnanian Enterprises (HOV), Methode Electronics (MEI), Peak Resorts (SKIS), Vince Holding (VNCE)

No new recommendations today.

Groupon (GRPN) Gets an Upgrade

Chicago, Illinois-based coupon service Groupon (GRPN, $3.85, up $0.36) surged 10.32% after an analyst upgraded the stock to overweight from neutral, and raised its 1-year price target to $6. The company plans to spend $150-$200 million more for marketing in 2016 than in 2015.

The increased marketing will largely be in the U.S. The analyst believes this would attract 3.5-4.5 million new active accounts in 2016, and the company would also attract similar numbers in 2017. This is believed to add annualized gross profit of $215-$280 million. In 2015, the company had a gross profit of $1.385 billion.

On April 28, the $2.18 billion company reported 1st quarter results that beat on earnings and revenue. It reported earnings per share (EPS) of -$0.01 on $731.97 million in revenue, compared to EPS of $0.03 on $750.4 million in revenue a year ago. Analysts had expected EPS of -$0.02 on $718.36 million in revenue.

For the 2nd quarter, which it reports on July 27 after the close, analysts are expecting EPS of -$0.02 on $710.97 million in revenue, compared to EPS of $0.02 on $738.4 million in revenue a year ago. For full year fiscal 2016, the company forecasts revenue of $2.75-$3.05 billion.

Analysts estimate EPS of $0.20 on $2.97 billion in revenue, compared to EPS of $0.14 on $3.12 billion in revenue in 2015. Analysts give the stock a 1-year price target of $4.07. High target is $6. The stock has no trailing PE, a forward PE of 72.64, price/book of 5.83, price/sales of 0.74, and a current ratio of 0.81. Short interest is 12.81%, which means that shares could see a short squeeze on good news.

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Leading Brands (LBIX) Signs Deal With China

Vancouver-based healthy beverage distributor Leading Brands (LBIX, $2.02, up $0.33) surged 19.52% after the company said that it signed an agreement to supply 500 milliliter bottles and 5 liter WaterBoxes of its HappyWater bottled water to a significant customer in China. Happy Water is a natural alkaline blend sourced from the Halcyon Spring and the Mount Woodside Spring in the Canadian mountains of British Columbia. The water is advertised as having a pH of 7.4, which is ideal for the body, and contains natural minerals and electrolytes. The first shipment is expected in third quarter.

Besides HappyWater, the $5.77 million company sells brands TrueBlue, PureBlue, TrueBlack, and Canada FreshAir, and distributes its beverages in Canada, the western United States, and Asia. On June 14, the company reported 1st quarter earnings per share (EPS) of C$0.10 on C$2.85 million in revenue, compared to EPS of -C$0.15 on C$3.20 million in revenue a year ago. Gross margin rose to 38.7% compared to 31.1% a year ago. HappyWater sales jumped 38%. In the 2nd quarter 2015, the company had EPS of C$0.07 on C$3.78 million in revenue. For full year fiscal 2015, the company had EPS of -C$0.45 on C$11.01 million in revenue, compared to EPS of C$0.04 on C$13.86 million in revenue a year ago. The only analyst following the company gives the stock a 1-year price target of $4.40. The stock has no trailing PE, no forward PE, price/sales of 0.69, and a current ratio of 1.56. Short interest is 0.05%, which means that short sellers probably do not think the stock will fall much.

Apple (AAPL) Stock Volatile Ahead Of WWDC

Shares of Apple (APPL) are below $100 and ahead of Monday's developers conference and could be volatile following the update.

California-based video game developer and publisher Electronic Arts (EA, $73.38, up $8.84) surged 13.70% after the company reported 4th quarter fiscal 2016 results that beat on both earnings and revenue.  For the quarter ending March 31, it reported earnings per share (EPS) of $0.50 on $924 million in revenue, compared to EPS of $0.39 on $896 million in revenue a year ago.  Analysts had expected EPS of $0.42 on $889 million in revenue.  For the 1st quarter fiscal 2017, the company forecasts EPS of -$0.05 on $640 million in revenue, compared to EPS of $0.15 on $693 million in revenue a year ago.  Analysts are expecting EPS of -$0.02 on $657 million in revenue.  For full year fiscal 2016, the company had EPS of $3.13 on $4.3 billion in revenue, compared to EPS of $2.51 on $4.0 billion in revenue a year ago.  For full year fiscal 2017, the company forecasts EPS of $3.50 on $4.9 in revenue.  Analysts are expecting EPS of $3.46 on $4.8 billion in revenue.

 

The $22.70 billion company develops and sells video games for consoles, computers, and mobile devices.  Its Star Wars and sports games helped boost revenue.  As of the end of March, it had sold more than 14 million copies of Star Wars Battlefront to retailers.  It is planning to sell sequels in the future.  Its Madden NFL Mobile game saw monthly active users rise 30% from a year ago.  The company’s digital sales were up 18% to $712 million (55% of revenue) from a year ago.  Analysts give the stock a 1-year price target of $83.40, but that could rise in the near future.  High target is $105.  The stock has a trailing PE of 37.57, forward PE of 18.03, PEG of 1.38, and price/sales of 4.67.  Short interest is 7.24%, which means that the stock could see a short squeeze on good news.

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