by Ian Harvey
IMPORTANT NOTE: There is no stop-loss or pre-determined sell price recommended – this is left to the discretion of the individual trader.
Tuesday, December 22, 2015
Nike Inc (NYSE:NKE) Calls
**OPTION TRADE: Buy the NKE Jan 2016 140.000 call (NKE160115C00140000) at approximately $0.95. Sell price is left to your own judgment.
OR YOU MAY PREFER……
OPTION TRADE: Buy the NKE Jan 2016 130.000 call (NKE160115C00130000) at approximately $4.40. Sell price is left to your own judgment.
Technical indicators for NKE are bullish and the stock is in a strong upward trend. NKE was recently trading at $130.25, down $5.05 from its 12-month high and $39.56 above its 12-month low. The stock has recent support above $125.70 and recent resistance below $132.90.
Nike has been on fire for the last two years, and there is little reason to expect that to change following the company's second-quarter report. If the company hits its forecast, it would translate to year over year earnings growth of 14.9%, but results could be sharply higher.
The stock is trading fairly close to its all-time high, but the valuation does not cause too much concern, with a P/E of 33.1 and forecast earnings growth of 13% in fiscal 2017 versus 2016. This sector is quite likeable as a whole, and NKE seems to be one of the best stocks at this time among its peers.
Of the 24 analysts who cover the stock, 19 rate it a "strong buy”, one rates it a "buy", and four rate it a "hold".
Expect another solid report and for the stock to trend higher on the news.
Monday, December 21, 2015
Walt Disney Co (NYSE:DIS) Calls
**OPTION TRADE: Buy the DIS Jan 2016 115.000 call (DIS160115C00115000) at approximately $1.00. Sell price is left to your own judgment.
Walt Disney Co (NYSE: DIS), together with its subsidiaries and affiliates is a diversified international family entertainment and media enterprise with five business segments: media networks, parks and resorts, studio entertainment, consumer products and interactive media, released their latest movie Star Wars: The Force Awakens which has grossed a preliminary $238M in North America to mark the biggest opening of all time. Typical recent multipliers suggest that the film could indeed threaten Avatar's domestic gross record of $760.5M as its tracking toward $714M-$833M, dependent largely on how it holds up through U.S. holidays.
When Disney announced it would dish out $4 billion to acquire Lucasfilm back in 2012, Star Wars fans everywhere knew that meant one thing… the media giant was going to put all its muscle behind the next Star Wars movie. Disney's marketing machine has already done its job, littering every store in the nation with Star Wars paraphernalia, and creating so much hype around the movie that its success was already determined. The movie opened this weekend, and box office sales were huge.
DIS was recently trading at $112.53, down $9.55 from its 12-month high and $22.53 above its 12-month low. Technical indicators for DIS are bullish. The stock has recent support above $107.60 and has resistance below $114.75.
Of the 23 analysts who cover the stock, 10 rate it a "strong buy", three rate it a "buy", and 10 rate it a "hold".