[ December 3, 2016 | Author: admin | Views: 55384 | Weather:
| Mood: normal]
I have strapped on quite a few of these vertical bull call spreads across many asset classes this year, and they are a major reason why I am up 12%, twice the return of the S&P 500 and three times the Dow industrial average. To understand this trade, I have used Facebook (NASDAQ:FB) as an example today. I have been positive about this company for some time now. Buy the Facebook November 2016 $115-$120 in-the-money bull call spread at $4.02 or best. To accomplish this, execute the following trades (these use Wednesday’s closing prices): Buy 25 November 2016 Facebook $115 calls at $15.30. Sell short 25 November 2016 Facebook $120 calls at $11.28. Net Cost: $4.02 This gets traders into the position at $4.02, which cost them $10,050 ($4.02 per option x 100 shares per option x 25 contracts). The vertical part of the description of this trade refers to … Continue reading
WWW.KIPLINGER.COM's stock picks: GWPH
Last but not least, GW Pharmaceuticals PLC (GWPH) is one of the biotech stocks with the potential to make waves this quarter.
GW Pharmaceuticals — arguably the only legitimized cannabis-based drugmaker — has already won approval of its Sativex...
Laura Brodbeck's stock picks: TWC
While Comcast says that only 8 percent of its customers are affected by the overuse fee, some say imposing a data cap could spark public backlash. Time Warner Cable Inc (NYSE: TWC) imposed a similar limit in 2008, but swiftly reversed course amid public pressure.
Lisa Levin's stock picks: RCII
Rent-A-Center Inc (NASDAQ: RCII) was down, falling around 26 percent to $9.88. Rent-A-Center reported upbeat quarterly earnings, but the company's sales missed analysts' estimates.
Brian Wu's stock picks: MSFT
AMD supplies APUs (integrated CPU/GPUs) to Sony Corp (NYSE:SNE) and Microsoft (NSDQ:MSFT) for their respective gaming consoles. Both companies have released significant console upgrades in the current year, which is strongly bullish for AMD because...
Giulio Prisco's stock picks: MSFT
One year ago, Amigobulls covered about the research arm of Microsoft (NSDQ:MSFT), Microsoft Research, as a top-class research organization that, among other pursuits, is exploring quantum computing.