Trade Ideas — $SWHC, $KO, $SAIC, $CMG, $DUK, $PFE

June 12, 2016


Need some trading ideas to get the week started? We’ve got you covered! This is our weekly issue June 13 — June 17 where we go over macro economics, economic calendar, upcoming earnings and list a few trade ideas.

Economic News

Last week in the US, job openings hit all-time highs with 5.79 million and just 38,000 increase in unemployment for first quarter. Non-farm productivity dropped .6% and economists expect an increase in 2nd quarter.

Globally, the Reserve Bank of Australia kept its rates at 1.75%. UK Industrial Production moved from contraction to growth as the British pound was down 4%. Canadian jobs were up 13,800 which is higher than the volatile range set the part year.

Economic Calendar

In the US, the Import Price Index, Retail Sales, PPI Final Demand, Industrial Production, Current Account Balance, CPI, and Housing Starts are expected to be reported.

Globally, China Industrial Production, UK CPI, and Brazil Economic Activity will be reported.

Earnings Calendar

Earnings Reports (ER) expected this week are pretty slim. 2nd quarter reporting will start in July. A few ER suggestions are in this week’s trade ideas.

Markets

Last week the US stock market started up but then ended the week down overall. Gold made a nice rebound as economic uncertainty loomed in the news. Oil followed the trend of stocks being down for the week.

Industrials and Technology are increasing, while Materials and Utilities are seeing signs of decline.

General Note

This week’s trend will most likely be more apparent after Monday, to possibly Tuesday, trading. $SPY looks to be in a downtrend but is approaching the last resistance point that could be a support. Stock market analysts are still generally bullish. With the stock market trend uncertain to start the week I’ve added alternate trade ideas should my expected bullish trend not transpire.

$SWHC — Smith & Wesson Holding Corporation

Catalyst- ER 6/16/16.

$SWHC is at a 6-month support and there will be a few days before ER. Analysts expect an ER beat and the company has a history of doing so.

Trade

BUY $21.00 June 17, 2016 Calls. 6/10 $1.05x$1.25.

$KO — The Coca-Cola Company

Catalyst- Technical trade.

6/10 Friday trading showed a bullish move above the $45.80 resistance. However, chart analysis shows overbought signs and option MaxPain is at $45 for 6/17/16 expiration.

Trade

BUY $46.00 July 15, 2016 Calls. 6/10 $.52x$.54.

Alternate trade if market decline continues: BUY $45.00 June 17, 2016 Puts. 6/10 $.12x$.13.

SAIC — Science Applications International Corporation

Catalyst- ER 6/13/16.

Trading last week showed a failing uptrend with a $57.80 resistance. This trade may be best after ER with large option spreads in 6/10/16 trading.

Trade

BUY $55.00 June 17, 2016 Puts. 6/10 $.55x$1.35.

Alternate trade if $SAIC beats ER: BUY $60.00 June 17, 2016 Calls. 6/10 $.60x$1.65.

$CMG — Chipotle Mexican Grill, Inc

Catalyst- Technical trade.

$CMG has been declining quickly the past week. News of its number one status in the industry being taken away isn’t helping. Good news from a technical analysis standpoint is the stock price is testing the 6-month $405 support.

Trade

BUY $403.00 June 17, 2016 Calls. 6/10 $1.15x$1.30.

Alternate trade if support fails: $390.00 June 17, 2016 Puts. 6/10 $3.00x$3.20.

$DUK — Duke Energy Corporation

Catalyst- Technical trade.

6/10 Friday trading saw a break above the $81.00 resistance. $DUK was in the news for its proposal to purchase Piedmont Natural Gas. Watch option volume for any trade decided.

Trade

BUY $80.00 June 17, 2016 Calls. 6/10 $1.35x$1.55.

Alternate trade if resistance holds and acquisition doesn’t occur: BUY $80 July 15, 2016 Puts. 6/10 $.95x$1.05.

$PFE — Pfizer Inc.

Catalyst- Technical trade.

$PFE has been uptrending since early April. In the news are results for a few drugs in phase 3 trials and the bullishness looks to continue.

Trade

BUY $35.00 June 17, 2016 Calls. 6/10 $.42x$.45.

Alternate trade if market decline continues: BUY $35.00 July 15, 2016 Puts. 6/10 $.56x$.57.

Happy trading!


Disclaimer : This is not an investment advisory, and should not be used to make investment decisions. Information in All Things Stocks is often opinionated and should be considered for information purposes only. No stock exchange anywhere has approved or disapproved of the information contained herein. There is no express or implied solicitation to buy or sell securities. The charts provided here are not meant for investment purposes and only serve as technical examples. Don’t consider buying or selling any stock without conducting your own due diligence.

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