Trade ideas for this week

July 31, 2017

Should be able to trade again this week. What am I looking at?

 

Chipotle $CMG: Stock has been hammered in the wake of new health scares, falling from an ATH of 499 in May to 52wk low of 336.52 just a week ago. Has had a good reaction to earnings (read: didn't drop more) and IV is still higher than normal. Might attempt to sell puts.

 

Baidu $BIDU: Huge beat on earnings sent this stock above key highs from 2015. Is this stock on its way back to All time highs in the 250s? A long call spread might be in order.

 

Semiconductors ETF $SMH: IV is very high in this ETF for reasons I can't quite figure out. None of its holdings are under a lot of stress and most earnings have already been released for its major holdings. Delta neutral positioning sounds good here.

 

Cigarette companies $PM $MO $BTI: A report released on Friday says that the new FDA head is seeking to cut nicotine in cigarettes, which is expected to have a negative impact on sales. Each of these stocks sold off hard and in the case of all but $MO have recovered some of that lost ground - $PM especially. IV is very high but with no timetable on this proposal to be found, it might be best to stay out of these names. Liquidity is also undesirable.

 

Facebook $FB: IV still higher than normal after earnings, and after dinging a fresh ATH, $FB might consolidate around the 170 area for a couple weeks. Even 10 points OTM, the premium is still good. Delta neutral positioning for this one, too.

 

For specific strikes and whatnot, refer to my StockTwits stream - and be sure to follow for more updates like this in the future!

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