Posted by: ctraderd | February 24, 2013

Watchlist- Week of 2/25/13 $DXJ $BWLD

Last week, the markets offset each other a bit. The Dow Jones Industrial Average gained +27.18 for +.19%, the S&P 500 lost -5.61 for -.45%, and QQQ shares closed Friday’s trading session at $67.14 losing –.81 for –1.16%. Last week I made one trade and that was when I opened up a long position of 7 DXJ Apr13 41 Calls. I am currently up +$210 for +26.08% in just two days of holding. read further for more information about the trade. Before making any decisions based on this article, read my disclaimer and do your own research!! 

1.) WisdomTree Japan Hedged Equity  Fund(DXJ)

Last week, DXJ gained +.66 for +1.66%. I am now up +12.08% on the stock. Last week. I bought to open 7 DXJ Apr13 41 Calls and am up +$210 for +26.08% as previously stated. I decided to buy the calls on Thursday because I saw that the Nikkei 225 was down a big percentile. I decided to profit from the dip, so I bought the calls at $1.15 and the day’s low was $1.00. The next day, DXJ spiked and these babies went to $1.45. My sale price is currently $2.30 on these, looking for a 100% gain. We will be able to see what the Nikkei does tonight, and hopefully it will go up. If these calls drop below $1.00 per contract, I will add 8 more. With the stock and options combined, I am up a combined +$677 for +6.65% on the play combined.

2.) Buffalo Wild wings, Inc. (BWLD)

BWLD lost –1.83 for –2.36% last week. The reason why I am putting this one on my watchlist is because I tried to get into a BWLD restaurant a few weeks ago on a Friday night. We got to the restaurant at approximately 7:00 PM and asked for a table. The place was packed, so the wait was 1 hour and 20 minutes at least. We decided to go to another restaurant and had a good night overall. When I got home, I decided to look up the earnings for BWLD to see if they were really bringing in a ton of profits, because their restaurants were packed to the walls. Sure enough, on a 5-year trend (including 2012), net income is up around +134%. Also, on a 5-quarter trend, net income is up 22%. The company also has no long-term debt on a 5-year trend as well. My fundamental standpoint on BWLD is bullish overall.

Technically, BWLD’s 52-week/all time is $94.81 and BWLD is currently trading at $75.96, 19.9% under its 52-week high. This is also a bullish sign for me, because it states that BWLD has room to run before major resistance. In conclusion, I am bullish BWLD and will look to open long-term calls next week.



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