Posted by: ctraderd | March 3, 2013

Watchlist- Week of 3/3/13 $DXJ $BWLD $UA $IBM

Last week, the Dow Jones Industrial Average gained +89.09 for +.64%, the S&P 500 lost –5.32 for –.35%, and QQQ shares lost –.26 for –.35%, closing Friday’s trading session at $67.38. Last week, because I had Friday off from school, I made two trades. First, I closed my 7 DXJ Apr41 Calls at a $109.65 profit, and I day traded 5 IBM Mar13 200 Calls for a $169.76 profit. Overall I came out at a $279.41 profit on the week, and on the month of March so far. As February closed out, I lost a total of –$54.73. This was actually not that bad of a month, considering January I lost ~$1400. I hope to continue my trend in March and turn this year around and hit my goal of $25,000 in profits on the year. I hope to this by much research and hard work followed by good execution in my trades. See my trades on my page. 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 +.30 for a total of +.73%. I closed my long position of 7 Apr13 41 Calls for a 17.39% profit, because I needed the cash to trade IBM. Unfortunately, I did not need the cash in order to trade IBM after all, and I left a ton of money on the table because DXJ kept running after my sale. I still netted most of the profits with my long position in the stock though. As of Friday, March 1, I am up $532 for a 14.6% gain on the stock. This trade has worked like clockwork so far, and I will continue to enter and exit options to grab some profits while I let the stock run. Remember, this is still my #1 Pick for 2013.

2.) Buffalo Wild Wings Inc (BWLD)

Last week, BWLD was on fire, gaining +5.05 for +6.64%. If I had followed my plan I wrote about in last week’s watchlist, I would have banked. I have now determined that this week, I will buy just 3 Apr13 13 85 Calls on Monday for $1.50/contract, just in case BWLD has another breakout week. If BWLD is down in premarket on Monday, I will watch it during the day looking for an entry. I still believe that BWLD will continue to grow in profits as the economy gets better.

3.) Under Armour Inc (UA)

UA gained +1.89 last week for +3.97%. The reason I am putting this on my list is pretty much the same reason BWLD is on here. As the economy gets better, I believe UA’s profits will grow, sending their stock parabolic fast. Also, almost every single one of my friends has something made by UA, whether it be shoes, a backpack, a coat, or many other various things. For that reason, I believe that UA is a growing trend as well.

From 2008 to 2012, UA’s net income is up from $38.23 million to $128.39 million. That’s an extraordinary 335% increase over 5 years! From the first quarter of 2012 to the 4th quarter, net income is up from $14.6 million to $49.98 million, another extraordinary 342% leap. I believe profits will continue to grow, sending UA even higher. Also, technically, UA bounced off it’s 52-week low of $44 and is now 12.4% over it. This is another bullish signal for me, because I believe is has a lot of room to run to the 52-week high of $60.96 and even higher. For these reasons, on Monday, I will enter just 2 UA Apr13 50 Calls at $2.20, looking for a 100% gain before expiration. I will only enter these if UA is up in premarket tomorrow.

4.) International Business Machines Corporation (IBM)

Last week, IBM gained +.64 for a total of +.32%. On Friday, I was looking through various charts on my Dow Jones watchlist, and I noticed that this one was starting to perk up after several down candles. I decided to play the bottom bounce and I quickly devised a play of buying 5 Mar13 200 Calls. I set my price target and I stuck to it. My plan and execution worked perfectly and I bought in at $2.60 to exit about 30 minutes later at $3.00 for a $169.76 profit, making 15.38% on the trade. I still left money on the table, but I got the profit I wanted, so I exited. This week I will be looking at the chart of IBM constantly during school looking for an entry in either calls or puts. I will only day trade this one, because holding options on big caps overnight usually doesn’t end well for me.


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