Weekly Update: 1.10.18
TAKE Profits in NVDA & AMD Options HOLD AAOI
With only 16 trading days left on NVDA and AMD options let's close them out.
AMD we are down $2500 ish from $5k $1.10 entry
First $5,000 on NVDA in at $8.25 we should be up 30% for the trade...
Second $5,000 tranche at $2.25 on pull back we should be up $320% or so at $11 bid.
Every trading day since Jan 2 the market has been in melt-up mode.
New target for NVDA...$330 over next 12-14 months. BUY UNDER $225 as Wall Street continues to miss NVDA's momentum in the AI GPU space and 2019-2020 we know see significant new revenues from their complete domination of autonomous vehicle GPUs. Basically NVDA is a buy EVERY time it pulls back to 50-day or 100-day moving average. WE WILL initiate Jan 2019 calls on the next pull back...Nvidia is the gift that keeps on giving!
AAOI--apologies that we did not sell that rip to $100....shit.
The Chinese market demand for AAOI's 100G laser fiber tech is deteriorating more than we imagined as the demand moves UP but the Chinese govt. is pushing China based 100G tech for BIG anticipated in the 5G rollout (Where are the Trump Fair Traders???).
At a forward 5 p/e and 30 RSI the stock is completely broken...at $16 a share book value and $60 million one of the big hyper-scale data centers players should just buy AAOI can cut their 100-200-400G laser connectivity costs.
I'm not going to sell on this meltdown...but if you hold and want to match loss against 2018 gains be my guest.
We are up about 18% on ALL our open and closed out positions with the 20%+ moves in AMD et all plus options plus SHOP call options. We are updating 2017 portfolio...oy! With the SHOP option grans slam looks like 57-60% up for they year including dividends.
Bond yield is finally breaking out as the long term bond market goes bearish...here are the charts. 10 year Yield over 2.6% and prices DOWN 12% means that bond investors are starting to feel the pain...and that will bring some of that cash (that can invest in yield other than just US Treasuries) to the higher yielding stock market. AND finally...we can add som "yield curve" plays as the spread between short term 2 yr and 10 year bond rates is now getting very profitable for spread lenders...more to come! KRE BOFI NYCB all on are target list the 2x monthly leveraged FINU
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