Winning

Winning

Monday, November 24, 2014

A new coiled spring...VNET

I got a new pick for you today, this stock, VNET, reports tomorrow. It is currently in a coiled spring configuration. Lets take a look at this company's chart:

Not a huge coiled spring but this thing could fly either way. Why is this? Look at the below analysts expectations:

You can see that this quarter there isn't anything that is big expected, but next quarter there is. For the last 3 out of 4 quarters there was a negative surprise, plus this quarter the Growth Est is lacking compared to the industry.

What I will issue here is a 2:1 put/call. Both at the money, the call will be 500 dollars, and the put will be 1000 dollars. Or any other 2:1 denomination you want to go with.
Its looking as though the stock could have a limp earnings report. Then again, something could happen early with that 600% growth expected next year, thus the call at half strength. So here is the call and the put:

VNET Dec 2014 21.000 call (VNET141220C00021000)

 -OPR  
1.40 Up 0.25(18.52%) 2:24PM EST
Prev Close:1.35
Open:1.60
Bid:1.15
Ask:1.40
Strike:21.00
Expire Date:20-Dec-14
Day's Range:1.15 - 1.60
Contract Range:N/A - N/A
Volume:585
Open Interest:329









VNET Dec 2014 20.000 put (VNET141220P00020000)

 -OPR  
1.79 Up 0.13(5.63%) 2:25PM EST
Prev Close:2.31
Open:2.44
Bid:1.55
Ask:2.00
Strike:20.00
Expire Date:20-Dec-14
Day's Range:1.79 - 2.44
Contract Range:N/A - N/A
Volume:4
Open Interest:2,620









That is all for today, there was nothing to bounce from the gainer's list.

More tomorrow!
Mark

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