PRAN...annouced Stage 2 purchase puts

Another company just announced stage 2 results today and the results were published and the stock was up. Again, seeing that its a Phase 2 only, and there are several steps left before it can go to market and about another year or two before the company sees any money from this, we are going to throw out a put on it that expires this month.

PRAN Dec 2014 2.000 put (PRAN141220P00002000)

 -OPR  Watchlist

0.45 0.00(0.00%) 1:05PM EST

Prev Close:	0.45
Open:	0.45
Bid:	0.05
Ask:	0.55
Strike:	2.00

I think that there is about a 75% chance with this. The only thing is, the entire sector of pharm is doing some wierd climb up on no news, so perhaps this can work in our favor.
It is my opinion that this will peak and then come back down, after looking at the technicals. Also in our favor is the QQQ ready to drop.

On the QQQ front, the whole front of the car is hanging off the top of the cliff, kind of suspended. It is only a matter of time. Do not get into anything long at this time.

Mark

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Purchase GIS Put

I looked at it and the market is doing right for the jump in for GIS puts. GIS reports next week and I dont think things will be favorable and is near the top of the roll enough for us to jump.

GIS Dec 2014 52.500 put (GIS141220P00052500)

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0.75 0.00(0.00%) 11:03AM EST

Prev Close:	0.89
Open:	0.75
Bid:	0.79
Ask:	0.89
Strike:	52.50
Expire Date:	20-Dec-14

The stock reports next week. Thats all for this afternoon.
So the call today is December GIS puts.

Trade on,
Mark

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We are watching GIS tommorrow and QQQ update!

I am going to be watching GIS very closely. If the QQQ bounces back somewhat tomorrow fighting the drop, hopefully it will drag GIS up with it. I am waiting to see if GIS will climb back up about a dollar before I turn around and buy a put on it in expectation for its earnings report that I feel will be lackluster next week due to analysts expectations. Also look during the late morning hours (Chicago Time) for a possible option midday bounce pick.
And now for a look at whats going on with the QQQ..here is a chart after today's (Tues) action:

You can see that there is a big white candle. What this means is that the price plunged down and found some pretty big resistance and the price shot back up to the top of the candle at close. Its the first break of the dam. But is this the beginning of the slide down correction? For that answer, lets once again turn to the foundation of the situtation, the weekly chart for the QQQ:

Interesting. Seeing that the candle I circled above has a tail on the bottom of it, and that this candle is not at the peak of its wave climb, but on the middle of the wave peak, signifies that there could still be some upward climbing/chop for another week or two before the big fall.

My option: The cubes are not going to go quietly into the correction. There is going to be some chop for the next week or so until there is a sizable drop. It is possible that we could see a 97/98 price.

More Tomorrow,
Mark

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Dump DLA

Good morning. Looks like the coaster down has begun with the markets like I called...just about a week early. Im on my way out the door right now, but after checking I decided to get out of the short on  DLA:

Delta Apparel Inc. (DLA)

 -NYSE MKT  Watchlist

10.04  0.18(1.76%) 9:35AM EST - Nasdaq Real Time Price

Prev Close:	10.22
Open:	10.10
Bid:	10.08 x 200
Ask:	10.47 x 200
1y Target Est:	14.50
Beta:	0.25
Earnings Date:	Jan 21 - Jan 26 (Est.)

Day's Range:	10.04 - 10.04
52wk Range:	8.21 - 18.15
Volume:	100
Avg Vol (3m):	13,944
Market Cap:	79.09M
P/E (ttm):	N/A
EPS (ttm):	-0.12
Div & Yield:	N/A (N/A

If you remember several days ago I stated it was a short and yes, we made a bit of money, but DLA is not dropping as hard as I would like especially in light of a slipping market.

Thats all for now: dump the short for a slight profit of about 4-5%. Hey, it might not be a 2 bagger, but instead of you making 4% in a year interest for your bank account, we just did the same thing in a week.

Keep on your toes for the market correction,
Mark

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General Foods (GIS)

We are going to be watching General Foods for our three day drop. General Foods announces next week, but here is the thing. If the market starts to crash now, thats not good. I would prefer to have the stock continue to climb until friday in which case I would then purchase a put. However, the market is throwing a few flags that this could be the beginning of the drop.

So: In normal time I would purchase a put on Thursday/Friday.

Lets see what happens on Tuesday and Wendesday. Hopefully we are going to jump in. It also looks like General Foods is rolling and it is near the top of its roll. Best case senario is tommorrow the QQQ recovers somewhat and this will give our put more value by crushing the price of the put before we get in.

More Later,
Mark

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DLA, CCL, QQQ and other pics...

You know what? Im going to hold onto that DLA short for a day or two and see how it reacts to the market teetering on the edge. That QQQ correction that I called for a week or two out? Looks like its starting now:

The QQQ could come back in the next few days and chop around, or this is it, Monday was the first day of the coaster just cresting the top and we are looking down the abyss.
So in light of this, I was looking to get in carnival cruise lines, but not anymore. I want to ride the coaster down, not up.
So now we will be looking to do the three days drop with stocks we look for off our earnings calendar. Before we begin, lets take a look at our longer term QQQ put just to see where we are at right at the beginning of the drop:

QQQ Mar 2015 109.000 put (QQQ150320P00109000)

 -OPR  Watchlist

5.63 0.00(0.00%) 3:51PM EST

Prev Close:	5.63
Open:	5.58
Bid:	6.18
Ask:	6.27
Strike:	109.00
Expire Date:	20-Mar-15

Day's Range:	5.58 - 5.63
Contract Range:	N/A - N/A
Volume:	82
Open Interest:	22

Seeing that no one bought or sold today, instead we will look at the spread between the bid and the ask. It looks like that would be 6.23, so we are up a bit. We hold this until I think we are near the bottom of the coming pullback. I will this all year, every year, so easy.

More later tonight possibily with a pick that we will be watching tommorrow.

Stay Frosty,
Mark

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