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Chart of Day: CRUS -- Another Oversold Opportunity

Aug 16, 2017

As we wait for TRUE and VNDA to pivot higher from oversold conditions, we’re also recommending a buy on Cirrus Logic (CRUS). After a brutal sell-off from $66 to $55.76, the stock appears to have caught support. Better yet, RSI, MACD and Williams’ %R are deep in oversold territory. What we’d like to see here is a potential bearish gap refill around $62, near-term.

There are two ways to trade the opportunity. One, we can buy the stock at current market prices, and, or we can buy to open the CRUS September 15, 2017 55 calls at market prices, as well. This one should do well for us.

Chart of Day: True Car Ridiculously Oversold

Aug 15, 2017

Even after posting solid second quarter results, TRUE gapped lower. Adjusted EPS was one penny on revenues of $81.8 million. Both topped estimates. However, it was forward guidance that knocked the stock down unfairly. While the company expects third quarter revenue of $85 million to $87 million – a solid year over year gain – it was just below expectations for $87.68 million.  In short, there was no real reason for this gap lower. It’s oversold and hands us a good buying opportunity. In fact, let’s buy shares of TRUE here, as well as the TRUE October 2017 16 calls as well as the January 2018 16 calls.

Chart of Day: Pay Close attention to Vanda Pharmaceuticals (VNDA)

Aug 13, 2017

There’s some interesting activity in shares of Vanda Pharmaceuticals (VNDA), where options traders picked up an unusual number (2,529 contracts) of the VNDA October 2017 16 calls on Friday. One of the only reasons the stock slipped as much as it did in recent days was because of escalating tensions between the U.S. and North Korea. However, we are now beginning to see signs of potential upside after the stock found support around $15.25 and begun to reverse higher.

Technically, it’s oversold on RSI, MACD and Williams’ %R as well.

There are two ways we can trade this opportunity. One, we can buy the underlying stock at market prices, and or we can buy to open the VNDA October 16 calls, as other traders did on Friday.

Chart of Day: Home Depot (HD) Still Exploding

Aug 09, 2017

As we noted on July 25, 2017, Home Depot was insanely oversold and ready to bounce at a low of $146.97. The only reason it fell was because Amazon.com entered a deal to sell products for Sears. The idea was that Amazon was about to jump into the appliance market. Fear reached an epic high. But it soon dissipated, giving way to a rally from $146.97 to a current price of $154.57 in just weeks. That’s an $8 gain just for buying an overreaction.

Chart of Day: AMD Severely Oversold

Aug 08, 2017

After pulling back from $15.50, it recently caught strong support at $13.03 just above its 50-day moving average. What we’d like to see here is a potential move back to $15 a share, near-term. It’s also holding its trend line first established in mind-June 2017. Until that begins to fall apart, AMD could reach higher highs.  There are two ways to trade this opportunity.  One, we can buy the stock at current market prices. Or, if you’re interested in trading options, we like the AMD September 2017 13 calls at market prices.

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