In this post is a fresh list of 25 bullish stocks to watch for the week
of September 14, 2009. I will be keeping my eye on all of these stocks
this week, but chose only one to write a detailed option trade about
this week. All of these stocks demonstrated tremendous strength during
Friday's trade breaking out to the upside on huge volume. The table
below shows the company, ticker, Friday's per share % increase, and
Friday's volume increase (% increased compared to 50 day average). For
your convenience I have ranked the stocks in order from greatest to
least volume % change.
| Company |
Ticker |
Price % Change |
Volume % Change |
| Tri Valley Corp |
TIV |
164.96% |
11291.34% |
| Neurometrix Inc |
NURO |
30.04% |
3365.85% |
| Altair Nanotechnologies |
ALTI |
29.83% |
2773.34% |
| Ambassadors Intl Inc |
AMIE |
75.31% |
1705.57% |
| Discovery Labs Inc |
DSCO |
78.96% |
1356.74% |
| Pinnacle Gas Resources |
PINN |
13.51% |
1116.25% |
| Fibertower Corp |
FTWR |
36.84% |
853.97% |
| Warren Resources Inc |
WRES |
29.84% |
725.83% |
| Innodata Isogen Inc |
INOD |
5.69% |
676.12% |
| Entegris Inc |
ENTG |
7.32% |
661.58% |
| Eagle Rock Energy Ptnrs |
EROC |
9.32% |
356.02% |
| Exterran Holdings Inc |
EXH |
11.48% |
355.00% |
| Informatica Corp |
INFA |
6.73% |
288.06% |
| Sealy Corp |
ZZ |
13.38% |
274.78% |
| Fedex Corp |
FDX |
6.41% |
252.02% |
| Select Comfort Corp |
SCSS |
12.11% |
217.41% |
| United Parcel Svc Cl B |
UPS |
4.44% |
204.66% |
| Powerwave Tech Inc |
PWAV |
9.27% |
193.93% |
| Commercial Vehicle Group |
CVGI |
15.82% |
190.16% |
| Motorola Inc |
MOT |
8.91% |
152.54% |
| B J Services Co |
BJS |
2.63% |
123.09% |
| Cirrus Logic Inc |
CRUS |
4.48% |
117.66% |
| Take-Two Interactv Sftwr |
TTWO |
3.86% |
95.38% |
| Amer Axle & Mfg Holdings |
AXL |
16.14% |
90.88% |
| Alliance One Intl Inc |
AOI |
7.78% |
30.62% |
The stocks which are most attractive to me from the list above are: Informatica Corp
(INFA), Innodata Isogen Inc
(INOD), Fibertower Corp
(FTWR), and Select Comfort Corp
(SCSS). However from the four listed, the only stock which has options available to trade is Informatica, so below is a detailed option trade involving Informatica. To
learn more about the option strategies outlined in this post, risks,
pricing, calculations, other strategies, and options in general, click
here.
INFA Option Trade: I
am quite bullish on INFA longer term, therefore I will be looking at
opening a diagonal call spread. To open this I would purchase in the
money March 15 call options and sell October 22.50 Call options against
them. As of Friday's close this position could be opened for roughly
$600 per option spread, and If I happened to get called out (INFA above
22.50 at October options expiration), this position would yield 25% in
just over 1 month. If I was not called out, I would look at selling a
similar call option for the month of November. This is a bullish income
generating strategy.
The ideas outlined above involve the use of
stock options. The reason option volumes have surged in the last 5
years is because they are a great way to hedge your portfolio as well
as create income off of your shares (see
option volume chart).
These
are just examples and are not recommendations to buy or sell any
security; if you're more bullish/bearish, you'll want to adjust the
strike price and expiration accordingly.
Disclosure: No Positions
