Open Interest for Momentum Stocks – March 14th Expiration

Last week I stated that I really wasn’t seeing much that attracted me among these momentum stocks. I had a couple intra-week trades and am holding some AMZN and BIDU (both April expirations and both bought prior to last week). This week as I mentioned in my other post this weekend I am going to babysit my swing trades and will likely not be very active trading unless I really have conviction on one of these. As always, please use these and my notes with your own analysis and not make trades solely based on what is here (See bottom of page for info about seeing how I trade).

For market commentary and SPY, IWM, and QQQ open interest see my other post here.

AAPL: I actually like AAPL’s positioning this week for a possible long. My concern is that once it moves higher calls begin to add up so quickly they force price back down. Holding over 530 would be a great start. Then of course there is the 50-day at 535. Perhaps baby steps next week if nothing more. aapl.3.7

AMZN: I am already long AMZN (as I’m sure you are already aware from previous posts) from $334. I continue to like it going into next week and the open interest looks pretty good as well. amzn.3.7

BIDU: China social names have been looking pretty good lately. BIDU, being one of the more popular ones, I think has more room to the upside. The open interest isn’t horrible yet, but if it starts moving up and you are in for the short-term, take profits, roll up, or set a tight stop because calls build up quickly on BIDUBIDU.3.7

CMG: Hard to believe this company is breaking the 600 level, but don’t fight the trend. Having said that, being a big round number we could see some back and forth or stalling. CMG.3.7

FB: I’m just not sure about this one. I did re-enter it again very briefly, but then exited because I just don’t have confidence in it shorter term. If it drops back, see if the puts at 67.5 can hold it up. If it goes higher see if it can stay above 70. If it can, I would want to see some of those calls at 70 close down. If you recall the 70 calls didn’t close last week when price got over 71 and then, of course, it came right back down. FB.3.7png

GOOG: It’s been struggling to stay above 1,220 and didn’t close very pretty on Friday. This open interest is a bit concerning as well. If it continues to stall above 1,220 you might want to consider selling some upside calls for premium. GOOG.3.7

LNKD: It’s pretty hated right now and looks ugly technically. However, as a contrarian I might actually look to see if a long set-up presents itself. Those 195 puts could offer good support should it fall below 200. LNKD.3.7

NFLX: I have stayed away for a while and will continue to because I just don’t see a good set-up right now. nflx.3.7

PCLN: Seems to be in no-mans land. This could be a good play next week upon a breakout or breakdown. pcln.3.7

TSLA: Well the open interest really isn’t going to help you much. Don’t know which way this goes next week or if it even makes a big move, but will watch for entertainment purposes. TSLA.3.7

TWTR: I realize TWTR doesn’t look good technically and yet for some reason I keep getting a sneaking suspicion that this is a bear trap and it’s going to make a big move higher soon. I also think that the buzz around the SINA IPO might help. Having said that, I am really annoyed to see the open interest for next week. TWTR.3.7

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