2007 best stock picks for options trading
2007 Stocks picks were easy to pick out at least from charts. 2006 stock picking was difficult because many of the stocks I was watching at the time traded very choppy and with the drop in May 06 to Aug 06 it caught many investors off guard. You could of threw a dart at any stock in Aug 06 and would of received excellent profitable returns on it. Last year this time Google flew to a new high then tanked. The second half of 2006 market has been very bullish that thinking the bears are hiding around the corner isn’t a possibility, but they are! At least I think so. I think some older stocks like Amazon.com are going to fly higher again while stocks that have been in the spotlight for a long time like Google.com, Sears Holding Co., and Apple Computers are going to fall the hardest at the top of their game. This is option investing so this is why I am interested in stocks that could fall hard meaning big profits and also pick stocks that I think will also go up in price.
[For my own practicing I’d buy these Call/Put options today at the current stock price as if I was for real. I will go over my top picks 6 months and 1 year after today to see if I was right about the direction of the stock or until I am happy with my profits. These Calls/Puts will be used on my 2007 best stock picks for trading options. (To make it easy I will buy 10 contracts (1000 shares) for each Call and Put) I may be incorrect during the short-term on these fluctuating stocks, but for the long-term before the end of 2007 I predict the following most profitable.]
2007 Top stock picks for Call Option Trades: (Meaning I believe these stocks will trade higher)
iShares FTSE/Xinhua China 25 Index ETF (FXI @ $107.65) 1/3/07 hit $118 +10pts
FXI ETF Fund has been extremely strong in strength closely following our market trends but includes over 90 companies held in China that are growing with China’s economy. Big uptrend solid on all charts. Plus everyone knows how fast China is growing and with this ETF you own the companies that are receiving the profits. Possible dips but strong on uptrend.
Amazon.com (AMZN @ $39.80) Would sell. Weak around $38 1/12/07
I predict Amazon.com Co. to head north to $60 or close to this price level because solid earnings, increased profitability and revenue, and buyers are finally interested in the stock again. Yearly trends are forming into an upward trend. Two upward peaks have already happened. Amazon.com is a great place to buy theses off of. It has everything and consumers come back. If you look back at strong sales growth in AMZN when it does well the stock jumps and heads higher for months until the profit taking begins. AMZN is undervalued under $40.
Chipotle Mexican Grill, Inc. (CMG @ $56.25) 1/12/07 hit $58.20 +2pts
CMG is a new company and does simular family-like resturant but hip like Apple Bee’s and TGI Friday’s. Delicious food turning into a delicious stock investors are eating up. Although I feel $56 is actually high, CMG is setup to go higher and has a strong IPO trend. I see CMG moving to over $60.
Research in Motion (RIMM @ $127.62) 1/8/07 hit $142 +15pts
RIMM has been having an outstanding year with AAPL and technology sector. Robust profits and keeping market share. It has been pulling back, but trends have not been broken. I still am confident RIMM will hit back up to $140 then to $160 before it either has a stocksplit or falls from an “okay” quarter.
2007 Top stock picks for Put Option Trades: (Meaning I believe these stocks will trade lower)
Google.com (GOOG @ $458.00) Wrong about GOOG. At $455 it bottomed out. 1/12/06 hit $505 and rising. Buy with current uptrend going into earnings.
Google.com may goto $600, but indicators are showing it will go below $400 price level first. Google is loosing its fame and fans and the stock is being sold off.
Sears Holding Co. (SHLD @ $166.63) Also wrong about SHLD 1/8/07 bottomed at $165 now hit new year high 1/12/07 at $177 +10pts up and rising with strong retail sales. Buy going into earnings.
Chart indicators show a “Black Cloud” hovering on the top showing weakness in buying. Could be a large move downward into the $130’s.
Apple Computer (AAPL @ $81.51) Half correct so far about rising to fame with the Mac Expo going as high as $97 1/10/07 +16pts wait to see after earnings and what happens to CEO Jobs for options probe.
Apple Computer has shown the most evidence after earnings in January to come down. I think this year for Q1 Apple will have a great year, but investors will be selling while they are having a great year. Although I think short term into earnings Apple should perform well back into the 90’s, which hasn’t happened yet -10pts within the past 2 weeks I believe AAPL will have a rise to fame then crash and burn to around $65 support price in Feb-Mar 2007. Yearly charts are lined up to go down hard, but up short term on oversold stock. For the most part it seems most stocks are lined to sell off in 2007.
2007 Wild Cards – The Steel and Oil Industry could go either way. I predict the following.
OIH Oil Holdings (OIH @ $140.00) 1/11/06 hit $126 low +14pts on a PUT play, right, but maybe bottoming out to go higher with low $51BBL oil could rebound. I’d buy Puts at the moment and once the price lands around $120-130 I’d rebuy Calls. Charts currently show selling off. But big trend shows oil could be getting a lot more expensive very soon.
Nucor Corp. (NUE @ $55.54) 1/12/06 hit $56. Seems bottomed out and cratering to the upside. Earnings Jan 24. Never went lower then $54. I’d buy Puts at the moment and once the price hits $45 rebuy Calls. Downtrend currently, but long term steel could get more expensive very soon.