BUY ARIA May 7.00 Calls

Buy the ARIA May 7.00 calls anywhere below .85. We expect this stock to make a move back to the $8.00 level next week. It’s a short trading week, remember.

Place a limit order at .85, or lower if you want to try and bottom-feed for more profits.

As the stock rises you will have to determine if you want to hold for the big pop that might come from any news on the Gilead buy-out. Remember, their offer might never come, and then again it might be in the $20 range.

We suggest selling half the position once the stock reaches $8.00, if you want to secure profits and play the buy-out news on house money. If it pops early next week, take profits. Set a limit order at $1.50 if you want to be safe.

If you don’t care about waiting for a magical fairy tale to come true, just take your profits when this starts heading towards $8.00 and be happy!

This trade is for the weekly May 23 options. You can also try the May 17 options, they are slightly cheaper and you might be able to scoop some up for even less (around .65-.70) and turn a quick double in a week or so.

Happy trades!

Sell ARIA April 8 Puts

If you haven’t already, sell the ARIA April 8.00 puts we bought a few weeks ago and pay yourself a nice 250% to 300% gain.

We told you to buy the 8 puts at the beginning of April when this stock still had some upwards momentum. The stock powered up a little more, making those 8.00 puts nice and cheap, before it sank to below $6.30 today!

If you didn’t have your limit orders set, this should be a reminder to do so on EVERY trade! These moves are very quick but they are predictable. If you stagger your limits you are sure to at least cover your trade and earn some profits.

None-the-less, we are sure some people forgot to set them. So, put in a market order to sell tomorrow, or set a limit order for $1.15 to $1.25. You should be able to unload your options contracts at that price tomorrow very easily. Don’t take chances, because we think this stock will rise to $7.50 or $8.00 in the next week or so.

That’s why we are also recommending a buy of ARIA May 7.00 Calls if you can get in at a decent price! Yes, we are taking both sides of this trade, because there’s still a chance the sale to Gilead does happen (though it would be amazing) and we’d hate to be on the sidelines for it. See the trade here!

We do expect this stock to break $9.00 even if it doesn’t, however. So, be ready to unload your Calls when it peeks above $8.55.

The best way to profit is not to root for a stock to go up or down, but play the inevitable movements between the two extremes!

Buy SCTY Puts

We liked this stock because it fed us well. More than a double as it went from around $35 to $75 in just a few short months. We told you to pull the trigger on a sell when it topped out a few months ago, then watched as it peaked again to $100. Now, it is way too overpriced and due for a bigger downturn. This coming week we expect the share price to drop even further after rising to near $65.

Watch for this stock to bounce back on Monday and head towards $65. Look for an entry into the April SCTY 60 Puts at around $2.25 per contract. Then sell at around $5.00 on a drop by the end of the week.

Expect shares to drop to the $56-$57 range and possibly fall as low as $52. That would make these options worth $8.

Set your stops at $1.75. If that level is reached, these shares may have a hard time falling below 60 again.

New Options Pick: Buy ARIA April 8.00 Puts

Ariad Pharmaceuticals is a biopharma company with a potential cure for cancer. The stock is getting lots of attention after rumors circulated about a potential sale to Gilead Sciences. It appears Gilead Sciences is going to buy Ariad Pharmaceuticals for $20 a share. So, why but ARIA puts this week?

Simple. The sale is not going to happen tomorrow, and it is not going to happen in a few weeks. In fact, it may never happen at all. ARIA’s portfolio looks all right, but there’s other potential cancer cures out there, and this is no guaranteed cure either.

Lots of hurdles, and bureaucratic BS we don’t even understand! But one thing we do understand about the markets is this… whenever a company is rumored like this to be bought by another giant, it’s never going to happen! Too many wannabes have their money in this stock, and all signs point to a big shakeout.

We predict a fall to around $6.30, or even lower. $5 is definately a possibility. As the big hands try to shake the little money trees all over the country. The lesson here… never bet on a stock that’s been in the news. Too many people know about this one.

So, look to buy the April 8.00 Puts at around .40 – .50 and wait until the week of expiration to sell them for a double or triple! If you want to push it, wait for one more surge to the upside. If you want in now, do it. Buy up 5-10 contracts for a total risk of around $250 to $500. Set more limit orders for .15 to .20 in case the stock rides up higher on some bogus news again.

Then set a limit sell at around $1.85 to $2.00 depending on your risk tolerance. By expirations week (mid-week) you could have a nice quadruple on your hands!

As soon as the stock clears the 6.50 level start selling part of your position. Empty everything if it dips below 6.30. But get out clean by the middle of the week!

Buy stocks and go home happy!

New Buy: Solar City

We like Solar City, it’s our new buy for this week. This company is making owning solar power easy. Owned by Elan Musk (founder of Tesla Motors) it’s benefiting from his success. That magic is rubbing off on this company, but it’s legitimate, and may even have more potential than TSLA.

Start accumulating shares of SCTY today and take advantage of any dips on price. We don’t know how far and how fast this one will rise, but it’s likely to take off soon. Waiting for a pull back will only keep you out of the loop!

This is a bit more risky than our other picks. SCTY has some big obstacles to overcome but we think most of them are fairly easy ones. Adopting new technology is never easy. People need to see the value in making the change. But SCTY takes most of the risk out of solar. Instead of making a big investment up front, people can dip their toes in and see if the financial aspect really makes sense.

That’s why we like the model and think the idea will take hold.

Start buying shares to your risk level. They are trading around $35, buy up to $39 and hold for $55.