ORM Market Commentary
This is an example of the nightly ORM Market Commentary that is included in my ORM Equity/Option Trader Subscription Service for $9.99 per month (available now!).
Is It Time To Buy Soda Stocks?
Notes: Google (GOOGL) shares trade at a P/E ratio of 19.56x (2015 estimates) with 12.3% EPS growth, price to sales ratio of 5.70x, and a price to sales ratio of 3.60x. Even at a $380B market capitalization, the search giant is still able to grow revenue by 15% annually (likely to top $75B this year). Cost per click has been declining in recent years, which is likely the result of an underperforming stock, but the company has still been able grow the top line (grown their advertising network by about 20% in this time). On a 5-year TTM P/E ratio basis, … Read More »
Stock Watchlist Update
What’s The Trade On Google?
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Smart Money Report
BEAV- Another 2,500 May $100 calls were purchased for $1.80-$2.00 each, against open interest of 8,057 contracts. This is the 3rd straight day of big call buying following the plan to sell or break up the company on Sunday. (BEAV) trades at a P/E ratio of 22.61x (2014 estimates), PEG ratio of 0.95x (2014 estimates), 17.8% revenue growth, and has an average analyst price target of $100. On 4/24, D.A. Davidson maintained a buy rating with a $110 price target.
GOOGL- 700 May 30 weekly $515 calls were purchased for $16.40-$16.60 each, against open interest of 14 contracts. This is a $1.16M trade. The stock retested the April lows yesterday and currently has upside potential to $540 in the near-term. This was the largest single option trade in Google at the time of the trade.
KATE- The July 1×2 $33/$40 … Read More »
Smart Money Report
GOOGL- Google is set to announce Q1 earnings after the bell tonight. Analysts are looking for $6.40 in EPS and revenue of $15.5 billion. The options market is implying a $29.95 move, or 5.37%, in either direction through Thursday’s close. Call to put ratio in (GOOGL) options is currently 1.77, led by activity in the Apr. 19 $600 calls. The stock has moved higher on four out of the five previous earnings reports.
MS- Morgan Stanley will release Q1 earnings before the bell tomorrow morning. Analysts are looking for $0.60 in EPS and revenue of $8.5 billion. Option traders are pricing in a $1.17 move, or 3.95%, in either direction through Thursday’s close. The put to call ratio in (MS) options is currently 1.18, led by a seller of 5k Jan. 2015 $30 puts for $3.00 each. The stock has moved … Read More »
Free Trade Of The Day Featuring Google (GOOGL)
Notes: Google (GOOGL) is set to announce Q1 earnings on Wednesday, April 16th.
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