J.C. Penney (JCP):
Fundamentally it is 8 out of 10 (bullish). The long-term fundamentals are really bad. But my focus is on what it will do the next three to six months fundamentally. I'm not an investor/long-term trader. That is, I don't buy and hold for years. So I really don't care about the long-term picture. As a matter of fact, even if I had the money to invest, I will not even consider J.C. Penney because it looks bad long-term. It keeps losing money, and will report another loss today (but not as bad as expected).
Technically it is bullish.
I will buy September Calls.
Something very important to note is that the current short interest as a percentage of the float is 27%. This is very high. It means that out of the float (shares that can be freely bought and sold), 27% are sold short by the bears i.e they want/expect it to drop. So if JCP can report a decent earnings after the close today, we could see it fly (not run) up due to sharp short-covering (short-squeeze) rally. I will not be surprise to see it move up (or down) >30, 40, 50%...after reporting. I'm actually expecting it to do just that. But this is a dangerous play because it is very unlikely that it will give me back my money before expiration if the trade goes against me. It is a very high-risk, high-reward trade. So any money I put in the trade will be considered dead if it goes against me.
Sina (SINA):
Fundamentally it is 2 out of 10 (very bearish).
Technically it is more bearish than bullish.
I like October Puts if I was to take the trade.
Estee Lauder (EL):
Fundamentally it is 8.5 out of 10 (bullish)
Technically it is bullish.
I like October Calls if I was to take the trade.
Applied Materials (AMAT):
Fundamentally it is 8 out of 10 (bullish).
Technically it is bullish.
I like October Calls if I was to take the trade.
Autodesk (ADSK):
Fundamentally it is 7 out of 10 (borderline bullish)
Technically it is bullish.
I like October Calls if I was to take the trade - aggressive play
Nordstrom (JWN):
Fundamentally it is 7 to 8 out of 10 (bullish).
Technically it looks bullish and bearish.
Based on fundamentals, I like October Calls if I was to take the trade - aggressive play.
Agilent (A):
Fundamentally it is 7 out of 10 (borderline bullish).
Technically it is bullish.
This play is very aggressive for a few reasons:
1) I don't like the bid-ask spread.
2) I would have preferred October Calls but they are not available.
3) The fundamentals are borderline bullish.
