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Options Trade Recommendation - 2015 04 27
CALL SWKS MAY $95
SWKS closed at $94.55 (but is trading at $95.77 After Hours). CALL MAY $95 closed at $4.30 (Estimated to be $5.30 based on After Hours Stock Price).
SWKS Stock Price crossed above it's 50 Day Moving Average. Over the past 5 years, 83% of the time this resulted in the stock moving at least 3% higher within 4 weeks.
SWKS also had it's 9 Day RSI cross above it's 14 Day RSI. Over the past 5 years, 85% of the time this resulted in the stock moving at least 3% higher within 4 weeks.
SWKS announces earnings Apr 30. This could be the catalyst for the current move. If so, you may be able to ride this move ahead of earnings and capture your 50% gain before the announcement.
I have not evaluated the merits of SWKS earnings, but for the rest of the S&P, most companies are beating on the earnings estimates, but not on revenue. For those who have beaten on the earnings estimates, their stock price has been rewarded.
This recommendation is strictly on the technical merits. The earnings announcement can go either way. Prudence would suggest waiting for earnings announcement to come out, and if it is positive, then get into a call and ride the upward momentum.