AEGR – Aegerion Pharmaceuticals, Inc. (Long)
Closing price: $33.69
Trade idea: October 37.50x calls currently trading at about .80.
Aegerion is a biotech company which has had a very volatile 2 years. The stock was trading at $13.50 in October 2012 and rallied to $101 in just a year where it peaked in October 2013. However, since then it has done nothing but go down and now trades in the low-mid $30′s. With the volatility that comes with biotechs there is also a large short interest in the name which sits at around 34%.
The stock has been forming a base over the past 4-5 months and is trying to breakout again now. It has signaled a bottom and reversal pattern on the monthly chart which will be confirmed with a break of $34.48 in September. The weekly chart has also confirmed a short term bottom and is now breaking out above the weekly 20ma.
The trade idea; buy to open the October 37.50x calls only if $34.48 is broken in September.
Monthly chart: (right click > view image for full size)
WDAY – Workday, Inc. (Long)
Closing price: $90.07
Trade idea: October 97.50x calls currently trading at about 1.55
On 8/27 Workday reported Q2 earnings above estimates on both the top and bottom line. The company reported EPS of ($0.11) and revenues of $186.8M vs the expectations of ($.14) and $177.31M. Workday also raised its full year revenue forecast to $760 – $770 Million from $730 – $750 Million, analysts were expecting $748.7M. Workday also raised its full-year billings forecast to $940 – $960 Million from $890 – $910 Million.
Despite the strong report the stock sold off over 5%. Since earnings it has been trading in a tight range and is testing resistance from early July. The weekly chart is now breaking out of an ascending triangle and signaling a move higher. The weekly also has a potential bullish continuation pattern which will need a break of $90.86 next week to confirm.
The price target is $96 – $97 which can come within the next couple of weeks (with confirmation). The trade idea; buy to open the October 97.50x calls only if $90.86 is broken next week.
Weekly chart: (right click > view image for full size)