Both Alcoa and CSX posted Q2 earnings after the bell today, and both of these companies beat estimates on the bottom line AND the top line. Furthermore, Alcoa boosted guidance on increased demand for aluminum going forward. Both companies gave a positive outlook for their customers going forward as well.
On a day where the market was up modestly awaiting these announcements, I am left feeling even more bullish than yesterday. I am expecting an up day tomorrow, followed by earnings beats for both YUM! and Intel. We'll see.
Yesterday, I told you about a few trades I had made in my personal portfolio, and I think they are worth mentioning what I did. Between 7/7 and 7/9 I averaged into upside SPY calls expiring this week at $110 (roughly) 1,100 on the S&P. My average price is $.30, and currently the calls closed today at $.40. Not a bad little gain. As I expect the market to make a fairly decent move upward this week, I am going to hold onto my position and see what comes of it. Currently, the SPY is trading up another $.38 in the after hours.
As I detailed yesterday, I was looking at buying an out of the money call spread on Google today at $470 and $500. Google made a fairly decent move to the upside this morning, and the $470 calls, I feel, got a bit beyond my price range. Instead, I purchased a $480-$510 calls spread in Google for this week for $7.65. I expect Google to trend upwards with the market leading into earnings after the bell on Thursday. As I detailed yesterday, I am expecting an estimates beating on Thursday, and I think this trade has the potential to be stopped out at $510 pending a solid number from Google. Time will tell.
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