Hi Ken, in my opinion, no. I think POWL is running like this for the same reason nuclear names are running now: there's going to be a huge demand for power over the next few years as companies like Amazon and Meta build big data centers for AI. And according to Chartmill, POWL still has a valuation rating of 6 out of 10 (by way of comparison, SMR, which makes small modular reactors, has a valuation rating of 0 now).
You could probably exit it for a profit today, if you wanted to. I’m seeing a midpoint of the spread at $3.15 now. But with spreads, the time value of the short leg means we need to be closer to expiration to get something closer to our max gain. We just need the stock to be above $190 in late December for that.
It is said we might be able to get for $1.55 but the 085/190 spread is at $3.80 now. Also, on the INOD, we are to pick up at $0.33 but the 17/18 spread is at $0.90 now. Do we put in orders GTC for both and and hope they go down before then going up?
The midpoint on the spread for INOD doesn’t seem to bear much relation to where the trades are getting filled—it was $2.40 or something like that when I got filled at $1.60. And I’m showing a midpoint of $0.33 on the other one. I have a GTC order on that which hasn’t filled, so yes, I think GTC orders are the way to go here, as long as we get them filled or cancel them before earnings (which are months away, in both cases).
Out of this call spread today at $4.75, for a gain of 197%.
I have been watching POWL and it is amazing how far it has run.....it is advisable to consider a bear spread or something at this point?
Hi Ken, in my opinion, no. I think POWL is running like this for the same reason nuclear names are running now: there's going to be a huge demand for power over the next few years as companies like Amazon and Meta build big data centers for AI. And according to Chartmill, POWL still has a valuation rating of 6 out of 10 (by way of comparison, SMR, which makes small modular reactors, has a valuation rating of 0 now).
Where does this need to go to make the trade profitable? Current stock is $201.33
You could probably exit it for a profit today, if you wanted to. I’m seeing a midpoint of the spread at $3.15 now. But with spreads, the time value of the short leg means we need to be closer to expiration to get something closer to our max gain. We just need the stock to be above $190 in late December for that.
It is said we might be able to get for $1.55 but the 085/190 spread is at $3.80 now. Also, on the INOD, we are to pick up at $0.33 but the 17/18 spread is at $0.90 now. Do we put in orders GTC for both and and hope they go down before then going up?
Hi Ken,
The midpoint on the spread for INOD doesn’t seem to bear much relation to where the trades are getting filled—it was $2.40 or something like that when I got filled at $1.60. And I’m showing a midpoint of $0.33 on the other one. I have a GTC order on that which hasn’t filled, so yes, I think GTC orders are the way to go here, as long as we get them filled or cancel them before earnings (which are months away, in both cases).