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Is Ubiquiti Networks Still Undervalued?
This tech stock has been rallying and shows no signs of slowing down.
Bill Feingold    

This article was originally posted on the Buzz & Banter where subscribers can follow over 30 professional traders as they share their ideas in real time. Want access to the Buzz plus unlimited market commentary? Click here to learn more about MVPRO+.

A few weeks ago, and again last week on the Buzz & Banter [subscription required] I recommended buy-writes on Ubiquiti Networks (NASDAQ:UBNT) (see How to Play Ubiquiti Networks Ahead of August Earnings) as exceptional rate-of-return trades on a beaten-down stock with a good story (and, before the second recommendation, an announced buyback). The stock took off last week, and now it's time to take some money off the table. While it will cut into returns a bit, there's the old saying about bulls, bears, and pigs: bulls make money, bears make money, pigs get slaughtered. Depending upon your original execution of last week's suggested buy-write, if you lock in the trade by buying the June 35 puts for $0.20, you still should have an annualized return of 100% or more.

While the stock is unlikely to dip below 35 over the next week and a half, I learned long ago not to stay short nickel and dime puts (or the equivalent), and I'm employing that lesson here. I suggest you do the same.
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Position in UBNT

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

 

 

 

 

 

 

 

Is Ubiquiti Networks Still Undervalued?
This tech stock has been rallying and shows no signs of slowing down.
Bill Feingold    

This article was originally posted on the Buzz & Banter where subscribers can follow over 30 professional traders as they share their ideas in real time. Want access to the Buzz plus unlimited market commentary? Click here to learn more about MVPRO+.

A few weeks ago, and again last week on the Buzz & Banter [subscription required] I recommended buy-writes on Ubiquiti Networks (NASDAQ:UBNT) (see How to Play Ubiquiti Networks Ahead of August Earnings) as exceptional rate-of-return trades on a beaten-down stock with a good story (and, before the second recommendation, an announced buyback). The stock took off last week, and now it's time to take some money off the table. While it will cut into returns a bit, there's the old saying about bulls, bears, and pigs: bulls make money, bears make money, pigs get slaughtered. Depending upon your original execution of last week's suggested buy-write, if you lock in the trade by buying the June 35 puts for $0.20, you still should have an annualized return of 100% or more.

While the stock is unlikely to dip below 35 over the next week and a half, I learned long ago not to stay short nickel and dime puts (or the equivalent), and I'm employing that lesson here. I suggest you do the same.
< Previous
  • 1
Next >
Position in UBNT

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

 

 

 

 

 

 

 

Is Ubiquiti Networks Still Undervalued?
This tech stock has been rallying and shows no signs of slowing down.
Bill Feingold    

This article was originally posted on the Buzz & Banter where subscribers can follow over 30 professional traders as they share their ideas in real time. Want access to the Buzz plus unlimited market commentary? Click here to learn more about MVPRO+.

A few weeks ago, and again last week on the Buzz & Banter [subscription required] I recommended buy-writes on Ubiquiti Networks (NASDAQ:UBNT) (see How to Play Ubiquiti Networks Ahead of August Earnings) as exceptional rate-of-return trades on a beaten-down stock with a good story (and, before the second recommendation, an announced buyback). The stock took off last week, and now it's time to take some money off the table. While it will cut into returns a bit, there's the old saying about bulls, bears, and pigs: bulls make money, bears make money, pigs get slaughtered. Depending upon your original execution of last week's suggested buy-write, if you lock in the trade by buying the June 35 puts for $0.20, you still should have an annualized return of 100% or more.

While the stock is unlikely to dip below 35 over the next week and a half, I learned long ago not to stay short nickel and dime puts (or the equivalent), and I'm employing that lesson here. I suggest you do the same.
< Previous
  • 1
Next >
Position in UBNT

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

 

 

 

 

 

 

 

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