This week’s Momentum Trader Alert recommendation bets on a U.S.-based technology stock benefiting from the global smartphone boom.
Based near Princeton University in New Jersey, Universal Display Corporation (OLED) has been on a tear. The company is profiting from smartphone makers, such as Samsung and Apple (AAPL), shifting from traditional liquid crystal displays (LCD) to OLED screens.
OLED displays are superior to LCD screens in color reproduction, refresh rate and power consumption.
OLED’s stock has soared since since it delivered much-better-than-expected Q3 earnings results on Nov. 2.
Universal Display Corporation (OLED) versus the S&P 500 over the last three months.
Momentum Trader Alert Analysis
Buy Universal Display Corporation (OLED) at market today and place your stop at $147.00.
I am holding off on recommending options in this position after Friday’s big jump in the stock price.
CBOE Holdings, Inc. (CBOE) stopped out on Nov. 9 at $110.20 for a 20.30% gain.
CBOE Holdings, Inc. (CBOE) January $105 calls first traded at $9.35 after the stop for a 39.35% gain.
New Option Recommendation
Now that the stock has settled, I recommend that you buy the Cognex Corporation (CGNX) February $135 calls (CGNX180216C00135000), which last traded at $9.98 and expire on Feb. 16.
Nicholas A. Vardy