RBCN makes sapphire glass for semiconductors and potentially for face plates cell phones. A competitor GTAT has a long term deal with apple, which has essentially taken all the supply. Should the industry grow, new players would likely go to RBCN as a supplier. It missed earnings which caused the dip. I like the risk to reward here has 7.50 could provide support a break of 7 and I'm out. 1R risk on the trade.
NQ: This one is interesting. For months NQ has been dogged by reports by Muddy Waters that the company was engaging in fraud. Today, the company issued a press release advising that the independent auditor found no evidence that the company was engaging in fraud and substantiated revenue growth. The stock exploded upwards:
I believe that this is a type of episodic pivot event discussed by Stockbee. The volume was huge and the news could be a game changer leading to a multi-week change. Still it is Chinese and where there is smoke there is often fire. To that end, I felt the best way to play and manage risk was to buy the calls. I bought August 12's for 1.85. For options, I assume that my position will go to 0.00 and take the position size accordingly.