Organic LED screens are the future

Organic LED, aka OLED technology is already in wide spread use today in flat panel televisions, computer monitors, and various military applications. The next frontier for this technology is in the hands of the masses on smart phones, and rumors have been milling for 2 years about Apple and Samsung adopting this technology. Regardless of when the world's leading smart phone makers choose to use this technology, there's one company at the center of this play that should benefit handsomely. Universal Display Corporation (OLED) owns 4200+ patents on various applications around display technologies, and it monetizes it's intellectual property with licensing agreements with third parties.

This little known stock is up 65% in the past twelve months at $111 today, and trades less than 900K shares per day, however it has a fairly liquid options market. The past two earnings releases have yielded pleasant upside reactions on the street, and they are scheduled to report again between August 2-7. While we are very bullish on this company, it trades at a PE of 93, and it's too rich to buy here. However, on any decent pullback it looks attractive due to the growth potential that lies ahead.

We are selling the August 2017 $80 Puts for $0.62 cents which expire in 42 days. If the stock remains above $79.38 we pocket the premium, or we buy the stock if it drops below that level which represents a discount of 29% from today's price.

Other stocks that are on our watch list right now are BMY, HEI and we are also looking at several companies that we'd like to short or buy puts on considering the recent gyrations in the market, and rise in volatility.