TJX found its way to our premarket report yesterday morning,after the company posted a solid quarterly release.
To coincide with the activity we were observing, we slated a range of options ideas to keep track of, the TJX 06/15 $85-90 Calls. We are pleased to report that there were some nice gains available to traders before noon.
$85 Calls – Range: 2.14-3.90 – Max Gain: 214% $87.50 Calls – Range: .90-2.50 – Max Gain: 178% $90 Calls – Range: .35-1.10 – Max Gain: 214%
Each of the following have been picks we’ve included in our daily reports from roughly the last month or so. We have included our alert date, observed lows, and subsequent highs along with the total possible gains that were on the table.
ARQL (04/18) 2.40-4.20, +75%
SDR (05/18) 1.26-1.74, +38%
HTBX (05/14) 1.35-2.00, +48%
As our regular readers are more than aware, we are always looking in the earnings calendar to find potential quick-strike options trading opportunities. After a strong earnings report, chances to take advantage of the clamor for shares are often plentiful.
This morning we’ve got three separate ideas, to help us try to do just that. After solid reports all around we’re looking to formulate ideas for The TJX Companies, Inc. TJX, Advanced Auto Parts, Inc. AAP, and Kohls Corp. KSS options chains.
TJX 06/15 $85-90 Calls
AAP 06/15 $120-130 Calls KSS Weekly $67.50-69.50 Calls
Agile Therapeutics, Inc. AGRX
Another thing we’re always looking for is bottom-play opportunities. We want to place AGRX on watch after seeing the stock get absolutely crushed over the past few sessions.
The short interest has risen dramatically as you can see on the AGRX page of Naked Short Report, and caused a serious gap down to perhaps unsustainably low levels. When an influx of buyers looking for a bargain comes in, we could see that gap begin to fill. We’ll have it on a close bottom watch.
We’re going to kick this week off by taking a look at Hyatt Hotels. This is a stock with a relatively predictable and volatile trading pattern. As you can see on the chart, H is coming down off of a quadruple-top formation, with indicators suggesting a significant bearish swing could occur at any time.
We want to designate a pair of contracts in the H options chain to track over the next week or two to coincide with this assumption. We’re going to slate the H 06/15 $85 & $80 Puts for observation as we kick off this fresh trading week.
We are going to flag Vista Outdoor, Inc. VSTO and Harbinger Group, Inc. HRG for technical reasons as well today, with each stock boasting a highly similar setup.
If you notice the side-by-side view of the charts below, both stocks have been working their way up off of a bottom, with a huge gap on the chart to the upside just waiting to be filled. We see these setups often, and in both cases here, the chances for a gap-fill appear greater than average.
We noticed BH this morning purely on the stock’s interesting chart setup. The stock had been crushed down at the end of last month after the company announced its recapitalization plan. We’re not saying the move shouldn’t have resulted in a decline in the stock’s price, but these selloffs tend to have a snowball effect, and BH has been over-abused.
Simply take a look at the chart below and you can see what we[re talking about. The RSI has been as heavily oversold as you’re likely to see, while the stock has begun to regain some of its lost ground. The MACD is also loudly signaling the potential for a rebound, so we’ll have our eyes peeled.
International Flavors & Fragrances, Inc. IFF
Speaking of bottom play opportunities, we may have an even more interesting one here in IFF today. This stock is currently boasting a cherry of a chart as well, with all of the indicators we commonly scan for showing strong impending bullish signals. Not to mention the Form-4 filed yesterday wherein a 10% ownership insider purchased a $25M block at just a penny below yesterday’s closing price, down here at the bottom.
To help us leverage some good gains out of this one if indeed it can mount the rebound we suspect it might, we’re going to want to be tracking the IFF 06/15 $125-135 Calls.
Walmart was already building a nice head of steam on the chart in the weeks leading up to this morning’s earnings release. Things have kicked up a notch this morning as Walmart recorded a resounding across-the-board beat, including an online sales increase of 33%
Given that we are always looking out for opportunities to trade options on the heels of a solid earnings beat, we are going to slate some Walmart calls for observation this morning.
We’ll be tracking the WMT Weekly $86.50-88.50 Calls after what we expect should be a dip-and-rip scenario.
Altimmune, Inc. ALT
We would also like to make mention of ALT this morning, after taking notice of the significant pickup in both price action and volatility yesterday.
That was preceded by a lengthy consolidation period as you can see on the snapshot below, and at the present time, the stock is beginning to come off of being oversold. We’ll watch this one for a potential recovery play in upcoming sessions.
Extended Watchlist: BDSI, BIOC, BLNK, IMMU, FRED, NOG